2005年-世界发展银行全球_Madagascar___Public_Expenditure_Review_2004_-_The_challenge_of_Poverty_Reduction_182页_14mb

Public Expenditure Review of Madagascar (2004)

Core Content

This document presents a comprehensive Public Expenditure Review (PER) of Madagascar, focusing on the challenges of poverty reduction and the need for effective public resource management. It evaluates the macroeconomic and fiscal framework, resource allocation, and budget execution in the context of Madagascar's Poverty Reduction Strategy Paper (PRSP), as well as in three priority sectors: education, transport, and environment.

Main Viewpoints

1. Macro-Economic and Fiscal Framework

• Economic Performance: Madagascar has experienced a period of economic recovery since 1997, with an average GDP growth of 4.6% during 1997-2001. However, the 2002 political crisis led to a sharp GDP decline of 12.7%, followed by a rebound in 2003 and subsequent shocks in 2004.
• Poverty Reduction: Despite economic growth, poverty reduction has been limited, with rural poverty increasing significantly. The PRSP aims to halve poverty in 10 years, but the growth target of 9.3% is considered unrealistic and should be adjusted.
• Government Priorities: The PRSP outlines three strategic axes: restoration of the rule of law and good governance, broad-based economic growth, and human development and social protection.
• Fiscal Challenges: The tax base is highly concentrated, and customs administration is hampered by inefficiency and corruption. The HIPC debt relief has expanded the fiscal envelope, but poor budget execution remains a key issue.

2. Resource Allocation and Budget Execution

• Current Allocation Trends: Budget allocations for primary education and primary health care have increased significantly (39% and 15%, respectively, from 1997-2004), while allocations for productive sectors (energy, agriculture, environment) have decreased.
• Budget Execution Issues: The execution rate of the budget has declined since the 1990s, reaching 75% in 2001. However, it improved to 92% in 2003, indicating some progress in streamlining the process.
• Recurrent vs. Capital Expenditures: Recurrent expenditures have a higher execution rate (89%) compared to capital expenditures (68%). HIPC funds, which are executed under simplified procedures, achieved an execution rate of 99%.
• Decentralization: Only 3-4% of the national budget is managed at the commune level, highlighting the lack of decentralization. The central government retains control over the majority of budgetary resources.

3. Sector-Specific Challenges

Education Sector

• Key Issues: Poor access to education, especially in rural areas; low net enrollment; high repetition rates; and weak performance of the education system.
• Budget Management: The education budget is not well aligned with PRSP priorities. Allocations to education have increased, but the distribution remains uneven, with more funding going to administration than to schools.
• Community Participation: The role of local communities in education is limited, and there is a need for stronger engagement and monitoring.
• Recommendations: Develop a more strategic and transparent budgeting process, enhance the role of civil society in monitoring, and improve the efficiency of public expenditure.

Transport Sector

• Key Issues: Poor infrastructure, limited access to roads, and inefficiencies in public transport.
• Budget Management: The transport budget has seen a steady increase in allocations, but execution remains a challenge. The sector requires improved governance and coordination.
• Recommendations: Strengthen the legal and institutional framework for transport, improve the management of public enterprises, and enhance the effectiveness of the Road Maintenance Fund (RMF).

Environment Sector

• Key Issues: Weak institutional capacity, limited funding for environmental initiatives, and challenges in implementing environmental impact assessments (EIAs).
• Budget Management: Environmental expenditures have been minimal and not well integrated into the overall budget. There is a need for better coordination and resource allocation.
• Recommendations: Improve the institutional framework for environmental management, ensure proper funding for EIAs, and enhance revenue sharing with local communities.

Key Information

• Currency: Malagasy Franc (MGF), with 1 USD = 10,432 MGF.
• Fiscal Year: January 1 to December 31.
• Key Institutions:
  • MEFB (Ministry of Economy, Finance and Budget)
  • MENRS (Ministry of National Education and Scientific Research)
  • MINENVEF (Ministry of Environment and Forests)
• Important Reforms:
  • A new Organic Finance Law has been introduced.
  • A new procurement code is being implemented.
  • A new internal control cadre has been established in the MEFB.
  • The government is working on an integrated financial management system (IFMIS).
• Challenges:
  • Weak revenue forecasting and budget execution.
  • Inefficiencies in public procurement and financial reporting.
  • Limited human capital and poor access to credit.
  • Inadequate decentralization and community participation.
• Recommendations:
  • Introduce a Budget Framework Paper to guide the budget process.
  • Enhance strategic decision-making at the Cabinet level.
  • Strengthen the role of line ministries in the budget preparation.
  • Refocus budgetary conferences on policy objectives and results.
  • Improve internal and external controls.
  • Strengthen public procurement processes.
  • Enhance financial reporting and transparency.

Conclusion

The PER highlights the need for a more effective and transparent public expenditure management system in Madagascar. While some progress has been made, the country still faces significant challenges in aligning its budget with poverty reduction goals, improving budget execution, and enhancing the role of local communities and institutions in service delivery. The report emphasizes the importance of a medium-term fiscal and economic framework and the need for the government to prioritize its spending and ensure fiscal sustainability.