overview of education budgeting and resource allocation process in sri lanka nisha arunatilake...
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Overview of Education Budgeting And Resource
Allocation Process In Sri Lanka
Nisha ArunatilakeRoshani de Silva
Institute of Policy Studies
Presentation outline Introduction to education finance in
Sri Lanka Education administration structure
in Sri Lanka The budgetary process Budget implementation and
monitoring Non-public sources of funding
Presentation outline Introduction to education finance in
Sri Lanka Education Administration Structure
in Sri Lanka The budgetary process Budget Implementation and
monitoring Non-public sources of funding
Education Finance in Sri Lanka Since 1949 –main source of funding has
been government 1992 govt. at different levels spent Rs.
36.54 billion on Education (== 2.3% of GDP; 9.1% of Govt. Expenditure)
Since 1990s government expenditure on education has declined over the years
Compared to other developing countries – govt. expenditure on education is low
Types of Expenditure Public expenditure finances inputs
to the supply and development of education: Physical investment inputs –
buildings,furniture Human resource investments – teacher
training, curriculum development Recurrent inputs – teacher salaries
Total Expenditure Budget
Social Development and Welfare
Health Housing
Social Security Welfare Service
Community Based Programme Physical Planning
Education
Education Publication
Department
Total Expenditure Budget
Social Development and Welfare
Health Housing
Social Security Welfare Service
Community Based Programme Physical Planning
Education
Total Expenditure Budget
Social Development and Welfare
Health Housing
Social Security Welfare Service
Community Based Programme Physical Planning
Education
Total Expenditure Budget
Social Development and Welfare
Health Housing
Social Security Welfare Service
Community Based Programme Physical Planning
Education
Universities Examination Department
General Public Service
Public Order and
Safety
General Administration
Defence
Provincial Councils
(8 Councils)
Ministry of Skills Development, Vocational and
Technical Education
Ministry of Education
Technical Colleges
Education Publication
Department
Total Expenditure Budget
Social Development and Welfare
Health Housing
Social Security Welfare Service
Community Based Programme Physical Planning
Education
SOURCE: Budgatery Procedures for Education in Sri Lanka, mimeo
Presentation outline Introduction to education finance in
Sri Lanka Education Administration Structure
in Sri Lanka The budgetary process Budget Implementation and
monitoring Non-public sources of funding
Education administrative structure in Sri Lanka Since 1987 education became a devolved
subject The present administrative structure with
more powers to the provinces is a result of this change
At present there are five administrative tiers (as oppose to the earlier three): Ministry of Education, Prov.l Ministry/ Prov. Dpt. Of Edu., Zonal education offices. Divisional education Offices, Schools
Source: Present Education System and Management Structure http://www.moe.gov.lk
Education administrative structure - contd Ministry of Education
Policy formulation, implementation and coordination; management of national and other special schools; regulation of private schools; development of of school curriculum; teacher training
Provincial Ministry/ Dpt. Of Education
Administration of provincial level education Funded by provincial council through its ministry of
education
Education administrative structure - contd Zonal Education Offices
Administration of schools at the zone level, quality improvements in teaching and learning at this level
Divisional Education Offices Supervision of schools, distribution of welfare items,
data collection
Schools 2002: 9,829 government schools; Of these 9,509 provincial schools; 320 national schools Private schools reg. Before 1960 – 66; assisted private
schools – 33; English medium international schools -?
Presentation outline Introduction to education finance in
Sri Lanka Education Administration Structure
in Sri Lanka The budgetary process Budget Implementation and
monitoring Non-public sources of funding
Education Budgetary Process
Overall Budget Program-wise: General administration; Primary
education; Secondary education; Education development; Special education
Recurrent Category wise: personal emoluments, traveling
expenses, supplies, maintenance expenditure and contractual services, transfers, grants, subsidies, etc
Capital Category wise: rehabilitation and improvement of
capital assets, acquisition of fixed assets, capital transfers, other capital expenditure, operation cost of donor funded projects
Source: NEC, 2003, p. 249. Note: The above diagram has been modified (as indicated by broken arrows)
MINISTRY OF FINANCE AND PLANNING
BUDGET DIVISION(RECURRENT EXPENDITURE)
DEPARTMENT OF NATIONAL PLANNING
(CAPITAL EXPENDITURE)
FINANCE COMMISSION
PROVINCIAL EDUCATION AUTHORITIES
TYPES 1AB AND 1C SCHOOLS
(OTHER THAN NATIONAL SCHOOLS)
TYPE 2 AND TYPE 3 SCHOOLS
MINISTRY OF EDUCATION
NATIONAL SCHOOLS
Recurrent Expenditure for National Schools
Capital Expenditure and Funding from donor-funded projects
Capital funds from Finance Commission for province specific development priorities
Capital budget allocated by Treasury
Funds from foreign funded projects & local special Education projects as capital funds
Determination of Education Budget for Provincial Schools
Zonal and Divisional Offices
Provincial Department of Education
Planning Branch
Provincial Council
Finance Commission
Treasury
Finance Commission Members
Cabinet
National Budget
*Divisional Offices assess the needs of the schools and provide information to the zonal offices.*Zonal offices discuss with divisional offices and schools, prioritize and submit to Provincial Department of Education
*The Provincial Department of Education reviews and consolidates the budget proposal made by the zone and prepares the provincial education budget proposal
*Chief Secretary, Provincial Council submits budget to the Finance Commission
*The estimates are reviewed *Discussions with Provincial Education authorities
*Discussions with Treasury officials and Treasury arrives at a ceiling
*Commission members approve budget and signing of financial report *Report is submitted to the President
*President submits to the Cabinet *After Cabinet members approve the budget, it is sent through the President and included in the National Budget
Determination of Education Budget for National Schools
Zonal and Divisional Office
Provincial Department of Education
MOE
Treasury
National Budget
*Zonal and Divisional Offices assess needs
*The Provincial Department of Education forwards the requests to MOE
*Subject Directors prepare budget plan for national schools*National Budget Committee prepares budget for national schools
*Initial discussions held with the Treasury*Budget ceilings are decided*Once ministry budget is agreed upon, it is put to National Budget
Determination of Special Budgetary Items Recurrent Expenditure Items
common to all schools: Welfare items –e.g., uniforms, text
books, meals and grade 5 scholarships
Quality Inputs
North and East No direct provincial bodies
Requests are directly received from zonal directors of education and processed by the Finance Commission
Presentation outline Introduction to education finance in
Sri Lanka Education Administration Structure
in Sri Lanka The budgetary process Budget Implementation and
monitoring Non-public sources of funding
Budget Implementation and Monitoring Implementation Actual Education budget decided according to the
ceiling given by the Treasury Some flexibility to move funds between budget items
Monitoring
Reporting
Other Sources of Education Funding Alumni associations Fund raising activities Special projects funded by foreign
donors
Issues Involvement of stakeholders is limited in deciding
school level budgets Complex several layer administrative structure.
Although needs identified at the school level, budget allocations are prepared after discussion at higher levels
Budgets prepared due to historical trends rather than present needs – due to procedural shortcomings and budget limitations
Budgets prepared according to guidelines by the Finance Commission and the Treasury – little flexibility for needs outside these guidelines
Major portion of funds goes to essential recurrent items. Development related funding takes a back seat – e.g., teacher training
Issues – Contd. Equal fund allocations does not lead to equal
outcomes (e.g., quality inputs) Privileged schools are better able to make use of
available funds (better access to markets, better management, better and adequate teachers)
Teacher shortages in difficult areas. No incentives to make teacher serve in difficult areas
Not enough funds for maintaining schools. Underprivileged schools are less able to raise their own funds for maintenance etc.
Issues – Contd. Limited Information
Information on budget allocation available. But not enough information on equity and efficiency of education finance. Also little information on efficient use of funds
Funds are allocated according to utilization capacity (of a ministry, or a school)
This makes the divide between the privileged and under-privileged schools wider