Post on 25-Dec-2015
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Day 2
Technical Sessions - 1Social Accountability Tools
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
UNDERSTANDING BUDGETS & ENGAGING IN BUDGET WORK
2Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
What is a Budget?
“A budget is a plan that outlines where to get money from and what to spend it on.”
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Political Economic Social
National & Local policy making
Blueprint for economic growth
Reflects priority for social safety nets
Instrument to allocate resources
Authorizes revenue collection & spending
Reflects priorities for disadvantaged
Reflects national & local priorities
Reflects sensitivity to the environment
Reflects commitment to Rights & Entitlements
Reflects commitment to protect economic, social and cultural Rights
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
What can budgets tell us…
• Is the current budget adequate to meet policy objectives?
• How much priority is given to different sectors?
• Are budget allocations equitable? E.g., different population groups, different districts
• Are resources being spent efficiently?
• Are resources being used effectively?
4Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
Main Components of a Budget
• Revenue: Income – or Funds coming to the government from various sources.
• Expenditure: amount of money spent on goods and services aimed at meeting identified needs and goals of the budget.
5Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
TYPES OF REVENUE & EXPENDITURE
• What are the different sources of income or revenue of the National Govt.?
• What are the different kinds of expenditure of the Govt.?
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
Some sources of revenue and expenditure
• Revenue:– Exploration and sales of natural minerals:- such as crude oil– Direct taxes:- these are income taxes such as; personal income
(salaries), Business Income, Corporate Income, – Indirect taxes:- these include , Sales tax, Import and Export duties– Non tax revenue:- Administration charges, Capital Revenue,
Interest receipts
• Expenditure:– Recurrent: This is an ongoing expenditure, example- personal and
overhead cost (Salaries)– Capital Expenditure: This is an expenditure of fixed assets that are
not easily consumed (infrastructure)
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
Budget Outputs• Surplus budget:
– Here budget expenditure is less than the revenue/income. In this case, there is an extra amount which can be used as savings or used for some other ventures.
• Deficit budget:– Here the expenditure exceeds the income. In this case,
the account of the government is in red. This might have been due to reckless spending or unforeseen situations.
• Balanced budget:– Here, the income equals the expenditure. This shows
budget discipline and planning. It is however rare and depends on a lot of variables.
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
BUDGET ANALYSIS BUDGET WORK
• Research & Analysis of revenues, expenditures, allocations etc.• Emphasis on information & knowledge
• Budget Analysis + advocacy + education + Monitoring• Emphasis on informed actions and informed advocacy
Budget Analysis & Budget Work
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
The Politics & Economics of Aid
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
• Globally, developing countries shell out $1.5 billion everyday on debt repayments. $34 million out of this is paid by the poorest countries.
• For every $1 received as aid, $5 is returned as repayment.
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State of Debt, May 2012. Jubilee Debt Campaign
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Debt Payments as a % of Government Revenue
2000 2010 2014
Bangladesh 13.8 8.8 6.7
Bhutan 6.5 26.6 28.2
Cambodia 5.1 4.5 5.7
India 17.9 3.9 NA
Indonesia 27.1 11.9 NA
Laos 13.3 11.5 10.5
Maldives 10 14.4 10
Nepal 16.2 7.4 4.7
Pakistan 17.4 10.5 NA
Philippines 35.8 27.1 NA
Sri Lanka 22.5 24.1 21.4
Vietnam 19.8 6.9 10
Since 2008, globally governments have spent almost $ 11 trillion bailing out banks and repairing financial systems.
Information is Key to Budget Analysis
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
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The Budget Cycle
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What are the entry points for budget work in Bhutan?
Discussion
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
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1. AccessInformatio
n
2. Simplify &
Demystify
3. MobilizeConstituen
cies
4. Influence Allocations
5. Track Expenditure &
Monitor Outcomes
RESEARCH
ANALYSIS
MOBILIZEADVOCATE
MONITOR
• By population group – e.g. by geographic area or gender
• By government programme – e.g. Social security, non-formal education
• By issue – e.g. HIV and AIDS• By policy – e.g. identifying areas of weakness in
the education sector• By using policy documents as a benchmark –
e.g. Poverty Reduction Strategy Papers.
Types of Budget Work
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
Sector Analysis
• Key questions:1. Allocation with respect to critical importance of
the sector2. Have allocations increased in real terms over the
years3. Do allocations reflect priority areas within the
sector4. Do allocations favor or discriminate certain
groups or regions
23Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
• Which stage in the budget cycle will you get involved with?
• What activities can you do to influence this stage of budget work?
• What evidences/research/information will be needed?
• Who will you work with?• What results can be expected?
Discussion
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
Budget Calculations
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
• Consumer Price Index (CPI): This reflects the price of a representative basket of consumer goods and services. This index measures the impact of inflation on the average consumer.
• Deflator: A statistical tool used to convert current currency into inflation-adjusted currency, in order to compare prices over time after factoring out the overall effects of inflation.
• Gross Domestic Product (GDP): Total value of final goods and services produced in the country during a calendar year. GDP per person is the simplest overall measure of income in a country. Economic growth is measured by the change in GDP year by year.
• Gross National Product (GNP): The GDP plus the total net income from abroad.• Inflation: The rate of increase in prices.• Nominal terms: Actual monetary value in terms of its purchasing power at
current prices. Nominal terms do not take into account the affect of inflation on the real value of money. Government budgets are set in nominal terms and do not adjust totals for inflation.
• Real terms: Value measured in terms of the purchasing power of money at a particular time. For instance, GDP may be measured in constant 2006 prices by taking the affect of inflation into account.
SOME USEFUL TERMS
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
Consumer Price Index (Inflation Index)
How is CPI Calculated?
Monthly expenditure incurred by individuals on 363 items: (e.g.)
1. Food & Non Alcoholic Beverages2. Alcohol & Narcotics3. Clothing & Footwear4. Housing, Water, Electricity, Gas, Fuel5. Household Furnishing & Maintenance6. Health7. Transport8. Communication9. Recreation & Culture10.Education11.Restaurants & Hotels12.Miscellaneous Goods & Services
YEAR CPI
2001 83.38
2002 85.45
2003 86.79
2004 94.96
2005 100
2006 105.00
2007 110.4
2008 119.61
2009 124.83
2010 133.61
2011 145.43
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
Nominal Vs Real (Current Vs Constant)
Product 2011 2012 Nominal GDP contribution
Real GDP contributionBase year=2011
Price Quantity Price Qty 2011 2012 2011 2012
Bread 3Ng 100 4Ng 125 300Ng 500Ng 300Ng 375Ng
Butter 2Ng 50 2.5Ng 60 100Ng 150Ng 100Ng 120Ng
Total 400Ng 650Ng 400Ng 495Ng
28Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
Budget Calculations (1)
• Budget Share = (Budget Area / Total Budget) * 100
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Item Amount (Mill.) Share (%)
Defence 100 50
Education 25 12.5
Health care 25 12.5
Social Protection 40 20
Environment 10 5
Total 200 100
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
Budget Calculations (2)• Converting nominal allocations to real
allocations, or current prices to constant prices, or adjusting for inflation
Method 1: Using CPI or Inflation IndexReal Value = (Nominal Value * Current
Inflation Index)/Previous Year Inflation Index
Method 2: Using a deflatorReal Value = Nominal Value / Deflator
30Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
2004/05 2005/06 2006/07 2007/08
Nominal Expenditure 150 230 320 450
Real Expenditure 165 240 328 458
Example 2
Year CPI
2003 113.2
2004 124.5
2005 130.1
2006 133.2
2008 135.6
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
2004/05 2005/06 2006/07 2007/08
Nominal Income 180 275 360 510
Real Income 197 275 348 451
Example 3
Year Deflator
2004 0.912
2005 1
2006 1.032
2008 1.131
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
Budget Calculations (3)• Measuring changes over timeChange in % = (Most recent budget figure -
previous year’s figure) / previous year’s figure * 100
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Spending 2005 2006 2007 2008
275 330 125 280
Growth rate 20 -62 124
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
Budget Calculations (4)
• Calculating per capita expenditure = Spending / population
• Comparing budget to GDP = (Total spending /GDP) * 100
34Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
Practice Exercises
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
Tool# 2
SERVICE DELIVERY SURVEYS /CITIZEN REPORT CARD
36Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
A School Report CardName: Gopa; Class: IX
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SUBJ ECT MAX. Marks
HighestMarks
Actual marks
English 100 82 82
Social Studies 100 85 53
Science 150 123 76
Mathematics 150 125 50
Total 500 415 261
Rank in class: 21/30
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
LEARNINGS FROM A SCHOOL REPORT CARD…
Power of MEASUREMENTPower of COMPARISON
An Opportunity for REFLECTIONA trigger for CHANGE & IMPROVEMENTS
38Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
Defining Features Credible user feedback on public services
Provide opportunities to communities to demand more access, responsiveness & accountability from service providers (from Shouting to Counting)
Create an effective diagnostic tool for service providers to prioritize areas for reform
Report always in PUBLIC DOMAIN
Not a one-off effort – continued benchmarking
39Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
What evidences are collected
FEEDBACK FROM ACTUAL USERS OF SERVICES REGARDING
– AVAILABILITY, ACCESS & USAGE OF SERVICES– QUALITY & RELIABILITY– INCIDENCE OF PROBLEMS & RESPONSIVENESS OF
SERVICE PROVIDERS – HIDDEN COSTS - CORRUPTION & FORCED INVESTMENTS – SATISFACTION WITH SERVICE – REASONS FOR DISSATISFACTION– SUGGESTIONS FOR IMPROVEMENTS
40Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
The Methodology
Identifying services – What to study?Determining the sample – Whom to ask?Designing the questionnaire – What to ask?Conducting the survey – How to collect
information?Analyzing the information – What to report?Using the information – How to move from
findings to reforms?
41Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
An Example…
CRC in a Municipality in Sri Lanka
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The Context
Nuwera Eliya Municipality in central part of Sri Lanka – Pop: 750,000
16 General Services & 2 Special Services assessed
Surveys conducted by University studentsInitial briefings with city Mayor and his
staffSample of 450 HHs for General Services &
100 respondents for each of the 2 special services
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Civic Amenit-ies
Solid Waste Management
Roadways Sewerage Streetlighting0
10
20
30
40
50
60
70
8070
64
5349 49
Scores (Max: 100)
Combined Score is 57/100
Overall Satisfaction with General Services
Unbundling Civic Amenities (1)
Community Centre
Public Toilets
Vehicle Parking
Sports
Public Library
Playground
Children's Park
Community Water Scheme
Town Hall
Maternity Clinic
Cemetry
0 10 20 30 40 50 60 70 80
45
46
47
52
54
59
61
67
68
74
75
Scores (Max: 100)
Overall Satisfaction with Special Services
Trade License Building Permit0
10
20
30
40
50
60
70
80
90
100 95
68
Scores (Max: 100)
We now raise the bar and take a look at complete satisfaction
When citizens say they are “satisfied’ they can be completely satisfied
or partially satisfied
Complete Satisfaction with General Services
Solid W
aste M
anagement
Civic
Amentie
s
Sewerage
Streetli
ghting
Roadways0
5
10
15
20
25
30
35 32
19 1815 15
Scores (Max: 100)
Combined Score is 20/100
Civic Amenities
Solid Waste Management
Roadways Sewerage Streetlighting0
10
20
30
40
50
60
70
80
19
36
15 18 15
51
28
38 31 34
Complete Satisfaction Partial Satisfaction
70
64
5349 49
Total Satisfaction
Complete Satisfaction with Special Services
Trade License Building Permit0
10
20
30
40
50
60
70
80 76
47
Scores (Max: 100)
What are the top 3 aspects that explain citizen satisfaction
Service Rank #1 Rank #2 Rank #3
Sewerage Redress of grievances with Sewerage services
Maintenance of Sewerage
Redress of grievances on drainage issues
Solid Waste Management
Provision of Garbage disposal facilities
Redress of grievances
Roadways Maintenance of roads & sidewalks
Cleanliness of roads & sidewalks
Quality of road repairs
Street Lighting
Intensity of street lights (brightness)
Maintenance of street lights
Reliability of street lights
General Services
How do citizens rate services in terms of problem incidence &
resolution
Problem Incidence, Reporting & Resolution – General Services
Service Number of people who faced a problem
Among those who faced a problem, number which reported the problem
Among those who reported the problem, number which reported resolution
Sewerage 120 (out of 450) 60 (out of 120) 6 (out of 60)
Solid Waste Management
98 (out of 450) 54(out of 98) 16 (out of 54)
Roadways 220 (out of 450) 62 (out of 220) 8 (out of 62)
Street Lighting 87 (out of 450) 49 (out of 87) 7 (out of 49)
Economic Status & Satisfaction
Solid Waste Management
Streetlighting Roadways Sewerage0
10
20
30
40
50
60
70
80
90
100
60
49 5047
68
47
59
51
75
92
58
67
Low Mid High
Overall Satisfaction & Ethnicity
Solid Waste Management
Streetlights Roadways Sewerage0
10
20
30
40
50
60
7064
5256 56
62
47
52
42
61
45 4548
Sinhalese Tamil Moor
Location & Satisfaction
Solid Waste Management
Streetlighting Roadways Sewerage0
10
20
30
40
50
60
70
80
9083
67 67
17
59
47 47 4752
44
24
48
<1km 1-3 Kms >3 Kms
CRC & Political Representation
>60% Needs to Maintain Performance
40-60% Needs Improvement
<40% Needs Urgent Attention
GN Divisions SWM Sewerage Street Lights Roadways
Nuwara Eliya 61% 39% 30% 30%
Nuwara Eliya C 62% 37% 60% 55%
Nuwera Eliya W 79% 75% 68% 82%
Magasthota 68% 72% 36% 40%
Kalukele 88% 69% 88% 75%
Kelegala85% 56% 85% 70%
Sandathenna 30% 34% 7% 11%
Hava Eliya N 84% 71% 71% 74%
Hava Eliya E75% 47% 69% 75%
Hava Eliya W 86% 39% 82% 46%
Bulu Ela 56% 60% 12% 40%
Bambara Kele76% 51% 63% 73%
Recommendations
• Setting up an internal committee to review and develop an action plan
• Sharing the findings with business community to explore possibilities for PPPs
• Institutionalizing CRC – Repeat the exercise after 2 years
Corruption & The Urban Poor
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SERVICE / AGENCY
PERCENT PAYING BRIBES
AVERAGE AMOUNT (RUPEES)
PERCENT CLAIMING BRIBE WAS DEMANDED
WATER SUPPLY
04 200 50
MUNICIPAL SERVICES
34 270 73
ELECTRICITY 10 250 100
RATION SHOPS
11 84 83
POLICE 46 4193 88
PUBLIC HOSPITALS
53 640 63
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
Urban Services in Bangalore
9
34
49
0
20
40
60
1994 1999 2003
Year
% S
ati
sfi
ed
Percentage of satisfied citizens
62Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
SERVICE WISE SATISFACTION%
Sati
sfi
ed
agency
63Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
CORRUPTION
CORRUPTION ACROSS THREE REPORT CARDS
149
32
1922
25
0
10
20
30
40
1994 1999 2003
YEAR
% W
HO
PA
ID
General Households Slum
64Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
Who can do a CRC?
Individual Civil Society Organizations – PAC (India) & TIB (Bangladesh)
Civil Society Partnerships – People’s Voice Project (Ukraine), PANE (Ethiopia)
Independent Multi-Stakeholder Consortiums – Kenya, Tanzania, Kyrgystan
Political Leadership (National/Sub-national) – Philippines, Vietnam, Delhi, Bosnia-Herzogovina
Governments (Local) – Brazil (7), India (50+), Sri Lanka (3)
Utilities – Karachi KWSSB, 3 cities in Kenya (Water), Police (Bangalore)Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
VARIETY IN IMPACT OF CRC’S
AGENCIES DISCUSS PERFORMANCE WITH CITIZENS IN OPEN FORA IN BANGALORE
SYSTEMATIC CITIZEN WATCH DOG ROLE IN LOCAL GOVT. IN TERNOPIL, UKRAINE
FINDINGS USED TO BETTER DIRECT BUDGET ALLOCATIONS IN THE PHILIPPINES
INDEPENDENT APPROACH TO MONITOR PRO-POOR SERVICES IN ZANZIBAR & ETHIOPIA
LOWER LEVEL OFFICIALS CITE FINDINGS TO SEEK FUNDS & SUPPORT IN MUMBAI, INDIA
POLITICAL LEADERSHIP ASKS FOR MORE DIRECT FEEDBACK IN DELHI, SRI LANKA.
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
Some Enablers
• Building ownership among stakeholders
• Presenting information in a neutral way – Pat & Slap
• Focus only on institutions – never on individuals
• Power of information dissemination• Sequencing activities
Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013
Challenges in Implementing CRC
• Locating different skill sets – survey, analysis, advocacy
• Lot of preparatory work (design)• Ensuring repetitions &
institutionalization • Willing to dedicate time and resources• Credibility of the champion
DiscussionCan SDS/CRC be implemented in our context? If
yes, which sector, program or service is most enabling? Give reasons
What aspects (indicators) of the sector, program or service would you be interested?
Which population will you target for collecting information?
What are the key challenges or risks that you anticipate? How will you address them?
What additional skills and resources do we need to implement SDS/CRC?
69Dr. Gopakumar Thampi. SDC/ACC Workshop. Thimphu, August 20-23, 2013