MECHANISM OF PUTTING AID ON BUDGET

MADAGASCAR

ISAORA ZEFANIA ROMALAHY PERMANENT SECRETARY IN CHARGE OF AID

COORDINATIONOFFICE OF THE PRIME MINISTER

IATI MEETINGSParis-FRANCE, 4 and 5 July 2011

OUTLINE OF THE PRESENTATION(12 slides)

Madagascar at a glance (1 slide)

Context of Aid Management before 2008 Creation of an Aid Coordination Unit (STPCA) & its

duties

Setting up the National Database on ODA

The new Overall Aid Coordination MechanismPutting Aid on budget:

Main blocking factors Actual activities to improve Aid on Budget Drafting a DECREE: Role and Content

Way forward

MADAGASCAR AT A GLANCE

587 000 Square kilometers20 Millions inhabitants (2010 estimates)232 USD GNI per capita (2010)

Between 2008-2010 Aid flows: USD 700 Millions USD 450 millions

Aid on the budget: 65% of the total number of projects not found in

the budget 38% in terms of effective disbursments

CONTEXT OF AID MANAGEMENT Before 2008

Several actors have a certain quantity of aid data: FINANCES : in-budget projects ( ≤ 50% of active projects) TREASURY : Disbursements on loans only MINISTRIES: Projects directly oriented by donors to

sector DONORS: Projects directly implemented or through PIU

Lack of data communication among these actors no place to find complete and reliable data on ODA

Creation of a Coordination Unit in 2008: Permanent Secretariat for Aid Coordination (STPCA) Under the direct authority of the Prime Minister

DUTIES OF THE COORDINATION UNIT

Centralizes all existing and upcoming data on aid inflows/uses Setting up a mechanism to ensure data reliability ,

completeness and updates ;

Ensures fluid circulation of data among actors One “Stop Shop” of data exchange between GVT

Donors

Duties limited on a coordination and strategic stage : Ministries remain responsible for their usual duties

related to use of aid information Ministry of Finances still leads the budgeting

process

SETTING UP THE NATIONAL AID DATABASE

(Aid Management Platform)

System purchased from Development Gateway with technical & financial support from UNDP & WB

Web-based system/database: Online since the 1st Quarter of 2009 36 donor agencies for more than 400 projects stored

DAC and New Donors: Global Fund, GAVI, China, India… International NGOs (august 2011)

14 donors updating directly online their disbursement 22 donors still sending files to the Coordination Unit ≈60 persons trained and active on using AMP:

31 Government technicians (extracting data) 23 Donor Focal Points (entering & extracting data)

AID COORDINATION MECHANISM

PRIME MINISTRY

(AMP)

Ministry Economy Planning

Ministry Finance

s Budget

Donors, UNDP

Line Ministrie

s

Aligning

aid

to N

DP

Putting Aid

on budget

Inp

ut

data

Extr

act

d

ata

Budgeting

aid

PUTTING AID ON BUDGET: Blocking Factors

Actual practices:- Ministries declare in a template projects to be put on budget - Ministries sign some projects documents out of MoF control: Foreign Affairs: for bilateral grants (Japan, China…) Economy and Planning: Multilateral donors (UN Agencies…) Line Ministries: for grants oriented directly to sector by

donors

Ministries declare less projects: More projects declared, more inflated the budget, less

internal resources will be allocated to the Ministry

Only projects which needs a national counterparts is declared (…)

HOW TO IMPROVE AID ON BUDGET: in Short Term

Focal Point 1

Focal Point 2....

Focal Point m

AMP

Ministry of Finance & Budget

Line Ministrie

sMinistry 1Ministry 2Ministry 3

.

.

.

.

.

.Ministry n-

1Ministry n

Submit list of

projects to be put

on the budget

DECREE

Donors,

UNDP

DECREE ON AID BUDGETING PROCESS

CLAUSES APPLICABLE IN SHORT TERM : Official and exclusive uses of AMP data by all

actorsOfficial right to Budgeting Focal Point (MoF) to

match line ministries declarations and AMP dataObligation to provide a copy of all signed

projects-documents to the Prime Ministry(Coordination Unit)

LONG TERM CLAUSES: Only one signatory of project documents (MoF)

or at least institute co-signature of MoF

WAY FORWARD

Implementation of the decreeDecree prepared with contributions from all

stakeholders (donors and concerned institutions): Economy&Planning, Finances&Budget, Foreign Affairs

Joint GVT-Donor Technical Validation Workshop before signature of the decree

Endorsements of IATI:Expecting to reinforce continuation of donors’

commitments to provide data Expecting to gather broad idea from best

practices exchanges between countries at international level

WAY FORWARD

Focal Point 1

Focal Point 2...

Focal Point m

AMP

Ministry of Finance & Budget

Line Ministrie

sMinistry 1Ministry 2Ministry 3

.

.

.

.

.

.Ministry n-

1Ministry n

Submit list of

projects to be put

on the budget

DECREE

Donors,

UNDP

IATI

THE DECREE

Prepared and pre-validated by all ministerial stakeholders (technical level) Leaded by Prime Ministry

To be signed by Prime Minister, Ministers of Finances, Economy and Foreign Affairs

Four main aspects (chapters): Definitions and commitment to international principles Delimitation of duties of involved actors (Ministries…)

in the process of putting aid on budget MoF should be the only one signatory for project-

documents Official and exclusive uses of AMP data in the process

MERCIPOUR VOTREATTENTION