Public Financial Management for PRSP - Deutsches Institut für ...
Public Financial Management for PRSP - Deutsches Institut für ...
Public Financial Management for PRSP - Deutsches Institut für ...
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MTEF Stage 3<br />
The Debt and Aid section of the MoF cocoordinates<br />
aid through consultations<br />
with donors. All donor aid is supposed to<br />
be processed through MoF.<br />
MTEF Stage 4<br />
The resource committee reporting to the<br />
CCE determines sector allocations of<br />
resources and advises the ministries and<br />
department of ceilings and available<br />
resources according to the M<strong>PRSP</strong> and<br />
PPEs.<br />
MTEF Stage 5<br />
Line ministries prepare expenditure<br />
estimates and discuss them with MoF.<br />
Often donors fund of projects off- budget. Line<br />
ministries have incentives to make agreements<br />
about projects outside of the national priorities<br />
because projects make funds available <strong>for</strong> staff<br />
allowances, vehicles etc.<br />
The MTEF process should prioritise social sectors.<br />
But when budgeting starts, no ministry is able to<br />
declare activities non-priority. PPEs are not location<br />
specific and they tend to be spent by politicians<br />
in areas were they intent to make a political impact.<br />
This is especially evident in the construction of<br />
boreholes and maintenance of feeder roads.<br />
Allocation not based on M<strong>PRSP</strong> but criteria that<br />
pragmatically responds to political interests, and<br />
the reality of inadequate funding.<br />
Many projects are started with<br />
and depend on donor funding.<br />
The failure to keep conditionalities<br />
result in withholding of<br />
funds which derails the budget.<br />
The government resorts to borrowing<br />
to keep paying salaries<br />
and obligations.<br />
The final budget allocations are<br />
not related to ministries’ proposals,<br />
or to the M<strong>PRSP</strong> prescribed<br />
allocation.