1. Workshop Medium-term Expenditure Planning for National Sustainable Development
Government Spending to Achieve Sustainable Development Policy Goals
David Smith and Sanjesh Naidu
2-6 November 2015
Nadi, Fiji

2. Importance of Government Expenditure?
Deliver services and access to services
Support the implementation of national development priorities
Recognising in the budget process the purpose of a national plan “…set national goals and effective strategies to guide policy decisions over the medium term…”, a Government Budget Book

3. Typical Budgetary Processes: Used or Not?
National Plan, Vision, Strategy
Sector Plans
Corporate/Ministry plans
Budgetary and donor allocations
(recurrent budget, development/capital budget, aid resources)
Development outcomes
Economic and fiscal assessment
Annual policy priorities established
Budget preparation
Budget approved
(recurrent budget, development budget, aid resources)
Monitoring of budget implementation
And have a budgetary process that links to the Plan – on paper at least.

4. Use of National Plans in Budgeting
Most Pacific Island Countries have national plans and budgetary processes aimed at achieving national development goals. How effective are they?
Level of integration of plans and budgets?
Extent to which development issues/ priorities are captured in budgets?
Does the budget signal government commitment to a national priority area (even if partial funding allocated)?
Are monitoring of plans and budgets connected? Should they be? Service delivery focused indicators?

5. What Country Presentations Suggest…?
Tailored approach needed – sector comparative strengths, demographics, risks, country specific vulnerabilities to shape opportunity costs and trade-offs of budgetary allocations
Robust consultation, analysis of proposals, national agreement on priorities, appropriate institutional arrangements - important
Leadership and political will needed to help with development focused budgets
Better costing needed to commit to development priorities
Stronger monitoring of allocations and connecting with planned priorities

6. Practical Challenges in Allocating Expenditure?
Plan priorities not linked as they are ‘out of sync’ and beyond the time frame of government term in office
Political economy/ capture (horse trading) – ad hoc pressures and technical contestability of policy choices
Spreading limited resources too thin vs few targeted expenditure to support full implementation?
Development partner funding flows unpredictable
Limited analysis to learn from past mistakes, and understand future policy commitments

7. Challenges – can be addressed?
Short answer – YES!
Need to ‘stay the course’! Connecting medium term plan with medium term exp plans helps.
You have the solutions – country presentations indicate good processes tied to your context/ need
Previous slide on key messages from country presentations captured some of these measures.

8. Case of Agriculture SPC presentation
Reviewing potential of sector and national priorities
Budget allocations
Performance
- has past funding support worked?
- lessons and ways to target forward estimates – a what tool can be used?

9. Thank you for your attention! VINAKA!