THE PERSPECTIVE FROM THE SECTORS

1
THE PERSPECTIVE FROM THE SECTORS

• What would Sectors/Line Ministries (LMs) want
  from an MTEF?
• What do we expect LMs to do to effectively
  prepare and implement MTEF?
• What are the practical problems which usually
  arise?

2
WHAT DO SECTORS/ LMs WANT FROM AN MTEF?

• Assessment of Current Situation
• Pre-MTEF experience of key ministries in Nepal
  (Education, Health) - -functions, effectiveness,
  problems.
• Are their similarities in Bhutan?
• What is the role/functions of Sectors/LMs?
• How well are they doing? Are they delivering?
• Why not? What are their constraints?

3
What Do The Sectors/LMs Expect From An MTEF?

• Better funding
• Freedom/Authority to formulate sector
  programs/set priorities
• Flexibility in fund management/Virement
• Accountability for program delivery.
• (Ideally, MTEF would eventually move to
  program budgeting/block allocations which
  Sectors/LMs will prioritize, allocate, manage,
  deliver contracted outputs/outcomes and be
  accountable for. It will take time to get there).
• Why is this not happening now?
• Nepal Experience
• MOF view

4
WHAT IS EXPECTED FROM LMs FOR IMPLEMENTING AN
MTEF?

• Preparing Sector Programs
• Living within Funding Constraints/Sector
  Ceilings
• Set sector goals, strategy and policies to
  achieve Agreed national (PRSP) Goals
• Review all sector programs, projects and
  activities Change orientation from focusing on
  inputs to delivery of agreed outputs/services
• Align sector programs/activities accordingly, and
  prioritize all activities, (Criteria to be
  provided by MOF/Planning)
• Prepare estimates of expenditure needs for three
  years and update them annually, (Rolling MTEF)
  Undertake costing as practicable

5
What is Expected from LMs? Continued.

• Monitoring Implementation and Ensuring
  Accountability
• Develop modalities for monitoring progress of
  activities and for regular reporting to
  MOF/Planning (Prepare work programs, internal
  monitoring and reporting procedures)
• Hold themselves accountable for effective
  management of resources provided to them and for
  delivery of results
• Internal capacity building of key units.
• All of this will involve a new way of working
  and mindset change in both LMs and MOF in order
  to make MTEF approach to work.

6
POSSIBLE PRACTICAL PROBLEMS

• Cursory review of sector programs/inadequate
  prioritization. (Need clear guidelines from
  MOF/Planning regarding supremacy of PRSP and
  prioritization criteria)
• Mindset Change Do LMs really believe that the
  Government will move to the new way of budgeting
  and expenditure management? (If not, they will
  only go through the motions. Need strong
  collaboration among key Govt. agencies -MOF,
  Planning etc.- and clear signals to LMs)
• Cleaning up sector programs (by dropping or
  phasing out projects/activities) may be difficult
  due to political pressure or objections from
  external donors
• Mechanisms to enforce new accountability,
  monitoring and reporting guidelines may be weak.
  (Improving the expenditure reporting and
  monitoring system and institutional capacity at
  various levels are critical to addressing these
  problems).