Planning and Budget Process

1. Planning and Budget Process Aggrey Tisa Sabuni Under Secretary Ministry of Finance and Economic Planning Government of Southern Sudan

2. Annual Budget Process • A consultative process which begins in June with the convening of budget sector working groups • All Ministries and spending agencies are a part of a budget sector working group • Budget sector groups are expected to plan for expenditures for the medium term • Final report of each of the groups are presented by end August • Each budget sector group has representatives from the donor community who take active part in the deliberations

3. Budget Call Circular • The budget call circular is issued by the Ministry of Finance and Economic Planning to all Ministries and spending agencies in September • The circular outlines the budget process, the forms to be filled in and sent to the Ministry of Finance and Economic Planning and the timelines for doing so • Forms for 2008 Budget will include an output component, to link expenditures to plans

4. Budget Ceilings • The resource envelope is worked out in consultation with GoNU, particularly with respect to Oil Revenues • The allocations for each spending agency is based on their plans, the expenditure performance during the year and the availability of resources • The ceilings are communicated only after approval by the Council of Ministers • Spending Agencies are required to budget strictly within their ceilings

5. Presentation of the Budget to the Legislative Assembly and Approval • The Minister for Finance and Economic Planning presents the budget to the Legislative Assembly by end November or early December • The Legislative Assembly debates the proposals and makes amendments to the Appropriation Bill • Budget execution begins in January

6. Problems faced in 2006 • There was a lot of extra budgetary expenditure due to unforeseen requirements of Government • Payment systems were just beginning to be put in place and rules were often not adhered to • There were delays in tracking expenditure due to the delay in the appointment of the Accounting Agent • Adequately trained staff, particularly in line ministries, were not available • Appointments of senior officials were made late in the year

7. Steps taken to address the problems • Budget preparation workshops held in 2006 for Government of Southern Sudan staff and states • Workshop conducted early 2007 for senior functionaries in Government of Southern Sudan to sensitize them on the new payment system and its requirements • Training of accountants in GoSS and States being organized

8. Challenges for 2007- GoSS • The single treasury system in now functional but more training of staff needed • More awareness needed among all personnel of the need for adhering to rules • Quicker reporting of expenditures needed for better planning and for taking mid course corrective action • Reporting on revenues and expenditures to the Legislative Assembly on a quarterly basis • The Cash Management Committee has to start functioning soon so that expenditures are limited to the availability of cash • Ministries have to plan for commitments and expenditures better- better planning process can be achieved through budget sector plans • Prepare a draft set of objectives for GoSS Budget Framework Plan based on draft budget sector plans for the medium term in 2007

9. Challenges for 2007- States • Ensure that all States have approved budgets • Training for state staff in the area of Public Financial Management a priority • To get the Core Fiduciary Systems Projects for the States up and running as soon as possible