Download public finances and services for children

Public Finances and services for
children at local level
Eva Jespersen
[email protected]
4 April 2008
Ability to collect revenue:
Levels of public
expenditures in CEE/CIS in
’93/94 and ’03/04; high
levels, less divergence to
20-30 % for low-come and
EU standard of 40-50 for
CEE.
government expenditure as a % of GDP
60
50
40
30
Central Europe 1993-1994
Baltic States 1993-94
20
South Eastern Europe 1993-1994
Western CIS 1993-1994
10
Caucasus 1993-1994
Central Asia 1993-1994
0
0
5000
10000
15000
20000
25000
GDP per capita in 1993, PPP $ (constant 2000)
government expenditure as a % of GDP
60
50
40
30
Central Europe 2004-2005
20
Baltic States 2004-2005
South Eastern Europe 2004-2005
Western CIS 2004-2005
10
Caucasus 2004-2005
Central Asia 2004-2005
2
0
0
5000
10000
15000
20000
GDP per capita in 2005, PPP $ (constant 2000)
25000
Public revenue and expenditures
• Revenue
•Taxes and levies: indirect and direct
• Acc to C Gov & Loc Govt
•Social contributions
•Revenue of ‘national wealth funds’
ODA and other aid
Borrowing/domestic & foreign
Expenditures
Extra budgetary items
Statutory exp: pensions
Interest on borrowing
C Govt budget
incl allocation to L Govts
Capital expenditures
Recurrent expenditures
3
0%
Share of indirect taxes
Share of direct taxes
United States
Canada
United States
United Kingdom
Sweden
Portugal
Norway
Netherlands
Italy
Germany
France
Denmark
Belgium
Tajikistan
Kazakhstan
Georgia
Ukraine
Russia
Russia
Moldova
Belarus
Serbia & Montenegro
Croatia
Romania
Bulgaria
Lithuania
Latvia
Estonia
Slovenia
Slovak Republic
Slovak Republic
Poland
Hungary
Czech Republic
% of tax revenues
Tax composition (last available year)
100%
80%
60%
40%
20%
Share of other taxes
4
1.00
0.80
0.60
0.40
Social protection
Health and education
Other social expenditure
Economic affairs
General public services
Public order and defense
Ukraine
Poland
Slovenia
Bulgaria
Moldova
Hungary
Lithuania
Czech Republic
Belarus
Latvia
Georgia
0.00
Romania
0.20
Kazakhstan
Share of total public expenditure
Structure of public expenditure
5
Taxes and benefits over the life course, DK and Greece
6
Issues in analysing allocations for social
services
Central Government
Budget norms - unit of service or unit of beneficiary – differentiated by
conditions
Equalizing funds
Division of sector responsibilities: tertiary services // basic services
Local Government
Local revenue generation – local taxes/VAT, user fees
Allocation from C Govt
Procuring services from C Govt
Vertical gaps – unfunded mandates (exp> revenue)
Horizontal imbalances (mismatch between pop and revenue)
7
Making the best use of public spending
• Costing of new mandates
• Expenditure tracking
• Effectiveness in spending:
Incentives to spend effectively
flexibility (combined w accountability)
allocations based on burden/outcomes not past
spending
Transparency / accountability
• SOCIAL/PARTICIPATORY BUDGETING
8
Right to extensive level of health and education
services and child/family allowances, but …
• Poorer countries don’t have the means to fund
entitlements adequately
• Changes in provision - less linkage between labour
force participation and access to social services for the
family (particularly in health, child care) – erosion of pre
school in LICs. Still strong preference for hospital-based
services
• More choice for the rich and in richer countries
•increasing private provision, tuition based tertiary
services.
• Erosion of value of transfers to families/children lessening
ability to purchase services in the market
9
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per cent of GDP
Cross country analysis may encourage experience sharing/lessons learning
Public expenditures on education as % of GDP (year), all levels?
7.0
6.3
6.0
5.7 5.7 5.7
5.5 5.4
5.4 5.3 5.3
5.0
4.0
3.0
5.1
4.9
4.6
4.4 4.3
4.0 4.0
3.6
3.4 3.3
3.1 2.9
2.9
2.5 2.4 2.4
2.0
1.0
0.0
10
Public expenditure on basic education per student, in PPP $
6000
5413
PPP $ per student in basic education
1990
5000
4710
2000
2003-05
4000
2751
3000
2480
2000
1758
1554
1276
1317
890
1000
634 581
64 135
0
Czech Republic
Slovenia
Bulgaria
Romania
Tajikistan
11
250
Czech Republic - -real public
expenditure on education
200
Bulgaria -real public
expenditure on education
150
Uzbekistan - real public
expenditure on education
100
Czech Republic - real public
expenditure on education per
person aged 3-18
Bulgaria - real public
expenditure on education per
person aged 3-18
50
Uzbekistan - real public
expenditure on education per
person aged 3-18
20
04
20
02
20
00
19
98
19
96
19
94
19
92
19
90
0
12
Thank you