2001年-世界发展银行全球_Ethiopia___Focusing_Public_Expenditures_on_Poverty_Reduction_Voume_2_Appendixes_and_Statistical_Tables_64页_3mb

Ethiopia: Focusing Public Expenditures on Poverty Reduction (Volume II Summary)

Core Content Overview

This document is part of the World Bank's assessment of Ethiopia's budgeting systems in the context of the HIPC (Heavily Indebted Poor Countries) debt relief initiative. It provides an in-depth look at the mechanisms and challenges related to tracking poverty-reducing expenditures, budget formulation, execution, and evaluation. The focus is on the role of different levels of government, the classification of expenditures, multiyear projections, and the overall composition of the budget. It also highlights the importance of transparency and accountability in public spending.

Main Views and Key Information

I. Involvement of Different Levels of Government

• Sub-national spending: Education, health, roads, and agriculture & natural resources are identified as key poverty-related sectors. In FY01, regions accounted for approximately 63% of total poverty-related spending, rising to 70% when excluding federal roads programs.
• HIPC relief impact: The expected HIPC relief of USD75 million per year will increase the regional share of poverty-related spending by about 2 percentage points.
• Federal-Regional Dependency: Regions are heavily dependent on federal subsidies, which are unearmarked, raising challenges in tracking and accountability.
• Expenditure Target Setting: While federal government cannot dictate regional allocations, there is room for discussion and agreement, especially with special aid like HIPC.

II. Budget Formulation

A. Comprehensiveness

• The Federal Government reports on both its own and consolidated federal-regional expenditures, aligning with GFS definitions.
• Extra-budgetary funds are not included in the official budget, such as:
  • Road Fund: Transparent and operates with separate accounts for road maintenance, but not included in the government's financial statements.
  • ESRDF (Ethiopian Social Rehabilitation and Development Fund): Supplements budgetary expenditures and should be included in poverty-related spending reports.
  • Food Aid: Not well reflected in the budget, despite Ethiopia being a major recipient.
  • Industrial Development Fund (IDF) and Privatization Receipts: Not fully captured in the budget, with some donor funds being more transparent than others.

B. Classification

• Ethiopia uses administrative and functional classifications for expenditures, including sector and sub-sector breakdowns.
• Economic classification exists but is highly aggregated and unreliable.
• A new classification system is being introduced under the EMCP (Expenditure Management and Control Program), which will enable tagging of expenditures to cost centers and programs.
• The revised classification will include common coding for recurrent and capital budgets, and unique revenue codes for each funding source.

C. Multiyear Projections

• Ethiopia has adopted medium-term planning for expenditures, with the MEFF (Macroeconomic and Fiscal Framework) and PIP (Public Investment Program) as key instruments.
• These frameworks are intended to guide the setting of Indicative Planning Figures (IPFs) and support the development of a Public Expenditure Program (PEP).
• However, the preparation of MEFF and PIP has not been effectively implemented, and no approval by the Council of Ministers has been obtained.
• The government has committed to implementing these reforms, particularly in the context of the Economic Rehabilitation Support Credit.

D. Budget Composition

• The current budget formulation system does not systematically address the balance between recurrent and capital expenditures.
• There is a concern about the adequacy of operating cost funding, despite avoiding extreme compression of recurrent spending.
• A systematic analysis of the balance between wage and non-wage recurrent expenditures is lacking.
• The introduction of PEP is expected to improve this balance and overall expenditure efficiency.

III. Budget Execution

A. Internal Control

• Disbursements are managed through the MOF (Ministry of Finance) and the Treasury Department.
• Commitment controls are in place to ensure that expenditures do not exceed available cash resources.
• Cash rationing is applied based on priority and availability, with the goal of protecting poverty-reducing expenditures.
• Supplementary budgets are used to adjust the spending pattern, but their use is not widespread.

IV. Budget Reporting

• Regularity and reliability of reports are a concern, especially for regional expenditure data.
• Final audited accounts are not always available, and classification accuracy remains a challenge.
• The Government Financial Statistics (GFS) framework is being improved with the introduction of a new classification system.

V. Budget Evaluation

• Performance monitoring is an ongoing process, especially in sector development programs.
• The PER (Public Expenditure Review) process has identified several issues, including:
  • Delays in aggregating regional reports.
  • Lack of detailed reporting.
  • Ineffective interim tracking systems.
  • Difficulty in capturing donor funds through non-standard channels.

Key Data and Tables

• Table 1.1: Federal - Regional Shares in Poverty Related Spending, 2000/01

  • Roads: 23.8% federal, 40.3% regional
  • Agriculture & Natural Resources: 25.6% federal, 64.6% regional
  • Education: 36.8% federal, 75.6% regional
  • Health: 13.7% federal, 62.3% regional
  • Total: 100% federal, 62.5% regional

• Table 1.2: External Aid in the Capital Budget

  • 1996/97: 26%
  • 1997/98: 21%
  • 1998/99: 25%
  • 1999/00: 44%
  • 2000/01: 48%

• Table 6.1: Federal-Regional Revenue Assignment

• Table 6.2: Shares of Federal and Regional Governments in Revenues, 1997-2001

• Table 6.3: Regional Revenue Variations

• Table 7.1: Changes in the Federal Grant Formula

• Table 7.2: Value of Indices in the Federal Grant Formula, 2001

• Table 7.3: Changes in the Regional Shares of the Federal Grant

• Table 1: Ethiopia - Fiscal Trends, 1996/97-2001/02

• Table 2: Ethiopia - Fiscal Trends, 1996/97-2001/02

• Table 3: Functional Classification of General Government Recurrent Expenditures

• Table 4: Functional Classification of General Government Capital Expenditures

• Table 5: Functional Classification of General Government Total Expenditures

• Table 6: Selected Expenditures as a Share of Total Government Expenditure

• Table 7: Real Per Capita Expenditure

• Table 8: General Government Revenue and External Grants

• Table 8a: General Government Revenue and External Grants

• Table 9: Federal Government Revenue and External Grants

• Table 9a: Federal Government Revenue and External Grants

• Table 10: Regional Governments' Revenue and External Grants

• Table 10a: Regional Governments' Revenue and External Grants

• Table 11: Budget Transfers from Federal Government to Regions

• Table 12: Ethiopia - Selected Macroeconomic Indicators

Key Boxes

• Box 3.1: Selected Welfare Monitoring Data
• Box 3.2: Key Welfare Indicators From National Data
• Box 3.3: Welfare Monitoring System and Role of the Welfare Monitoring Unit
• Box 3.4: Monitoring of Food Relief Requirements

Conclusion

The document outlines Ethiopia's efforts to align public expenditures with poverty reduction goals, emphasizing the need for improved budget transparency, classification systems, and multiyear planning. While some progress has been made, particularly with the introduction of the EMCP and PEP, significant challenges remain in tracking and reporting poverty-related spending, especially from extra-budgetary sources and non-standard donor channels. Institutional capacity and coordination between federal and regional levels are critical to achieving effective public expenditure management and accountability.