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

More documents

Recommendations

Info

Stefan Leiderer et al. ments. 34 Consequently, when external funding is delayed or does not materialise at all, the government may be required to turn to ad-hoc solutions such as domestic borrowing, or cutbacks of planned expenditures and deviation of funds intended for different purposes, undermining macro-economic stability and budget credibility (IDD and Associates 2005, 18). Poor communication by donors and among government agencies also undermines effective resource planning and prioritisation in other ways. A large share of donor support is provided as tied aid in the form of technical assistance to ministries, departments and agencies. This aid does not appear in the national budget and donors do not regularly provide detailed information on the costs of such projects. In addition, they tend to negotiate directly with the MDAs supported, often bypassing central ministries. The supported entities have strong incentives not to communicate all support received directly from donors to central government agencies, in particular the MoF, as this could diminish allocations they receive from the national budget. 35 Communication failures occur in the reverse direction as well, with the consequence that spending agencies are not informed about funding and donor support available to them. Thus, the MoF cannot establish a comprehensive picture of the resources available to each sector and, therefore, cannot ensure that the budget allocations are in line with the strategic priorities of the MPRSP and other strategy documents. 36 34 This applies to central and local level. However, while at central level a typical obstacle to the disbursement of donor funds consists in the government not meeting demanding reporting requirements, the problems at local level are frequently much more basic. Frequently, local communities simply fail to meet even simple requirements to contribute own resources to donor financed development projects such as sand or bricks for the construction of schools or roads. 35 Formally, all donor activities should be reported to the Department for Aid and Debt Management within the Ministry of Finance. However, all attempts to establish a comprehensive aid database have failed so far (Whitworth 2005, 7). 36 This poses serious problems with regard to the availability of funding as well. To access funding via the Education for All Fast Track Initiative (FTI), at least 20 % percent of a country’s public spending has to go to education. In Malawi, the sector’s share of the national budget is only about 12,8 % (2004/2005). One reason is the substantial share received by the sector off-budget. In order to be eligible for funding from the FTI, it is thus crucial for Malawi to get this extra-budgetary expenditure on-budget The fact that a donor agency had to take on the responsibility to compile the required data and prepare the application for FTI funding is a good indicator for the lack of capacity and possible perverse incentives in the Ministry of Health. 108 German Development Institute
Public Financial Management for PRSP Implementation in Malawi 6.3.2 Differing, complicated and poorly harmonised donor procedures Donors exacerbate PFM capacity constraints through poorly harmonized procedures and control requirements, thereby generating confusion and additional workload for the domestic administration. With virtually all major donors operating in Malawi, it seems to be difficult for Malawian stakeholders to know, understand and follow all the different procedures and mechanisms required by different donor agencies. Especially stakeholders at local level find it particularly difficult to understand and meet the requirements of the various funding mechanisms available to them. Donors also actively contribute to PFM in Malawi being characterised by systemic uncertainty through uncoordinated and unsustainable capacity building efforts. This problem is especially relevant at the local level. A number of donors have distributed the 28 rural districts between them and provide capacity building support almost exclusively to their “own” districts. By doing this they tend to undermine rather than promote the introduction of new PFM tools at the local level. One example is the introduction of an integrated financial management information system (IFMIS). Not all districts receive the required training and technical equipment in time. Thus, possible synergies and economies of scale and scope of capacity building measures are not realised. 6.3.3 Insufficient donor support for the adoption of PFM reforms In the past, donors have repeatedly contributed to discrepancies between formal and informal PFM procedures. They introduced PFM tools such as sector investment programmes, SWAps or the MTEF but failed to ensure genuine ownership for these tools and to provide sufficient support to make them fully operational, as an integral element of the overall PFM system. The MTEF exercise for instance is therefore perceived by Malawian officials as a purely donor-driven “add-on” introduced via a partial intervention, supported German Development Institute 109
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 121 and 122: Table 6: GRF Allocations Approved e
Page 125: Public Financial Management for PRS
Page 151 and 152: Figure 10: PFM under uncertainty Ca
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?