PRSPs and Budgets

This paper synthesizes the findings from a series of case studies on the interaction between the PRSP process and the budget. The five studies, Bolivia, Burkina Faso, Cambodia, Tanzania and Vietnam aim to assess the extent to which public finance m...

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Bibliographic Details
Main Authors:	Alonso, Rosa, Judge, Lindsay, Klugman, Jeni
Format:	Working Paper
Language:	English en_US
Published:	A Synthesis of Five Case Studies 2016
Subjects:	BUDGET MANAGEMENT SOCIAL FUNDS DOMESTIC REVENUE ACCOUNTING SECTORAL ALLOCATIONS MINISTERIAL COORDINATION POVERTY REDUCTION STRATEGIES ANNUAL BUDGET PROCESS STRATEGIC CHOICES GENERAL BUDGET SUPPORT BUDGET POLICIES TYPES OF REFORMS AID-DEPENDENT COUNTRIES HEALTH CARE REVENUES BUDGET SUPPORT CAPACITY BUILDING CASH BUDGETING FINANCIAL MANAGEMENT SYSTEMS BUDGET CONSTRAINTS ECONOMIC STABILITY DECISION- MAKING CASH FLOWS MUNICIPALITIES BUDGET SUBMISSIONS HEALTH SECTOR BUDGET ALLOCATIONS TOTAL EXPENDITURE BUDGET SYSTEMS DUAL BUDGETING BUDGET ALLOCATION DEVOLUTION OF RESOURCES BUDGET DOCUMENTS SECTOR EXPENDITURE EDUCATION BUDGET PUBLIC FINANCE BUDGET DEFICITS ACCOUNTING SYSTEM EXTERNAL ASSISTANCE EXTERNAL AUDIT CAPITAL EXPENDITURE SOCIAL INDICATORS AUDIT OFFICE BUDGET ENVELOPE PUBLIC EXPENDITURE REVIEW SERVICE DELIVERY BUDGET PLANNING DONOR FUNDS DONOR COORDINATION DATA AVAILABILITY EXTERNAL AID BUDGET EXECUTION PROCEDURES AUDITORS TRANSPARENCY BUDGET PROCESS PUBLIC EXPENDITURE PERFORMANCE DATA CAPACITY-BUILDING CENTRAL GOVERNMENT BUDGET DOES EXPENDITURE PRIORITIES NATIONAL PRIORITIES CASH MANAGEMENT FISCAL YEAR PRIVATE SECTOR BUDGET RESOURCES PERFORMANCE ANALYSIS NATIONAL BUDGET ECONOMIC CLASSIFICATION COST- EFFECTIVENESS BENEFIT INCIDENCE ANALYSIS HARD BUDGET CONSTRAINTS EXPENDITURE TRACKING ALLOCATION OF EXPENDITURE COUNTERPART FUNDING CAPITAL SPENDING BUDGET INFORMATION MACROECONOMIC SITUATION ANNUAL BUDGETS EXPENDITURE PLAN ALLOCATION COST ESTIMATE SECTOR BUDGET MANAGING PUBLIC EXPENDITURE STRATEGIC POLICY CAPITAL EXPENDITURES FISCAL ACTIVITIES RESOURCE AVAILABILITY BUDGET SUBMISSION ANNUAL BUDGET CYCLE BUDGET PREPARATION FISCAL DISCIPLINE BUDGETING PROCESS OUTCOMES GOVERNMENT ACCOUNTS BUDGET YEAR CASH BUDGETING SYSTEM CASH FLOW AUDIT INSTITUTIONS MEDIUM TERM EXPENDITURE SANITATION FISCAL DATA PREPARATION OF BUDGET SUBMISSIONS REFORM PROJECTS BUDGET CYCLE GOVERNMENT EXPENDITURES RESOURCE ALLOCATIONS EXPENDITURE FRAMEWORKS DONOR FINANCING MEDIUM-TERM PROJECTIONS FINANCIAL MANAGEMENT EXPENDITURE LEVELS LOCAL BUDGETS PUBLIC SECTOR GOVERNMENT SPENDING REVENUE FORECASTING PROGRAMS RESOURCE ALLOCATION SERVICES ACCOUNTABILITY MECHANISMS EDUCATION EXPENDITURES BUDGETARY PROCESS INCENTIVES SECTOR BUDGETS PROVINCIAL LEVELS BUDGET DISCUSSIONS BUDGET FORMULATION CIVIL SOCIETY ORGANIZATIONS BUDGET POVERTY REDUCTION MACROECONOMIC STABILITY CAPITAL BUDGET STRATEGIC PRIORITIES GOVERNMENT PRIORITIES BUDGET EXECUTION SOCIAL INSURANCE REGIONAL GOVERNMENT CONDITIONALITIES FISCAL ACCOUNTABILITY PRINCIPAL-AGENT SECTOR POLICIES EXPENDITURE MANAGEMENT EXPENDITURE CUTS BUDGET REPORTING FINANCIAL MANAGEMENT SYSTEM ALLOCATION OF RESOURCES AGGREGATE CONTROL BUDGET PROPOSALS TAXES ACCESS TO INFORMATION EXPENDITURE DISTRIBUTION OF EXPENDITURE LOCAL TAXES POVERTY REDUCTION OBJECTIVES ACCOUNTABILITY BUDGET EXPENDITURE PROGRAM CLASSIFICATION INDEPENDENT AUDITOR DECENTRALIZATION PROCESS FOREIGN FINANCING BUDGET DATA SUSTAINABILITY OF REFORMS NATIONAL GOVERNMENT BUDGETS DONOR FLOWS CIVIL SOCIETY PARTICIPATION PUBLIC EXPENDITURES BUDGET ALLOCATION PROCESS EXPENDITURES PERFORMANCE REPORTS DECISION-MAKING PUBLIC EXPENDITURE TRACKING PUBLIC SECTOR REFORM MEDIUM TERM EXPENDITURE FRAMEWORKS SECTOR MINISTRIES WELFARE OF CITIZENS PUBLIC RESOURCES BUDGET OUTTURNS DISTRIBUTION OF EXPENDITURES ANNUAL BUDGET EXPENDITURE TRACKING SURVEYS PUBLIC EXPENDITURE MANAGEMENT EXPENDITURE PLANNING MINISTRY OF FINANCE RESOURCE ALLOCATION PROCESS BUDGET SUPPORT OPERATIONS HEALTH EXPENDITURE SECTORAL POLICIES ACCOUNTABILITY FOR RESULTS DECENTRALIZATION INVESTMENT BUDGET EXTERNAL FINANCING BUDGET FRAMEWORK BUDGETARY FUNDS DONOR FUNDING BUDGET REVIEW PROGRAM BUDGETS HEALTH PROGRAMS EXPENDITURE PROGRAMS
Online Access:	http://documents.worldbank.org/curated/en/2016/05/26359434/poverty-reduction-strategy-paper-prsps-budgets-synthesis-five-case-studies http://hdl.handle.net/10986/24431

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Summary:	This paper synthesizes the findings from a series of case studies on the interaction between the PRSP process and the budget. The five studies, Bolivia, Burkina Faso, Cambodia, Tanzania and Vietnam aim to assess the extent to which public finance management and budget allocations reflect the principles and content of the Poverty Reduction Strategy Paper PRSP, hence providing insights into progress in PRS implementation. The cases also shed light on whether the PRSP process itself has fostered more accountable, efficient and pro-poor budget processes and allocations as of 2003.The PRSP process, with its focus on data and information for evidence-based policy-making, open and participatory policy-making processes, poverty results and country-led donor coordination, alignment and harmonization has the potential to significantly improve the pro-poor focus and general accountability of budgeting processes.The cases confront a number of methodological challenges. First, in some countries and sectors, lack of appropriate data constrained the extent to which the research questions could be fully answered. Second, the PRSP remains a relatively recent innovation in all the countries studied and we recognize that many of our findings are preliminary, and require additional confirmation over time. Third, any assessment of the value added of the PRSP approach needs to be cognizant of the initial conditions in country, both to avoid ascribing successes to the PRSP which pre-date its existence, and to temper expectations about what the approach can deliver in a relatively short space of time given the starting point of each country. To address this last challenge, the case studies explicitly acknowledge the pre-existing situation in-country and try to assess the value added of the PRSP process.The four countries studied have a number of common features.Finally, and perhaps most importantly, all five countries share a high-level political commitment to addressing poverty, although the extent to which this commitment permeates throughout government agencies varies from country to country.The five countries, however, also display many distinctive features. Bolivia and Cambodia, for example, both suffer from high degrees of political fragmentation, which in Bolivia has manifested itself as civil unrest on a number of occasions in the last two years. Burkina Faso, Tanzania, and Vietnam, on the other hand, benefit from more stable political systems and an inherited commitment to pro-poor policies from socialist governments.

PRSPs and Budgets

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