PAISAPlanning, Allocations & Expenditures, Institutions: Studies in Accountability

India’s elementary education budget is rising………………

…………but outcomes are in a “BIG STUCK”

Children who can read std 2 level text (story level)

No correlation between per-child cost and learning outcomes

* Children in Std 5 that can read std 2 textbook (story level)

No correlation between per child cost and inputs (PTR)

Why don’t outlays translate in to outcomes?

• Are we allocating the right resources in the right activities?• Is money reaching its destination?• Who takes expenditure decisions?• Are these linked to needs on the ground?• There is very little empirical understanding of

how increased allocations translate to actions (planning and decision making, fund flows) as a result inefficiencies from one year (or one scheme) simply translate to the next year.

Introduction to PAISAPAISA National Report• Survey focuses on 3 core grants

that every school in the country receives

• Survey undertaken through ASER• PAISA is now in its 3rd year• Over 14,280 schools visited in 2011• Survey conducted through citizens

groups making PAISA the first and only national effort to track expenditure

• Key questions:• Do schools get their money?• If so, when do schools get their

money?• Do schools get all their money?• How do schools spend their

money?

PAISA District Studies

•In depth detailed tracking of the entire chain of government money and decision making

•9 Districts in 7 States : AP, Medak, Bihar, Nalanda & Purnea; Himachal Pradesh, Kangra; Madhya Pradesh, Sagar, Maharashtra, Satara; Rajasthan, Jaipur & Udaipur and West Bengal, Jalpaigudi

•Analysis of State Budget and GOI PAB minutes•Analysis of district AWPs & Monthly Expenditure Statements.•School survey: 140 (average) schools per district. Total sample 1,311

Unpacking School Financing

Top down financing. Teachers receive the highest proportion of the elementary education budget (2009-11)

School grants are the only annual grant that SMC’s have complete spending power over. These accounted for 5% of the total SSA budget in 2010-11.

Decision making is top down….an example from Hyderabad

ActivityIs SMC

resolution sufficient?

Is any additional approval needed?

From whom? How long will it take?

Who can do the procurement or appointment?

What documents and other things will be needed?

Desks and

ChairsNo Yes SSA Planning 2 months SSA Office

Approval of design; Three quotations

from local suppliers

Sintex Water Tank

Yes No 2 weeks SMC Local purchase at PWD rates

Roof Repair No Yes SSA Civil / JE 1 month SMC + SSA

Approval of work and measurements;

Materials bought locally as per PWD rates; vouchers of

payments maintained

Ayah Yes No 1 week SMC Interview Notice with Date and Time

Much of this money goes unspent……..

District Level Expenditures (% Of allocation)

2009-10 2010-11Medak 84% NA

Nalanda 53% 50%Purnea 50% 55%Kangra 88% 80%

Sagar 69% 82%Satara 96% 86%Jaipur 99% 93%

Udaipur 86% 84%

Jalpaiguri NA 77%

Part of the problem Money doesn’t reach on time……

Last minute rush to devolve funds to districts

Monthly Fund flows to Kangra, HP (2010-11)

Schools get their money by the end of September / October

School year begins

Money arrives

half way

into the school

year

School’s don’t always get their money, although its better than we expected…………..

76% schools received their grants in 2010-11

Significant variation in grant receipt across districts

% Schools Reporting Grant Receipt in both 2009-10 and 2010-11

No correlation between expenditures and needs on the ground

Last minute rush to spend. Recurring expenditures are prioritized

Sagar, Madhya Pradesh

Last minute rush to spend. Recurring expenditures are prioritized

Satara, Maharashtra

Expenditures are often incurred after the close of the FY (60 day gap between grant receipt & first day of spending)

% schools that incurred expenditure after the close of the FY

2009-10 2010-11

Satara 4 5

Nalanda 9 8

Jaipur 14 5

Kangra 16 7

Sagar 16 5

Jalpaiguri 17 17

Udaipur 19 13

Medak 37 9

Purnea 38 25

Implications of late arrivalStories from schools……

• Schools use their own money to purchase essential supplies and ‘adjust accounts’ •Delays in fund flows have a knock on effect. Eg. Civil works money• Lack of clarity on understanding expenditure norms•Cumbersome procedures•Schools do not get information on grant arrival• Centralization in spending which limits discretion at the school level. Udaipur & : Purnea case•Lack of clarity on decision makers at the ground level

Immediate tasks…….some tinkering on the edges…….

• Financial Management: Simplification of procedures and greater flexibility in resource allocation and utilization• Training of officials in basic financial management

procedures particularly related to civil works• Greater transparency in fund flows (SMS alerts) and

regular tracking of fund flows at the school level to improve speed

• Focus needs to shift from macro inputs to micro processes. Requires a system that defines goals and objectives and enables innovation linked to needs. Flexibility and autonomy are the key ingredients of such a system. This needs:

More focus on district and school planningGreater engagement of school management committee District and block to ‘facilitate’ and ‘support’ schools

•What would the decision making, planning and fund flow tree look like?

But can this top down system deliver outcomes?