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B. DIRECT GRANTS
A direct grant that does not pass through the planning process will then not be included government budgeting processes. To be recorded in the government inancial system, a direct
grant needs to be recorded in the DIPA, through a revision of the most current DIPA. Such revisions can be made up to the deadline for disbursement in a Funds Disbursement Order
SP2D. Without this, the grant will remain unrecorded in the government inancial system ‘off- budget, off-treasury’, as with the grants for the CTSPMPAG and JFPR.
C. CONCLUSIONS
Government budgeting processes relect planning processes. Activities or programs funded by planned grants are already included in the planning process and are thus also incorporated into
the budgeting process. The budget for a planned grant is decided in accordance with a planned- grant agreement that is usually an integral part of the foreign loan ceiling. Such budgeting is
bound to the grantloan agreement relating to the activities or programs to be implemented.
As direct grants are not included in planning processes, the activitiesprograms that they fund will not be included in the budgeting stage. For some types of direct grant current government
budgets can be revised through a formal revision process. This is required to ensure that such grants are accounted for in the government budget. However, this mechanism is not found at
the MMAF Directorate of KKJI.
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Budget utilization or funds disbursement is the next step following on from the activityprogram planning and the budgeting stages. Once budget documents have been inalized and approved
for the iscal year, activitiesprograms are then implemented with reference to these and to the allocated funding levels. The mechanism for funds disbursement is based on the activities and
their budgets as set out in the Annual Budget Allocation Document DIPA.
CHAPTER IV IMPLEMENTATIONFUNDS
