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Bunge Newsletter BungeNe ewsletter Issue No 008 June 2013 New Budget Cycle Shows Relavance For the first time in recent Tanzania history the engage the government and influence it make sev- Parliament has managed to pass the next financial eral tangible changes in its initial budget proposals. year budget before the onset of that particular year. This has been made possible by the Budget Commit- This has been made possi- tee, another new innovation by Speaker Makinda. ble by adoption of new budget cycle. Under the old cycle, it was not possible to influence According to the new budget cycle, the Parliament the government to make changes in budgetary allo- starts discussing the budget in April as opposed to cations. That was because the main budget was read, old cycle where debate on the new budget started on debated and passed before the sectoral plans. After June and ends in the first or second week of August. the main budget was passed, it was impossible for the MPs and government to make changes in the When the decision was taken to implement the new sectoral budgets since they were supposed to reflect budget cycle and Speaker Anne Makinda announced the main budget which had already been passed. the new modalities many people, including Mem- bers of Parliament, were skeptical. Many stakehold- These and many other changes have been made possi- ers were not so sure that the new cycle would work. ble through the five components implemented under the Parliament five years development plan. “Govern- But Ms Makinda has managed to prove the doubt- ment and Budget Oversight and Accountability is one ers wrong. Not only has the Parliament lived through of the Bunge five overarching components of the de- the first experience well, but MPs have been able to velopment plan and the Legislative Support Project 1 Many MPs have hailed Speaker Makinda for her for additional funding for various areas to be con- steadfast management of the new budget cycle. They sidered by the government. To allow for this, Budget noted that though the cycle was new, which created a Session timetable is set such that at the end of the in- lot of anxiety among MPs, Ms Makinda was focused dividual budget, there is a one week period during and kept the cycle on track and at the end of the day which the Budget Committee sits with the government everyone has seen the advantage of the new cycle. and discuss on how to accommodate the MP views. “If it were not for Speaker firm stand on this and her Benefit of this has been seen this year. From MPs guidance whenever people went astray, this new cy- recommendations, the Budget Committee reviewed cle would not have been possible,” noted Mr Khalifa 71 specific requests for additional funding from ten Suleima Khalifa, the Gando legislator on CUF ticket. sectoral Parliamentary Committees. These requests totaled Sh654.21 billion. After consultations with the For his part, Tabora Urban MP, Mr Ismail Aden Rage government, the government agreed to provide Sh513 said after the Parliament has fulfilled its responsibility billion, equivalent to 78.42 per cent of total requests.. of debating and passing the budget before the onset of the new financial year, it was upon the government to “This not a small deed considering where we have fulfill part of its obligation but ensuring that funds, es- come from. This is great achievements considering pecially for development projects, are released on time. that we are practicing this cycle for the first time,” not- ed Mr Andrew Chenge, the chairman of the Budget Owing to the changes in the budget cy- Committee when giving a feedback on the work of his cle, the Parliament has been forced to change committee ahead of the reading of the main budget. its operating procedures, in order to con- form to the newly adopted cycle. The changes The procedure of discussing the individual budgets As opposed to old cycle, the budget cycle would ahead of the main budget gives MP freedom to air begin by the Parliament sitting as planning com- their views knowing that there is possibility for them mittee in its October/November session. In the old to be taken aboard. This was witnessed during the de- cycle, such activity was conducted in February. bate on various ministerial budgets. MPs were able to influence the government to agree to augment budg- This would facilitate the tabling, debating and ets for water and Rural Electrification, for instance. passing of budgets between April and June be- fore July 1, when the financial year begins. The Budget Committee has also assisted the govern- ment to consider the requests by the MPs. Such re- In the old cycle, the budget debated continued to quests are first processed by the committee and after August thus delaying the release of funds after the noting that they are important it engages the gov- commencement of a new financial year in July 1, be- ernment. During the dialogue, the committee does cause the Parliament was still discussing the budget. not only go with the requests, but also with propos- als on how the government could raise more mon- “Many development activities, especially those ey to carter for the requests for additional funding. slated to start in July, suffered because the govern- ment could not release the money for them un- Another advantage of the new cycle is that the Budg- til the Parliament session ended in August. The et Committee has been charged with responsibility months delay affected many projects and during of ensuring effective execution of the budget. Many that time the government could not collect any rev- MPs have been lamenting about delay in release of enue as there was no legal mandate for it to do so,” funds for development activities. As we have seen said Deputy Speaker, My Job Ndugai when tabling above, the problem has been solved by the new cy- amendments to the Parliament Standing orders dur- cle which ensures that the discussion of the budget is ing the beginning of the budget session in April. concluded before the onset of the new financial year. Under this new cycle, as we have hinted above, sectoral But there is also problem of reallocation. Many MPs budgets are discussed first and the main budget, which have decried the trend by some government officials as is summation of all the individual budgets, comes last. well as councils to reallocate the funds after they have This gives opportunity for MPs views, such as request been passed by the Parliament. Under the new cycle, 2 the Budget Committee will be required to ensure that ing to fail. But we all remained and worked as one. money is released timely. It is encouraging to note that in requirement of the new cycle, the government has “This is a new thing to all of us and like any oth- committed itself to give quarterly reports on the im- er new introduction, challenges are inevitable. plementation of the budget to the Budget Committee. What is important is that we should ensure that we don’t lose sight of what we want to achieve, that is what has kept us going,” said Ms Makinda. He thanked the MPs, Budget Committee, other secto- ral committees, the government and other stakehold- ers for their support of the new cycle which has made it a success in its first year. She urged them to continue with the spirit as the cycle is refined and entrenched. “We all agree that the cycle is good, therefore, we should ensure that we stick together as challeng- es will continue to come up. If we work together we will be able to make this cycle powerful and I am sure that it will help us solve many of prob- lems we are facing in budget execution,” she added. Minister for Finance Hon. Dr. William Mgim- wa displaying the suite case containing the Country’s Budget Speech for the financial year 2013/14 in Dodoma As noted by Speaker Makinda, the cycle has not been without challenges. When presenting his com- This would enable timely knowledge on what is going on mittee work, Mr Chenge outlined a number of chal- as far as budget implementation is concerned. This will, lenges including lack of budget discipline among in turn, allow timely interventions after consultations some public servants at central government as well between the government and the Budget Committee. as at council level. He noted that for the new cy- cle to work effectively, executives should stick to Because the Budget Committee will act as a im- the set regulations and avoid doing things as usual. mediate watchdog on how the budget is executed, many people hope that the problem of reallocation Mr Chenge was also of opinion that the real- will be minimized, if not abandoned altogether. location cycle, which is legal, should be im- proved by enacting a Budget Act which will But, what has made this new cycle work is stead- give the Parliament more power to supervise fast position taken by Speaker Anne Makinda. the implementation of the government budget. Every time problems over the implementation of the new cycle cropped up, Ms Makinda has been Mr Chenge also said the government should now ensure in the front to look for way around the problem. that release of money for development projects should start in the first quarter because debate on the budget Though she was skeptical like others, but she al- will be concluded before the new financial year begins.
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