Medium-Term Budget Frameworks in Sub-Saharan African Countries

Allen, Richard; Chaponda, Taz; Fisher, Lesley; Ray, Rohini

doi:10.2139/ssrn.3043168

Cited by 4 publications

(5 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Objectives of PFM Reforms in Botswana 4.1 Budgeting Reforms 4.1.1 Objectives of Budgeting Reforms Budgeting reforms in Botswana have been driven by several key objectives identified in the literature. These objectives include:  Strengthening fiscal discipline: According to Allen et al (2017), budgeting changes that improve spending control, cut budget deficits, and encourage responsible financial management are intended to increase fiscal discipline.  Encouraging efficiency in resource allocation: According to Calleja & Prizzon (2019), the goal is to allocate resources in accordance with government priorities, making sure that public expenditures are channeled towards high-priority areas like healthcare, education, infrastructure, and social welfare.…”

Section: Key Drivers and Motivations For Pfm Reformsmentioning

confidence: 99%

“…These include:  Increased transparency: precision, and reliability of budget forecasts have all contributed to budgeting reforms, which have improved the budgeting process's credibility (Mosweu, 2018).  Improved budgetary discipline: By implementing tools to better manage budget deficits and restrict spending, budget reforms have strengthened fiscal discipline (Allen, 2017).  Greater efficiency in resource allocation: According to Ketshabile and Senatla (2019), the strategic approach to budgeting has resulted in greater efficiency in resource allocation, ensuring that public funds are allocated toward priority areas and providing better value for money.…”

Section: Outcomes and Impacts Of Budgeting Reformsmentioning

confidence: 99%

See 1 more Smart Citation

Public Financial Management Reforms in Botswana: A Review of Literature

2023

RJFA

View full text Add to dashboard Cite

The public financial management (PFM) changes in Botswana's public sector finance are thoroughly reviewed in this journal article. The study examines the goals, tactics, and effects of PFM reforms in budgeting, accounting, and procurement using a literature review methodology. The report examines the effects of PFM changes on budgetary management and discusses current problems and implementation concerns. The results show that PFM changes have enhanced budgetary control, expenditure management, financial accountability, and transparency. The study places a strong emphasis on the necessity of ongoing governmental commitment, stakeholder involvement, and alignment with sustainable development goals. The article concludes with policy recommendations and calls for additional study in particular areas to deepen our understanding of Botswana's PFM reforms.

show abstract

Section: Key Drivers and Motivations For Pfm Reformsmentioning

confidence: 99%

Section: Outcomes and Impacts Of Budgeting Reformsmentioning

confidence: 99%

Public Financial Management Reforms in Botswana: A Review of Literature

2023

RJFA

View full text Add to dashboard Cite

show abstract

“…In addition to the types of PFM reforms listed in Table 1, many African countries have enacted fiscal rules to improve fiscal discipline and reduce budget deficits, adopted medium-term expenditure frameworks (MTEFs) to strengthen the budget process and accountability, and constituted semiautonomous revenue authorities to improve tax administration and revenue efficiency (Allen et al. , 2017; Dom, 2019; Schaechter, 2017).…”

Section: Historical and Theoretical Background Of Budget System Reformsmentioning

confidence: 99%

“…Similarly, empirical assessments of MTEF show that these budget system reforms have been successful in some countries but ineffective in many others (see Haruna and Vyas-Doorgapersad, 2016). Allen et al. (2017) studied MTEF's effectiveness in six countries (Kenya, Namibia, South Africa, Tanzania, Uganda and Zambia) and found that several of these countries that enacted MTEF in the early 2000s were still in nascent stages of institutional development, and MTEF have not yielded desirable results.…”

Section: Previous Researchmentioning

confidence: 99%

Budget systems and post-pandemic economic resilience in developing countries

Dzigbede

Pathak

Muzata

2022

JPBAFM

View full text Add to dashboard Cite

PurposeOver the years, public sector reforms in emerging economies have focused on improving national budget systems and financial management practices to promote sustainable development. In the context of the COVID-19 crisis, this article examines whether the strength or effectiveness of national budget systems and related financial management practices moderates the impact of fiscal policy measures on economic recovery and resilience.Design/methodology/approachThe article uses bivariate correlations and difference-in-difference analyses to examine the relationship between budget system effectiveness, government stimulus measures and forecasts of economic recovery and resilience. The analysis uses data from the Public Expenditure and Financial Accountability (PEFA) program, International Monetary Fund (IMF) and World Bank.FindingsThe article finds that estimates of economic recovery and resilience are higher in countries with more reliable budget processes and more transparent public finances. Also, the strength or effectiveness of the budget system before the pandemic appears to moderate the impact of government stimulus measures on economic recovery and resilience over a medium-term forecast horizon.Research limitations/implicationsThis is a prospective analysis based on economic forecasts from the IMF, which are subject to change in the coming years. In addition, the analysis uses subjective budget system indicators, which present measurement challenges that often influence this area of research. Better comparative data in the future, for example, large administrative datasets, will enable researchers to explore these issues with less estimation bias.Practical implicationsThe findings are relevant for policymakers and budget officials in developing countries in Africa who are engaged in plans to improve national budget systems and enhance resilience to crises, such as the COVID-19-induced economic crisis. The findings also have implications for developing countries beyond Africa with similar economic and fiscal conditions.Social implicationsThe findings have implications for economic and budgetary planning for the social sector as well as the efficient delivery of public services in developing countries. Public managers have a critical role to play in adapting national budget systems and financial management reforms within complex and evolving economic circumstances even after the coronavirus pandemic.Originality/valueThe authors use novel and latest data on country responses to the COVID-19 pandemic as well as medium-term economic forecasts to examine the relationship between national budget systems and post-pandemic economic recovery and resilience in the African context. Previous research has only addressed these issues in the context of industrialized countries, and a limited number of empirical studies examine these relationships. The findings also have significant value for policymakers outside Africa who are facing similar challenges related to the coronavirus pandemic.

show abstract

“…PlanRep was initially introduced over a decade ago to assist LGAs in planning, budgeting, monitoring actual implementation, and reporting results. It incorporates national sector strategies and enables LGAs to define their Medium Term Expenditure Framework (MTEF) in relation to their strategic plans, objectives, targets, and activities (2)(3)(4)(5). PlanRep was a standalone system with different versions used in different public sectors and each user accessing the system locally on his/her workstation.…”

Section: Introductionmentioning

confidence: 99%

Cost-Efficiency Analysis of the Improved Web-Based Planning, Budgeting, and Reporting System (PlanRep) in Tanzania

et al. 2022

View full text Add to dashboard Cite

BackgroundInformation systems offer unlimited potential for innovation and digitalization of management functions to facilitate citizen participation and improve accountability, transparency, and efficiency in government operations and service delivery. In line with this, for more than one decade, Tanzania implemented an integrated planning, budgeting, and reporting system (PlanRep) that was used to prepare plans and budgets at the local government authorities (LGAs) using a desktop application. In 2017, PlanRep was upgraded to a Web-based system to address several challenges, including poor coordination and high cost involved in the preparation of plans and budgets. However, operational evidence regarding the cost-efficiencies and benefits of shifting to Web-based PlanRep has not been explored. This study aims to address this gap by assessing efficiency gains (in terms of cost and time) of shifting to a Web-based PlanRep system as a tool for the preparation of LGA plans and budgets.MethodsThe study applied a retrospective before-and-after study design whereby quantitative data was used to assess the amount of time and the cost incurred by LGAs when preparing their budget 1 year before the introduction of PlanRep and 1 year after. Parallelly, qualitative data were collected through key informant interviews with selected LGA officials, Regional Secretariats (RSs), President's Office Regional Administration and Local Government (PORALG), and system end-users such as heads of health facilities and schools (primary and secondary). Secondary data was analyzed by comparing time and cost used before and after Web-based PlanRep, while thematic analysis was employed for qualitative data.ResultsThe analysis showed a 53% reduction (from USD 3.8 million in 2017/18 to USD 1.8 million in 2018/19) in the total costs LGAs incurred during planning and budgeting after introducing the Web-based PlanRep. The main efficiency gain was related to per diem costs. The analysis also showed significant time saving from an average of 87 days in 2017/18 to only 8 days in 2018/19. PlanRep system end-users also acknowledged that the introduction of Web-based PlanRep has significantly saved their time and costs in preparation of LGA plans and budget.ConclusionThe introduction of the Web-based planning, budgeting, and reporting systems has resulted in tremendous cost reduction, time savings, transparency, accountability, and workload reduction. The findings offer operational evidence to guide the implementation and scale up of similar systems in countries that share equivalent circumstances like Tanzania.

show abstract

Medium-Term Budget Frameworks in Sub-Saharan African Countries

Cited by 4 publications

References 0 publications

Public Financial Management Reforms in Botswana: A Review of Literature

Public Financial Management Reforms in Botswana: A Review of Literature

Budget systems and post-pandemic economic resilience in developing countries

Cost-Efficiency Analysis of the Improved Web-Based Planning, Budgeting, and Reporting System (PlanRep) in Tanzania

Contact Info

Product

Resources

About