REVISED CMA III - Ministry of Health

3. Planning and Budgeting
The health sector program is based on the concept of a Sector Wide Approach (SWAp), with
comprehensive planning, programming, budgeting and reporting for the sector encompassing all
sources of funding (Treasury, Internally Generated Funds, NHIF, SBS and Earmarked Funds). The
objectives in planning and budgeting include to manage the rapidly changing funding
environment in the sector, with earmarked the dominant funding modality and fragmentation as
a whole increasing; and to integrate all resources into sector planning and management
processes and ensure that all parties commit to an indicative resource framework in line with
MOH timelines.
The Planning and Budgeting Process
All formal agreements between the Ministry of Health and its agencies will be adhered to. The
Ministry of Health will ensure that the resource allocation principles and process address the
changing organisational framework and funding structure of the sector. The key activities in the
planning and budgeting process are as follows:
• There will be a sector dialogue with agencies, the NHIA and partners to agree on priorities
for the budget year from the health sector program; one of the monthly Sector Working
Group meetings will be dedicated to this.
• Budget guidelines for the sector will be drawn based on the guidelines from MOFEP, with
ceilings for agencies -­‐ resource allocation principles and guidelines will be used to
determine the amount of resources to allocate to the Agencies.
• Agencies will prepare their respective annual work plans and budgets based on the
guidelines and agreed priorities and ceilings; together with procurement plans and cash
flow forecasts for collation at the national level.
• The MOH will sign annual service agreements with the various provider agencies.
The Budget Committee
The Ministry of Health’s Budget Committee is made up of representatives from all the Agencies
and Authorities. The Budget Committee will meet quarterly and will:
• Develop the framework, guidelines, tools and timetable for planning and budgeting.
• Project the resource envelope for the health sector and oversee mobilization of internal
and external resources.
• Review the criteria for resource allocation to Agencies.
• Attend the budget hearing with the Ministry of Finance.
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