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FISCAL DECENTRALISATION: PROGESS

This presentation discusses the progress and challenges of fiscal decentralization in 2007, focusing on the expenditure performance of central government transfers to districts. It analyzes the financial reports of districts, highlights the execution of transfers and expenditure at various levels, and provides insights for the way forward.

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FISCAL DECENTRALISATION: PROGESS

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  1. FISCAL DECENTRALISATION:PROGESS Yussuf Mugiraneza Director IGFR Unit

  2. Structure of the presentation • 2007 Central Government Transfers to Districts: Expenditure Performance against transfers • Districts Financial reports • Challenges and Way forward

  3. 2007 Central Government Transfers to Districts: Expenditure Performance against transfers

  4. Transfers Expenditure performance • Execution against transfers • Total budgeted transfers Rwf 64.4 bn(revised budget excluding contingency), of which actual transfers were Rwf 68.1bn with a variance of Rwf 3.9bn • Education with 58.3% and Health with 14.9% are the two of the ministries that have many programs and big being decentralized • Increase attributed to additional recruitment of both health and education personnel

  5. Expenditure performance per District

  6. Expenditure performance per District

  7. Expenditure Performance per district

  8. Expenditure Performanceper district • Overall execution per district was 99.5%. • Least performing district had an execution of 96.6% • Over execution was at 102%. This is attributable to districts using own resources to finance decentralized programs and to direct donors interventions • High execution rates :Most of transfers are recurrent in nature

  9. Expenditure Performance per program

  10. Expenditure Performance per program

  11. Expenditure Performance per program • Prison administration was the most over executed program at 105.4% with districts using own revenues to top up additional expenditures, TIG interventions,… • Technical Education was the least executed program across all districts at 83.7% with most funds carried over to the next financial year 2008

  12. Expenditure Performance per Sector

  13. Expenditure Performance per sector

  14. Expenditure Performance per Sector • Sector transfers to finance recurrent expenditure • Public order and safety was the most executed sector at 102.7%(Prisons administrations and prisons well being) • Agriculture was the least executed sector at 88.3% reason being that most of the agricultural programs are seasonal thus calling for timing of transfers to coincide with the seasons (Irrigation and some terracing activities done in seasons A 2008)

  15. DISTRICTS FINANCIAL REPORTING 2007

  16. DISTRICT REVENUES PERFORMANCE

  17. DISTRICT REVENUES PERFORMANCE • Increase in tax collection -Property tax :45% increase 2006-2007 -Market fees 20% -Administrative fees 15% Due to contracting management of tax collection in some districts especially • Increase in earmarked transfers and block transfers • CDF,FARG, Direct transfers from LMs, Donors

  18. EXPENDITURE PFORMANCE PER ECONOMIC CLASSIFICATION

  19. FINANCIAL REPORTING • Increase in transfers due to multiples earmarked transfers in 2007 • Harmonization of transfers mechanisms (increase of earmarked programs on district budget in National Budget) • Increase in employees cost due to Health and teachers salaries on District budgets • Increase in closing bank balances due to late transfers of school construction funds

  20. CHALLENGES AND WAY FORWARD

  21. Challenges • Harmonization of transfers mechanisms (Some ministries transfers directly to districts ) • In year reporting on District budget execution per programme –per sector • Some programs are under estimated due to lack of timely information (schools feeding, prisons,…..) • Execution of districts own revenues and donor funding not yet reported against • Revenue enhancement

  22. Way forward • Intergovernmental Transfers mechanisms being reviewed and updated (harmonization and predictability to districts) • Measure being undertaken to facilitate districts to report total expenditure per programme • Measures being undertaken to ensure budget meets expectations • District Revenue enhancement studies to be undertaken

  23. Thank You !

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