The “bottom-up” component of the MTBF works with selected line ministries to:
Replace the traditional process for budget preparation, which is driven upwards by the spending units, with a top-down process within each line ministry whereby the senior management of the ministry direct the budget preparation process
Strengthen the definition of the services (outputs) to be delivered by each ministry
Identify the costs of delivering each service, initially by mapping the current allocation of expenditure onto outputs, thereby providing a ‘baseline’ cost-per-output
The aim is to strengthen budget preparation in line ministries by:
Developing budget preparation procedures which help ensure that the strategic objectives of the line ministry are reflected in budgetary allocations
Increasing the role of senior line ministry management in budget preparation as a way of strengthening their ownership of the budget and associated accountability
Supporting complementary changes in the role of Finance Division (Expenditure Wing) during review and finalization of budgets prepared by line ministries
Requiring budgets to be presented in a way that clearly identifies the current cost of each output (service delivered) to enable issues of efficiency and effectiveness of service delivery to be assessed
Budget Preparation under the MTBF:
The figure below illustrates the approach to budget preparation to be adopted under the bottom-up component:
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