AFRO-NETS> Poverty reduction and the budget cycle (2)

[Peter Burgess <Profitinafrica@aol.com>]

Poverty reduction and the budget cycle (2)
------------------------------------------
 
Dear Colleagues
 
There is a very important caveat highlighted in the posting by Clau-
dio Schuftan. This is that Government Accounts are one thing and the 
Government Budget is another.
 
I have argued that the failure of the ODA community to understand 
Government Financial Regulations that govern both the budget cycle 
and the cycle of accounting and reporting and audit has been one of 
the root causes of development failure. The lack of interest in sys-
tems of national accounts and the financial sector have also been 
root causes of development failure. As a result there is little 
knowledge of government fund flows, and therefore development fund 
flows. 
 
The fact that government accounting is in a chaotic condition is 
scandalous, and should have been high on the "to fix" agenda decades 
ago. This is NOT about computerizing accounts, of which there has 
been too much. This is about getting the fundamentals of the system 
understood and functioning well. This is a lot more to the problem 
than jawboning about transparency. This is about good accounting sys-
tems, and clerical staff that know their jobs and oversight that is 
meaningful, including oversight by the law makers (Parliament). 
 
Most governments pass a budget because it AUTHORIZES spending includ-
ing salaries of the law makers. Many governments are years behind in 
getting the accounts of government approved..... because good ac-
counts will show the way the funds were actually used..... or how 
much funds were not accounted for..... and might open the door to ac-
countability.
 
Talking about government accounts is now PC in the ODA community.... 
but there is still not much ODA community action to absolutely ensure 
that good accounting in government is the ONLY accounting in govern-
ment.
 
And of course, a big part of government expenditure..... the whole 
security cost dimension........ is a big secret..... and a big finan-
cial problem.
 
Sincerely,
 
Peter Burgess
ATCnet in New York
Tel: +1-212-772-6918
Fax: +1-707-371-7805
mailto:peterb@iitc.safe-mail.net
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