Planning and Development Budget Reform, 1990–1995
Planning and Development Budget Reform, 1990–1995
The NRA victory triggered substantial aid flows, accounting for over half of public expenditure. However, the planning and budgeting systems had collapsed,; so donors largely did their own thing and much aid was ineffective. This chapter describes the measures adopted to establish some order and bring government policy priorities to bear on donor allocations and public expenditure generally. It discusses the key reforms, designed to attract increased aid and improve the effectiveness of all public expenditure: the merger of the finance and planning ministries; consolidating responsibility for sector policy, planning, and budgeting in a single division; capturing aid in the plan and budget; integration of the plan and development budget; establishment of internal review processes and the challenge function; and management of counterpart funding. Aspects of Uganda's ‘legacy’ are highlighted, such as: the Paris Declaration principle that aid should align behind government plans; the PIP as the forerunner of the Poverty Eradication Action Plan and poverty reduction strategies; linking plan and budget; and Public Expenditure Tracking Surveys.
Keywords: plan, development budget, public expenditure, aid, aid coordination, counterpart funds, merger of ministries, challenge function
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