dsa project – budget planning reform impacts (outcomes), objectives, outputs, targets &...

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Impacts (outcomes), objectives, outputs, targets & indicators

SNNPRG block grant performance structure

Perran Penrose – May 2004

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Final outcomes and impacts

• All activities financed through the SNNPRG’s budget are mapped to their contribution to interconnected final outcomes ofGrowthHuman welfare

• The activities are grouped under ‘Impacts’ (“Faida”)

• The Faidwotch are achieved via specific objectives in the PEP …

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• The PEP will be structured around a set of Performance Objectives (‘Yirmasfezam Gib’), defined through Performance Targets (‘Zirzir Yafessazem Gib’)

• For the annual budget the objectives will be specified as outputs (‘wutet’)

• The objectives & outputs are formula unit cost components.

Objectives & targets

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Measurement of objectives / outputs

• Each objective / output is measured forQuantityQualityTimelinessCost

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Indicators

• Indicators are not direct measurements of targets

• Indicators are independent of budgetary activities.Measurement must not be confused with

objectives

• Indicators measure how far the activities financed in the budget have had a wider impact, but they are not able to be directly influenced by any individual agent’s activity.

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Summary of the system

• The next two slides summarise the system

• There are 7 impacts that will contribute to the high level outcomesAll cost centres must specifically contribute

to one or all of those impacts

• Government services will fall under specified objectives and outputs

Growth Human WelfareIncreased food security

Fertility rate reduction

Better environmental conservation

Improved conditions for children & young people

Security from fear

Increased business & entrepreneurial activity

Enriched cultural life

Expand agricultural extension

Expand veterinary service coverage

Take-up of modern farming by literate farmers

Increased area of conservation coverage

Expanded & improved health institution services

More students educated to a better quality

Increased accessibility of clean water

Expanded access to market & service centres

Increased economic & physical security

Increased investment

Impa

cts

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Key Government Performance Objectives (PEP) : Annual Outputs

Serv

ices

Serv

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Wereda, Municipality & Zone Services

Bureau and central Public Body Services

Growth Human Welfare

Region Zones Weredas

Targets

PEP Objectives

Annual outputs

Impa

cts

/ Out

com

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Indicators of impact

Targets to impact

Increased food security

Fertility rate reduction

Better environmental conservation

Improved conditions for children & young people

Security from fear

Increased business & entrepreneurial activity

Enriched cultural life

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From objectives & outputs to impact

• Each objective / output can create an impact

• They are also interdependent – actions in one area will not result in the desired impact without actions in another area.

• The causal relation between objectives / outputs and impacts should be clearly understood, because those relationships can also provide material for indicators.

Output 1 – Increased extension agent coverage

Output 2 – Increased veterinary service agent coverageOutput 3 – Take-up of modern farming by

literate farmersOutput 4 – Increased areas of conservation coverage

Agriculture objectives & outputs

Security objectives &

outputsOutput 1 – Increased economic & physical security

Health objectives & outputs

Output 1 – Expanded & improved health institution service provision

Impact 1 – Increased Food SecurityImpact 2 – Fertility Rate Reduction

Impact 3 – Better Environmental ConservationImpact 4 – Improved conditions for children and

young peopleImpact 5 – Security from fear

Impact 6 – Increased business and entrepreneurial activityImpact 7 – Enriched cultural life

Water objectives & outputs

Output 1 – Increased accessibility of clean water

Roads objectives & outputs

Output 1 – Expanded access to market & service centres

Education objectives &

outputsOutput 1 – More students educated to a better quality

Objectives / outputs to impacts

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Budgetary policy

• Making policies in the PEP and the annual budget will to a great extent consist of creating and maintaining a focus on objectives and impacts.

• Each cost centre must specify how its activities will lead to the desired outputs and impacts.

• Budget hearings would reflect this focus, and budget holders would need to justify their requested budgets in terms of how they will contribute to impacts.

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Integration

• Major cost centres (such as weredas) must also focus on the integration of objectives / outputs – how are different sectors linked to each other?For example, education and healthWater and healthRoads and agriculture

• Note that a specific potential advantage of decentralised government is that it is in principle easier for lower levels of government to integrate across programmes, particularly within a block grant system.

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Agriculture

• Better agricultural practices lead to many different impacts through better use of inputs, reduced disease, higher production & productivity, higher incomes

• As more educated farmers make use of their education they can be more innovative and mobile

• The next slide illustrates causal relations between objectives / outputs and impacts. Many of the relations can be measured, and be used as indicators. But increased coverage does not automatically mean better farmers.

Output 1 – Increased extension agent coverage

Output 2 – Increased veterinary service agent coverageOutput 3 – Take-up of modern farming by literate

farmersOutput 4 – Increased areas of conservation coverage

Agriculture objectives & outputs





Farmers use inputs better

Increase in food production

Increase farm incomes

Small scale non-subsistence farming

Less erosion; more water retention

Willingness to innovate and be mobile

Reduced livestock disease

Agriculture objectives / outputs to impacts

Causes & Indicators

Causes & Indicators

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Education

• Education can have a huge impact, but only if what happens in school is relevant and of adequate quality

• The next slide shows how education can feed into all the impacts

• There are also many possible indicators of how well education is actually contributing – it is a mistake to assume that just because budget is spent, and children are in school, there is an automatic impact.





Education objectives &

outputsOutput 1 – More students educated to a better quality

Educated children make better farmers

Educated girls become educated mothers

Schools can teach conservation

More children in school give more children life chances

Educated people have more means to earning livelihoods and do not resort to crime

Education enriches culture

Educated children may earn more

Educated children may leave the land & seek other ways of earning

Schools teach family planning

Education objectives / outputs to impacts

Causes & Indicators

Causes & Indicators

Causes & Indicators

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Health

• If health institutions can provide more effective coverage, populations become healthier, and therefore more productive

• People also become less afraid of poverty

• However, expensive health systems, or institutions that cannot provide timely & appropriate treatment, will have limited impact,

Health outputs

Output 1 – Expanded & improved health institution service provision





Healthier people are more productive

Access to family planning clinics

Healthier mothers

Healthier children

Reduced fear of disease and poverty

Health objectives / outputs to impacts

Causes & Indicators

Causes & Indicators

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Water

• The following slide makes the impact of water seem somewhat simple. But without water there is no life, and without clean water there is disease and suffering, and lost opportunities.

• In this sense, the provision of accessible clean water to the whole population is an end in itself, and needs little justification …





Water outputs

Output 1 – increased accessibility of clean water

Children don’t need to spend so much time fetching water & can go to school

Less disease from dirty water

Water objectives / outputs to impacts

Causes & Indicators

Causes & Indicators

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Roads

• Access to markets and services is essential to expand the economy, to create social mobility, and to create opportunities.

• The next slide illustrates how improved road infrastructure has an enormous impact.





Roads outputs

Output 1 – expanded access to market & service centres

Better access to services

Better access to markets

More social mobility

Reduced transport costs

Increased incomes

Roads objectives / outputs

Causes & Indicators

Causes & Indicators

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Security

• If people are not physically secure, they are not productive, nor do they lead full cultural lives

• If they are not economically secure (land, possessions), they do not invest, innovate or take risks.

Security outputs

Output 1 – Increased economic & physical security





More security of possessions

More security from attack

More child protection

Improved tax collection & better public services

Better compliance with the law

Security objectives / outputs to impacts

Causes & Indicators

Causes & Indicators

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Targets & indicators

• Each objective / output is measured in four ways, and achieving the required quality, quantity, timeliness & cost of the objectives involves setting targets in those terms

• At the same time, indicators need to be constructed that cannot be manipulated.A major problem in performance budgeting is

the creation of perverse incentives, where people focus on the measurable targets because that is what they are rewarded for. Independent indicators reduce the force of perverse incentives.

• Indicators can also be region-wide

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Agriculture

• Agriculture improvement is effectively measured by increased productivity of farmers (not just land), & therefore returns to farmers

• The core of agriculture strategy is to reduce risk to farming households and consumers

• Specific sectoral interventions need to be complemented by infrastructure and other service interventions (roads to markets, health, education).

• How will objectives / outputs be integrated ?

Quantity

Quality

Timeliness

Cost

Agriculture Objective / Output

Targets Indicators

•DA coverage of farming households•Centres built•Veterinary clinics built•Number of farming households visited•Livestock treated•Tree seedlings planted•Area protected•New irrigation area•Maintained irrigation schemes•Dams constructed•Farmers trained•Labour productivity (less emphasis on

land productivity)

• Improved supply of packages

•Better seeds•Better veterinary supplies•Takeup of innovation

•Nr of DA visits•Response time to disease identification

•Community & farming household opinions of extension services & relevance of advice

•Community involvement in extension and other policies and programmes

•More take-up of farming packages

•Reduced livestock disease

•Evidence of farmer mobility

•Evidence of innovation

•Increases in farm incomes

•Increases in production

•Evidence of reduced erosion

•Composition (% salary / capital / operational

•Approximation to ‘standard’ cost

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Education

• Quantitative targets are relatively easy to set in education

• Qualitative targets are harder. Many indicators must be qualitative and result from formal or ad hoc inspections and surveys.

Quantity

Quality

Timeliness

Cost

Education Objective / Output

Targets Indicators

•Number of pupils•Admission rates to primary grade 1•Apparent and net enrolment ratios•Girls’ enrolments•Drop-out rates•Attendance rates•Classrooms built

•Pupil-textbook ratios•Teacher qualifications•Performance in tests / examinations•Adequate learning environment

(furniture etc)

•Repetition / progression rates•Completion rates

•Overall enrolment ratios•Overall attendance rates•Overall progression rates

•More community participation & better feedback from communities – schools with active parent-teacher associations

•Improvements in adult literacy (long term)

•Improvements in teacher practices & behaviour

•Better lesson planning

•More teacher-pupil interaction

•Better document keeping in schools

•Better school budgeting



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Health

• Many health indicators can improve rapidly, particularly when combined with improved drinking water and accessibility of clinics and posts

• Health clinics keep standard WHO reporting data, and can provide adequate information if required to

Quantity

Quality

Timeliness

Cost

Health Objective/ Output

Targets Indicators

•Number of outpatient visits•Reduction in specific diseases•Immunisation numbers•Staffing of clinics and posts•Houses sprayed against malaria•Health visits•Clinics / posts built

•Drug supply

•Improved clinics (equipment, furniture, environment)

•Quality of staff training

•Length of patient treatment time

•Length of waiting times

•Fertility rates

•Infant mortality rates

•Infant morbidity

•Disease incidence

•Community feedback

•Record keeping in health facilities



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Water

• Water has been seriously neglected in the past, with too many boreholes not functioning because of lack of maintenance and parts

• Increasing the budget for water could have rapid impact on child health and health in general

Quantity

Quality

Timeliness

Cost

Water Output

Targets

•Number of schemes rehabilitated

•Number of new schemes

•Number of schemes maintained

•Population per water scheme

•People trained in water scheme maintenance

•Water quality and quantity

•Environment of the schemes

•Timely repair of broken schemes

•Reduction in time to fetch water

Indicators

•Infant mortality rates

•Infant morbidity

•Disease incidence

•Time taken to fetch water

•Community feedback

•Functioning water schemes

•Cost of schemes

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Access to services & markets

• The construction of different types of road is central to the region’s economic and social development

Quantity

Quality

Timeliness

Cost

Roads objective/ output

Targets

•Number of kms of new road (by type)

•Maintained roads

•Road professionals trained & hired

•Roads built to required standards

•Roads constructed according to schedule

Indicators

•Reduction in travel times

•Increased attendance at markets

•Increase attendance at school and health facilities

•Increase mobility and spread of business activity

•Wider patterns of small and larger scale investment

•Cost of roads

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Security

• Security indicators will generally relate to criminal activity and the ability of the police and militia to respond

Quantity

Quality

Timeliness

Cost

Security objective / output

Targets

•Policemen per population

•Militia per population

•Reported crimes

•Prison population

•Training of security personnel

•Treatment of prisoners

•Timeliness of response

Indicators

•Population feels more secure

•Complaints about behaviour of security personnel

• Incidence of crimes against people and property



dsa project – budget planning reform impacts (outcomes), objectives, outputs, targets &...

Documents

objectives outputs

objectives targets

objectives indicators

pep slide

slide indicators indicators

slide summary

specified objectives

specific objectives