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Guidelines for the Preparation of the 2021-2024 Budget

Guidelines for the Preparation of the 2021-2024 Budget

In accordance with Article 179 (1) of the 1992 Constitution, Section 20 (1) of the Public Financial Management Act, 2016 (Act 921) and Regulation 20 (3) of the Public Financial Management Regulations, 2019 (L.I. 2378), the Ministry of Finance circulates the 2021-2024 Budget Preparation Guidelines for the information of Honourable Sector Ministers, Heads of Institutions, Chief Directors and members of Budget Committees.

With 2020 being an election year, both a draft Budget Statement and Economic Policy for 2021 and a three months' "Expenditure in Advance of Appropriation" (Vote on Account) will be prepared.

Whilst the three months' "Expenditure in Advance of Appropriation" will be laid in Parliament for consideration by 15th November 2020, the full Budget Statement and Estimate for the year 2021 will be laid in Parliament in the first quarter of 2021 after the elections.

MDAs/MMDAs should therefore prioritize the first three months of their 2021 budget estimate.

The attached Budget Preparation Guidelines provides instructions on the processes and procedures for the preparation of the 2021-2024 Budget Estimate and indicative medium-term budget ceilings for Ministries, Departments and Agencies (MDAs) and Metropolitan, Municipal and District Assemblies (MMDAs).

The basis of the 2021-2024 medium term budget is the President's Coordinated Programme of Economic and Social Development Policies (CP) (2017-2024), which informed the National Medium Term Development Policy Framework (NMTDPF) 2018-2021, on-going policy initiatives and other strategic programmes of Government, and this will be complemented by MDA and MMDA medium-term and annual action plans.

Due to the challenges posed by the COVID-19 global pandemic and implications to our economic development coupled with constraints in resource mobilization, Hon. Ministers and District Chief Executives are reminded to ensure that their MDAs/MMDAs allocate resources to strategic and critical programmes, as reflected in the CP, in their 2021-2024 Budget. Additionally, Internal Generated Funds (IGFs) and Development Partner (DP) Funds should be appropriately budgeted for, as failure to budget for such funds, will result in the inability to utilize them during budget implementation. 

Budget Hearings would be organized for MDAs as indicated in the Appendices of the Guidelines and MDAs must adhere to the timelines communicated. Honourable Ministers and Chief Directors are to take note that, the 2021-2024 Budget Hearings will be held via video conferencing and are therefore entreated to make the necessary arrangements to participate in the Hearings. Statutory Fund Managers are also required to participate in the Budget Hearings together with their respective supervisory Ministries on the dates indicated.

Colleague Ministers are further urged to take ownership and lead the entire budget preparation process to ensure that all on-going policy initiatives and other strategic programmes of Government and priority programmes are fully captured within the approved expenditure ceilings provided.

Chief Directors are similarly encouraged to comply with all directives outlined in the Guidelines and ensure timely submission of all requisite budget documents to the office of the Director of Budget through, five working days before their scheduled Hearings.

Counting on your cooperation.

In the wake of the COVID-19 pandemic and as part of measures to ensure the safety of all our stakeholders,
you are kindly directed to e-mail your correspondence to the address below: