Sri Lanka - Institut de statistique de l'Unesco
Sri Lanka - Institut de statistique de l'Unesco
Sri Lanka - Institut de statistique de l'Unesco
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Out-of-School Children in <strong>Sri</strong> <strong>Lanka</strong>: Country Study<br />
4.5 Financial allocations and educational expenditure<br />
A major constraint in the education sector is limited financial resources available for<br />
implementation of policies. This is not a new problem. However, government expenditure on<br />
education has <strong>de</strong>creased in recent years both as a percentage of GDP and as a percentage of<br />
the total government budget. Public expenditure on education as a percentage of GDP fell from<br />
nearly five percent in the late 1960s to 2–3 percent in the 1980s, and as a percentage of total<br />
expenditure from around 16 percent to eight percent over the same period, with the advent of<br />
structural adjustment programmes. Since then, it has <strong>de</strong>clined further from 2.7 percent of GDP<br />
in 2006 to 1.9 percent in 2010, and from 11 percent of total expenditure in 2006 to 8.1 percent<br />
in 2010.<br />
Social protection is viewed largely in terms of the provision of free state education and health<br />
services. These services have been complemented by welfare payments to some households<br />
un<strong>de</strong>r poverty alleviation programmes (two percent of total public expenditure) and through<br />
small-scale cash transfers offered to some families, for instance, by the Ministry of Social<br />
Services and the Department of Probation and Child Care (MOF, 2009). However, this has<br />
amounted to a very limited quantum of financial assistance. It has to be noted too that<br />
quantitative and qualitative improvement has <strong>de</strong>pen<strong>de</strong>d heavily on donor assistance in recent<br />
<strong>de</strong>ca<strong>de</strong>s from multilateral agencies such as the World Bank, Asian Development Bank, UNICEF,<br />
World Food Programme, UNFPA and UNESCO; bilateral agencies such as GIZ, JICA and DFID;<br />
and INGOs such Save the Children and Plan International. In the context of a lack of<br />
comprehensive information on the funds provi<strong>de</strong>d, it is only possible to estimate that donor<br />
contributions have ma<strong>de</strong> up about six percent of the total education budget.<br />
Since <strong>de</strong>volution to the provincial level, there have been two paths for financial allocations for<br />
recurrent and capital expenditure from the Ministry of Finance to the various levels of<br />
educational administration and to educational institutions. Funds are channelled to the central<br />
MOE to be allocated for administration at the national level, and through the Finance<br />
Commission for allocation to the provincial administrations. In the context of the wi<strong>de</strong> regional<br />
disparities that prevail in the country, the Finance Commission is expected to assist in meeting<br />
the needs of each of the nine provinces and to allocate funds to achieve balanced regional<br />
<strong>de</strong>velopment. It also accords priority to monitoring progress in enrolling OOSC in school<br />
(Finance Commission, 2009).<br />
Deviating from the tradition of allocating resources each year on a historical basis, the<br />
government, with assistance from the World Bank, introduced a norm-based unit cost resource<br />
allocation mechanism (NBUCRAM) in response to a suggestion by the National Education<br />
Commission. Since 2000, some funds have been allocated directly to schools for quality inputs<br />
according to this mechanism. Since 2006, the ESDFP, un<strong>de</strong>r its third theme of ‘increasing equity<br />
in the distribution of resources’, has implemented several new measures and has modified the<br />
formula in or<strong>de</strong>r to direct more resources to disadvantaged districts. This was accompanied by<br />
a move towards <strong>de</strong>centralization of financial authority to secondary schools through<br />
school-based grants for specific subjects.<br />
For more effective monitoring un<strong>de</strong>r the ESDFP, education officers and schools have been<br />
using a Results-Based Monitoring and Evaluation Framework. In addition, a Public Expenditure<br />
and Quality of Education Tracking System (PEQETS) is being gradually introduced. The impact<br />
of these monitoring tools is yet to be assessed.<br />
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