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MTEF Stage 3 The Debt and Aid section of the MoF cocoordinates aid through consultations with donors. All donor aid is supposed to be processed through MoF. MTEF Stage 4 The resource committee reporting to the CCE determines sector allocations of resources and advises the ministries and department of ceilings and available resources according to the MPRSP and PPEs. MTEF Stage 5 Line ministries prepare expenditure estimates and discuss them with MoF. Often donors fund of projects off- budget. Line ministries have incentives to make agreements about projects outside of the national priorities because projects make funds available for staff allowances, vehicles etc. The MTEF process should prioritise social sectors. But when budgeting starts, no ministry is able to declare activities non-priority. PPEs are not location specific and they tend to be spent by politicians in areas were they intent to make a political impact. This is especially evident in the construction of boreholes and maintenance of feeder roads. Allocation not based on MPRSP but criteria that pragmatically responds to political interests, and the reality of inadequate funding. Many projects are started with and depend on donor funding. The failure to keep conditionalities result in withholding of funds which derails the budget. The government resorts to borrowing to keep paying salaries and obligations. The final budget allocations are not related to ministries’ proposals, or to the MPRSP prescribed allocation.
MTEF Stage 6 MoF holds consultations with civil society and the private sector. Consultations were introduced in the 2000/2001-budget year. Pre-budget meetings to hear the views of various interests groups in the three regions of the country (MoF). Sometimes post budget consultations are held. MTEF Stage 7 Printing and presenting the expenditure estimates. MTEF Stage 8 Approval of estimates by parliament. Ministry of Finance (MoF) submits to Parliament and publish by the 1 st of April The consultations are regarded as public relation of MoF’s, too unstructured and lacking formal process ensuring that outputs are taken into the budget. Often, they degenerate into ‘government bashing sessions’. Stakeholders are losing interests in participating. Compendious and unwieldy presentation of the budget documents, absence of useful information to aid the understanding of the budget Civil society has responded to the need to increase the knowledge of MPs on the budget, but analyses are based on limited information and not part of the formal budget process. Tendency of MPs to approve a budget that protects particularistic benefits. MPs vote on party lines and those opposing expendi- The pro poorness of the budget remains at the pitch set at stage 5, often very limited. Constrained capacity of parliament and civil society to influence budget in pro-poor direction. No real assessment of the budget by parliament of its pro-poor focus, and attention is
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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. The methods
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Stefan Leiderer et al. Part I: Conc
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Stefan Leiderer et al. the PRSP app
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Stefan Leiderer et al. Those arguin
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Stefan Leiderer et al. accounts, bu
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Figure 10: PFM under uncertainty Ca
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Annexes
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Stefan Leiderer et al. are employed
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Publications of the German Developm
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Discussion Paper 16/2007 Schirm, St
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