Making Budgets and Aid Work Project (MBAWP)

Monthly progress UpdateOctober 2011

Outlineo Achievementso Advocacy and Communicationo Budget Status –October 31, 2011o Human Resource Statuso Challengeso Priorities for November 2011

Component 1

Achievements: Budget Planning and Management All technical staff from 19 line ministries and budgetary units learn

to prepare reports showing variances from original plans to improve the budget formulation process of 1391Expected Impact: Strengthened budget formulation and accurate planning based on findings and challenges identified in these reports Over 150 technical staff of central pilot ministries and IDLG learn to prepare action plans to support provincial departments in budget preparation and fair resource allocation, through the BC2 workshopExpected Impact: Effective sub national financing and deconcentration of authority to provinces improving service delivery Over 200 provincial staff from 5 pilot departments learn about provincial budgeting, resource allocation, costing, and prioritizing through the BC1Regional Workshop conducted in (Badakhshan, Takhar, Kundoz, Baghlan, Samangan, Mazare- sharif, Jawazjan, Sarepul, and Faryab)

Continued

Expected Impact: Stronger understanding of government sub-national policies, priorities and improving coordination between LMs and provincial departments Budget circular 2 improved to integrate pro-poor budgeting, gender responsive budgeting for 7 pilot ministries and address cross cutting themes i.e. genderExpected Impact: Development and economic sustainability of the country Checklist and guidelines developed in a manner to promote successful completion and analysis of the BC2 submissionsExpected Impact: Effective and realistic budget planning and deliveryDomestic revenue mobilization process improved through the the IMF Extended Credit Facility Program Expected Impact: Increasing economic sustainability and

strengthening poverty reduction growth strategies

Component 2Achievements: Development strategies and policies & aid

coordination7 NPPs unconditionally endorsed at JCMB to increase socio-economic development and improve human rights situation of all AfghansDevelopment of the Operational Guide expected to improve alignment of off-budget financing with national priorities, thus increasing aid effectivenessExpected Impact: Increasing on budget donor commitments for reconstruction of the Afghan GovernmentTen pilot off-budget projects with over USD 5 million budget identified, to use the OG to improve aid delivery of externally financed development programs MoF participation in High-level symposium in Luxembourg to increase donor engagement for ODA for countries with poor capacity to attract private direct investment and speed the process of meeting development goalsExpected Impact: Poverty reduction and improving socio-economic sustainability

Continued

On –budget donor funding and Reconstruction of Afghanistan to be further strengthened by the signing of the Grant agreement with Government of Japan and GoA for an amount of USD 21 million Coordination of External Funding in line with Paris Declaration improved for infrastructure development through the signing of the grant agreement between ADB and GoA for an amount of ADB USD 222 million “Afghanistan Aid Bulletin” prepared to raise awareness among donors on foreign aid and the progress of the GoA in achieving agreed global aid benchmarksDesigning, planning and costing of NPP2, 3, 4, 5 to improve Sectoral Programming guided by priority needs and for securing donor financing for their implementation after endorsementExpected Impact: Poverty reduction and improving human and social developmentTechnical support on preparation of 100 Day NPP Reports, Action Plans and Transition packages for each of the 6 NPPs provided to LMs to strengthen monitoring system and measure achievements of ANDS sector strategy objectives and outputs

Component 3Achievements: Delivery management

and sustainable capacity development At the BC 2 workshop 230 technical staff from LMs/ BUs and ANDS sectors learn to prepare budget submissions to ensure that it reflects an equitable allocation of resources among provinces and is gender balancedExpected Impact: Improving capacity development and delivery management Guidance and support provided to LMs on budget hearing mechanisms, formats and submissions to render the budget Execution process more efficient and effectiveSystem/database for tracking allotments and contracts updated and appropriately positioned within Budget Department and MoF relevant departments to enhance budget execution deliveryAction plan and strategy for LMs to improve low execution rate of development projects developed at the joint coordination meeting with 14 Ministries led by MoF.Budget execution process strengthened through the monitoring of 2nd quarter Financial and Procurement Implementation Plan of all budgetary units in the Social Protection sector to ensure that actual expenditures align with planned activities

Structured on the job training and mentoring provided to LMs on budget preparation, execution, development of BC2 submissions for the year 1391 to ensure transfer of knowledge and skills from national and international consultantsOn the job training to improve the execution rate of the development projects that LMs are responsible forExpected Impact: Strengthening institutional capacity development and effective delivery management 

Continued

Reporting, Advocacy and Communication

Submission of timely weekly, monthly and quarterly reports to PSU and Programme TeamHelping all units in MoF prepare targeted reports based on AWP outputs to meet PSU demandsMBAWP Communication and Advocacy Strategy developed with work plan for 2011/2012 and deliverables2 Press Releases, 3 webs stories published and shared with UNDP, Govt counterparts, donors to increase awareness and sharing of relevant information with donors MBAWP Newsletter drafted to showcase news, initiatives and success stories and awareness raising among stakeholdersMBAWP web page on Budget Mof and UNDP Website being further developed

Budget Status

2011 Required Budget – AWP USD 5.2 million

2011 Approved Budget – AWP USD 4.6 million

Actual Expenditure October 31, 2011 = USD 2.99 million

Delivery Rate (%) = Last month September 2011 88.24 % (vs. AWP)

Delivery Rate (%) = This month October 2011 96.08 % (vs. AWP)

Human Resources

Exit Strategy Consultant, CD Consultant and Advisor under recruitment

3 MBAWP national positions filled and others under recruitment

Challenges

 

Line Ministries lack log frames and results resource frameworks with clear outputs, outcomes and activities hampering quality of quarterly performance reports that LMs are responsible forPoor cooperation and coordination between pilot Line Ministries and provincial budgeting departments slowing budget preparation of provincesDeteriorating security condition in southern provinces preventing training on provincial budgeting for all provincesNeed for stronger capacity in LMs to a) analyse and assess current and future issues b) plan programmatic interventions that will address these issues c) implement initiatives thoroughly and on time and d) report transparently on activities and associated outcomes and impactsNeed for stronger positioning of NPPs by Cluster Secretariat to improve ownership and implementation

Priorities for November 2011

Conduct interviews and select the Capacity Development Advisor, consultant and Exit Strategy Consultant

Conduct 2 day MABWP AWP stakeholder workshop to formulate priorities, outputs, results, indicators, targets, baseline for 2012

Donor coordination to increase information sharing on project progress and updating donors on achievements through engaging communication material

Develop MBAWP 2012 strategic plan Continue capacity development of MoF to increase national

ownership Prepare the MBAWP Project Doc , results framework, human

resource framework, Increase efforts for resource mobilization by preparing

effective outreach communication material (videos, photos, web stories, success stories)

THANK YOU