Discussion Paper No. 37 of 2004 on Budget Mechanisms and Public Expenditure Tracking in Kenya

Abstract

Public expenditures are faced with numerous problems of wastage and leakages of resources mainly due to weak procurement procedures, corruption and weak monitoring systems. Nevertheless, in most developing countries, central government budget allocations are used as indicators of supply of public services. Public expenditure tracking surveys assess the leakage of public funds or resources prior to reaching the intended beneficiary. The overall objective of this study was to provide information useful for improving the effectiveness of public expenditure and service delivery. The survey targeted three sectors: education, health and agriculture. The education sector looked at school bursaries, textbook allocations, enrolments, teachers and sources of school funds, while the health sector addressed issues such as cost-sharing, medical personnel, medical supplies and government allocations to health facilities. Extension services to farmers, agricultural personnel, public allocations to extension services were the key issues addressed in the agricultural sector. The study identified constraints in service delivery and leakages of public resources at various levels. Poor record keeping was prominent in most of the institutions visited, especially at the district and facility levels. Most rural health facilities are understaffed.