What Problems Would the Minister of Finance Encounter in the Process of Budget Formulation and Implementation in Zambia?
What problems would the minister of finance encounter in the process of budget formulation and implementation in Zambia?
The national annual budget is a document containing various government activities or work programmes expressed in monetary form. Thus, the budget is an important economic policy tool for macroeconomic management and resource allocation. It provides a comprehensive statement of the nation’s economic priorities.
Accordingly, the budget formulation process has four major dimensions namely
(i)Setting up the fiscal targets and the level of expenditures compatible with these targets. This is the objective of preparing the macro-economic framework.
(ii)Formulating expenditure policies.
(iii)Allocating resources in conformity with both policies and fiscal targets. This is the main objective of the core processes of budget preparation.
(iv)Addressing operational efficiency and performance issues.
In Zambia the Minister of Finance spearheads the process of budget formulation and implementation. There are a number of problems which the Minister of Finance encounters in the process of budget formulation and implementation. To understand these problems better, the process of budget formulation as well as implementation is hereby briefly explained followed by highlights of the problems the budget process undergoes.
i.Budget formulation (Drafting) Stage
The initial stage in the budget process is the drafting of the budget. Through this process, the Ministry of Finance (MoF) develops a national budget every year. Normally, the drafting of the budget goes through the stages set out hereunder.
(a) Preparation of a Consultation (Concept) Paper for Cabinet
(b) Update of the Macro-Fiscal Framework for the Forthcoming three years and Draft Green Paper
(c) Cabinet Approval of the Green Paper and Dissemination of Budget Guidelines (Call Circular)
(d) Budget Hearings on the Draft Budget Estimates of MPSAs (e) Cabinet Approval of the Draft Budget and
The national annual budget is a document containing various government activities or work programmes expressed in monetary form. Thus, the budget is an important economic policy tool for macroeconomic management and resource allocation. It provides a comprehensive statement of the nation’s economic priorities.
Accordingly, the budget formulation process has four major dimensions namely
(i)Setting up the fiscal targets and the level of expenditures compatible with these targets. This is the objective of preparing the macro-economic framework.
(ii)Formulating expenditure policies.
(iii)Allocating resources in conformity with both policies and fiscal targets. This is the main objective of the core processes of budget preparation.
(iv)Addressing operational efficiency and performance issues.
In Zambia the Minister of Finance spearheads the process of budget formulation and implementation. There are a number of problems which the Minister of Finance encounters in the process of budget formulation and implementation. To understand these problems better, the process of budget formulation as well as implementation is hereby briefly explained followed by highlights of the problems the budget process undergoes.
i.Budget formulation (Drafting) Stage
The initial stage in the budget process is the drafting of the budget. Through this process, the Ministry of Finance (MoF) develops a national budget every year. Normally, the drafting of the budget goes through the stages set out hereunder.
(a) Preparation of a Consultation (Concept) Paper for Cabinet
(b) Update of the Macro-Fiscal Framework for the Forthcoming three years and Draft Green Paper
(c) Cabinet Approval of the Green Paper and Dissemination of Budget Guidelines (Call Circular)
(d) Budget Hearings on the Draft Budget Estimates of MPSAs (e) Cabinet Approval of the Draft Budget and