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)
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Public Expenditure Analysis and Management Course
Monday, May 21st, 2006
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