Budget Act, 2001

Section 1. Short title and commencement Section 1(1) This Act may be cited as the Budget Act, 2001. Section 1(2) This Act shall come into effect on the 1st day of July, 2001.

Section 10. Cost estimates for Bills Section Every Bill introduced in Parliament shall be accompanied by its indicative financial implications, if any, on revenue and expenditure over the period of not less than two years after its coming into effect.

Section 11. Parliament to analyse policy issues Section Parliament shall analyse programmes and policy issues that affect the National Budget and Economy and where necessary recommend alternative approaches to Government.

Section 12. Supplementary expenditure Section 12(1) The total supplementary expenditure that requires additional resources over and above what is appropriated by Parliament shall not exceed 3% of the total approved budget for that financial year without prior approval of Parliament. Section 12(2) Where funds are expended under subsection (1) supplementary estimates showing the sums spent shall be laid before Parliament within four months after the money is spent. Section 12(3) Any reallocation of funds shall be made in consultation with all the affected Ministries, Departments, Institutions or Organisations.

Section 13. Reports on loans and grants Section 13(1) The President shall, either at the time of presentation of the Budget or at any time before the 15th day of June in each financial year, cause to be presented to Parliament information relating to the total indebtedness of the State in that financial year showing inter alia — Section 13(1)(a) the total principal and the sources of the loans and debts; Section 13(1)(b) the accumulated interest on each loan and debt; Section 13(1)(c) provision made for servicing or repayment of each loan and debt; Section 13(1)(d) the balance on payment under (c); and Section 13(1)(e) the utilization and performance of each loan, or debt including the extent of the achievements of the objective targets of each loan. Section 13(2) The President shall, either at the time of presentation of the Budget or at any time before the 15th day of June in each financial year, cause to be presented to Parliament, information relating to the total sum of grants extended to the state and their sources, showing their utilization and the performance of each grant, including the extent of the achievements of the objective targets of each grant. Section 13(3) The Pr...

Section 14. Domestic debt Section it has no unpaid domestic arrears from a debt in a previous financial year; and

Section 15. Reports on exemptions of tax Section 15(1) A person or an authority having power to waive or vary any tax under Article 152 (2) of the Constitution shall make a quarterly report to Parliament which shall be on or before the 30th day of September, the 31st day of December, the 31st day of March and the 30th day of June in each financial year. Section 15(2) A report made under subsection (1) shall include inter alia — Section 15(2)(a) the organisation or person exempted from the tax; Section 15(2)(b) the reasons for the exemption; Section 15(2)(c) the amount of tax foregone by the Government; and Section 15(2)(d) the benefits from the exemption.

Section 16. Report on expenditure from the Contingencies Fund Section The Minister responsible for finance shall, within fourteen days from the date of the authorization of advances from the Contingencies Fund make a report to Parliament stating the purpose and urgency of the expenditure and the amount thereof.

Section 17. Report on Appropriation in Aid Section 17(1) A Minister responsible for any vote on Appropriation in Aid shall make a quarterly report to Parliament on the manner in which the Funds from that Vote are expended. Section 17(2) A report made under subsection (1) shall reflect specific data on value for money on the involved expenditures.

Section 18. Liability on failure to meet requirements Section 18(1) Where any Department, Institution, Organisation or Commission fails to meet any requirement under this Act, Parliament may compel the relevant Minister to appear before it and give an explanation on the circumstances leading to the failure. Section 18(2) Where it is evident that any officer intentionally or through negligence led to the failure of the Department, Institution, Organisation or Commission to meet any requirement under this Act, that Officer shall be held personally liable.

Section 19. ParliamentBudgetCommittee Section 19(1) There shall be a Parliament Budget Committee which shall be a Standing Committee of Parliament and all Chairpersons of the other Committees shall be ex-officio members of the Budget Committee. Section 19(2) The Budget Committee shall— Section 19(2)(a) focus on the preliminary estimates and the macroeconomic plan and programs and submit recommendations to the Speaker; Section 19(2)(b) consider the National Budget and compile amendments and refer them to the relevant Committees. Section 19(2)(c) Carry on such other functions relating to the Budget as may be assigned to it by Parliament under this Act or any other law in force.

Section 2. Interpretation Section In this Act unless the context otherwise requires— “ Budget ” means the process by which Government sets levels to efficiently collect revenue and allocate the spending of resources among all sectors to meet national objectives.

Section 20.BudgetOffice Section There shall be a Parliamentary Budget Office within the Parliamentary Service consisting of full time and part time budget and economic experts as may be required from time to time.

Section 21. Functions ofBudgetoffice Section provide budget-related information to all Committees in relation to their jurisdiction;

Section 22. Extension of period set Section The Speaker may extend any period provided under this Act for a reasonable period.

Section 3. Submission of estimates under Article 155 of the Constitution Section 3(1) The President shall cause to be prepared, submitted and laid before Parliament in each Financial Year but in any case not later than the 15th day of June in the Financial year, estimates of revenue and expenditure of Government for the next Financial Year. Section 3(2) Notwithstanding the provisions of subsection (1) the President may cause to be prepared and laid before Parliament— Section 3(2)(a) fiscal and monetary programmes and plans for economic and social development covering a period of three years; Section 3(2)(b) estimates of revenue and expenditure covering a period of three years.

Section 4. Macro-economic plan and indicative framework Section 4(1) The President shall, not later than the 1st day of April in each financial year, cause to be prepared and laid before Parliament, a three years macro economic plan and programmes for the economic and social development in preparation for the final submission under section 3 . Section 4(2) The President shall, not later that the 1st day of April in each financial year and in preparation for the final submission under section 3 , cause to be submitted and laid before Parliament, indicative preliminary revenue and expenditure framework of Government for the next financial year.

Section 5. Submission of estimates of Departments etc. Section 5(1) The Head of any Government Department, Self Accounting Department, Institution, Organisation or Commission shall submit to the President preliminary estimates of revenue and expenditure of that Department, Institution, Organisation or Commission for the following financial year, by the 15th day of February in each year. Section 5(2) Estimates prepared and submitted under subsection (1) shall be laid before Parliament by the President under sections 3 and 4 but estimates by bodies established under the Constitution shall be laid without amendments however they may have recommendations made by Government.

Section 6. Policy statements of Ministries on estimates Section 6(1) Each Minister shall cause to be prepared and submitted to Parliament a Policy Statement of the relevant Ministry on the preliminary estimates submitted under sections 3 and 4 by the 30th day of June in each year. Section 6(2) A Policy Statement made under subsection (1) shall be in a form prescribed by the Minister responsible for finance and shall reflect specific data on value for money and the extent of achievement of the objective targets on money received and spent.

Section 7. Consideration by Sessional andBudgetCommittees Section 7(1) The Speaker shall commit the indicative allocations to the Parliament Budget Committee and to each Sessional Committee of Parliament that part of the Preliminary indicative allocations that fall within its jurisdiction immediately after the submission of the preliminary estimates to Parliament by the President and the Departments. Section 7(2) Each Sessional Committee shall consider, discuss and review the indicative allocations committed to it under subsection (1) and submit its report to the Budget Committee of Parliament not later than the 25th day of April. Section 7(3) The Budget Committee shall scrutinize the estimates and the reports of the Sessional Committees and submit its recommendations to the Speaker who shall send the recommendations to the President by the 15th day of May. Section 7(4) In the exercise of their function under this section Committees of Parliament may call a Minister or any person holding a public office and private individuals to submit memoranda or appear before it to give evidence.

Section 8. Consideration of reports on estimates by Parliament Section There shall be presented to Parliament by the Budget Committee, the recommendations submitted to the Speaker under section 7 subsection (3).

Section 9. Reports by Committees Section There shall be presented to Parliament by the Sessional Committees, the reports on the budget estimates that fall within their respective jurisdictions by the 31st day of August in each financial year.