1. Budget identifier - ENABLING INTEGRATION OF aid data with COUNTRY budgets
IATI Members’ Assembly, June 2016

2. Context
Need to link aid data and country budgets is part of Aid Effectiveness principles and supported by accountability stakeholders (e.g. CABRI position paper).
Integrating aid information in country public accounts can provide a fuller picture of the resources available to support development efforts.
Technical work lead to initial recommendation of Common Code (purpose) and Economic Classification to help map donor data to country budgets.
Pilot study demonstrated feasibility, but recommended integration of Common Code and CRS purpose codes – rather than separate codelists – to improve alignment.
Proposal submitted to DAC WP-STAT in 2015, approved in Spring 2016.

3. New Purpose Codes
More detailed purpose codes – to improve alignment to partners’ budget classifications.
15 existing purpose codes disaggregated with 54 new codes. The purpose codes most affected are in the 150 sector – Government and Civil Society.
The new codes better reflect the fact that various functions fall under different ministries e.g. justice and police.
Improve the precision of donor data in areas of growing interest, including government capacity building (15110, 15111, 15130), social safety nets (16010) and transport infrastructure (21010, 21020).
No purpose codes were removed. Publishers can continue to use existing codes if they are unable to code a project more precisely.
The Common Code created by IATI is no longer needed. TAG to consider deprecating.

4. Economic Classification
New CRS field to indicate the percentage of an activity that is capital expenditure – as opposed to recurrent expenditure.
Simple capital/recurrent split following the IMF definition – building, improving, rehabilitating physical assets with a useful life of more than one year.
Coded and reported at the commitment stage.
In capital investment projects, assume 100% is capital except when distinct components relate to institutional capacity-building or M&E.
The entire project to implement a capital investment, including the project management, design costs and construction costs should be classed as capital.
The only time when a component of the project may not be capital is if there is a distinct component of the project that is not specifically required to make the asset operational, such as capacity building for related institutions or an M&E component that is designed to monitor the operation of the asset after completion (monitoring the construction of the asset as it completed would be considered part of the capital investment).
For instance, if building a road or a hospital would be coded as 100% capital, including cost of engineers, architects, project oversight etc.
Identifier
Title %
Purpose code
Purpose
Capital expenditure CA
Solar technologie for the West-African Economic and Monetary Union 50
11420
Higher education
28%
16050
Multisector aid for basic social services

5. Implementation by Donors
New purpose codes & economic classification field available on DAC website +
Fields already in IATI Standard
→ Can be implemented immediately!
If required changes to internal systems not possible in short term, consider alternative approach to publish at least some projects.
Demand from partner countries can help identify priorities e.g. specific sector; specific country; existing projects or going forward.
Canada can share coding guidance with IATI community by late summer.
Can pre-filter purpose codes that often constitute capital investment (e.g Basic health infrastructure) or rarely do (e.g Teacher training).

6. Implementation – Partner Countries
Map CRS purpose codes to country budget classification (Chart of Accounts)
This must be done for each country separately, but only once (except when budget classification is modified).
Mapping can be done and validated in a few hours.
Determine best use of the mapping table (e.g. in AIMS, in IFMIS, as stand-alone document).
Make mapping table publicly accessible to enable others to map aid data against the country budget – could help with aligning priorities and monitoring progress.
15111
Gestion des finances publiques
310
Affaires générales des finances
15117
Planification budgétaire
320
Affaires générales du budget
15118
Contrôle interne national
123
Affaires juridictions financières
15119
Gestion de l'aide et de la dette publique
Affaires générales de finances