Public Expenditure Tracking in Uganda (and elsewhere)

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Public Expenditure Tracking in Uganda (and elsewhere) Powered By Docstoc
					Public Expenditure Tracking in
   Uganda (and elsewhere)

 Budget Management and Financial Accountability
                   Washington, DC
                    March 2004

       Magnus Lindelow (mlindelow@worldbank.org)
                     The World Bank
        The Ugandan experience
   Many improvements since 1992
      macroeconomic stability and growth
      shift of public resources from defense to roads and social
      sectors
      decentralization
   Poverty Eradication Action Plan (PEAP)
   Poverty reduced from 56% in 1992/93 to 35 % in
    2000
   Strong budget management
      MTEF, Poverty Action Fund (PAF)
   Sector level performance did not keep up
    Uganda Education PETS (1995)

   Data collected from different levels of
    administration, including 250 schools
   Only 13 percent of intended capitation grant actually
    reached schools (1991-95).
      Large schools with wealthier parents and qualified teachers
      were able to obtain more of their budget allocation.
   Other findings
      Enrollment trends differed from published data.
      Importance of parental contributions.
               Impact and follow-up
   Mass information campaign by
                                                        Leakage of non-wage
    Ministry of Finance (the press,                   capitation grant to schools
    posters)
                                                   100%
      A signal to local governments
      Lower the cost of information to parents     80%

   Follow-up PETS in education in 2001            60%
      Ministry of Education initiative and local
                                                   40%
      implementation
      shows a major improvement (18%               20%
      leakage)
                                                    0%
   Broadening agenda: other sectors and                   1991-1995        2001
    broader focus (service delivery,
    integrity, etc.)
        Why new tools to analyze public
        spending and service delivery?
   Uganda survey stimulated similar surveys in other countries
   Limited impact of public spending and external aid on
    growth and human development (WDR 2004)
       Inappropriate allocation of resources
       Resources do not reach service delivery units
       Poor quality of service delivery
       Services are not used by the population
   New approaches to aid delivery (budget support, PRSCs,
    etc)
       fiduciary and accountability concerns
   Lack of reliable data in many developing countries
     PETS and Service Delivery Surveys
   Diagnostic tool for understanding             Surveys to date
    problems in budget execution              Completed    Ongoing
   Data collected from different levels of
    government, including service delivery    Uganda       Ethiopia
                                              Tanzania     Nigeria
    units                                     Ghana        Brazil
   Reliance on record reviews, but also      Rwanda       Laos
    interviews                                Mozambique
                                              Zambia
   Variation in design depending on          PNG
    perceived problems, country, and          Honduras
    sector                                    Peru
                                              Bangladesh
   Growing focus on service delivery and
    use of “hybrid” survey approaches         and more…
    But tracking is often difficult…
   Data availability
       E.g. tracking not possible in health sector in Uganda 1995
   Data quality
       Reliance on records, but books may be “cooked”
   Multiple flows and different levels of execution
       Schools and health facilities receive many resources in-kind
   Undefined or changing allocations/norms
       Often much discretion over resource allocation in budget
        process
   Different focus in some surveys
       Timing of transfers, bottlenecks in budget execution, the use
        of discretion in resource allocation, etc.
        An illustration from Mozambique
   Context and issues
       National Health System: health sector                     Central
        dominated by public providers                Resource                  Vague
       Providers receive budgets and in-kind        allocation              guidelines
        transfers                                                 Province
       Vague allocation criteria and guidelines             ?               ?
       Fragmented and unreliable reporting
                                                                  District
   Diagnostic survey
                                                             ?               ?
       90 health facilities, 35 districts offices
       Record reviews and staff interviews                       Facility
       Exit poll to capture user perceptions
              Delays and bottlenecks
   Delays in budget transfers to                           12
    districts                                               10
       Budget norm: January                                8




                                            No. districts
       Delays => low levels of budget
                                                            6
        execution (32%) and service
        delivery problems                                   4

   Other systems weaknesses                                2
       Up to 90 day delays for re-                         0
        stocking of drugs




                                                                                       April


                                                                                                     June
                                                                 Jan.
                                                                        Feb.
                                                                               March


                                                                                               May
       Stock-out of drugs or material in
        60% of facilities                                        Receipt of 1st budget transfer
       Equity in resource allocation
   Push-based system of         Number of tablets distributed to
                                    facilities per outpatient
    drug distribution
                                                Min.   Mean   Max.
     Basedon outpatient
      numbers                   Aspirin          1.1    4.6   16.8
   In practice, very           Cloroquin        1.2    4.1   12.9
    different…                  Cotrimoxazol     0.0    2.7   7.8

   Also “irrational” or        Mebendazol       0.5    1.6   6.2
    inequitable allocation of   Metronidazole    0.0    0.8   3.3
    other resources             Paracetamol      0.0    2.6   7.8
Strengths and weaknesses of approach
   Useful tool for diagnosing and understanding problems in
    budget execution and service delivery, and monitoring
    changes over time
   Validation of administrative data (financial and output)
   Process of designing and implementing survey is useful for
    understanding PEM and service delivery system
   But…
       surveys only provide part of the answer (intra-sectoral allocations,
        link with outcomes, etc.)
       Surveys should supplement rather than supplant routine
        information, control, and integrity systems
       Surveys are not audits
       Surveys provide information but don’t necessarily result in change