Most important tools used in Planning / Key instruments (Universal/Rwanda)

Every Institution has the key element used in planning, that elements guide the institution to focus on its mission and vision, there are universal tools that are either used by institution/organization toward on its objective. In this this article we are going to examine Most important tools used in Planning / Key instruments used in planning by every country. Also, we will focus on the planning instrument that are adopted by Rwanda as country which have growing economy at good rate.    

Universal Tools that  are used by institution during planning process is SWOT and PESTEL Analysis, Theory of change, Log frame, and activity-based costing, scenario planning.

SWOT: Strength, weakness, Opportunity and Threats: this tool is mostly used it  help to determine the internal factor such as strength of the institution; weakness factor which lead to disable to achieve your objective. Finally, is to access opportunities which institution or individual have it mean factor which comes as an asset to the institution externally, finally is the hindrance that organization can not control which come out of organization.   

PESTEL is acronym word which stand for PESTEL (Political, Economic, Social, Technological, Environmental and Legal) this tool help to analyze any project by following term by terms; Activity based costing it help to analyze the resources and cost that will be in the project.

Theory of change is used for tracking the change that are needed within the organization, especially by following result chain, impact of the project and outcome within strategic plan, output and inputs within annual action pan and other operation plan.  Scenario planning: can be used for medium to long-term planning or in preparation for a new planning cycle and is often appropriate for developing a situational or diagnostic analysis.

Most important tool used Planning tools /Instrument/Key used in Rwanda

In Rwanda, have many planning tool that are used to focus on its vision they are in range of hierarchy order, currently there is long-term vision 2050, medium term (National Strategy for Transformation, NST-1).

Key Planning tools or instrument used in planning in Rwanda is Vision 2020 which replaced by  Vision 2050 , National Strategy for transformation, (NST-1)/ Government 7-year programme, Sector Strategic Plans (SSPs), The Medium Term Expenditure Framework (MTEF), District Development Strategies (DDS ,Strategic Issues Papers (SIPs), Annual Action Plans/Single Action Plans, Performance contracts (Imihigo), Budget outlook paper, . The Budget Framework Paper (BFP), Annual budget

Key Planning tool/Instrument used in Rwanda

a. VISION 2020 – sets the longer term perspective and objectivesfor Rwanda and therefore represents the overarching framework for all Government activities.

b. National Strategy for transformation, (NST-1)/ Government 7-year programme – this document highlight the priorities to be implement by the government within seven years it translate the vison into medium term strategic intervention

c. Sector Strategic Plans (SSPs) – It orient each sector by spelling out in broad way basing on the national document NST-1and Vision 2020/2050, it highlight the performance, revenue, resources of that sector.

.d. District Development Strategies (DDS) are the districts’ medium term plans/strategies. They make the link between local priorities and national priorities as outlined in the NST-1 and sector strategies.

 e. The Medium Term Expenditure Framework (MTEF) – Iis the key instrument linking planning and budgeting. Its objective is to ensure the National Budget is an efficient and relevant tool to implement the plans and reach the objectives as defined in the NST-1, sector strategies, and district development strategies.

f. Strategic Issues Papers (SIPs) – Are prepared by public entities and give background and justification to ministries’ priorities. They summarize the main current policy issues, focusing especially on what the priority areas should be. This is important in helping planning and budgeting to be more of a strategic than historical process.

g. Annual Action Plans/Single Action Plans :Are prepared annually by all public entities. They identify activities to be carried out each year by the public entities. The action plans inform the budgeting process and are finalized and adopted in order to ensure that they are in line with the MTEF and the National Budget – as adopted by Parliament.

h. Performance contracts (Imihigo): Since 2006, each year districts, and from 2009 onwards Ministries, define a Performance Contract (imihigo) signed with the President of the Republic, which outlines the key targets and objectives of the district/ Ministry for the year to come. These are structured in two broad categories i.e. Joint Imihigo for select transformational priority areas bringing on board Ministries, Districts and Private Sector as well as individual imihigo (Ministry and Districts Imihigo).

i. Budget outlook paper :The elaboration of medium fiscal framework and provides the background and parameters forming the basis for the allocative process and the detailed budget. It links annual fiscal and budget policy to long-term national strategic objectives as well as sector priorities agreed upon during the planning consultations by reviewing recent performance against the objectives and proposing a forward fiscal strategy.

It discusses recent macro-economic development and provides the government’s assessment for the forward economic outlook. It provides a projection of expected fiscal outturns for the current fiscal year including revenue outturns realization of grants expenditures performance and financing as well as progress in major public sector structural reforms. It provides a framework for sectoral budget allocation decision making by discussing the medium-term fiscal strategy including policy objectives and targets.

j. The Budget Framework Paper (BFP) :Plays a crucial role in linking planning and budgeting as it sets out the Government’s medium-term strategic thinking. While the budget outlook paper is prepared to update the Cabinet on economic environment to set the basis for resource and expenditure projections as well as proposed sectoral allocations, the budget framework paper is prepared to give advance information to parliament on the budget preparation process and proposed revenue and expenditure estimated for their scrutiny and comments.

k. Annual budget – is a financial plan of how the government intends to mobilize and allocate the resources to achieve objectives set in a given year.

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