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The government gathers money (revenue) and then spends it

By Sharon Clark,2014-12-22 21:31
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The government gathers money (revenue) and then spends it

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    Tanzania’s

    Public Expenditure Review

    (PER)

    Process

    INTRODUCTION ............................................................................................................................... 2

    PER ........................................................................................................... 2 THE EVOLUTION OF THE

    HOW THE PER IS ORGANISED ........................................................................................................... 2 PER Working Group ................................................................................................................... 2 Macro Sub-Group ....................................................................................................................... 3 Sector Working Groups ............................................................................................................... 3 Secretariat .................................................................................................................................. 3 THE PER ANNUAL CALENDAR ......................................................................................................... 4 Phase One Research and technical support............................................................................... 4 Phase Two Consultation and evaluation ................................................................................... 4 PER RESEARCH AND TECHNICAL SUPPORT ...................................................................................... 5 Economic options ........................................................................................................................ 5 Integration of donor aid into the budget....................................................................................... 5

     Tracking spending on poverty reduction ...................................................................................... 5

    Updating PER and linking to PRSP and MTEF ........................................................................... 5 HIV/AIDS financing mechanisms ................................................................................................. 5 Local Authority Debt ................................................................................................................... 5 Open Review the Annual Consultation event. ............................................................................ 5 MAJOR PER THEMES ....................................................................................................................... 6 Wealth Creation .......................................................................................................................... 6 Budgeting for revenue and expenditure ........................................................................................ 6 Capacity Building for Good Governance ..................................................................................... 6 Improved Processes .................................................................................................................... 6 Emerging Issues .......................................................................................................................... 6

    PER/MTEF ............................................................................................................. 7 THE IMPACT OF

    Better focus on priorities ............................................................................................................. 7 Better linking of initiatives .......................................................................................................... 7 Better budget management .......................................................................................................... 7 Better overall economic sustainability ......................................................................................... 7 NGO CONTRIBUTIONS TO THE PER .................................................................................................. 8 THE GOVERNMENT CHALLENGE TO NGOS ........................................................................................ 9

    Prepared by Hakikazi Catalyst (Sept 2002)

    As part of the NGO Policy Group Consultancy

    www.hakikazi.org

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    Introduction

    The government gathers money (revenue) and then spends it (expenditure) for the greater good of the nation. But there is not enough money to do everything that needs to be done. There is no easy way of deciding what is most important ie of setting the budget. But people have to decide on priorities and, in a democracy, all stakeholders should be involved. Everyone should help to decide what is most important and they should watch carefully to see that agreed plans are being carried out and that the actions are having the expected results.

    But different people have different priorities. There are rarely enough ‘facts’ to make sound decisions. There has to be negotiation. The process is political. There is need for openness and accountability and a systematic way of making policies and decisions.

    The Public Expenditure Review (PER) is a process which has been designed to help build not only efficiency and effectiveness, but also openness and accountability into Tanzania’s participatory democracy.

    The evolution of the PER

    Before 1988 the PER was an external activity driven by the World Bank with large missions from Washington engaging in 2-3 week events. Local ownership and participation was weak and insignificant, and the results of the PER were not effectively used as feedback to the processes of planning and budgeting and therefore of controlling public expenditure.

    Since 1988 the PER has been reshaped into a locally-owned, broad-based and participatory evaluation exercise which provides support to the government’s budgeting process. The PER now tries:

; to develop a system that allows the public to hold the government to account for how it gathers and

    spends our money. This involves designing a system that allows a widening range of people to

    take part in evaluating the budget process.

    ; to encourage a more strategic approach to how the government decides to gather and spend our

    money. This includes setting clear priorities and maintaining macroeconomic stability. ; to make the budgets of the different parts of government more coordinated and predictable. This

    involves making plans for three years at a time (ie developing and being guided by a Medium

    Term Economic Framework (MTEF).

    ; to improve the budgeting system by building up the institutions, laws and people that are involved

    with it, and,

    ; beginning in FY01, to make poverty reduction the main thrust of the budget.

    How the PER is organised

    The diagram shows the basic structure of the

    PER Working Group PER. The three groups are serviced by a

    secretariat.

    PER Working Group

    The PER Working Group is responsible for

    overseeing the two phases (see below) of the

    PER process. It meets once a fortnight Sector

    throughout the year. The group is chaired by Working Macro the Deputy Permanent Secretary in the Groups Sub-Group Ministry of Finance. Membership of the group

    has gradually been widening. It now draws

    members from a broad range of stakeholders

    including central and local government,

    bilateral and multilateral donors and lenders, research and academic institutions, private sector, civil society and NGOs. The PER-WG now has about 45 members and most meetings have attendances of over 30. TGNP and TASOET have had seats at the table for some time and recently Haki Elimu has joined representing the NGO Policy Group.

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    Macro Sub-Group

    The Macro Sub-Group is responsible for many of the details of the process. The Sub-group is also chaired by the Deputy Permanent Secretary in the Ministry of Finance. Government members of the Sub-group include the Commissioner for Budget, Commissioner for Policy Analysis, Commissioner for External Finance, a representative from the President’s Office – Planning and Privatisation, and

    from the Bank of Tanzania. Non government members are drawn from the World Bank, IMF, European Commission, UNDP, UNICEF, DFID, SDC, CIDA, Norway, Sweden, Denmark, the Netherlands and JICA/Japan.

    Sector Working Groups

    The Sector Working Groups are based in the planning departments in the priority sector Ministries. Officials along with consultants and other interested bodies are responsible for working on the PER update for their sector and for preparing the sector MTEF based on the PER. The members of the Sector Working Groups also play a vital role in taking the major findings and recommendations from the PER back to senior sector ministry officials and other relevant stakeholders. There are also cross-sectoral working groups.

    Secretariat

    The PER presently has an interim secretariat. This consists of two members of staff from the University of Dar es Salaam working part time from the offices of the World Bank which has made space, equipment and materials readily available. Thought is presently being given to institutionalising the PER Secretariat within the Ministry of Finance on a permanent basis.

    TGNP , the PER-WG and the Gender Macro Group

    TGNP first joined the PER-WG so that it might be better informed about what was going on and so that it could share the information which it gathered. It soon became obvious, however, that the PER offered opportunities for ‘influencing’ and that the task of representing and communicating with the

    whole NGO community was overwhelming. If involvement was to go beyond just attending meetings to being active actors it was necessary to help develop structures that involved other stakeholders.

    TGNP is now part of the PER Gender Macro Group which includes gender officers from several local and international organisations. This broader set of actors allows a collective approach from several different angles and thus the possibility of speaking with a more informed and more representative

    voice. It also makes it possible to outsource some of the more technical tasks which the Gender Macro Group is called upon to handle.

    Being part of a larger group means that tasks can be distributed between members and that the demands made on any one member is thus less. Various technical sub-groups have also been formed

    and these are networked through email to experts in other parts of the world where gender issues have already been effectively mainstreamed..

The Gender Macro Group is thus well placed to provide authoritative and timely inputs to the PER-

    WG and to have considerable influence through what it recommends. A challenge for the future is to develop better ways of popularising the process and allowing the voices of ordinary people to be

    channelled into the decision making procedures.

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    The PER Annual Calendar

    Each year the PER goes through two phases. The first phase focuses on research and technical work aimed at improving the system. The second phase focuses on a combination of evaluative work and open consultation about the future directions of the budget.

PER-WG Activity Time slot

Phase One Research and technical support

    1.1 Approve the timetable of events for the coming year Aug-Sep

    1.2 Commission Technical Studies & find the funds for them Sep-Feb

    1.3 Commission Peer Reviews for the Technical Studies & find funds Sep-Feb

    1.4 Joint Mission Nov-Dec

    1.5 Disseminate the results of the Technical Studies Dec-Apr

    1.6 Make inputs to the Budget Guidelines Committee Dec-Feb

Phase Two Consultation and evaluation