Download The Education For All Fast-Track Initiative (EFA-FTI)

The Education for All –
Fast Track Initiative
(EFA-FTI)
Fiscal Space and Capacity Issues: A Case
Study of Selected Developing Countries
of the EFA/FTI Fast-Track Initiative
April 2009
Presentation by Kouassi Soman
Senior Operations Officer and CF Trust
Fund Manager, FTI Secretariat
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Fiscal Space—Definitions:


IMF: Fiscal space is the room in a government’s budget that allows it to
provide resources for a desired purpose (i.e. Education Sector Plan)
without jeopardizing the sustainability of its financial position, or the
stability of its economy.
UNDP: Fiscal space is the financing that is available to government as a
result of concrete policy actions for enhancing resource mobilization, and
the reforms necessary to secure the enabling governance, institutional
and economic environment for these policy actions to be effective, for a
specific set of development objectives.
Fiscal Space Analysis tool:The Diamond
IV. Reprioritisation
& Efficiency of
Expenditures
(%of GDP)
I. Domestic
Revenues
Mobilisation
II. External
Grants
(incl. FTI funds)
III.
Deficit
Financing
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Fiscal Space Analysis Tool:
The Diamond





I. Domestic Resource Mobilization: Includes taxes, royalties, other nontax
revenues, and privatization receipts. Key indicators are ratios to GDP,
progressivity, and impacts on growth and poverty alleviation.
II. External Support: Includes grant aid such as FTI funds, and debt relief
and cancellations. Key indicators are aid predictability and dependence,
modality, coordination and effectiveness.
III. Deficit Financing: Includes net domestic finance (arrears and impacts on
private sector development), and net foreign finance (indebtedness and longterm sustainability).
IV. Re-prioritization & Efficiency of Public Expenditures: Includes difficult
and politically-sensitive trade-offs across sector (health, education, social
protection, security and public order, and infrastructures, etc.), investment
versus recurrent expenditures, luxury versus pro-poor expenditures,
procurement and financial management, minimizing corruptive practices, etc...
The 22 selected FTI developing country partners are: Benin, Burkina
Faso, Cambodia, Cameroon, Ethiopia, Ghana, Guinea, Kenya, Lesotho,
Madagascar, Mali, Mauritania, Moldova, Mozambique, Nicaragua, Niger,
Rwanda, Senegal, Tajikistan, The Gambia, Yemen, and Zambia.
Table . Summary of Macroeconomic and Sector Data
Sample of 22 FTI Country Partners
I. Macroeconomic & Aggregated Data:
1. Total production (i.e. GDP) -- US$ billions
2. Total population (millions) -- all 22 countries
3. Primary/basic school enrollments (millions)
4. Average unit spending/student ($) --Basic Level
II.
5.
6.
7.
8.
Education Sector Finance:
Actual/planned expenditures (US$ billions)
Average %share of national budget
Domestic revenues for education ($ billion)
Financial shortfalls (deficit 5-7)
III. Deficit Financing for Education:
- 9. Domestic resources (including dom. Arrears)
- 10. External sources of funding
11. Of which: External grants
12. External debt accumulation
Year 2008
Estimated
Average 2009-2011
Projected
207
357
62
$78
231
371
66
$80
9.1
18.5%
7.4
1.7
10.2
18.5%
8.2
2.0
0.6
1.1
0.9
0.2
0.7
1.3
1.3
0
IV. Details of Planned Expenditures:
13. Investment/capital spending (US$ billions)
1.7
1.9
14. Recurrent expenditures
7.4
8.3
15. %Share of total expenditures (14/5)
81%
81%
16. Number of personnel (in thousands)
1,875
1,945
17. Annual wage level (in US$: 6/7 times GDPPC)
$3,468
$3,732
18. Average montly wage per person (in US$)
$289
$311
19. Wage bill for the education sector ($billion)
6.5
7.3
Sources: Historical data from government consolidated fiscal operations (IMF); various World
Bank Education Statistics; and author's calculations/projections for 2009-2011.
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