Beyond the Annual Budget

Page 63

What Works and Why

45

because it is assumed that the pilot is intended to test the MTBF approach and the systems designed to support it rather than to achieve significant improvements in resource allocation. However, figure 4.4 suggests that piloted MTBFs are associated with a fiscal improvement that is twice the size of the improvement associated with MTFFs alone. This suggests that an MTBF may have a large additional impact on fiscal discipline, but the sample of MTBF pilots is very small. MTEFs are also associated with some improvement in efficiency. With regard to allocative efficiency, figure 4.5 points to less volatility in total expenditures, driven mainly by the impact of MTBFs (figure E.1 in appendix E). The health expenditure share increases only modestly, with little difference for the three MTEF stages (figure E.2 in appendix E), which may suggest that health spending was a sufficiently high priority before

Figure 4.5 MTEFs and Efficiency

MTEF

3

2

t+

1

t+

t

t+

2

1 t–

3 t–

89.9b

86 84

95 percent confidence interval

Source: World Bank. Note: MTEF = medium-term expenditure framework. a. Pre-MTEF mean. b. Post-MTEF mean. c. A lower value of the index means an improvement in cost-effectiveness.

3 t+

2 t+

t+

1

82

t

3

2 t+

t+

1 t

t+

1 t–

t–

t–

2

0

88

1

2

90

t–

7.2b

92

2

4

94

d. Cost-effectiveness of health expenditurec (41 observations) 90.2a

t–

6

11.0a

t– 3

8

Cost-effectiveness of health expenditure

8.0a

10

3

Health expenditure volatility

c. Health expenditure volatility (67 observations) 12

11.6b

t–

15 14 13 12 11 10 9 8 7

t+ 1 t+ 2 t+ 3

1

t

t–

Health expenditure share

b. Health expenditure share (72 observations)

4.7b

2

t–

3

10 9 8 6.1a 7 6 5 4 3 2 1 0

t–

Total expenditure volatility

a. Total expenditure volatility (72 observations)


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.