MAKERERE UNIVERSITY

BUSINESS SCHOOL
BACHELOR OF COMMERCE ACADEMIC YEAR 2019/20

INTERMEDIATE ACCOUNTING

NAME REGISTRATION NO. SIGNATURE

NANYANZI CATHERINE PAULINE 18/U/6948/EVE

1. Public sector refers to part of the economy that is controlled by the state. It is mainly
made up of nonprofit agencies and the people are employed for official functions like
law enforcement, public education and public safety.
 2. The budget cycle runs through the financial year and it is a highly participatory
process it begins with the review and update of the medium-term expenditure
framework(MTEF) and country portfolio performance review between July and
august each year. This is followed by the budget consultative workshop.

The budget year (financial year runs from July to June the following year.

The four steps include;

 Preparation
 Approval
 Execution
 Evaluation

After this, all sector working groups and local government begin preparation of their budget
framework papers (BFPs) and followed by sector BFP, ministerial consultations which lead to
the preparation of the draft national BFP. The BFP is then presented to all stakeholders on a
national budget workshop after cabinet approval.

The final BFP is submitted to parliamentary by 31.Dec. of each year. This is then followed by
the development of the background to the budget and detailed development of budget estimates
by each ministry of finance compiles these into the draft estimates by each ministry and
institutions. The ministry of finance compiles these into the draft estimates of revenue and
expenditure with consultation with the parliamentary budget committee and starts preparation of
the budget speech which must be presented to parliament by the 15th day of June of each year.

3. planning and Budgeting processes

This involves different stages undertaken by different stakeholders in the formulation
of the budget.
a. Submission of preliminary estimates to parliament and macro-economic plans for the
financial year including which will be charged in order to get finance/ money to use.
b. Parliament debates on the preliminary budget proposal and macro-economic plan and
re priorities in case of any need.
c. budget consultation and reading
Here the government consults from people like members of parliament, sector
working groups, poverty action fund review and later form the national budget frame
work paper which is submitted to cabinet later parliament. And therefore after a
budget speech is given which marks the end on executive side and it is presented
between 15th and 30th June each by the minister of finance.
d. Preparations of the budget estimates.
At this stage the president prepares lays before parliament by 1 st April the 3 year
macroeconomic plan and programs for economic and social development.
e. presentation and approval
Here they specify the policy stand of government strategy for the following year and
it is submitted to the cabinet for consideration and approval.
f. implementation
Different sectors are given the macroeconomic plans and sources they are going to
use and advised on how to pursue those projects in order to encounter success.
g. monitoring and evaluation
At this stage government employs skilled people to assess the success of the
implementation for example auditors, assess the use of funds by different sectors.

4. Budget execution is a process of monitoring, adjusting and reporting on a

current year’s budget.
It is led by the accountant general and it commences in July and elapses in June at the of the
financial year.

The process include;-

 Commitment of approved budget funds released to accounting officers basing on the

annual cash flows plans as approved by parliament.
 Budget execution by accounting officers. Here officers planned and managed activities in
the policy statement.
 Grants of credit on the consolidated fund.

5. Pillars of the budget.

 Good governance; there should be accountability of fund.
 Transparency; public should easily access information concerning funds allocation. There
should be low costs in accessing information.
 Predictability; laws and regulations should be clear and known to the public that is it
should be clear and known to the public that is it should they should be known in advance
and effectively and uniformly informed.
 Participation; the general public should be involved through getting their views on the
budgeting process. That is they should provide a reality check for government actions.