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The Government of Saint Lucia practices the
Performance Budgeting technique. This was first introduced in 1997, as part of
the Budget Reform exercise . In this approach, objectives, results based
performance indicators and targets are defined for each programme . This method
of budgeting is ‘result-outcome’ driven and its main emphasis is on getting the
most service out of the dollar.
The budget process/exercise is undertaken
within a twenty-four (24) month cycle, which is followed by year-end reporting.
Within the budget cycle there are two phases as follows:
- Budget Planning and Preparation
The planning and preparation year or the
previous fiscal year refers to the year preceding the budget year or the year
for which the planning is being done. During this period the following are
undertaken:
Planning Stage
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The Ministry of Finance
prepares the Macroeconomic outlook for the upcoming fiscal year. Macroeconomic
indicators are reviewed and projections for recurrent revenue, recurrent
expenditure and capital expenditure are formulated. |
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A request/call for New Initiatives for
recurrent revenue, recurrent expenditure as well as capital expenditure are
sent to ministries. |
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The fiscal targets are established and the
revenue projections are developed along with the Preliminary Allocations or
spending limits of each Agency for the budget year. |
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The Ministry of Finance issues the
Estimates Call. In this circular the Preliminary Allocations are outlined as
well as other requirements of the Ministry of Finance. |
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The Minister of Finance
invites the Private Sector to submit inputs for the Budget. |
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The Agencies submit their
New Initiatives. The Ministry of Finance reviews the submission and prepares
recommendations in consultation with Agencies. |
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Agencies submit their estimates requests,
which is then reviewed by the Ministry of Finance. |
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Several meetings are held
with Agencies, within the Ministry of Finance, at the Technical Budget
Committee and Minister of Finance Budget Policy levels. The Minister of
Finance also meets with selective Agencies, where their achievements for the
current year, other significant issues and estimate requests are discussed.
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Meetings are held, where
necessary between the Ministry of Finance and the various Statutory
Authorities. |
Finalization
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After extensive reviews and dialogue the
Ministry of Finance present the draft estimates to the Minister of Finance. |
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The Minister and Finance Officials meet
with Cabinet to finalize the Estimates. |
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Following the Cabinet
meeting, Ministry of Finance prepares the printed estimates and develops the
budget papers. |
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The Attorney General
develops the Appropriation Bill and the Resolution. |
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Minister of Finance tables
the Resolution in the House of Parliament. |
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Members of the House then debate the
Estimates. |
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The bill is then tabled in
the Senate. |
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When passed the Appropriation Act is then
assented to by the Governor General and Gazetted. |
2. Budget Implementation and Monitoring
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During this phase the Ministry of Finance
releases the Allocation to Agencies on a quarterly basis. The release of
Allocation is based in part on the revenue performance in the case of
recurrent expenditure. Capital expenditure allocation, on the other hand is
determined based on the availability of the loan or grant and the status of
the projects. |
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Agencies are required to submit monthly
revenue reports and quarterly performance reports to the Ministry of Finance. |
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The Ministry of Finance is also required
to produce and submit quarterly performance reports to the Minister of
Finance. |
Ivor
Daniel
Assistant Budget Controller
April 4, 2003
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