The PAISA Survey

Yamini Aiyar Accountability Initiative Centre for Policy Research

Unpacking the total budget

Tracking school level fund flow

Analyzing plans & fund distribution

Understanding school level expenditure & governance

The PAISA Survey

Unpacking the Education Budget 2013-14 6 States (GOI and States)

85%

5%

5% 4%

Teachers

School

Children

Management

Minimal investments in quality and School grants

Investments in Schools: Nalanda, Bihar 2012-13

Civil Works 2%

Teachers

82% Entitlements

13%

School Grants

1% Misc. 1%

Average Investment Per School : ₹11,10,609

Investments in Schools: Udaipur 2012-13

Teachers

94%

Entitlements 2%

School Grants

1%

Misc. 0%

Civil works

2%

Average Investment Per School :

₹ 915413.6

SSA funds significant contributor in poorer states

62% 52%

70% 63%

88% 87%

38% 48%

30% 37%

12% 13%

0%10%20%30%40%50%60%70%80%90%

100%

2009-10 2012-13 2009-10 2012-13 2009-10 2012-13

Bihar Rajasthan Himachal Pradesh

Proportion of EE expenditure from SSA Budget

Proportion of EE expenditure from State Budget (excluding MDM)

How does this money reach schools? Who takes decisions?

Rule bound planning Schools and districts rarely plan

“We got money for a boundary wall. But the real problem in our school is poor quality drinking water” (Bihar HM)

Who makes a school plan? 30% schools in Nalanda; 20% in Udaipur; 0 in Jaipur; 50% in Sagar (planning Vs DISE) District plan process are rarely taken seriously. Poor quality data/ lack of training a serious impediment

Time Use data (Block Education Officials)

• Average of 6 -8 hours of frenzied work

• 20-25 visitors per day

• “Mission Mode” work style – responding to district demands and state orders

• Too much monitoring , too many formats – so officials monitor schools and collect information “over the phone”

• In sum, block officers function primarily as data collectors and post officers!

• Critical activities – teaching, planning , school support is low priority

District’s rarely get the money they ask for

0%

20%

40%

60%

80%

100%

Approved allocationsas a proportion of

proposed funds

Released as aproportion of

approved allocations

Approved allocationsas a proportion of

proposed funds

Released as aproportion of

approved allocations

2011-12 2012-13

97%

55% 59%

45%

79% 88% 91%

72%

Nalanda Kangra

District Allocations Don’t Reflect School Needs Analysis of class room money distribution across districts 2012-13

.2.4

.6.8

1

allo

catio

nona

lloca

tion

0 .2 .4 .6 .8expalloc1112

Purnea

Nalanda

Expenditure performance a key factor. But a district that spends, rarely gets money…

Ch

ang

e in

all

oca

tio

n 2

01

1-1

2 &

20

12

-13

Purnea ACR: 2012-2013

25% 6 months/ more

to withdraw money

57% More than 1 year

to complete work, once started

Nalanda ACR: 2012-2013

School level progress is slow…..

“ I went to the district office 7 times to follow up on this classroom……after it was sanctioned, it took nearly 4 months for the junior engineer to arrive and approve the plans. In total, it took more than a year and a half for this classroom to be built” ~ HM interviews, Nalanda (2013)

30% 6 months/ more to withdraw money

38% More than 1 year

to complete work, once started

Norms allow limited flexibility in allocation even for these small monies

NPS Kharjama

UPS Maghra

In Summary Findings from the PAISA survey

• Current planning and budgeting model is centralized and norm driven

SMC planning process is largely a “signatory” exercise with no real participation

District planning a mechanical exercise

Schools/ SMC have expenditure control over only school grants that are a miniscule portion of the budget. That too is ‘tied’

• The result: planning, budgeting and expenditure do not reflect realities on the ground. Little scope for “decentralized planning” a key goal of the Right to Education (RTE)

When Does this Money Reach Schools?

Gap between Allocations, Release and Expenditure (2011-12)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Himachal Pradesh Rajasthan Madhya Pradesh Bihar

Total EE allocations Total EE releases Total EE expenditures

Delays in timing of release

54%

20%

41%

2%

13%

19%

27%

21%

0%

10%

20%

30%

40%

50%

60%

2009-10 2012-13 2009-10 2012-13 2009-10 2012-13 2009-10 2012-13

Andhra Pradesh Bihar Rajasthan Madhya Pradesh

Proportion released in Q4

Money comes in half way through the financial year (PAISA National Report 2012)

Gap between district releases and receipts in Schools: Medak, Andhra Pradesh 12-13

19

0%

20%

40%

60%

80%

100%

120%

TLM SDG SMG

District Releases (MER)

Gap between district releases and receipts in Schools: Medak, Andhra Pradesh 12-13

0

20

40

60

80

100

120

TLM SDG SMG

20

School Receipts (PAISA survey)

\\

Gap between district releases and receipts in Schools: Nalanda 12-13

0%

20%

40%

60%

80%

100%

TLM SDG SMG

District Releases (MER)

Gap between district releases and receipts in Schools: Nalanda 12-13

School Receipts

0%

20%

40%

60%

80%

100%

TLM SDG SMG

Implications of late arrival Rule Bound Expenditure……

• Schools use their own monies to meet essential supplies and ‘adjust’ the books accordingly

• Expenditures are delayed (eg. 1.5 lakhs SMG money in HP blocks)

• Rule based expenditure (Building less school in Purnea)

• Whitewashing a popular annual activity – 67% schools whitewashed their walls in 2012-13

And so, even BAU is hard to achieve

21,360 24,372

27,552

45,676

61,734

69,937

45,937

15,751 19,332

21,293

31,942

37,808

44,259

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Allocations (AWP&B) (in crores) Expenditures (in crores)

Way forward: Building a decentralized, outcomes focused delivery system

Realigning plans and budgets: o At minimum provide untied block grants to schools rather than

following the “tied grant” approach

o Provide budget envelope to districts before plans are made

o Set broad targets, allow district flexibility to determine their own district specific learning goals

Re-organize workflow and enhance training at the block to enable local officials to do the job they’ve been hired for

Training for SMCs: spend community mobilisations money

Above all regular, reliable tracking of fund flows and plan processes