Public Expenditure Tracking Survey (PETS) An Overview

1. Public Expenditure Tracking Survey (PETS) An Overview Bernard Gauthier MNSED PREM Week, Actionable Governance Indicators Course World Bank, Washington DC, April 29, 2010

2. Contents • Introduction • Motivation • Key Features • Main Findings • Web-based Data Platform

3. 1. Introduction What is a PETS? • A PETS is a micro-level survey tool that tracks resource flows from central government through line ministries and intermediary administrative levels (e.g. provinces, districts) to the service delivery unit (e.g., schools, health facilities) to determine the extent to which actual spending on services is consistent with intended outcomes envisaged when budgets are allocated.

4. 1. Introduction • PETS is often combined with QSDS. • A Quantitative Service Delivery Survey is a multi-purpose survey tool that assess quality and performance in resource usage at the frontline facility level, such as schools, health clinics and hospitals. • Together, PETS/QSDS allow a more complete picture of the efficiency and equity of service delivery systems.

5. 2.Motivation Why PETS? • In the context of MDGs, donors and governments have committed increase funding in social sectors. • However, weak correlation between public spending and outcomes • Difficult to measure results, assess performance of programs, and identify potential inefficiencies in service delivery systems in context of poor governance. • Information systems are poor and there are needs for better accountability mechanism • Budgetary information is often too aggregated to provide necessary information at the sector and program level to assess the allocation and use of resources.

6. 2.Motivation • PETS/QSDS can be useful complements to other financial management tools, in particular PERs and sector reviews. • Indeed PERs can hardly be complete using government data alone; could be enhanced by collecting survey data of facilities and clients to identify bottlenecks and inefficiencies in the service delivery system. • It benefits from micro level data on use and transfers of funds and on frontline service providers, clients and households in order to have a more complete picture of service provision,

7. 2.Motivation • Often no hard resource allocation rules at decentralized level: soft/discretion • Greater potential for inequities and leakage • Even when rules exist, there could be important differences between the official rules and resource allocations in practice. • Leakage and rent capture • Ex. schools could be allocated a capitation grant for books and material but there could be large gaps from expected funds.

8. 2.Motivation • Even if the resources reach health facilities or schools, they could be affected by delays (e.g. school books) which diminish the effectiveness of the resources. • Similarly with salaries, if teacher or medical staff face important salary delays, affects incentive for attendance and providing quality services.

9. 2.Motivation • On the demand side of governance, PETS could give voice to citizens to help influence governments and providers. • By providing precise and detailed information on the effective allocation of resources and on potential weaknesses in the mechanisms used to allocate and transmit certain resources, PETS could contribute to improve the allocation of public expenditures and their impact on the welfare of population

10. 3. Key Features • Diagnostic tool for analyzing flow of resources through the public expenditure and service delivery system • Understand problems in budget execution • Discretion in allocation of resources • Delays • Leakage • Absenteeism • Quality and performance

11. 3. Key Features • Quantitative versus perceptions: • Reliance on record reviews • Survey data come from direct interviews with school and health facility managers responsible for managing financial and material resources and providing services at frontline, and staff, and managers at various public administration levels • Data collected based on representative samples of providers. • Large enough to allow statistically representative evaluation of service delivery performance 11

12. 3. Key Features • PETS and QSDS are generally composed of various survey instruments intended to collect information at the different organizational levels and among stakeholders involved in service delivery • Past surveys have typically included modules on the following units • Central government’s Ministry of Finance • Central government’s line ministry (e.g. Health or Education) • Provincial (or regional) administration • District (or local) administration • Service provider (e.g. school or health centers) • Staff • Clients (e.g. patients or students) • In some cases, household information has also been collected 12

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14. 3. Key Features Since the PETS implemented in Uganda in 1996, PETS have been implemented in more than three dozen developing countries, A majority of these PETS/QSDS were conducted in SSA countries. Most of these in the health and education sectors A few also comprised works in other sectors such as agriculture, justice, rural roads and water supply, ECD, etc. 14

15. PETS/QSDS by Sectors (1996-2009)

16. PETS/QSDS by Regions (1996- 2009)

17. 4. Main Findings These instruments have proven to be powerful tools for identifying bottlenecks, inefficiencies and waste Leakage Public resources leakage has been identified on a very large scale (Table 1). For instance: The initial Uganda PETS estimated that 87% of non-wage capitation grants for did not reach its destination. Tanzania and Ghana: leakage on non-wage education expenditures was 41% and 50% respectively 17

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19. 4. Main Findings Absenteeism PETS/QSDS have also allowed to measure provider absenteeism. Results show absenteeism rates of between 27 and 40 percent for health care providers and between 11 and 27 percent for teachers. Absenteeism rates were associated with poverty and community characteristics related to effectiveness in monitoring. Because of poor accountability relationships and weak incentives, service provider absenteeism is prevalent in developing countries, which translates into low quality of services. 19

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21. 4. Main Findings Ghost Workers In a few countries, tracking surveys allowed to measure “ghost workers” Proportion of teachers or health workers who continue to receive a salary but who no longer are in the government service, or who have been included in the payroll without ever being in the service In Papua New Guinea, a 2003 PETS for ex. showed that 15% of teachers on the payroll were ghosts. In Africa, the comparable figures are even higher: 20% in Uganda in 1993 21

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23. 4. Main Findings Delays Delays and bottlenecks in the allocation of resources have also been measured Salaries, allowances, financing, material, equipment, drugs and vaccines These issues could have important effects on the quality of services, staff morale and the capacity of providers to deliver services. In some countries, such as Nigeria, in one state, 42% of the health staff respondents reported not receiving salaries for the 6 months or more. 23

24. 5. PETS/QSDS Web-Based Data Platform • Creation of a Web-based data platform part of AGI • Support by the Hewlett Foundation • Existing PETS and QSDS datasets and related documentation, subject to minimum quality standards, will be made available to researchers, governments and civil society organizations

25. 5. PETS/QSDS Web-Based Data Platform Main benefits: • Provide a “one-stop” Data Platform for researchers, civil society and other stakeholders across the world to access PETS and QSDS survey datasets, and the properly archived documents related to these surveys. • Provide efficient and comprehensive access to existing PETS and QSDS survey questionnaires, field manuals, sampling notes, best practice guidelines and other related materials enabling efficient design and implementation of future PETS and QSDS.

26. 5. PETS/QSDS Web-Based Data Platform • Facilitate the use of these instruments by providing detailed guidance and recommendations for designing and implementing these micro-level surveys. • Enhance transparency and accountability in public expenditure and service delivery

27. 5. PETS/QSDS Web-Based Data Platform Currently: • Collecting existing PETS/QSDS datasets from country and research teams in the World Bank as well as from relevant government agencies, research institutes, and donors. • Cleaning and harmonizing these datasets and place them on a Web-based Data Platform hosted by the World Bank.

28. 5. PETS/QSDS Web-Based Data Platform • Documentation accompanying these datasets will include: • Survey instruments and manuals, • Sampling notes • Published reports, TORs, etc • Detailed guidance and good practice principles on how to implement the PETS and QSDS are created to facilitate use of instruments • Bluebook • Standardized instruments (core and additional modules) • Site under construction: http://pets.prognoz.com • Expected beta version: June 30; launch Fall 2010