Medium Term Expenditure Framework

Transcription

1 REPUBLIC OF NAMIBIA Medium Term Expenditure Framework 2012/2013 to 2014/2015 Fiscal Sustainability and Job-Creating Growth - Doing More with Less

2 Table of Contents 1. Introduction MTEF and the Budget Cycle Government Financial Operations Total Revenue and Grants Total Expenditure Including Interest Sectoral Allocations (excluding Statutory Payment) Development Expenditure Total expenditure (Including Statutory )breakdown of this MTEF Budget Balance Central Government Debt and cost of borrowing Contingent Liabilities Public Finance Management Reforms Tax Reforms Expenditure Reforms Strategies of Public Expenditure Management envisaged over the MTEF Managing the budget on Programme basis Tender Board Approvals EFT payments IFMS Release 12 and roll out to the regions ASYCUDA World Legislations State Finance Bill Tender Board Bill and Regulations SOE Funding and Accountability reports Medium Term Plans (MTP)...21 OFFICE OF THE PRESIDENT...22 OFFICE OF THE PRIME MINISTER...28 NATIONAL ASSEMBLY...43 MINISTRY OF HOME AFFAIRS AND IMMIGRATION...63 DEPARTMENT OF POLICE...70 MINISTRY OF DEFENCE MINISTRY OF FINANCE MINISTRY OF EDUCATION NATIONAL COUNCIL i

3 MINISTRY OF GENDER EQUALITY AND CHILD WELFARE MINISTRY OF HEALTH AND SOCIAL SERVICES MINISTRY OF MINES AND ENERGY MINISTRY OF JUSTICE MINISTRY OF ENVIRONMENT AND TOURISM MINISTRY OF TRADE AND INDUSTRY MINISTRY OF AGRICULTURE, WATER AND FORESTRY DEPARTMENT OF WORKS WORKS AND TRANSPORT NATIONAL PLANNING COMMISSION MINISTRY OF YOUTH, NATIONAL SERVICE, SPORT AND CULTURE ELECTORAL COMMISSION OF NAMIBIA MINISTRY OF INFORMATION AND COMMUNICATION TECHNOLOGY ANTI.CORRUPTION COMMISSION MINISTRY OF VETERANS AFFAIRS Appendix ii

4 Table of Figures Figure 1: MTEF Timeline Series...5 Figure 2: Projected Revenue by sources for the MTEF period... 8 Figure 3: Operational Expenditure Breakdown in Percentage iii

5 List of Tables Table 1: Global Budget (Operational and Development) Budget Ceilings, 2012/ /15 excluding Statutory Expenditure Table 2: Total Budget Ceilings by Sector, 2012/ / Table 3: Operational Budget Ceilings, 2012/ / Table 4: Development Budget Ceilings, 2012/ / Table 5: Total Expenditure Breakdown in N$000 and % Share iv

6 MTEF Timeline Series Figure 1: MTEF Timeline Series Timeline Series of Produced Medium Term Expenditure Frameworks 2001/ / / / / /05 Average Budget Balance Target: -5 % Actual Average Budget Balance: -3.7 % Average Budget Balance Target: 5 % Actual Average Budget Balance: -3.3 % 2003/ / /06 Average Budget Balance Target: 5 % Actual Average Budget Balance:-3.1 % 2004/ / / / / /08 Average Budget Balance Target: -5 % Actual Average Budget Balance:-1.3 % Average Budget Balance Target -5 % Actual Average Budget Balance:-0.3 % Average Budget Balance Target -5 % Actual Average Budget Balance: 2.0 % Average Budget Balance Target -7 % Actual Average Budget Balance: -1.9 (Budget balance was revised upwards to -7 % of GDP during this MTEF) Average Budget Balance Target -7 % Est. Average Budget Balance:-5.6 % Average Budget Balance Target -7 % Est. Average Budget Balance:-6.6 % Average Budget Balance Target -7 % Projected Average Budget Balance:-7.1 % Average Budget Balance Target -7 % Projected Average Budget Balance:-3.4 % 2006/ / / / / / / / / / / / / / /13 Average Budget Balance Target: -5 % Actual Average Budget Balance: 3.8 % (Government achieved Budget balance surplus for each of the years during the MTEF) 2011/ / / / / /15 5

7 Introduction 1. Introduction The 2012/13 financial year marks the end of the 12 year series of the rolling Medium Term Expenditure Framework (MTEF) documents, the first of which covered the period 2001/2002/-2003/04 financial years. By using the MTEF methodology over this ten-year period, government was able to strengthen financial planning, improve resources allocation, control expenditure and overall manage fiscal policy effectively. The 2012/ /15 MTEF has been drawn up against the background of subdued growth in the world economy and consequent slow down in domestic economy. While facing the need for moving towards fiscal consolidation, government is committed to ongoing programmes and projects of Offices, Ministries and Agencies (O/M/A s) as outlined in the previous MTEF document. During this MTEF period, various expenditure reforms will be introduced and implemented. One such reform is Managing the budget on programme basis. This reform will make possible a strong and effective link between the allocation of resources and performance accountability thereof. It is further aimed at improving efficiency and effectiveness of public spending by linking the funding of O/M/As programmes to results they deliver. The preparation of this MTEF, as was in the previous financial years, is informed by the Macroeconomic Framework and Fiscal Policy Framework. It seeks to provide the implementers, executors and readers with government s expenditure plan and how it will be financed over the next three financial years. Readers are invited to pay attention when total expenditure is analysed. The appropriation act excludes statutory expenditure as they are deemed to have been appropriated in terms of section 10 (1)(b)(iii) read with section 10 (2) of the State Finance Act. However they remain part of total expenditure as they are charged against the State Revenue Fund. The next sections provide information on the content of this MTEF document. 6

8 MTEF and the Budget Cycle 2. MTEF and the Budget Cycle The MTEF comprises expenditure estimates for both development and operational components that are earmarked for spending during a three year time span. As such, votes have prioritised their programmes and activities to fit within the available spending resource envelope. The MTEF is a rolling expenditure framework, which is updated through an annual budgeting process. The preparation of the budget and the corresponding Framework follow a cycle whose stages are explained below: Stage One -The Budget Formulation Stage During this Stage, O/M/As are requested to present their expenditure proposals for scrutiny by Treasury and National Planning Commission (NPC).This process is followed by budget hearings that are conducted between Votes, NPC and Treasury to exchange views on vote s performance, expenditure proposals and available resources as informed by the macroeconomic framework and fiscal policy framework. The same consultation also takes place at ministerial level. The outcome of the budget hearings and recommended ceilings are then presented to Cabinet for consideration. After Cabinet approval, ceilings are communicated to O/M/As to finalize their Medium Term Plans (MTPs). Stage Two Budget Approval At this stage, the Appropriation Bill and the MTEF document are tabled in Parliament by the Minister of Finance. Each minister is then allowed to motivate funds for his or her Vote at a Committee stage. The Budget is then discussed and after approval by both houses of Parliament and signed by the President, it becomes an Appropriation Act. Stage Three - Budget Implementation While the budget is debated in Parliament, Ministries are allowed to spend from their proposed budget through a Continuation Authorisation amount equal to 33% of the previous year s appropriation, in accordance with the State Finance Act. This authorisation is to ensure that ongoing government programmes are not interrupted. Once the Budget becomes an Act, the appropriated amounts become available to the votes for spending. Government spending is subjected to the public procurement process as outlined in the Tender Board Act. Stage Four Monitoring and Evaluation At this stage, the execution of the budget is being monitored and evaluated through different methods such as Integrated Financial Monitoring System (IFMS) and, internal and external auditing. This results in the publication of Auditor General Reports, Accountability reports and public hearings by the National Assembly s Public Accounts Committee. 7

9 Government Financial Operations 3. Government Financial Operations 3.1. Total Revenue and Grants This MTEF projects total revenue and grants inside the State Revenue to reach N$35.4 billion in 2012/13, an increase of 32% over the 2011/12 estimate. This increase is attributable to SACU receipts adjustments of 2010/11 that are payable in 2012/13. Thereafter, total revenue and grants show a steady increase until it reaches N$39.7 billion in 2014/15. The moderate annual percentage increase of revenue follows the economic growth rate trend. Figure 2: Projected Revenue by sources for the MTEF period 18,000,000 16,000,000 Taxes on income and profits 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000, / / / / /15 Taxes on property Domestic taxes on goods and services Taxes on international trade Other taxes Return on capital from Lending and Equity Total Non-Tax Revenue Grants The highest contribution to revenue is expected to come from taxes on international trade, which contributes N$13.8 billion (about 40.8 percent the Total Tax Revenue) in 2012/13 before it slowdown to approximately N$11 billion in 2013 and 2014/15, respectively. Taxes on income and profits are expected to pick up from N$11.6 billion in 2012/13 to N$13.3 billion in 2013/14 and further raise N$ 15.7 billion in 2014/15. Other revenue sources are also expected to pick once the tax reforms are implemented as envisaged this MTEF. 8

10 Government Financial Operations 3.2. Total Expenditure Including Interest The MTEF of 2011/ /14 period projected total expenditure including interest at N$37.6 billion in 2012/13 and N$44.7 billion in 2013/14 excluding the effect of salary increase of 2011/12. However, the proposed 2012/ /15 MTEF makes an adjustment on those projections and as a result, Total Expenditure for this MTEF follow a moderate decrease from N$40.2 billion in 2012/13 to N$41.0 billion in 2013/14 before it slightly increases to N$40.2 billion in 2014/15. The performance of the global economy and its impact on domestic economy, the principle of fiscal consolidation, re-assessment of expenditure proposals and cost of borrowing informed the determination of the total expenditure items. The following table provides expenditure breakdown per vote and sector as a percentage of the share of the total. 9

11 Government Financial Operations Table 1: Global Budget (Operational and Development) Budget Ceilings, 2012/ /15 excluding Statutory Expenditure. N$ Vote Vote Name 2012/ / /15 1 President 379,759, ,109, ,401,200 2 Prime Minister 251,658, ,706, ,262,400 3 National Assembly 115,332, ,383, ,547,800 4 Auditor General 80,670,000 45,721,200 52,991,200 5 Home Affairs and Immigration 254,314, ,887, ,224,500 6 Police 2,362,218,300 2,835,557,300 3,116,936,892 7 Foreign Affairs 542,853, ,493, ,769,272 8 Defence 3,414,538,400 3,522,499,400 3,788,798,920 9 Finance 3,294,888,200 3,464,195,000 2,730,087, Education 9,415,972,800 9,778,886,800 8,931,274, National Council 61,634,800 63,834,800 56,934, Gender Equality and Child Welfare 567,988, ,401, ,692, Health and Social Services 3,975,967,600 3,491,603,600 3,624,752, Labour and Social Welfare 1,328,864,100 1,420,695,100 1,087,147, Mines and Energy 194,397, ,442, ,647, Justice 444,336, ,829, ,334, Regional and Local Government, Housing and Rural Development 1,374,574,500 1,501,409,500 1,209,136, Environment and Tourism 572,450, ,018, ,976, Trade and Industry 727,859, ,673, ,228, Agriculture, Water and Forestry 2,034,233,049 2,314,430,049 2,406,221, Prisons and Correctional Services 447,368, ,971, ,639, Fisheries and Marine Resources 257,463, ,363, ,962, Works 589,886, ,681, ,075, Transport 2,494,680,600 2,167,366,600 1,953,237, Lands and Resettlement 271,527, ,354, ,502, National Planning Commission 160,322, ,475, ,741, Youth, National Service, Sport and Culture 528,699, ,916, ,636, Electoral Commission 199,413, ,626, ,974,120 Information and Communication 29 Technology 305,426, ,620, ,660, Anti-Corruption Commission 50,302,700 31,801,700 24,687, Veterans Affairs 1,061,099, ,311, ,056,840 Total 37,760,702,884 38,318,267,884 36,404,538,920 Note: The vote ceiling for 2012/13 is the same as the Appropriation Act, while 2013/14 and 2014/15 ceilings are indicatives. Details of how the above ceilings are allocated to programme/projects and activities are provided under the Medium Term Plan (MTPs) of each vote. 10

12 Government Financial Operations 3.3. Sectoral Allocations (excluding Statutory Payment) Table 2: Total Budget Ceilings by Sector, 2012/ /15 Sector Votes 2012/ / /15 Social Public Safety Administratio n Economic Total over MTEF 10, 12, 13, 27, 31 15,549,727,100 15,159,119,100 14,087,412,620 44,796,258,820 5, 6, 8, 16, 21, 30 6,973,079,200 7,566,547,200 8,327,621,837 22,867,248,237 1, 2, 3, 4, 7, 11, 14, 17, 26, 28 4,495,082,800 4,707,455,000 4,190,905,832 13,393,443,632 9, 15, 18, 19, 20, 22, 25 7,352,819,684 7,805,477,484 7,053,625,412 22,211,922,580 Infrastructure 23, 24, 29 3,389,994,100 3,079,669,100 2,744,973,219 9,214,636,419 Total 37,760,702,884 38,318,267,884 36,404,538, ,483,509,688 In terms of sector allocations, the highest allocation is earmarked for the social sector of the economy. Namibia continues to devote the largest share of the budget to this sector in order to improve the health status of its citizenry and access and quality of education. Due to Namibia being classified as an upper middle income country, our donor partners, contribution has dwindled, thus additional funds have been allocated to the Health subsector to cater for the procurement of pharmaceuticals and takeover of professional personnel previous funded by international development partners such as Global Funds and PEPFAR.Additional are also provided to increase social grants and to improve coverage of orphans, vulnerable children as well as for war veterans. Under public safety sector, funds are allocated for law and order programmes as well as safety and correctional services programmes. Through these allocations, the programmes for police offices and accommodation facilities are expanded more police officers are recruited and trained. The allocations also enable Defence force to represent our country in UN Peace Keeping Missions and to provide support to the reform of judicial system. As regards Administration sector, funds are earmarked for enhanced democracy, capacity building, service delivery programmes and government s contribution to medical aid. Economic sector received large allocation for rural electrification programmes, the green scheme programme and transfers to Agribank, Development Bank and Nampower. Land acquisition and resettlement programmes also fall under this sector. Infrastructure sector plays a vital role in the economy. The effects of climate change pose a threat to national development. The country has been recently hit by floods, resulting in many road and rail infrastructure being damaged. As a result, in this MTEF, more resources are provided to repair, rehabilitate, maintain and develop infrastructure. 11

13 Government Financial Operations The following table provides information on the operational budget ceiling for each vote. Table 3: Operational Budget Ceilings, 2012/ /15 N$ Vote Vote Name 2012/ / /15 1 President 187,409, ,609, ,401,200 2 Prime Minister 210,731, ,706, ,262,400 3 National Assembly 109,383, ,883, ,547,800 4 Auditor General 45,670,000 42,421,200 52,991,200 5 Home Affairs and Immigration 201,187, ,887, ,985,500 6 Police 2,089,557,300 2,535,557,300 2,766,936,892 7 Foreign Affairs 437,593, ,493, ,769,272 8 Defence 2,960,304,400 3,022,004,400 3,278,798,920 9 Finance 3,215,579,200 3,384,195,000 2,700,836, Education 8,872,956,800 9,178,886,800 8,281,274, National Council 61,434,800 63,834,800 46,934, Gender Equality and Child Welfare 537,676, ,417, ,642, Health and Social Services 3,480,041,600 2,991,603,600 3,124,752, Labour and Social Welfare 1,305,073,100 1,392,581,100 1,047,147, Mines and Energy 91,542,700 98,442,700 70,647, Justice 394,829, ,129, ,334,200 Regional and Local Government, 17 Housing and Rural Development 876,409, ,409, ,136, Environment and Tourism 421,418, ,518, ,976, Trade and Industry 265,373, ,673, ,228, Agriculture, Water and Forestry 1,005,937, ,437,049 1,006,221, Prisons and Correctional Services 362,671, ,971, ,639, Fisheries and Marine Resources 204,463, ,363, ,962, Works 530,415, ,915, ,936, Transport 988,936, ,536, ,237, Lands and Resettlement 107,653, ,953, ,502, National Planning Commission 118,992, ,692, ,054, Youth, National Service, Sport and Culture 471,916, ,916, ,636, Electoral Commission 198,913, ,626, ,474,120 Information and Communication 29 Technology 216,120, ,620, ,660, Anti-Corruption Commission 28,101,700 29,801,700 22,687, Veterans Affairs 1,046,711, ,311, ,056,840 Total 31,045,005,884 31,167,401,884 29,363,672,920 Note: Vote 09: Finance ceiling exclude statutory payment as they are deemed to have been appropriated Section 10 (1) (b) (iii) and Section 10 (2)of the State Finance Act (Act No 31 of 1991) 12

14 Government Financial Operations 3.4. Development Expenditure The development budget constitutes breakdown of allocations per vote is provided in the table below. Table 4: Development Budget Ceilings, 2012/ /15 Vote Vote Name 2012/ / /15 1 President 192,350, ,500, ,000,000 2 Prime Minister 40,927,000 70,000, ,000,000 3 National Assembly 5,949, , Auditor General 35,000,000 3,300, Home Affairs and Immigration 53,127,000 60,000,000 47,239,000 6 Police 272,661, ,000, ,000,000 7 Foreign Affairs 105,260, ,000, ,000,000 8 Defence 454,234, ,495, ,000,000 9 Finance 79,309,000 80,000,000 29,251, Education 543,016, ,000, ,000, National Council 200, ,000, Gender Equality and Child Welfare 30,312,000 30,984,000 31,050, Health and Social Services 495,926, ,000, ,000, Labour and Social Welfare 23,791,000 28,114,000 40,000, Mines and Energy 102,855, ,000, ,000, Justice 49,507,000 56,700,000 75,000, Regional and Local Government, Housing and Rural Development 498,165, ,000, ,000, Environment and Tourism 151,032, ,500,000 80,000, Trade and Industry 462,486, ,000, ,000, Agriculture, Water and Forestry 1,028,296,000 1,318,993,000 1,400,000, Prisons and Correctional Services 84,697,000 90,000, ,000, Fisheries and Marine Resources 53,000,000 55,000,000 55,000, Works 59,471,000 34,766,000 36,139, Transport 1,505,744,000 1,466,830,000 1,400,000, Lands and Resettlement 163,874, ,401, ,000, National Planning Commission 41,330,000 26,783,000 52,687, Youth, National Service, Sport and Culture 56,783,000 80,000,000 80,000, Electoral Commission 500, , Information and Communication Technology 89,306, ,000, ,000, Anti-Corruption Commission 22,201,000 2,000,000 2,000, Veterans Affairs 14,388,000 15,000,000 17,000,000 Total 6,715,697,000 7,150,866,000 7,040,866,000 N$ 13

15 Government Financial Operations 3.5. Total expenditure (Including Statutory) breakdown of this MTEF Operational Budget continues to take up the largest portion of the National budget over the MTEF period. In terms of percentage shares, it takes up 83% in 2012/13 and 2013/14 respectively before it slow down to 82% in 2014/15. Of these allocations, personnel expenditure constitutes 42.3%, 45.8% and 46.8% in 2012/13, 2013/14 and 2014/15, respectively. The exponential trend on personnel expenditure, if not curtailed, will become unsustainable. Table 5: Total Expenditure Breakdown in N$000 and % Share Expenditure type 2012/ / /15 Interest and other expenditure Operational (Personnel) Operational (Other, including transfers) Guarantees and Borrowing Charges Total Operational Budget (Inc interest) Interest and other expenditure 6.6% 7.3% 10.8% Operational (Personnel) 42.3% 45.8% 46.8% Operational (Other, Including transfers) 50.6% 46.3% 41.8% Guarantees and Borrowing Charges 0.6% 0.6% 0.6% Total 100.0% 100.0% 100.0% Total Operational Budget (Inc interest) Development Budget Expenditure Total Budget Total Operational Budget (Inc interest) 83% 83% 82% Development Budget Expenditure 17% 17% 18% Total Budget 100% 100% 100% 14

16 Government Financial Operations Figure below provides a better composition of the operational budget in terms of percentage shares. Figure 3: Operational Expenditure Breakdown in Percentage 60.0% 50.0% 40.0% 30.0% 20.0% Interest and other expenditure Operational (Personel) Operational (Other, incl transfers) Guarantees and Borrowing Charges 10.0% 0.0% 2012/ / /15 15

17 Government Financial Operations 3.6. Budget Balance In line with the projected revenue and expenditure for the period 2012/ /15, budget balance is projected to steadily increase from 4.6% in 2012/13 before it slows down to 0.4% in 2014/15. The budget balance figures amount to N$4.7 billion in 2012/13, N$5.7 billion in 2013/14 and N$0.5 billion in 2014/ Central Government Debt and cost of borrowing The projected budget deficit is financed mainly through the insurance of securities and external borrowing. The implication is that government debt stock increases and has to be monitored to ensure that debt levels are sustainable. The projected debt stock as a ratio of GDP is 27.7% in 2012/13, 30.3% in 2013/14 and 27.9% in 2014/15. These levels though sustainable generate large cost implication in terms of servicing costs. This borrowing cost is projected to rise from N$ 2.2 billion in 2012/13, to N$2.5billion in 2013/14, and further increase to N$3.6 billion in 2014/ Contingent Liabilities Government Contingency Liabilities amounts to N$200 millions for each financial year of this MTEF. This corresponds 0.2 % of GDP and well within the set target Public Finance Management Reforms Tax Reforms Government continues to undertake various reforms with the aim to bring about improvement in the management of public finances. One such reform is tax policy and administration which aim to broaden and deepen the revenue base hence maximising revenue. As a part of these reforms, the structure of the Receiver of Inland Revenue office shall be reviewed, the current tax administration system will be replaced with an Integrated Tax Administration System (ITAS) and a tax payer education programme shall be strengthened On the customs and excise, reforms are also being undertaken in line with SACU and SADC integration and to improve collection from trade and excise taxes.. 16

18 Government Financial Operations Expenditure Reforms As a part of its Public Expenditure Management (PFM), government has initiated a process of reviewing of expenditure of Offices/Ministries/Agencies (O/M/As) with an expenditure review having been (PER) conducted for the education sector in 2011 with the support of the European Union. This review provides valuable financial and sector information supporting GRN s quest to improve quality of expenditure and tracking of results. In order to ensure that expenditure deliver results, the government s transfers to SOEs Regional and Local Authorities will also be subjected to monitoring. The control of trade accounts and other related accounts will also be strengthened. In order to ensure timely and accurate payment to services providers/suppliers and/or contractors, government will continue to improve on the Electronic Funds Transfers (EFT) system that was introduced in The reform will make provision for other modules including tax refunds and receivables to be brought on board Strategies of Public Expenditure Management envisaged over the MTEF Managing the budget on Programme basis On the expenditure front, the program budgeting approach will be extended to the accounting side of the budget. The objective of managing the budget on programme basis is to ensure that O/M/As prepare their reportsand accounts for their on the programmes. That way the forces will not be on how much dollar was spent but rather on the impact of such spending. During 2012/13 some votes will be piloted with a view to roll-out this reform to all votes in 2013/14 financial year Tender Board Approvals Treasury will issue regulations which shall require O/M/As to submit information on Tender Board exemptions and approvals before payment is effected. This measure will ensure that spending is within such approvals. 17

19 Government Financial Operations EFT payments The Ministry has introduced Electronic Funds Transfer payment system with the aim to improve efficiency of the government payment system, by ensuring timely payment and reducing costs of making payment while also minimising fraud associated with cheques payment IFMS Release 12 and roll out to the regions The Ministry of Finance has initiated a process to migrate the IFMS (Integrated Financial Management System) onto the latest technologies of Oracle which is currently Oracle Release 12 (version ). The aim of moving the Treasury Accounting System to the latest Oracle Release 12i is to ensure that government benefits from the additional features of the new Oracle Release which will provide government with more flexibility and control for its public expenditure management.. The project implementation is planned over a period of 9 months with activities having started in August The Release 12 is scheduled to go live as from 1 April ASYCUDA World ASYCUDA World is the latest ASYCUDA software in the global market built upon the successful experiences of ASYCUDA++. ASYCUDA stands for Automated Systems for Customs and Data. It is a Web based system aimed to take three to four years starting earlier 2012.The major aim of the system is to streamline Customs procedures and enhance systems controls while eliminating the need of human interventions during operations Legislations State Finance Bill The process of reviewing the State Finance Act has resulted in two separate Bills, State Finance Bill and the Audit Bill. Both of these Bills have been finalized and are undergoing legal drafting before and are scheduled to be tabled in Parliament. Treasury regulations are also being finalized. 18

20 Government Financial Operations Tender Board Bill and Regulations Public procurement plays a vital role in the development of the economy. In this regard the Tender Board Bill will be tabled in Parliament before mid The Bill shall amongst others, harmonise the standards of procurement systems of government at all levels and shall strengthen the monitoring aspect of public procurement process. 19

21 SOE Funding and Accountability reports 4. SOE Funding and Accountability reports As in the previous MTEF this MTEF contains large transfers to SOEs, Regional Councils and Local Authorities. Therefore, government in line with principles of transparency and accountability reports on the usage of funds transferred to these entities will form part of the O/M/As Accountability Reports. 20

22 Medium Term Plans (MTP) 5. Medium Term Plans (MTP) The MTPs show improvement in the presentation as they show clearly how government has deployed resources and the expected results. However MTPs and Accountability Reports of most O/M/As still do not show the investment plans and implementation reports of the SOEs and Local Authorities making the accounting to Parliament and the public incomplete. The lists of all O/M/As MTPs are found under the next section of this document. 21

23 Office of the President OFFICE OF THE PRESIDENT Vote 1 Objectives 1 Enable the President to uphold, protect and defend the Constitution of the Republic of Namibia effectively. Ensure that all organs of state deliver Government s overall objectives. Ensure threats to political, military and economic stability are frustrated. Provide efficient, effective and trusted services to the Founding President. Ensure an orderly formulation, implementation and monitoring of all Cabinet decisions. Ministerial Targets To ensure 100% maintenance of the Office building facilities over the MTEF period. To ensure 100% completion of additional Guest House, Founding President office block. To ensure 100% monitoring of Cabinet decisions implementation are implemented within six months over the MTEF period. To ensure that 100% consultation with various Communities and Traditional leaders throughout the country is maintained over the MTEF period. To ensure that the strategic plan is 100% implemented over the MTEF period. To ensure 100% timely provision of intelligence for policy formulation and decision making over the MTEF period. State Revenue Fund (N$ 000) Operational Budget 5 Development Budget Development Partners 6 Total From PEMP 2 Actuals 3 Provisional outturn figures. Total to agree with General Ledger 4 From 2008 MTEF 5 Where ceilings shown in the MTEF already include DP funding, they should be adjusted downward. 6 Only where paid through the State Revenue Fund. Development Partner funding outside the State Revenue Fund should be included in Development Partners and Funds. 22

24 Office of the President Programmes (N$ 000) Program code Programme Name Activity Code Activity Name Budget MTEF Projections 2012/ / / Protection and defence of the Constitution 01. Host official functions Undertake National and International Visits 03. Maintain Infrastructure Construct New State House Sub-Total Delivery of Services 01. Provide Advisory Services Carry out executive assignments 03. Provide logistics and procurement 04. Strengthen capacity building 05. First Lady Sub-Total Intelligence Carry out intelligence gathering activities Sub-Total Former President s Office 01. Perform Ceremonial Functions 02. Undertake National International and

25 Office of the President Program code Programme Name Activity Code Activity Name Budget MTEF Projections Visits Sub-Total Cabinet Secretariat 01. Coordinate Cabinet work Monitor and evaluate the implementation of Cabinet decisions 03. Coordinate Inter Governmental activities Sub-Total Total Description of programmes Programme 1. Protection and defence of the Constitution The purpose of this account is to comply with Chapter 5 and other relevant provisions of the Constitution as well as to maintain peace and stability and good governance. Major Activities carried out are as follows: Hosting official functions, official opening of statutory bodies, receiving and commissioning of Ambassadors and High Commissioners, coordinating economic activities; consulting with traditional, regional and local authorities and other public functions and engagements Undertake official Visits, in order to promote bilateral relations, commercial trade and investment, attend multilateral events as well as to sign treaties/protocols with other countries. Maintenance of Infrastructure, to ensure that all buildings on State House premises are maintained Construction of new State House, to ensure conducive working environment for His Excellency the President and administrative personnel. Expected output for each activities Ensure compliance with the Constitution Execution of executive functions vested in the President and Cabinet 7 To agree with total above 24

26 Office of the President Strengthen and consolidate diplomatic relations with the international community Improve democratic governance Enhancement of trade and economic development Promote the image of the Office Provide conducive environment Programme 2: Delivery of Services The purpose of this programme is to ensure that the Executive Branch of Government acts in national interest and uphold the dignity of the Office of the President. Major Activities carried out are as follows: Provision of advisory and administrative services, provide advise to the Head of State in terms of legal, political and economic advise as well as administrative support. Carry out executive assignments, i.e. resolutions of: tribal conflict, emergency relief measures such as flood; droughts, crisis affecting school children and Presidential Commissions of Inquiry. Provide logistics and procurement, to acquire goods and services through issuing of official purchase orders to Government Stores and Private Suppliers as per Tender Board Act of Namibia, (ACT 16 of 1996) and its Regulations and Treasury Instructions which regulates the process of procurement of goods and services. Capacity Building Provide Financial Assistance to staff members for tertiary education, Sent staff members on short courses and workshops Provide in service training Expected output for each activities Ensure effective and efficient governance Improvement in public service delivery Regular review of policies and promotion of national unity and harmony Increased voter confidence in Government s ability to deliver quality services Improve inter- governmental coordination Ensure skilled and knowledgeable workforce Programme 3: Intelligence Maintain a high level of social economic and political stability as well as to defend the territorial integrity and independence of Namibia. 25

27 Office of the President Major Activities carried out are as follows: The effective gathering of intelligence information in order to thwart threats to Namibia s constitutional and democratic order. Sharing of the intelligence information so gathered with law enforcement agencies in order to prevent and combat criminal activities. Broadly ensuring that the Namibian people enjoy peace, safety and security, where they can pursue work without the threat of violence and crime. Expected output for each activities Enhancement of peace and harmony Ensure Political and Economic stability Programme 4: Founding President Ensure that the Office of the Founding President is properly maintained and that efficient and effective services are provided to this Office. Major Activities carried out are as follows: Performing of ceremonial functions as per invitation from the public and the private sector. Attend official functions inside and outside Namibia. Carry out other functions as indicated in his retirement plan including related to the Sam Nujoma Foundation. Expected output for each activities Improved democratic governance Promoting economic development Programme 5: Cabinet Secretariat Conduct policy analysis, evaluation and monitor the implementation of Cabinet decisions. Record and safekeeping of Cabinet documents. Provision of Secretariat services to Cabinet and Cabinet standing committees. Major Activities carried out are as follows: To coordinate the work of the Cabinet: by providing secretarial services during cabinet meetings, cabinet committee meetings. Furthermore, it is to perform the functions assigned to it by the President and or Cabinet; as this office serves as the depository of the records, minutes and related documents of the Cabinet. 26

28 Office of the President Monitoring and evaluation of implementation of cabinet decisions: This done through feedback report on the status of implementation from O/M/A s. As well as through review and evaluation of the impact of cabinet decisions. Inter-governmental coordination Coordinate the implementation of government programmes. Expected output for each activities Informed decision/policy making Improved public service delivery Overall improvement in the implementation of cabinet decisions Proposals for switching None Additional Resources for 2012/13 An amount N$ is needed for the Office of the First Lady to cover the activities, remuneration of the staff component and programmes of the Organisation of the African First Ladies (OAFLA) against Aids and HIV/AIDS locally and internationally. (As per cabinet decision No14th / /007) Programmes (N$ 000) Program code Programm e Name 02. Delivery of Services Activity Code Activity Name Budget MTEF Projections 2012/ / /15 06 First Lady Sub-Total Total Proposals for 2014/15 Inflation and increment on remuneration benefits. Strategic expansion on intelligence operations locally and internationally global coverage. 8 To agree with total above 27

29 Office of the Prime Minister OFFICE OF THE PRIME MINISTER Vote: 02 Objectives9 Ensure that the Prime Minister and Deputy Prime Minister execute their Constitutional and Cabinet-related functions. Ensure that Namibia has efficient, effective and accountable public services. Reduce the impact of disasters on Namibia and its people. Ministerial Targets Implementation of the performance management system at 50% of Offices /Ministries /Agencies and 75% Regional Councils by 2013/14; 25% implementation of the institutional framework on the New Equitable Economic Empowerment Framework (NEEEF) policy within the private and public sectors by 2013/14; Provision of training by the Namibia Institute of Public Administration and Management (NIPAM) to 130 Senior Managers, 130 Middle Managers and 260 Staff Members on induction by 2012/13; 20% operationalisation of the State Owned Enterprises (SOE) Act by 2012/13; and 60% implementation of the five stages of e-governance policy (on-line e-services provisioning) in the Public Service by 2014/15. State Revenue Fund N$, Operational 263, , , , , ,262 Budget 13 Development 30,318 4,151 40,520 40,927 70, ,000 Budget Development Partners 14 Total 293, , , , , ,262 9 From PEMP 10 Actuals 11 Provisional outturn figures. Total to agree with General Ledger 12 From 2008 MTEF 13 Where ceilings shown in the MTEF already include DP funding, they should be adjusted downward. 14 Only where paid through the State Revenue Fund. Development Partner funding outside the State Revenue Fund should be included in Development Partners and Funds. 28

30 Office of the Prime Minister Programmes Program code Programme Name 01. Constitutional obligations of the Prime Minister & Deputy Prime Minister and their cabinetrelated functions Activity Code N$ 000 Activity Name Budget MTEF Projections 01. Lead Government business in Parliament, Provision of advice & assistance to the President and supervision of O/M/As 02. Advocacy of Persons with disability 03. New Equitable Economic Empowerment Framework (NEEEF) 04. National Alliance for Improved Nutrition (NAFIN) 05. Heroes funerals & Heroes day commemorations 06. National Independence Celebrations 07. Renovation of Old State House residence 08. Marginalised Community Development 2012/ / /15 20,841 18,901 14,953 1,046 1,248 1,302 1, ,100 1,150 1, ,890 4,000 5,633 5,304 6, Oversight and 8,167 8,095 6,647 co-ordination of governance of state owned enterprises Sub-Total 38,387 48,588 35,568 29

31 Office of the Prime Minister Program code Programme Name Activity Code Activity Name Budget MTEF Projections 2012/ / /15 02 Public Service Management and Improvement 01. Constitutional and statutory obligations of the Public Service Commission (PSC) 02. Public Service training coordination and monitoring 03. Development of Human Resources Planning Framework for the Public Service 04. HIV/Aids Public sector coordination 05. Performance Management System (PMS) co-ordination in Public Service 06. Subsidy to (NIPAM) 07. Construction of Namibia Institute of Public Administration & Management (NIPAM) -Phase II 08. Improving efficiency and effectiveness in the Public Service 09. Management of ICT usage in the Public Service and e- governance 16,492 16,835 13,193 7,343 6,570 7,883 21,886 22,220 13,588 1,865 1,970 2,029 3,137 3,164 3,225 20,897 15,966 10, ,553 33,000 3,650 3,395 2,576 29,802 24,301 20,692 30

32 Office of the Prime Minister Program code Programme Name Activity Code Activity Name Budget MTEF Projections 2012/ / /15 policy framework projects 10. Expansion of 5,500 5,000 5,000 GRN internet to the regions phase II 11. Implementation 7,125 5,571 5,748 of Electronic Documents and Records Management System in the Public Service (EDRMS) 12. Human Capital Management System (HCMS) project Sub-Total 118, , , Reduce the impact of disasters on Namibia and its people. 01. Management of emergencies and disasters 02. Oshana Disaster Risk Management warehouse 03. Hardap Disaster Risk Management warehouse 04. Renovation of the Disaster Risk Management Offices and warehouse 31,656 31,543 29,837 19, , , Sub-Total 65,583 33,100 29, Coordination and Support Services 01. General 25,611 26,372 23,837 Administrative Services 02. Response to

33 Office of the Prime Minister Program code Programme Name Activity Code Activity Name Budget MTEF Projections HIV/AIDS within OPM 03. Risk Management 04. Provision of IT services to the OPM 05. Construction of Second Office of the Prime Minister 2012/ / / ,400 1,500 1,600 1,500 30,000 68,000 Sub-Total 29,191 58,673 94,161 Total , , ,262 Description of programmes Programme 1: Constitutional obligations of the Prime Minister & Deputy Prime Minister and their Cabinet-related functions Purpose of programme: To enable the Prime Minister to lead Government business in Parliament and advice and assist the President. This programme is implemented through various activities which are listed below: Main activities carried out under this programme are: Lead Government business in Parliament, Provision of advice & assistance to the President and supervision of O/M/As: This activity entails the coordination of the work of Cabinet; advice the President in the execution of Government functions; oversee and manage public services and execute special projects assigned to the Office of the Prime Minister. Government functions coordinated Law making functions facilitated Advise provided to President and Cabinet Special projects executed in a coordinated manner. Advocacy of Persons with disability: This activites involves the provision of advice to the Office of the Prime Minister on issues regarding people with disabilities, particularly in relation to the Public Service. 15 To agree with total above 32

34 Office of the Prime Minister Its objectives are: To improve the quality of life of people with disabilities through integrating disability issues into public policy development and developmental programs. To put in place the Disability Strategy. Public Service Disability Strategy developed Disability issues mainstreamed in the development programs Positive change in the lives of people with disabilities in the Public Service realised Persons with disabilities employed as per Affirmative Action Act New Equitable Economic Empowerment Framework (NEEEF): The aim of the NEEEF is to provide an empowerment policy framework within which all empowerment initiatives will be expected to conform. Economic empowerment may be organised in the following forms of ownership: public, private, joint public-private, cooperative and co-ownership. Policy framework provided to guide empowerment initiative National Alliance for Improved Nutrition (NAFIN). NAFIN is a multi sector body initiated to address child mortality and maternal health in order to accelerate the attainment of the Millennium Development Goals. It is created to coordinate the activities of stakeholders in the field of nutrition and to serve as a clearing house for nutrition related action steps. Presently NAFIN is working on the multi-sectoral strategic plan. There are Road Shows organised involving all thirteen regions, consumption survey and fortification programme will be carried out. Coordination of nutrition related activities strengthened Awareness campaign successfully launched Actions to improve nutrition implemented Heroes funerals & Heroes day commemorations: This activity involves the preparations of Heroes funerals as well as the commemoration of the Heroes Day and is spearheaded by the National Preparatory Committee. The remains of the Namibian Heroes and Heroines laid to rest in a dignified manner Heroes Day successfully prepared and commemorated 33

35 Office of the Prime Minister National Independence Celebration: The Office of the Prime Minister is spearheading the preparation of national independence celebration every year. This is done to remember our achievements as a nation. National Independence Day celebrated successfully Marginalised Communities Development: In terms of NDP3, the welfare of the San communities is categorised as a priority programme under KRA: Quality of Life under the Goal: Eradication of Extreme Poverty. This activity also involves the resettlement of marginalised communities; to establish income generating projects, coordinate and facilitate the provision of educational support and facilitate the development and implementation of policies related to marginalized communities. Improved livelihoods of marginalized communities Marginalized communities own land and resettled Improved access to health services among marginalized communities Oversight and co-ordination of governance of State Owned Enterprises: This activity involves the ddevelopment of guidelines for effective and efficient governance of State Owned Enterprises (SOE). Directives, guidelines and regulations for SOEs developed Improved integrity, accountability and transparency Improved performance and service delivery by SOEs Programme 2: Public Service Management and Improvement. Purpose of programme: To provide Government Institutions with a framework for strengthening policies, strategies, systems and competencies for good governance. To place the Public Service Commission (PSC) in a position to execute its constitutional and statutory responsibilities. Identify suitable candidates for the filling of posts and provide PSC secretariat services. To ensure a professional and productive Public Service through investment in its training and skills levels. Implementation of performance management system and issuing of Staff directives and circulars, ensure that policy and rules are clarified to enhance Public Service management. Improve the tripartite alliance on labour matters through improved relations with recognized labour unions and secure the bargaining mechanism with NAPWU and NANTU. Provide management advisory services on resource utilization and strategic direction of organizations. Main activities carried out under this programme are: 34

36 Office of the Prime Minister Constitutional and statutory obligations of the Public Service Commission: The Public Service Commission exercise its powers and perform the functions and carry out the duties expressly mentioned in the Public Service Commission Act, 1990 (Act No 2 of 1990) and the Public Service Act, 1995 (Act No. 13 of 1995). s Advice rendered by Public Service Commission to the President and the Government Appointment of suitable persons to specified categories of employment in the public service, with special regard to the balancing thereof. Adequate disciplinary control over staff members exercised. Fair administration of personnel policy assured. Remuneration and retirement benefits of staff members provided. Public Service training co-ordination and monitoring: This activity involves the coordination of training needs assessment of public servants in various OMAs, coordinating the implementation of Human Resources Development Policy Framework, Develop and implement the Induction & Orientation Framework and review, develop and coordinate the implementation of the new and existing as well as the monitoring and evaluation of the strategic generic programmes for the public service. s: Training Needs Assessment report per OMA produced Human Resources Development plans for each OMA compiled and used by Training Committees Human Resources Development Plan for the public service compiled and submitted to NIPAM Induction and Orientation Framework for each OMA developed and implemented Training Officers capacity building system adopted HRD Monitoring and evaluation system adopted Existing Strategic Generic Programmes reviewed and new programmes developed. Development of Human Resources Planning Framework for the Public Service: This activity involves the development of Human Resources Planning Framework for the public service, which supports the realisation of National Development goals. This includes policies, systemic institutions, specific projects, and capacity building in Human Resources Planning. The introduction of computerized system for Human Capital Management (HCMS) is an important milestone in this process. s: Human Resources Planning Framework for the Public Service developed, approved and implemented Human Resources Policy developed, approved and implemented 35