PHA-Exchange> Poverty reduction and the budget cycle

[claudio]

POVERTY REDUCTION AND NATIONAL BUDGETS.

The availability and allocation of budgetary resources says a lot about
whether, how, and to what extent a government is committed  and determined
to implement its pro-poor policies.

National budgets are a 'black and white' proof  of whether governments are
putting their money where their mouth is. Through it, policies which promote
equality between different income quintiles (as well as between men and
women) can be identified. Therefore, for civil society to track the national
budget, is an essential tool in combatting poverty and inequality.

There is a caveat though: Even if allocations are made in the national
budget, keep in mind that, in many cases, accounts are not fully closed and
audited after the respective fiscal year. Therefore 'budget accountability'
has to be checked throughout the year, because accounts close the last day
of each fiscal year --and nothing can be done thereafter.

Pro-poor policies --the way we want them to be singled out and funded--may
not even be refelcted in budgets any time soon (and by extension,
governments are not likely to make much progress in reducing poverty...), I
am afraid. That is a whole additional challenge: to exert the needed
pressures for poverty reduction measures to make it into the national
budget.

That is why assuring a broad participation of the country's genuine
representatives of the interests of the poor and marginalized is so vital.
They must:
-be present in the diagnosis and analysis of the country's poverty
situation,
-check that assistance and services are delivered where most needed,
-annually review the national budget for any omissions, misallocation (or
misappropriation) of resources, and
-monitor budgeted programs' outcomes,
-make 'noise' about all of the above.

National budgets (including foreign aid allocations) are indeed a powerful,
underutilized, instrument to keep authorities accountable!

PS: If you are a sectoral person (and feel more comfortable 'in your
territory'), the same applies for the health budget, the education budget,
the agricultural budget.....

Claudio Schuftan, Ho Chi Minh City
aviva at netnam.vn