UNCDF Advocates for More Effective Performance Budgeting in Local Governments

-- Global Meeting in Tanzania draws participants from across Africa

01 September 2005: The United Nations Capital Development Fund (UNCDF) recently held an international forum on comparative experience performance budgeting in local government in developing countries. UNCDF officials at the forum in Tanzania urged African countries to introduce performance budgeting to improve operations of local governments and enhance economic growth.

The event, which aimed at exposing participants to the challenges of implementing performance budgeting in local governments in the developing world, brought together government officials and specialists from Mozambique, Yemen, Armenia, Sudan, Eritrea and Tanzania .

An expert from the United Nations Capital Development Fund (UNCDF), Ronald McGill, said performance budgeting contributes to increase accountability on the part of the local governments. “Under the system, the local government authorities need to tell the public what they intend to do and how much each target will cost, ” he said.

“The authorities are required to state at the end of the year whether the targets have been achieved and at what actual cost. The accountability is enhanced by the ability to measure and is encouraged through public participation,’’ he added.

Performance budgeting, according to McGill, was the best approach to achieve a much more open and transparent system of planning, implementing and reviewing expenditure to achieve results. If conducted properly, he noted, it could form the basis for highlighting poor performance and exposing corrupt practices.

“Performance budgeting can be an anti-corruption tool. I appeal to political leaders to champion performance budgeting,’’ said McGill.

An article in the Guardian Newspaper quoted UNDP Resident Representative in Tanzania, John Hendra, as saying performance budgeting was a crucial tool for implementing development drives in the continent. “Performance budgeting will enhance achievement of local government public expenditure around clear growth and poverty reduction priorities,’’ he said.

Hendra added that performance budgeting was useful in the implementation of the current decentralization process in the six countries. “Decentralization processes have been designed to facilitate the transfer of power, responsibilities and administrative capabilities from central to local government to improve efficiency and effectiveness in service delivery. Performance budgeting is an instrument and a process of planning and measurement to support targeted infrastracture and enhanced service delivery.’’

UNCDF contributes to the achievement of the Millennium Development Goals in Least Developed Countries through a variety of innovative approaches in both local development and microfinance.

Link : Introduce performance budgeting in local governments