- Economic parameters i.e. future rate of inflation, and exchange rate.
- Macroeconomic statement, covering GNP and employment level.
- Coordinated and shared Budget priorities
- Departmental ceilings and targets.
- Regional and district sub-budgets (Devolution)
- Agreed organization of budget preparation (Timeline schedule)
- Departments and sub-sections should prepare their rolling three year budgets within the guidelines provided by their immediate direct authority.
- Line ministers are responsible and liable for drawing and implementing policies in their sector. In line with overall targets and priorities, they should be responsible for developing sectional policies and budgets.
- Ministries should have professional capacities and information needed for trade-offs among projects and programmes.
- They should be responsible to formulate guidelines for their departments and dissecting their draft budgets.
- Ministry of Finance has the leading role in budget preparation, coordination, reporting, monitoring and controlling.
- MoF should have sufficient authority and power to ensure both fiscal targets and strategic prioritization among sectors.
- MoF establishes guidelines for preparing Ministries’ programmes.
- It reviews line ministers’ requests, scrutinizes, and adjusts against fiscal policies.
- MoF facilitates decisions on major policy choices and allocation of resources, but do not make these decisions all alone.
- Equally MoF has to review and screen requests, and not prepare them.
Ahmed H Arwo
Somaliland Presidential Senior Economic Advisor