With reference to budgeting process, both academics and practitioners have underlined the advantages of passing from an input-based to a programme budgeting process. There are several advantages in the programme budgeting approach over the traditional, line-item approach.
Firstly, the former aims to direct funding more towards the achievement of actual policy objectives or outputs. Under programme budgeting, PAs activities are divided into the hierarchical structure of programme, sub-programme, activity and component (if necessary). Appropriations can then be made to particular programmes according to the priorities of the actual PAs political leadership. Therefore, it allows a better allocation of resources and politicians can to some extent reassert its control over budgeting. In this sense, at the same time the budgeting reform process has given more power both to political leadership and public managers.
Secondly, with a programme budgeting process forward planning is enhanced. Thirdly, people operating within PAs have more incentives for implementing better management practices.
Finally, a programme budget is a document in which PAs are more accountable and transparent for the money advanced to them by
Summary;
The policy goal behind the pursuit of fiscal transparency is to ensure that the objectives of fiscal policy, it’s legal, institutional, and economic framework, policy decisions and their rationale, data and information related to monetary and financial policies, and the terms of agencies’ accountability, are provided to the public on an understandable, accessible, and timely basis.
Fiscal transparency is propagated as part of a larger policy goal of good economic governance pursued to achieve poverty reduction and attain the Millennium Development Goals (MDGs).
Indeed, on the African continent, the calls for more openness in the budget processes is part of a set of endeavors aimed at solving the paradox of copious natural resources and increasing donor magnanimity, on the one hand, and seemingly intractable abject poverty, on the other hand. It is also aimed at addressing corruption and theft of State resources and money laundering, among many.
Against this background, the fiscal transparency practices in 15 African countries are as follows. It is relied on published reports including those of the international financial institutions, theoretical literature, press reports, various websites to access laws, budget documents, reports, regional and international guidelines and case studies. It looks at critical areas of transparency, namely: clarity of roles and responsibilities; public availability of information; open budget preparation, execution and reporting; independent assurances of integrity; and the extent to which these are practiced in Africa.
At variance with the views of a number of commentators, this study concurs broadly with the recent findings of the ECA African Governance Report (AGR), that, overall, Africa is making progress towards better economic management, and, it appears that the prodigious pace of reforms is likely to continue.
These events include the end of the Cold War and cessation of support to corrupt regimes such as that found in former Zaïre; the revelations of stolen assets by officials entrusted with State funds; the ponderous attention devoted to the effectiveness of aid; the recent announcement by G8 countries of debt cancellation and other forms of aid to poor countries that are implementing good governance practices; the wave of democratization in Africa; and Africa’s own initiatives such as the New Partnership for Africa’s Development (NEPAD) and the African Peer Review
There is a deluge of new laws and regulations of international standards in many countries indicates a commitment to fiscal transparency, supported by the Poverty Reduction Strategy Paper (PRSP) and multi-year budgeting processes to better link policy to budget and entrench fiscal discipline. On the negative side, it is found seemingly insurmountable implementation shortfalls of these laws, partly reflecting lingering capacity constraints, susceptibility to the whims of weather, gyrations in commodity prices and anemic foreign aid flows. Reinvigorated efforts are keenly needed to enhance transparency in procurement and privatization processes, ensure the integrity of budgeting data and documents, and to address auditing and critical deficiencies in the involvement of Parliaments and other independent oversight organs.
Final conclusion:
The most important constraint that Africa faces in applying good fiscal transparency practices is the need for political will and commitment. Without this element at the core of economic reforms in general and fiscal reforms in particular, no amount of foreign assistance or legislation can extricate the continent and her peoples from the economic mismanagement, corrupt practices and the dire poverty plaguing the continent.