Budget Cycle

Agency Tier 1 Proposals (Ongoing Expenditures) Preparation

  • Budget Call: Initiated in January of the prior fiscal year, it outlines the parameters and procedures for agencies to prepare budget proposals.

  • Citizen Engagement: Conducted before Tier 1 and Tier 2 proposals to ensure public participation.

  • RDC Consultations: Agencies consult with Regional Development Councils before submitting their proposals to align with regional needs.

  • Program Convergence: Agencies work collectively on budget proposals to meet the government’s priority outcomes.

  • Agency Tier 1 Proposals: Submitted in February of the prior fiscal year.

  • Tier 1 Deliberations: Conducted in March of the prior fiscal year.

  • Budget Priorities Framework: Established in April of the prior fiscal year to define sector priorities.

  • Agency Tier 2 Proposals: Submitted in May of the prior fiscal year.

Legislative Phase

  • Presentation to President & Cabinet: Occurs in July of the prior fiscal year, presenting the budget for approval.

  • Senate Deliberations: Held from September to November of the prior fiscal year.

  • House Deliberations: Conducted from August to October of the prior fiscal year.

  • Bicameral Deliberations: Takes place in November to December of the prior fiscal year.

  • Ratification & Enrollment: Completed in December of the prior fiscal year.

  • Enactment of the GAA: The General Appropriations Act is signed into law in December.

Execution Phase

  • Budget Execution: Involves early procurement activities and budget program releases throughout the fiscal year.

  • Cash Allocation: Released in January (comprehensive) and throughout the fiscal year to authorize expenditure.

  • Disbursement: Managed throughout the fiscal year as agencies fulfill obligations.

  • Allotment Release: Occurs in January and is applicable throughout the fiscal year to facilitate budgeting.

Accountability Phase

  • Performance Targets: Established in January of the fiscal year to guide agency performance.

  • Monitoring & Evaluation: Constant assessment is performed throughout the fiscal year to review the effectiveness of programs and projects.

  • In-Year Reports: These reports are submitted monthly and quarterly to track financial and operational performance.

  • Audit Report: Conducted within the next fiscal year to assess compliance and effectiveness of budget utilization.

Overview of the Budget Cycle

  • The budget cycle incorporates Budget Preparation, Legislation, Execution, and Accountability phases.

  • Each phase overlaps and continues throughout the fiscal year.

  • Ongoing performance monitoring enables necessary adjustments and evaluations.

  • Citizens and civil society organizations are engaged throughout the process to ensure transparency and accountability.