Improving the allocation and management of public spending

If a country's planning and budgeting system is dilapidated, an important first step is to rehabilitate basic budgetary and accounting functions and to generate public expenditure data that can provide a starting point for rational planning. This paper makes the point that many of the necessary reforms to the planning and budgetary systems are very simple (which is not to say that they are easily accomplished). Chapter II provides an overview of planning and budgeting processes and Chapter III discusses recurring budgeting issues. The financial woes of a country increase the value of external aid and the leverage exercised by aid agencies. In Chapter IV, the effects of these factors are discussed and ideas for effective aid management and coordination are suggested.