What Problems Would the Minister of Finance Encounter in the Process of Budget Formulation and Implementation in Zambia?

1958 Words Jan 31st, 2013 8 Pages
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
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Ideally, supplementary expenditure is supposed to meet unforeseen expenditure such as disasters, but this has not been the case in the past. Some expenditures incurred in the past which were treated as supplementary were purely as a result of poor budgeting as they should have been planned for. (c) Inadequate Time for Consideration of the Budget
The time required by Parliament to study and approve the budget is limited. Limited time coupled with inadequate in-house expertise to provide technical and unbiased advice on the budget to Members of Parliament adversely affects the quality of the debates on the floor of the House.

(d) Lack of Transparency
Again here the Minister of Finance would face pressure from civil society from lack of transparency by the Ministry of Finance when disbursing funds. In other jurisdictions, the community would want disbursements by displaying relevant information on the notice board in respective local areas for transparent sake. Further, the Government would be expected to expedite rolling out the implementation of the Integrated Financial Management Information System (IFMIS) programme to other provinces and districts.

(e) Improved Fiscal Management
The Government collects taxes on the basis that it will provide specific socio-economic benefits to the people.
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