2016 2017 Budget Circular
2016 2017 Budget Circular
2016 2017 Budget Circular
My Ref: BUDGT/CALL/CIRCL/2016
To : Supervising Officers-in-Charge of Ministries/Departments
You are kindly requested to submit by the 7th of April 2016 the budget
proposals, both expenditure and revenue, of your Ministry/Department for the next
three fiscal years, that is, 2016/17, 2017/18 and 2018/19. The Policy Guidelines for the
preparation of your submission are set out below while the Operational Guidelines are
at Annex I.
Macro-Fiscal Outlook
3. Against this backdrop, the challenge is to steer our economy rapidly towards a
growth path of at least 5% annually to realise the Vision 2030 and attain the high
income country status. In this regard, appropriate policies and measures will have to be
implemented to further diversify our economy, boost private investment and
employment creation, raise productivity to global competitiveness levels, embed digital
technology in our development strategy and strengthen our economic resilience.
4. On the fiscal side, we are faced with a delicate balancing act. On the one hand,
our public debt has reached a too high level and has to be brought on a downward path
in line with Governments commitment to meet the target set in the Public Debt
Management Act. We have also to contend with rising fiscal risks and contingent
liabilities. On the other hand, investment in public infrastructure will have to be
increased significantly and would entail higher borrowing. At the same time, we have to
address meaningfully the immediate needs of the poor and the vulnerable groups.
Policy Guidelines
6. The room for manoeuvre in the recurrent budget is very limited. This will be
further exacerbated with implementation of the 2016 PRB report. Moreover, growth-
enhancing infrastructure projects under implementation and in the pipeline will absorb
more public resources in the coming years. Additional resources will also be required for
the restructuring of public enterprises.
7. After considering the above constraints, challenges and targets, MOFED has
carefully worked out the expenditure ceilings for each Ministry and Sector. These will be
communicated to you individually. You are requested to ensure that your expenditure
proposals are within the set ceilings.
Annex I
Expenditure Proposals
2. These ceilings have been worked out on the basis of the indicative estimates for
fiscal years 2016/17 and 2017/18 that were published in the 2015/16 Budget documents
which have been duly adjusted to take into account the following:
(i) status and actual pace of implementation of projects;
(ii) changes in cost of providing certain services;
(iii) changes in the number of beneficiaries under existing schemes;
(iv) firm policy decisions and expenditure commitments taken during the
year; and
(v) overall fiscal constraint and the need for efficiency gains/reduction in
wastage.
Compensation of Employees
Mission Expenses
4. The ceilings have also made provision for mission expenses at individual Ministry
level in view of the decision to decentralise the budget for such expenses for
administrative convenience. Ministries should, therefore, include proposals for mission
expenses in their submissions.
Flexibility
5. Within each expenditure ceiling, Accounting Officers will have the flexibility to
allocate resources to different expenditure Sub-Heads and Items for the delivery of
services as per their priority. They may also reallocate resources from current
expenditure to capital expenditure especially for new projects, but not vice-versa.
6. Consideration may be given to new capital projects that are critical to unlocking
growth prospects provided that they are well-prepared and properly costed with realistic
implementation plan and clear monitorable results.
Human Resource Budgeting
7. Proposals for human resources will have to be consistent with the policy guidelines
set out in this Circular. In particular, they should integrate efficiency gains in public
service delivery and in project implementation arising from Government investment
in ICT.
8. The number of approved posts for each grade (funded positions) was published in
the Estimates 2015/16 and will be carried over in 2016/17, allowing for developments
occurred and forthcoming during the year. The provision to be included in your
submission should be based on the stage actually reached in the process of filling of
those posts and a realistic timeframe for completion of the recruitment exercise.
9. MOFED will, in principle, have no financial objection for the filling of vacant
promotional posts provided that they meet the organisational requirements and are
translated into improvement in service delivery.
10. Any request for funding of (i) consequential vacancies at entry grade arising as a
result of promotional exercises; (ii) additional posts; and (iii) new posts for entry grades
will have to be justified in terms of organisational requirements and improvement in
service delivery.
Capital Projects
12. The capital expenditure ceiling amount to be communicated to you will be only in
respect of projects to be financed from the Consolidated Fund.
13. This figure has been worked out on the basis of information provided to MOFED
by Ministries/Departments in the capital budget monitoring system relating to the current
status of capital project implementation, expected progress and payments up to
June 2017 as well as new commitments taken during the year.
14. This year, MOFED will put enhanced emphasis on an integrated approach towards
public infrastructure investment and management. In this context, you are requested to
submit proposals for capital projects as per the format at Annex V. As will be noted, you
should arrange for providing this Ministry with information on capital projects being
implemented and planned under the purview of your Ministry, including those being
implemented by parastatal bodies and SOEs, and irrespective of the source of financing
(Consolidated Fund, Build Mauritius Fund, own funds and Public Private Partnership).
15. In addition, for projects above Rs 100 million, Ministries should submit information
as per Annex VI for analysis and monitoring of progress.
16. Proposals for new capital projects should invariably be submitted as per the
Project Request Form (PRF) for examination and eventual approval.
17. You are reminded that all capital projects with a project value above Rs 25 million
should be submitted first to the Project Plan Committee (PPC) before they can be
considered for inclusion in the Public Sector Investment Programme (PSIP) and
eventually in the Budget, subject to financial constraints. As to projects with a value of
up to Rs 25 million, they can be submitted directly to MOFED.
18. The information requested about should be submitted to the PSIP Unit of MOFED
at [email protected].
Statutory Bodies
19. As in past years, Ministries should submit updated information on the financial
standing of any statutory body seeking funding from Government as per Annex VII. As
will be appreciated, such information will be essential for examination of any funding
request.
20. You may also wish to note that this Ministry is proposing to introduce a
Supplementary Appropriation Bill before the presentation of the next budget so as to
cover additional expenditure commitments taken in the course of the current fiscal year.
22. This Strategic Note aims at giving the National Assembly and the public in general
an overview of what the Ministry/Department undertakes to achieve with the resources
that have been appropriated.
23. The Strategic Note should not exceed two pages and should consist of the
following:
(a) Mission Statement;
(b) Strategic Direction 2016-2019;
(c) Main Achievements for FY 2015/16;
(d) Key Actions for FY 2016/17; and
(e) Human Resource Allocation.
24. The Strategic Direction of a Ministry should be consistent with Governments
objectives as set out in the Government Programme 2015-2019, the Budget 2015/16,
Economic Mission Statement (August 2015) and Vision 2030 (blueprint).
25. Main Achievements provide a summary of the main realisations of the Ministry
over the FY 2015/16.
26. The Key Actions should reflect main deliverables of the Ministry/Department, with
monitorable targets for FY 2016/2017. These should primarily focus on (a) services
having significant budgets or where there are significant increases in spending, (b) new
services, and (c) services subject to major improvement.
27. Ministries/Departments should submit for each new Key Action being proposed
appropriate information as per Annex VIII to enable in-year monitoring of progress.
Revenue Estimates
28. You are also requested to submit at the same time estimates in respect of taxes,
duties, fees, charges, sales and other revenue falling under your Ministry, wherever
applicable.
30. As regards fees and charges (Revenue Item Code 142), the guiding policy is to
ensure that the rupee value of the fees/charges is not eroded by inflation and is
adjusted so as to reflect cost of delivery for goods and services. Due care has to be
given on possible adverse impact on the ease of doing business.
31. All funds received as external grants to finance projects should be recorded under
Revenue Category 13 (Grant) with the corresponding provision on the expenditure side
in line with the principles of good public financial management. Details of such grants
should be submitted as per Annex IX.
Revenue Arrears
32. Ministries are requested to closely monitor parastatal bodies and SOEs under their
purview to ensure that they settle their debt obligations to Government, if any, to avoid
accumulation of arrears. Parent Ministries of parastatal bodies/SOEs which have
accumulated arrears should come up with appropriate policy measures to redress their
financial situation.
E-Budget System/ Submission of Budget Proposals
34. The budget preparation process has now been computerised with the introduction
of the e-Budget System in Central Government. Ministries/Departments have been
accordingly connected to the e-Budget Application. Finance Officers posted in
Ministries/Departments have also been trained to operate the system. You are,
therefore, requested to arrange for inputting your expenditure proposals and revenue
estimates in the E-Budget System which is now operational for this budgeting exercise.
35. Following receipt of your proposals, the relevant SMST and other officers of
MOFED will hold technical working sessions with your officers to prepare for the Budget
Estimates Committee meetings. These Estimates Committee meetings are expected to
be held in mid-April. You will be informed of the date, time and venue in due course.
Annex II(a)
VOTE XX :
SUMMARY OF EXPENDITURE
Rs 000
2015/16
2015/16 2016/17 2017/18 2018/19
Details Revised
Estimates Estimates Planned Planned
Estimates
VOTE XX-1 TOTAL EXPENDITURE - - - - -
of which
Recurrent - - - - -
Capital - - - - -
xxxxxxxxxxxxx
Total 0 0
VOTE XX :
Rs 000
2015/16
2015/16 2016/17 2017/18 2018/19
Item No. Details Revised
Estimates Estimates Planned Planned
Estimates
.002 Salary Compensation
.003 Extra Remuneration
.004 Allowances
21111 Other Staff Costs
.001 Wages
.002 Travelling and Transport
21210 Social Contributions
.001 Contribution to the National Savings Fund
22 Goods and Services - - - - -
22010 Cost of Utilities
.001 Electricity and Gas charges
.002 Telephone
22020 Fuel and Oil
.001 Vehicles
22030 Rent
.001 Rental of building
.002 Rental of parking slots
22040 Office Equipment and Furniture
.001 Office Equipment
.002 Office Furniture
25 Subsidies - - -
xxxxx .
xxx
26 Current Grants
xxxxx .
26313 Extra Budgetary Units #REF! #REF! #REF! #REF! #REF!
Capital Expenditure - - - - -
Project Value - - - - -
Rs 000
26 Grants
26323 Extra-Budgetary Units
xxx
28 Other Expense
28221 Transfers to Non-Profit
institutions
xxx
31 Acquisition Of Non-Financial
Assets
31112 Non-Residential Buildings
xxx
32 Acquisition Of Financial Assets
xxxxx .
xxx
TOTAL - - - - -
VOTE XX :
Sub-Head XX-X2: XX2
Rs 000
2015/16
Item 2015/16 2016/17 2017/18 2018/19
Details Revised
No. Estimates Estimates Planned Planned
Estimates
Recurrent Expenditure - - - - -
21 Compensation of Employees - - - - -
21110 Personal Emoluments In Post Funded - - - - -
.001 Basic Salary 2015 2016/17 - - - - -
Minister
Permanent Secretary
Deputy Permanent Secretary
Assistant Permanent Secretary
xxxxxxxxxxxxx
Total 0 0
.002 Salary Compensation
.003 Extra Remuneration
21210 Social Contributions
.001 Contribution to the National
Savings Fund
22 Goods and Services - - - - -
22010 Cost of Utilities - - - - -
.001 Electricity and Gas Charges
.002 Telephone
22900 Other Goods and Services
.001 Uniforms
26 Grants
26210 Contribution to International Organisations
xxx
Capital Expenditure - - - - -
31 Acquisition of Non - Financial Project Value - - - - -
Assets Rs 000
31121 Transport Equipment - - - - -
.801 Acquisition of Vehicles
TOTAL - - - - -
Annex II(b)
VOTE XX 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Head XX -101 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other persons employed
Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other persons employed
1. Mission Statement
A concise statement of Ministrys core purpose: what the Ministry/Department does, why
it does it and for whom.
MINISTRY/DEPARTMENT ............................
(Rs '000)
Item No./ Jan-Jun 2015 2015/16 Estimates
Main Assumptions
Sub-item Description Approved Jul-Feb Mar Apr May Jun Revised for
(Note 2)
(Note 1) Actual Estimates Actual Rev Est Rev Est Rev Est Rev Est Estimates 2016/17
Note (1): The 2015/16 Revised Estimates and Forecast for FY 2016/17 Officer-in-Charge of Finance Section: ........................
should be worked out in respect of the major revenue sub-items Signature: ..
used for monitoring purposes. Tel. No.: ..
MINISTRY/DEPARTMENT .......................
(Rs '000)
Item No./
Sub-item 2015/16 Estimates Planned Administrative efforts
Arrears as at Feb Main assumptions
(Note 1) Description
Approved Revised 2016 Rev Est Estimates (Note 2)
Estimates Estimates 2016/17 2017/18 2018/19
2015/16 2016/17
Note (1): Estimates of revenue for FY 2016/17 and forecasts of revenue for FY Officer-in-Charge of Finance Section: ..........................................................
2017/18 and 2018/19 should be worked out in respect of the major revenue Signature: ...
sub-items, based on existing policies. Tel. No.:
Note (2): The assumptions used in arriving at your estimates should be clearly stated Supervising Officer of Ministry/Department
and submitted in separate attachments, together with your workings. Signature:
Date: ..........................................................
Annex IV
MINISTRY OF FINANCE AND ECONOMIC DEVELOPMENT
SECTOR MINISTRY SUPPORT TEAMS (SMSTs)
Responsible Officer &
Sector Team member Tel. No. Email Address
Contact Details
SOCIAL PROTECTION
Social Security, National Solidarity and Mrs R. Jheengut [A] 201 3950 [email protected]
Reform Institutions Ms R. Moosoohur (STM) 201 3980 [email protected]
MR J. MOWNAH (LA)
Social Integration and Economic Mr S. Aukhjee [A] 201 1104 [email protected]
Tel: 201 3945
Empowerment Ms. A. Muslun [A] 201 3980 [email protected]
[email protected]
Mrs N. Ramasamy(FO) 201 1224 nnaidoo-ramasamy @govmu.org
Environment, Sustainable Development, Mrs W. ELAHEE-DOOMUN (LA) Ms S. Ramprosand [A] 201 3375 [email protected]
Solid waste & Beach Management Tel: 201 2390
(Incl. National Disaster Management) welahee-doomun @govmu.org Mr D. Sockalingum (FO) 201 2896 [email protected]
PUBLIC UTILITIES
Energy, Water, Waste Water and Mrs S. APPANAH (LA) Mr H.R Urdhin [A] 201 2328 [email protected]
Radiation Protection Services Tel: 201 3750 Mr S. Oozeer [A] 201 2328 [email protected]
Procurement Issues & PPP Issues [email protected] Mrs M. Moolye(FO) 201 2767 [email protected]
INFRASTRUCTURE
Mr A. Ramdhany [A] 201 1420 [email protected]
Public Infrastructure and Land Transport MR C. CHARITAR (LA) Mr S. Mohungroo [A] 211 8159 [email protected]
National Development Unit Tel: 201 1566 Ms R. Rumzan-Maudarbaccus [A]
201 2566 [email protected]
(Incl. Build Mauritius Fund) [email protected] Mr G. Buckhory (STM) 201 2222 [email protected]
Mr D. Sockalingum (FO) 201 2896 [email protected]
Responsible Officer &
Sector Team member Tel. No. Email Address
Contact Details
FOREIGN AFFAIRS & TOURISM
Foreign Affairs, Regional Integration and
MRS V. PAREEATUMBEE Mr V. Bhurosah [SA] 201 1233 [email protected]
International Trade
(LA)
Regional Economic Integration Ms L. Kalloo [A] 201 3988 [email protected]
Tel: 201 3541
Ms S. Gokhool [A] 201 3988 [email protected]
Tourism cpareatumbee Ms A. Velappa-Naiken [A] 201 3414 [email protected]
@govmu.org
Ms S. Hingoo (FO) 201 3335 [email protected]
ICT, INNOVATION & PUBLIC SECTOR REFORM
Technology, Communication and MRS S. RAMA (LA) Mrs R. Nohur [A] 201 2448 [email protected]
Innovation (Inc. E-Government) Tel: 201 1998
Public Service Reform [email protected] Mrs M. Moolye(FO) 201 2767 [email protected]
FINANCIAL SERVICES
Mr. R.SOKAPPADU
Mrs N. Teeluckdary [A] 201 1637 [email protected]
Ministry of Financial Services, Good (Assistant Director)
Governance and Institutional Reforms Tel: 201 1482
[email protected]
Ms M. Ramsamy [A] 201 3457 [email protected]
Economic Analysis & Research Mr R. KHUSHIRAM Ms P. Kutwoaroo [A] 201 3733 [email protected]
(Director)
Tel: 201 1514
Macro-Modelling [email protected] Mr A. Yearoo [A] 201 2955 [email protected]
Budget Speech Implementation Mrs P. OOGARAH- Ms H. Choolhye [A] 201 2420 [email protected]
BONOMAULLY (LA)
Monitoring of Non-Financial Indicators Tel: 201 3230 Ms T. Hurchun [A] 201 2956 [email protected]
(Key Actions) poogarah-
[email protected]
EXTERNAL COMMUNICATION & INNOVATIVE FINANCING
Innovative Infrastructure Financing Ms J. Oogur [A] 201 3375 [email protected]
Mr I. BONOMAULLY(LA)
Port & Airport Development & Freeport
Tel: 201 2491 Mrs S. Dilmamode [A] 201 1603 [email protected]
Issues [email protected]
Shipping and Bunkering
INVESTMENT & BUSINESS FACILITATION
Investment Promotion & Facilitation Mr A. KOKIL Mr D. Trilok [SA] 211 5695 [email protected]
Director
Doing Business Facilitation Tel: 201 2766 Mrs T. Nathoo [A] 201 3437 [email protected]
[email protected]
AFRICA STRATEGY
Africa Strategy Mr M. RAWOTEEA (LA) Mr N. Armoogum [A] 201 3590 [email protected]
Special Economic Zones Tel: 201 3900 Mr S. Damree [A] 201 1233 [email protected]
Bilateral Agreements (Incl. DTA, IPPA) [email protected]
DEVELOPMENT COOPERATION
Cooperation with Development Mr G. BUSSIER Mrs R. Ramsurn [A] 201 2485 [email protected]
Partners(Incl. ADB & WB) Director
Foreign Technical Assistance Tel: 201 2339 Mr R. Ramayad [A] 201 3840 [email protected]
Foreign Aid [email protected] Mrs H. Rojoa [A] 201 1156 [email protected]
Mr F. Appavou [A] 201 2749 [email protected]
Note: LA - Lead Analyst; SA - Senior Analyst; A - Analyst / Senior Analyst
Annex V
PSIP 2016 - 2021
Updated Financial Profiles of On-going Investment Projects
Rs Million
Financing Projections
Psip Code
Consolidated Fund
Project 1
Project 2
Special Fund
Project 1
Project 2
Parastatal Bodies
Project 1
Project 2
Public Private
Partnerships
Project 1
Project 2
etc
Annex VI
TOTAL INCOME
Grant from Government
Own-Source Revenue
Revenue 1
Revenue 2
Other Income
TOTAL EXPENDITURE
Recurrent Expenditure
Capital Expenditure
Surplus/Deficits
Debtors
Cash & Bank Balance
Investment
Fixed deposit
Treasury Bills
Others..
Creditors
Bank Overdraft
Reserve
Loans
Contingent Liabilities
Pension
Financial Litigation
Annex VIII
VOTE Vote (Sub head if applicable) to which the key action is associated
LAST KNOWN RESULT Latest performance achieved and year of achievement (baseline)