Public Sector Governance and Accountability Series: Budgeting and ...

270 Salvatore Schiavo-Campo
Monitor the financial execution of the budget (in consultation with the
planning entity).
Guide and coordinate activities in internal audit throughout the
government.
Interact with the legislature and other concerned stakeholders on all these
matters.
The Planning Function
The main roles of the entity responsible for planning (or economy) are as
follows:
Prepare a medium- and long-term development strategy for government
approval.
Prepare a poverty reduction strategy, consistent with the development
strategy, for government approval.
Monitor implementation of these strategies and recommend adjustments.
Facilitate formation of a national policy on population and environment.
Coordinate foreign aid for development and poverty reduction (in
collaboration with the ministry of finance).
Prepare the public investment program.
Coordinate and facilitate sectoral expenditure programs.
Monitor the physical execution of those programs (in collaboration with
the ministry of finance).
A Simplified Organizational Structure
On the assumption of a single ministry of finance and planning, the appropriate
organizational structure is shown in figure 8.1. If the country chooses
separate ministries, the only required changes are to split the right side from
the left side and to elevate each deputy minister to minister rank. In any case,
the two need to have equal rank, even if one may carry seniority of one sort
or another.
Budget Approval and the Role of the Legislature
The enactment of the budget should not merely be a formal exercise carried
out to comply with the letter of the constitution. The legislature is the locus
of overall political and financial accountability, and its role should go much
beyond rubber-stamping decisions already taken.