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Public Financial Management for PRSP Implementation in Malawi hensive policy direction and guidance for development. The analysis in the DDP serves as a basis for selecting programmes and projects that the district would like to implement. The DEC is responsible for compiling the DDP, while the DA is responsible for its approval. (Republic of Malawi 2001, 4–23). The Development Committee (DC) thus reviews the drafted plan and finally sends it to the full assembly for approval. Funding for local development To fund approved projects, the districts– in principle – have access to three different sources of revenue, namely central government grants, locally generated revenue, and ceded revenue collected by central government (see Section 6.2.2.1). There are five major transfer mechanisms to provide financing for local governments, namely the General Resource Fund (GRF), District Development Fund (DDF), Malawi Social Action Fund (MASAF), EU Micro-projects Programme (MPP), and EU Public Works Programme. The GRF is a formula-based unconditional block grant accessible to all local governments in Malawi. Although the main purpose is to provide funding for recurrent expenditure of local governments, 25 percent of GRF grants are earmarked for capital investment. In the case of rural districts, these 25 percent are supposedly transferred directly to district’s DDF account. However, far more important for funding local development expenditure are the District Development Fund (DDF) and the Malawi Social Action Fund, which make up about 90 % of the capital budget of rural districts (GFA 2005, 51 et seq.). MASAF was established in 1995. The World Bank funded MASAF with a $122 million credit for the first two phases from 1995 to 2003. As most social action funds, MASAF administrative units manage nearly all processes related to identifying and financing community projects in a parallel structure to those of local government planning authorities. German Development Institute 71
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Public Financial Management for PRS
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Studies Deutsches Institut für Ent
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Preface The present study on ‘Pub
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4 The Case of Malawi 44 4.1 Why Mal
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Bibliography 151 Annexes 157 Tables
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Boxes and Tables in the Annexes Box
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DS EHP ESAF EU GBS GDP GoM GRF GTZ
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TOR UDF UNCDF UNDP UNV USAID VAP VD
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Stefan Leiderer et al. PRSP impleme
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Stefan Leiderer et al. A particular
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Stefan Leiderer et al. come to vary
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Stefan Leiderer et al. Particularly
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Stefan Leiderer et al. donors are s
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Stefan Leiderer et al. - Improved c
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Stefan Leiderer et al. medium- to l
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Stefan Leiderer et al. tion of the
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Stefan Leiderer et al. and systemat
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Stefan Leiderer et al. Box 15: MASA
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Stefan Leiderer et al. tives and wa
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Stefan Leiderer et al. manage gover
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Stefan Leiderer et al. These featur
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Stefan Leiderer et al. tainty absor
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Stefan Leiderer et al. in a permane
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Stefan Leiderer et al. reinforcing
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Stefan Leiderer et al. Box 16: Illu
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Stefan Leiderer et al. follows: “
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Stefan Leiderer et al. Capacity The
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Stefan Leiderer et al. whether obse
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Stefan Leiderer et al. These findin
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Stefan Leiderer et al. 8 Recommenda
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Stefan Leiderer et al. of governmen
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Stefan Leiderer et al. Merit-based
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Stefan Leiderer et al. — facilita
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Stefan Leiderer et al. European Com
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Stefan Leiderer et al. Luhmann, N.
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Stefan Leiderer et al. Van de Walle
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Table A 1: Research Schedule Phase
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New publication series from Novembe
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Analysen und Stellungnahmen 1/2007
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