Roles and Expenditures across Levels of Government. Presentation for: Public Expenditure Analysis and Management Course Monday, May 21st, 2006 4-5:00 pm . Presented by: Kai Kaiser, Economist Public Sector Group Poverty Reduction and Economic Management Network (PRMPS)
Matching local needs and preferences with local public expenditure patterns
Substantial fiscal autonomy/budgeting
Are elections held?
How are candidates selected?
Intra-party hierarchical control mechanisms?
What do elections mean?
“Bottom-up” AccountabilityAllocative Efficiency (Subsidiarity)
Amount: Which Level of Government Decides Amount?
Structure: Which Level of Government Defines Structure?
Execution: Which Level of Government Executes the Expenditure?
Supervision: Which Level of Government Supervises and Sets Standards?
Country and Sectoral Contexts Provide for Significant Diversity in Arrangements
Decentralization Trends expenditure patterns
Source: International Monetary Fund. Government Finance Statistics Year Book , various years, Country Tables
Subnational Share of Expenditures
Subnational Share of Revenues
Note: Simple average of most recent observations in available countries. Numbers in parenthesis indicate number of countries represented. Figure do not typically include deconcentrated spending.
Source: International Monetary Fund. Government Finance Statistics Year Book 1998, Country Tables.
Source: IMF GFS
policies and institutions…
Elite capture (by ethnic/racial/social groups) expenditure patterns
Opaque or arbitrary decision-making
Constituents, villagers, communities unable to hold representatives accountable due to incomplete information
Excessive discretion to reward friends, punish rivals
Central civil servants over-rule local representativesCommon Dangers