Figure 1 : Paradigm Shift from Conventional Budgeting

Activity-BasedBudgeting

MTEF

ExtendedTimeframeLine Item
BudgetingSingle-year
Budgeting

Conventional
Budgeting
Isolated
BudgetingComprehensive
Coverageto Attain Performance

Program
Budgeting
1Conversion toOutput
Orientation

Table 1 : Activity-Based Budgeting (ABB) : Layers of Objectives Achievement and Costing (Example in Health Sector)

Objective
1.To expand the range and quality ofhealth services focused onmaternal health and children
under the age of 5 year.

Target(Quantified Objective)
1.Maternal mortality reduced from 620 to310 per 100,000.
2.Infant mortality reduced from 134 to 100
per 100,000.
3.Under-fives mortality rate reduced from
234 to 150 per 1,000 live birth.
4.Neonatal mortality rate reduced from 55 to40 per 1,000births.
5.HIV sero-prevalence rate be reduced from
13% to 7%.
6.Average diarrhea episodes in under-fivereduced from 6 to 3 per child.

Strategy

1.Strengthen andintegrate
reproductive
health services.

2.Strengthen andintegrate childhealth services.

2.To improve general health status of the population by strengthening, expanding
and integrating relevant health services.
3.To increase access to healthcare facilities and basic health care services
4.To increase, retain and improve the quality of trained human resources anddistribute them efficiently and equitably.
5.To provide better health care in all health facilities.
6.To improve efficiency and equity in resource allocation.
7.To strengthen collaboration and partnership between health sector, communities,
other sectors (Local Government and Tourism), and private providers (allopathicand traditional)
8.To increase overall resources in the health sectors and allocate them efficientlyand equitably.

2

Task

1.Improve the quality andaccess to family planning
services.
2.Improve maternal healththrough improved access toquality maternal health careservices.
3.Reduce the incidence of HIV
and other STs in Blantyre.

Activity
1.Establish more F/P mobile clinics.
2.Conduct CBDA supervision.
3.Conduct CBDA refresher courses.
4.Conduct CBDA initial training.
5.Conduct community male motivators
refresher course.
6.Conduct family planning providers
refresher course.

Costing

Cost Items
Unit CostQuantity

Table 2 : “Programmes” and Selected Items by Pilot Ministries
Code010203040506070809101112131415161718192021222324252627282930313233343536373839404142434445464748

PRPGRAMME TITLE
Administration and Support Services
Auditing Services
Budgeting Services
Commerce and Industry Development Services
Community Development Services
Cultural and Social Development Services
Curative Health Services
Debt and Aid Management Services
Disaster Preparedness and Rehabilitation Services
Economic Management and Development
Employment and Labour
Energy and Mining Services
Environmental Management
Extension Services
Financial Management and Accounting Services
Fisheries and Aquaculture Development
Foreign Services
Gender Development and Welfare Services
GovernanceHome Affairs and Internal Security
Housing, Lands and Estate Management
Information and Communication Technology
Infrastructure Development, Rehabilitation and MaintenanceInspectorate and Advisory Services
Legal and Judicial Services
Local Government Services
Manpower Development and Institutional Strengthening
Media and Information Services
Meteorological Services
Nutrition and Food Security
Planning Services
Preventive Health Services
Primary Education
Public Enterprise
Research, Technology Generation and Development
Secondary Education
Special Services
Standards, Testing and Censorship Services
State Security
Statehood Services
Statistical Services
Statutory Services
Studies, Surveys and Valuations
Technical Services
Tertiary Education
Tourism Development and Promotion
Transport and Traffic Services
Water Resource Development and Management

3MOA○

MOH○

MOE○

○

○
○

○
○

○
○
○

○
○
○
○

○

○
○

○
○

Table 3 : Proposed Budget Structure
Programme

Objectives<Example for MOE>

Strategy

Activity

Costing
Current

Capital

Total

Service Cost : Cost directly attributable to services mandated to MOE
33: Primary Education
36: Secondary
Education

1. Increase accessto secondary
education

1.1 Increase access topublic secondary
education

1.2 Increase access tosecondary
distance
education

2. Improve equity
to secondary
education

2.1 Ensuring thataccess tosecondary
education is fairlydistributed inevery zone (315)
2.2 Increase thenumber of needy
students gaining
access tosecondaryeducation

1.1.1 Construction of newclassrooms/ schools
within walking
distance (not morethan 10 km radius)
1.1.2 Re-organize/review thecurrent selection
system to fully utilize
the existing
infrastructure
1.1.3 Project 1.1.A
1.2.1 Provide distanceeducation to primaryschool leavers who do
not continue withformal schooling via
MCDE
1.2.2 Provide distanceeducation to adultgroup
1.2.3 Project 1.2.B
2.1.1 Construction ofclassrooms based on
the school census andmapping

2.2.1 Review of bursary
scheme to target
students from low
social-economic
groups (needystudents) withparticular focus ongirls and orphans andincrease the budget
allocation
2.2.2 Project 2.2.C

45: Tertiary Education

Overhead Cost : Cost not directly attributable to particular mandated services specified above but necessary tosupport their effective execution or to maintain overall capacity of MOE
01: Administration &Support Services
02: Auditing Services
03: Budgeting
Services4

Programme

Objectives

Strategy

Activity

Costing
Current

Capital

Total

Current

CapitalTotal

11: Employment &Labor Services
15: Financial
Management &Accounting
Services
22: Information &Communication
Technology
23: Infrastructure
Development,
Rehabilitation &Maintenance
27: Manpower
Development &Institutional
Strengthening:
31: Planning Services
35: Research,Technology
Generation &Development
43: Studies, Surveys
and Valuations
44: Technical Services

Total Budget

5