ASTWG Meeting – 28 th November 2012 – Dar es Salaam 1 Results of public expenditure analysis in Tanzania Agricultural Sector Consultative Working Group 28 th November 2012 - Dar es Salaam (Tanzania) MAFAP TEAM TANZANIA (MAFC – ESRF – FAO – OECD) With the financial support of
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ASTWG Meeting – 28 th November 2012 – Dar es Salaam 1 Results of public expenditure analysis in Tanzania Agricultural Sector Consultative Working Group.
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ASTWG Meeting – 28th November 2012 – Dar es Salaam1
Results of public expenditure analysis in Tanzania
ASTWG Meeting – 28th November 2012 – Dar es Salaam
Presentation Outline1.Why we need to measure support to
the agriculture sector in Africa The level – how much is being spent The composition – where the money
is going
2.MAFAP methodology for measuring public expenditures in support of the food and agriculture sector
3.Application in the case of Tanzania
ASTWG Meeting – 28th November 2012 – Dar es Salaam
Importance of measuring support to agriculture• Agriculture’s key role in raising incomes,
reducing poverty and improving food securityReflected in 2003 Maputo declaration
• Important to be able to analyse the incentives expenditures provide in order to make evidence-based policy choicesHaving an economically meaningful
classification system is a pre-requisite for policy analysis and efficient allocation of scarce resources
ASTWG Meeting – 28th November 2012 – Dar es Salaam
Principles behind measuring support to agriculture
• The composition of public expenditures in support of agriculture is just as, if not more, important than the total levelComplementarities and trade-offs between
spending in different categories • Proposed indicators seek to keep track of both the
level and composition of expenditures (national and aid)Economic incentives to ag. sector developmentHow much of budgetary allocations are disbursedCorrespondence of spending with stated
objectivesEffectiveness – economic impact: out of scope
ASTWG Meeting – 28th November 2012 – Dar es Salaam
Principles behind measuring support to agriculture• Seek to measure all expenditures that are
supportive of sectoral development• Seek to reconcile aid flows and national
expenditures• Following OECD’s principles, propose an
economically meaningful classification:Payments to farmers vs payments to the sectorPublic vs private goodsAg-specific vs ag-supportive vs non-ag
expenditures
ASTWG Meeting – 28th November 2012 – Dar es Salaam
MAFAP classificationI. Agriculture-specific policies1.1. Payments to the agents in the agro-food
Total expenditures in support of food and agriculturebudgeted amount 616.0 891.7 1143.3 1198.9 944.5actual spending 584.5 878.4 825.1 759.3 728.0actual as a share of budget (%) 95 99 72 63 77
ASTWG Meeting – 28th November 2012 – Dar es Salaam
For additional information please visit: www.fao.org/mafap