
Planning and Preparation of the Annual Budget
A thorough evaluation of national priorities, macroeconomic forecasts, and income forecasts should be the first step in the annual budgeting process. Budget recommendations by ministries, departments, and agencies (MDAs) must be in line with the Medium-Term Expenditure Framework (MTEF) and the government’s strategic goals. Early communication of clear ceilings is necessary to guarantee practical and financially viable plans. To improve inclusivity and transparency, stakeholder consultations—including public and parliamentary input—should be incorporated into the planning phase.
Approval and Implementation of the Budget
The proposed budget should be sent to the legislature for prompt review and approval after the executive has completed it. Alignment with legal frameworks, policy goals, and budgetary responsibility targets must be guaranteed by legislative monitoring. Following approval, money should be disbursed in line with a cash flow strategy, and MDAs are required to carry out their tasks effectively and within the resources allotted. To encourage value for money and eliminate waste, procurement and project execution should adhere to public finance legislation.
Observation, Assessment, and Reporting
To measure progress, identify deviations, and guide corrective action, regular monitoring and performance reporting are essential. The central finance authority should receive timely and accurate financial and programmatic data from all spending units. The results of independent audits and assessments should be incorporated into future budget planning since they improve accountability. Effective management of public resources with a focus on outcomes, transparency, and public confidence is ensured by bolstering institutional capacity in monitoring and assessment.

Author: Mohamed Yasin