- 4 Marks
Question
a) Budget hearing is a critical activity in the budget process which is conducted to review strategic plans and estimates of the departments in order to ensure that these plans and estimates are in accordance with the government’s macroeconomic policy framework.
Required:
Explain FOUR significant principles of Budget Hearing that ensures that Ministries, Departments, and Agencies (MDAs) prepare their budget proposals in accordance with the government macroeconomic policy framework.
Answer
- Alignment with Macroeconomic Framework: The MDA budget should not introduce new political proposals that result in incremental or radical changes to the government’s macroeconomic policy.
- Certainty in Budget Outcomes: Budget proposals from MDAs should provide certainty in outcomes, ensuring that all relevant costs are captured within a single fiscal year.
- Legal Compliance: MDA budget proposals must comply with existing laws and legal rules, ensuring that no conflicts arise between proposed expenditures and existing legal frameworks.
- Evaluation of Cost Variations: It is necessary to determine whether the projects or programs in MDA budget proposals will lead to variations in costs, ensuring that these variations do not extend beyond the fiscal year.
(4 points for 4 marks)
- Topic: Public sector fiscal planning and budgeting
- Series: NOV 2016
- Uploader: Cheoli