Budgeting for implementation of the EFA Plan Considerations for Ministry of Education

1. Budgeting for implementation of the EFA PlanConsiderations for Ministry of Education 2nd Africa Region Education Capacity Development Workshop “Country Leadership and Implementation for Results in the EFA-FTI Partnership” Tunis, December 3, 2007 Hafedh Zaafrane December 2007

2. Objectives and content of the presentation • Objective: • Contribute to the debate on budgeting for the EFA Plan • Focus on specific points concerning the Ministry of Education • Content: • Strategic options and choice of policy • Budget preparation and implementation • Tools employed • Problems and constraints • Alternatives

3. Strategic Options and Policy Choices • The strategies follow the objectives of the EFA. The objectives are usually quantitative (access and schooling). • Universal access • Completion of primary education • Major constraint : • Resources • Quality of implementation • Strategy has a major effect on financial feasibility • Sustainability must be evaluated, especially, recurrent expenses in the long term

4. Examples of strategies : 3 recurrent points

5. Objectives and Means : examples Teacher recruitment requirement (by 2015) Completion rate for primary (2015 target)

6. Objectives and Means : examples Classrooms requirement(by 2015) Textbooks requirement (by 2015)

7. Tools for Achievement of Objectives: Simulation Models • Simulation model : main tool used in choosing the strategic options of the EFA plan • Input of simulation model : • Enables the measurement and quantifying of objectives and choice of strategies, to be translated into needs and physical and financial targets • Enables discussion of technical and financial feasibility of choices and options • Enables simulation and comparison of the impact of different policies on the development of the sector • Limitations of the simulation model • The results are only valid in the long term

8. Tools for Achievement of Objectives : Simulation Models • Example of Simulation models : • UNESCO • Pole of Dakar • Taalim

9. From Strategy to Budget The budget : main instrument for operationalizing strategy and control of implementation The three stages of the budgeting process are important in terms of implementation of the EFA program: Preparation Implementation and adjustment during the year Monitoring and reporting

10. The Preparation : the MTEF and the Annual Budget • The MTEF: • Expenditure plan for 3 or 4 years, revised every year • Consistent with the future macroeconomic context • The estimates of the MTEF reflects more commitment than the strategy figures from the simulations models, because they take into account the resources available (in principle, the MTEF has not financing gap). • Dialogue with the Ministry of Finance: • The Ministry of Finance does not take into consideration the needs of the sector as estimated in its strategy • The ceiling of the expenses is negotiated, but it obeys to the heaviness of the" services voted" • The preparation of the budget is often subject to the « dictates » of the Ministry of Finance

11. The difficult passage from Strategy to Budget The EFA Plan comprises of four main categories of expenses: • Omissions are often noted in budgeting for strategic choices: • The budgetary categories are not appropriate • The limits for expenses are inappropriate • Difficulties of management of investments dominated by partners and donors projects

12. Result of MTEF in some Countries • Disappointing results: • The MTEF is often established based on results of the simulation model: different targets and inappropriate approaches • The MTEF is often inconsistent with the budget • The MTEF is often not credible : no impact on the preparation of the budget • The MTEF is heavy and costly in terms of development and implementation • The MTEF is often set within structures which are disassociated from budgetary management • The MTEF does not constitute a reference for monitoring of achievements

13. The MTEF, a tool for Budgeting of the EFA plan • Conditions and prerequisites : • Technical : • Technical capacity • A developed information system • Adequate budgetary classification • A connection and relation between the headings of the MTEF and the budget • Design of the tool compatible with means and capacities • Organizational : • Budgetary discipline • Appropriate organization • Capitalization of stages and experiences • Process : participative and dialogue • Involvement of decentralized structures • Linkage of departments involved : Planning and finances • Discussion/collaboration with the Ministry of finance

14. Implementation : deal with the unexpected and «cuts» • Revisions of the budget in the course of the year (cuts) : Major problem with implementation of budget. What tools and what approaches to adopt? • Priorities and securing of « the most important part of public spending » • Salaries remain untouchable • Social transfers for the ‘obligatory posts’ cannot be reduced • Operational non salary expenses, and investments pay the cost of adjustment • Are the objectives of the Plan affected ? • Construction Programs (fundamental element of increasing access) are often revised/postponed • Pedagogical expenses (major determinant of quality of education) are reduced

15. Monitoring and Reporting Reporting : monitoring and evaluation tool that serves to inform about implementation status of the budget and consequently the EFA Plan Two major aspects of reporting : Compare the actuals with the provisions Identify the causes of variances and define corrective actions Conditions and impact : Efficient system for data collection and analysis Integration of the EFA monitoring report with the periodic report of the Ministry Draw lessons for the next cycle of budget preparation

16. Development of organizational Capacities • Organization : basic element of the successful implementation of the EPT: • Relevant structures involved • Well defined and well divided responsibilities • Well established and closely followed calendar, in conformity with the budgetary calendar of the Ministry of Finance • Procedures well defined, written, respected and followed • Tools implemented, controlled and operational • Officers and operators, trained and motivated • Discussions and dialogue procedures with the Ministry of Finance institutionalized

17. The weak or missing Link • How to translate the objectives of the EFA plan into budgetary headings : guarantee of implementation of the EFA Plan? • Mechanism to ensure the link between planning and budgetary management : • In terms of organization and processes • In terms of tools and methods • Integration of the MTEF in the budgetary process and the use of the MTEF to define budgetary limits. • Clear procedures are required to guarantee that the MTEF is well used for the preparation of the budget. • If the MTEF estimates are not used as the starting point of the annual budget preparation, the exercise looses its validity.

18. Alternative : move from a Dislocated Model to an Integrated Model DislocatedModel Integrated model « Strategic reflection » stage Planning and budgeting process Planning : simulation model Planning : Simulation model EFA Plan (revised) EFA Plan (revised) MTEF MTEF Budgeting process Drawing up of budget Drawing up of budget Implementation and control of budget Implementation and control of budget

19. The trilogy of Budgeting for the EFA Plan Appropriate organization Capacities strengthened Adequate tools Organization and processes involving the relevant structures A team which is skilled in the techniques as well as in dialogue methods A simulation model measuring the effects of choices made A MTEF/BP ensuring linkage between the LT and the budget An efficient system of monitoring of the budget implementation Budget reflecting the implementation of the EFA Conditions for successful budgeting for the implementation of the EFA Plan