1. Budget Execution: Tracking Progress and Controlling Funds - Case Studies Parminder Brar, FM Anchor Budget Management and Financial Accountability Course March 1-2, 2004

2. The World Bank Outline Case Study 1: India : Why India? Bank lending of around $1.5 bn. Is 1.29% of GoI ’ s budget, and around 0.6% of general government spending. Supporting budget management reform is critical for achieving MDG ’ s. Budget Management System based upon Treasury Single Account and reimbursement to commercial banks. Case Study 2: Nigeria : Why Nigeria? Cash management crucial for budget management. Role of CBN in budget management. Budget management based upon cash advances and multiplicity of bank accounts and banks for each agency. Conclusion

3. The World Bank Case 1: India – Expenditure Trends Annual expenditure trends are remarkably similar. * Rs. 1 crore = Rs.10 million.

4. The World Bank Case 1: India – Expenditure Trends Annual expenditure trends are remarkably similar.

5. The World Bank Case 1: India – Overall Expenditure Around 75% of GOI expenditure is recurrent (Non Plan) and the rest is capital (Plan) *. * There could be some overlap in capital and recurrent expenditure between Plan and Non Plan.

6. The World Bank Case 1: India – Non Plan Trend Annual trends of recurrent expenditure are remarkably similar.

7. The World Bank Case 1: India – Non Plan Expenditure

8. The World Bank Case 1: India - Plan expenditure Around 40% of capital expenditure is spent in the last quarter.

9. The World Bank Case 1: India – Plan expenditure

10. The World Bank Case 1: India - Ministry trends The Indian Rope Trick:

11. The World Bank Case 1: India - Ministry trends The Peaks:

12. The World Bank Case 1: India - Ministry trends The Rolling Hills:

13. The World Bank Case 1: India - Ministry trends The Stress Reliever:

14. The World Bank Case 1: India - Receipts Tax receipts account for 60% of GOI receipts

15. The World Bank Case 1: India - Receipts Receipt trends are remarkably similar.

16. The World Bank Case 1: India - Receipts Tax receipts have been overestimated for the last 7 years.

17. The World Bank Case 1: India - Receipts Budget Management challenges are partly due to overestimating receipts every year.

18. The World Bank Case 1: India - Receipts GoI ’ s receipts flow into a Treasury Single Account in the Reserve Bank of India.

19. The World Bank Case 1: India - Disbursements Disbursements are on the basis of reimbursement of funds to commercial banks. One Ministry deals with one bank.

20. The World Bank Case 2: Nigeria - Receipts Cash management is based on funds available in the CRF.

21. The World Bank Case 2: Nigeria - Expenditures Disbursement system operates on the basis of cash advances to numerous banks.

22. The World Bank Case 2: Nigeria – CRF Receipts 77% of receipts are on account of Treasury Bonds. * Provisional unaudited data

23. The World Bank Case 2: Nigeria – CRF Expenditures 79% of disbursements are on account of Treasury Bonds. * Provisional unaudited data

24. The World Bank Case 2: Nigeria – Net TB Support In FY 03 - in ten out of twelve months NTB operations reduced monthly cash balances. * Provisional unaudited data

25. The World Bank Case 2: Nigeria – Non NTB Disbursements In FY 03 – Cash constraints severely impacted capital and recurrent expenditures. * Provisional unaudited data

26. The World Bank Conclusion Poor budgeting can aggravate stress of budget management (India). Unpredictability of fund flows can severely impact project performance (Nigeria). Multitude of bank accounts result in sub optimal cash management (Nigeria). Are there robust systems for linking financial progress with physical progress? Does flow of funds result in better outcomes?