Overview of Education Budgeting And Resource Allocation Process In Sri Lanka

1
Overview of Education Budgeting And Resource
Allocation Process In Sri Lanka

• Nisha Arunatilake
• Roshani de Silva
• Institute of Policy Studies

2
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

3
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

4
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

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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

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Total Expenditure Budget
Total Expenditure Budget
Total Expenditure Budget
Total Expenditure Budget
Social Development and Welfare
Social Development and Welfare
Social Development and Welfare
Social Development and Welfare
General Public Service
Public Order and Safety
Health
Housing
Health
Housing
Health
Housing
Health
Housing
General Administration
Health
Housing
Social Security
Welfare Service
Social Security
Welfare Service
Social Security
Welfare Service
Social Security
Welfare Service
Social Security
Welfare Service
Defence
Community Based Programme
Physical Planning
Community Based Programme
Physical Planning
Community Based Programme
Physical Planning
Community Based Programme
Physical Planning
Community Based Programme
Physical Planning
Education
Education
Education
Education
Education
Provincial Councils (8 Councils)
Ministry of Skills Development, Vocational and
Technical Education
Ministry of Education
Technical Colleges
Education Publication Department
Education Publication Department
Examination Department
Universities
SOURCE Budgatery Procedures for Education in Sri
Lanka, mimeo
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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

8
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

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Source Present Education System and Management
Structure http//www.moe.gov.lk
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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

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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 -?

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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

13
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

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MINISTRY OF FINANCE AND PLANNING
BUDGET DIVISION (RECURRENT EXPENDITURE)
DEPARTMENT OF NATIONAL PLANNING (CAPITAL
EXPENDITURE)
Capital budget allocated by Treasury
Recurrent Expenditure for National Schools
FINANCE COMMISSION
Funds from foreign funded projects local
special Education projects as capital funds
Capital funds from Finance Commission for
province specific development priorities
MINISTRY OF EDUCATION
PROVINCIAL EDUCATION AUTHORITIES
Capital Expenditure and Funding from donor-funded
projects
TYPES 1AB AND 1C SCHOOLS (OTHER THAN NATIONAL
SCHOOLS) TYPE 2 AND TYPE 3 SCHOOLS
NATIONAL SCHOOLS
Source NEC, 2003, p. 249. Note The above
diagram has been modified (as indicated by broken
arrows)
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Determination of Education Budget for Provincial
Schools
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President submits to the Cabinet After Cabinet
members approve the budget, it is sent through
the President and included in the National Budget
National Budget
Cabinet
Commission members approve budget and signing of
financial report Report is submitted to the
President
Finance Commission Members
Discussions with Treasury officials and Treasury
arrives at a ceiling
Treasury
The estimates are reviewed Discussions with
Provincial Education authorities
Finance Commission
Chief Secretary, Provincial Council submits
budget to the Finance Commission
Provincial Council
The Provincial Department of Education reviews
and consolidates the budget proposal made by the
zone and prepares the provincial education budget
proposal
Provincial Department of Education Planning
Branch
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
Zonal and Divisional Offices
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Determination of Education Budget for National
Schools
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National Budget
Initial discussions held with the
Treasury Budget ceilings are decided Once
ministry budget is agreed upon, it is put to
National Budget
Treasury
Subject Directors prepare budget plan for
national schools National Budget Committee
prepares budget for national schools
MOE
The Provincial Department of Education forwards
the requests to MOE
Provincial Department of Education
Zonal and Divisional Offices assess needs
Zonal and Divisional Office
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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

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North and East

• No direct provincial bodies
• Requests are directly received from zonal
  directors of education and processed by the
  Finance Commission

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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

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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

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Other Sources of Education Funding

• Alumni associations
• Fund raising activities
• Special projects funded by foreign donors

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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

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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.

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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