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Sector Budget Support in Practice: Education Sector in Uganda

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Sector Budget Support in Practice: Education Sector in Uganda Sector Budget Support in Practice Case Study Education Sector in Uganda Final Draft February 2010 Edward Hedger, Tim Williamson, Tom Muzoora and Justina Stroh Overseas Development Institute 111 Westminster Bridge Road London SE1 7JD UK and Mokoro 87 London Road Headington Oxford OX3 9AA UK Sector Budget Support in Practice – Uganda Education Case Study Acknowledgements Thanks are due to the many officials from MoES, MoFPED and other Government stakeholders who gave generously with their time for interviews. We are also grateful to the EFAG donors who participated in meetings for the study and to the District authorities in Iganga and Jinja for hosting valuable field visits by the consultant team. The consultants are responsible for any errors of fact or judgement. i Sector Budget Support in Practice – Uganda Education Case Study Contents Acknowledgements ............................................................................................................ i List of Acronyms ............................................................................................................... v Executive summary ......................................................................................................... vii 1. Introduction and Study Objectives ............................................................................ 1 1.1 Methodology ..................................................................................................................... 1 1.2 Activities Carried Out ........................................................................................................ 3 2. Country, Sector and Aid Context ............................................................................... 4 2.1.1 Country Context ......................................................................................................................... 4 2.2 Sector Context ................................................................................................................ 10 2.3 Context for External Assistance ...................................................................................... 27 3. The Key Features of SBS Provided and its Effects on the Quality of Partnership 35 3.1 The Key Features of SBS Provided ................................................................................ 35 3.2 Derogations from Country Policies, Systems and Processes .......................................... 47 3.3 The Effects of SBS on the Quality of Partnership in the Sector ....................................... 48 4. Sector Budget Support and its Effects in Practice ................................................. 53 4.1 Influence of SBS on Sector Policy, Planning, Budgeting, Monitoring and Evaluation Processes ................................................................................................................................. 54 4.2 Influence of SBS on Sector Procurement, Expenditure, Accounting and Audit Processes 64 4.3 Influence of SBS on the Capacity of Sector Institutions and Systems for Service Delivery 68 4.4 Influence of SBS on Domestic Ownership, Incentives and Accountability in the Sector .. 75 5. The Effectiveness of SBS and the Conditions for Success................................... 84 5.1 The Main Outputs of SBS ............................................................................................... 84 5.2 The Sector Outcomes Influenced by SBS ....................................................................... 87 6. Conclusion ................................................................................................................. 89 Bibliography ..................................................................................................................... 93 Annex 1 – Assessment Framework ................................................................................ 98 Annex 2 – Country and Sector Data ............................................................................. 114 a) Core Country Data .............................................................................................................. 114 b) Sector Expenditure and Service Delivery Data .................................................................... 115 Annex 3 – Country and Sector Aid Data ...................................................................... 117 a) Country Aid Data ................................................................................................................. 117 b) On Budget Aid to the Sector ................................................................................................ 117 Annex 4 – Inventory of Sector Budget Support .......................................................... 118 a) Details of Inputs by Type of SBS ......................................................................................... 118 b) SBS Disbursements over Time (US$m) .............................................................................. 123 c) Details of Conditions relating to Sector Budget Support over Time ...................................... 124 Annex 5 – Institutions visited and Individuals Met ..................................................... 142 ii Sector Budget Support in Practice – Uganda Education Case Study List of Tables Table 1: Progress towards MDG targets ......................................................................................... 5 Table 2 Domestic Budget Allocations to Sector PEAP Priorities 1997/98 --- 2006/07 (excludes donor) ............................................................................................................................................. 7 Table 3: Enrolment levels by sub-sector (‗000) ............................................................................. 11 Table 4: Indicators of Quality in Primary Education ....................................................................... 13 Table 5: Literacy rates for individuals aged 15–24 years (%), 1992/93-2005/06 ............................ 13 Table 6: Pupil-Teacher Ratio 2000-2007 ....................................................................................... 23 Table 7: Donor budget support to the education sector ................................................................. 36 Table 8: Summary of SBS Programmes by Type, 1997/98 – 2009/10........................................... 37 Table 9: Evolution of SBS by type ................................................................................................. 40 Table 10: Domestic Budget Allocations to Sector PEAP Priorities 1997/98-2006/07 (excl. donor projects) ........................................................................................................................................ 61 Table 11: Summary of Practices with Positive and Negative Effects ............................................. 90 List of Figures Figure 1 Per Capita Real GDP Growth (%) ..................................................................................... 4 Figure 2: Total Enrolment under Universal Primary Education by gender (1996 – 2007) ............... 12 Figure 3: Net Primary Enrolment Rate (NPER) and Gross Primary Enrolment Rate (GPER) for Girls and Boys, 1992/93 – 2005/06 (%) ......................................................................................... 12 Figure 4: ESIP implementation and management structure (2003) ............................................... 18 Figure 5: Total Public Expenditure and Expenditure in Education (UGX billion 2003/04 Prices) .... 20 Figure 6: Subsector Budget Outturns (UGX Billion 2003/04 prices) .............................................. 21 Figure 7: Key Budget Lines in Primary and Secondary Education (UGX Billion, 2003/04 Prices) .. 21 Figure 8: On-Budget Aid as a Share of GDP and Total Public Expenditure (1999/00 – 2008/09) .. 27 Figure 9: Captured Project Aid and Direct Budget Support Outturns (2000/01 – 2008/09), UGX Billions .......................................................................................................................................... 28 Figure 10: On-Budget Aid (expected by GoU) and Actual Aid Disbursements (1999/00 – 2008/09), ..................................................................................................................................................... 29 Figure 11: Mix of On-Budget Aid Instruments to Education (UGX 2003/04 Prices) ........................ 31 Figure 12: Intra-sector allocations of on-budget aid to education in 2005/06 and 2007/08 ............ 32 Figure 13: The Spectrum of Sector Budget Support Covered by the Study .................................. 38 Figure 14: SBS Disbursements 1997-2008 (US$m) ...................................................................... 39 Figure 15: % Over and Under-Disbursements of SBS Programmes.............................................. 41 Figure 16: Diagram of SBS Funding Flows in the Context of Mainstream Budgetary Channels .... 43 Figure 17: Structure of the Joint Assessment Framework for GBS ............................................... 45 Figure 18: Partnership Map for Basic Education in Uganda in 2003 .............................................. 50 Figure 19: Contribution of SBS to Increases in Sector Expenditure (UGX billion 2003/04 prices) .. 60 Figure 20: Logical Framework for Assessing Sector Budget Support in Practice........................... 98 List of Boxes Box 1: Main Study Questions .........................................................................................................
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