Public Financial Management for PRSP - Deutsches Institut für ...

More documents

Recommendations

Info

Stefan Leiderer et al. Figure 7: Total Revenue and Actual ODA Inflows (in percent of GDP) Source: IMF (2004b) These factors, together with the cash budgeting system, lead to a situation where in a given month the government can only spend what it collected in the previous month. The resource envelope is small and ridden by cash flow fluctuations. This leads to cutbacks of approved budget votes and implementing agencies usually do not receive the money that was allocated to them for the financial year. However, not only is the overall resource envelope characterised by a high degree of volatility and thus uncertainty. In addition, more specifically, resources available to public sector institutions to perform their PFM functions are often all but unpredictable. This is particularly true for Malawi’s oversight institutions, in particular the National Audit Office and Parliament, but also for administrative bodies at the local level as seen in the following sections. 96 German Development Institute
Public Financial Management for PRSP Implementation in Malawi 6.2.1 Funding as a prerequisite for capacity As illustrated in the previous sections, Malawi faces severe capacity constraints in its government institutions. One of the most important reasons for this is the lack of resources. There are three main ways this affects the capacity of key PFM institutions: — Inadequate staffing of key PFM positions — Inadequate incentives and brain drain due to low salaries in the civil service, and — Lack of adequate equipment to perform key PFM functions. Lack of adequate equipment and financial resources, in particular, impedes effective PFM at central and even more at local government level. Ample evidence exists that officials regularly do not have transport, fuel, computers and office stationary to carry out even simple tasks. It is a common that no funding is provided to cover maintenance costs, even if there is enough equipment such as cars or computers (mostly provided by donors). The research team saw many broken and useless computers or copy machines that would be needed for instance to produce and distribute financial reports. Consequently, accounting and other important tasks are done manually, which creates many errors and makes meaningful financial control a very difficult undertaking. According to a number of interview partners, frequent power-cuts make it difficult to use computers for key PFM tasks, in particular in rural areas. Of course, these problems severely undermine efforts such as those currently made by the World Bank to improve financial control through a computerised Integrated Financial Management Information System (IFMIS). Accordingly, the IFMIS was not operational at the time of this field study (see Durevall / Erlandsson 2005, 22–26). The lack of resources to perform key PFM tasks is omnipresent at central level. In particular Malawi’s oversight institutions, such as the National Audit Office and Parliament, are severely underfunded (see Box 13). This affects the external control of administrative bodies at the local level as well. German Development Institute 97
Page 3 and 4:
Public Financial Management for PRS
Page 5 and 6:
Studies Deutsches Institut für Ent
Page 7:
Preface The present study on ‘Pub
Page 10 and 11:
4 The Case of Malawi 44 4.1 Why Mal
Page 12 and 13:
Bibliography 151 Annexes 157 Tables
Page 14 and 15:
Boxes and Tables in the Annexes Box
Page 16 and 17:
DS EHP ESAF EU GBS GDP GoM GRF GTZ
Page 18 and 19:
TOR UDF UNCDF UNDP UNV USAID VAP VD
Page 20 and 21:
Stefan Leiderer et al. PRSP impleme
Page 22 and 23:
Stefan Leiderer et al. A particular
Page 24 and 25:
Stefan Leiderer et al. come to vary
Page 26 and 27:
Stefan Leiderer et al. Particularly
Page 28 and 29:
Stefan Leiderer et al. donors are s
Page 30 and 31:
Stefan Leiderer et al. - Improved c
Page 32 and 33:
Stefan Leiderer et al. medium- to l
Page 34 and 35:
Stefan Leiderer et al. tion of the
Page 36 and 37:
Stefan Leiderer et al. and systemat
Page 38 and 39:
Stefan Leiderer et al. The methods
Page 40 and 41:
Stefan Leiderer et al. Part I: Conc
Page 42 and 43:
Stefan Leiderer et al. the PRSP app
Page 44 and 45:
Stefan Leiderer et al. Those arguin
Page 46 and 47:
Stefan Leiderer et al. accounts, bu
Page 48 and 49:
Stefan Leiderer et al. It must be n
Page 50 and 51:
Stefan Leiderer et al. The typical
Page 52 and 53:
Stefan Leiderer et al. Administrati
Page 54 and 55:
Stefan Leiderer et al. Figure 2: Le
Page 56 and 57:
Stefan Leiderer et al. ety may have
Page 58 and 59:
Stefan Leiderer et al. 9. Transpare
Page 60 and 61:
Stefan Leiderer et al. The main res
Page 62 and 63:
Stefan Leiderer et al. 3.3 Structur
Page 64 and 65: Stefan Leiderer et al. never gained
Page 66 and 67: Stefan Leiderer et al. its relevanc
Page 68 and 69: Stefan Leiderer et al. pronounced i
Page 70 and 71: Stefan Leiderer et al. — Several
Page 72 and 73: Stefan Leiderer et al. Table 1: Pop
Page 74 and 75: Stefan Leiderer et al. more by info
Page 76 and 77: Stefan Leiderer et al. tion of the
Page 78 and 79: Stefan Leiderer et al. Table 2: The
Page 80 and 81: Stefan Leiderer et al. ing due to o
Page 82 and 83: Stefan Leiderer et al. authorised t
Page 84 and 85: Stefan Leiderer et al. (in particul
Page 86 and 87: Stefan Leiderer et al. Figure 3: In
Page 89 and 90: Public Financial Management for PRS
Page 93 and 94: Figure 5: Institutional Setup of Ma
Page 97 and 98: Box 10: The formal and informal ins
Page 99 and 100: MTEF Stage 6 MoF holds consultation
Page 113: Public Financial Management for PRS
Page 121 and 122: Table 6: GRF Allocations Approved e
Page 151 and 152: Figure 10: PFM under uncertainty Ca
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175:
Annexes
Page 178 and 179:
Stefan Leiderer et al. are employed
Page 180 and 181:
Stefan Leiderer et al. During the f
Page 182 and 183:
Stefan Leiderer et al. Box A 1: Tri
Page 184 and 185:
Stefan Leiderer et al. The politica
Page 186 and 187:
Stefan Leiderer et al. Annex 2 Tabl
Page 188 and 189:
Stefan Leiderer et al. Mayesa, Mr.
Page 190 and 191:
Stefan Leiderer et al. Thole, Pamel
Page 192 and 193:
Stefan Leiderer et al. 6 Committee
Page 194 and 195:
Stefan Leiderer et al. Chanza, Bill
Page 196 and 197:
Stefan Leiderer et al. Full Assembl
Page 198 and 199:
Stefan Leiderer et al. owned busine
Page 201 and 202:
Publications of the German Developm
Page 203 and 204:
Discussion Paper 16/2007 Schirm, St
show all

Public Financial Management for PRSP - Deutsches Institut für ...

Create successful ePaper yourself

Delete template?

Save as template?