Question Tag: Budgetary Terms

i) Mid-Year Review: The Public Financial Management Act 2016 requires the Minister to, not later than the 31st of July of each financial year, prepare and submit to Parliament a mid-year fiscal policy review. It provides an update of macroeconomic forecasts undertaken by Government; an analysis of the total revenue, expenditure and financing performance for a period up to the first six months of the financial year; a presentation of a revised budget outlook for the unexpired term of the financial year, and the implication of the revised budget outlook for the Medium-Term Fiscal and Expenditure Framework if necessary; and where necessary plans for submitting a proposed supplementary budget for approval by Parliament; and an overview of the implementation of the annual budget and of the budgets of covered entities. (2 marks)

ii) Virement: It refers to the reallocation of funds within the budget from one budget line to another budget line. It is the rearrangement of the budget provisions for subheads, items or sub-items or sub-sub-items within the ambit of a single head. Virement ensures that savings under one classification may be utilised to provide for extra expenditure under another without affecting the total funds to be disbursed from the head. The Minister may, on the request of a Principal Spending Officer, execute a virement in respect of an amount of money allocated to the covered entity of that Principal Spending Officer. (2 marks)

iii) Revised/Supplementary budget: Where in a financial year, it is found that the amount appropriated by the Appropriation Act is insufficient, or that a need has arisen for expenditure for a purpose for which no amount has been appropriated by the Appropriation Act, the Minister shall lay before Parliament for approval, a supplementary estimate, in the form of a Supplementary Appropriation Bill indicative of the amount required. (1 mark)