ZBB Project

 

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Background

Federal Budget Process Reform aims to address improvement potentials identified in current budgeting process

First, budgeting process should be aligned with the Ministry of Cabinet Affairs’ strategy for the UAE. For that, the reformed process will introduce a 3-year budget cycle linked to strategy cycle from 2011–2013.

Second, current activity and cost transparency can be improved. The move to zero-based budgeting will increase transparency.

Third, the budgeting process can be streamlined and made more efficient. A clear budgeting handbook and new budgeting IT system has been provided as part of this reform process.

 
Such a reform will result in benefits for all stakeholders

For the UAE,

  • Allocate resources to deliver maximum social impact
  • Develop international reputation in budgeting

For government entities,

  • Link long-term objectives seamlessly to budgeting
  • Provide processes and tools for financial management and prioritization of activities

For Ministry of Finance and Ministry of Cabinet Affairs,

  • Encourage partnership with government entities in achieving strategic, operational and financial objectives
 
ZBB project conducted over 10 months in partnership with Ministry of Cabinet Affairs and government entities

Process and handbook design

  • Collaboration between Ministry of Finance and Prime Minister Office to tie strategy and budgeting seamlessly
  • Adoption of international best practices in budgeting
  • Revised Federal budgeting process meeting Ministry of Finance and Ministry of Cabinet Affairs requirements
  • UAE Federal Budgeting handbook designed in conjunction with Ministry of Finance, Ministry of Cabinet Affairs and government entities

Zero based budget Implementation

  • Regular working sessions between Ministry of Finance, Ministry of Cabinet Affairs and entity representatives to perform all stages of the zero based budget process
  • Complete zero-based 3 year budgets for all entities in accordance with new budgeting method
  • Perform all stages of budget planning process with over 35 pilot ministries and Autonomous Agencies, from Activity Collection, Program Alignment, Cost Allocation, to Budget Forecast

IT budgeting system

  • Develop state-of-the art IT system that provides government entities with the means to perform zero-based budgeting in a structured manner
 
Zero based budget starts from a blank sheet and follows a 5-step process
ZBB Process
 
 
 

 

 

 

Peaple Leading the Change
ViewMore Peaple in government entities who have been involved in the transition to zero- based budgeting
 
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