LHW Systems Review - Oxford Policy Management

LHWP – Systems Reviewto remain unchanged. The challenge that the Programme faced was in expanding thecoverage to underserved and poor rural areas.4.5 System performance4.5.1 Performance indicatorsUltimately, the target of 100,000 LHWs was almost achieved The Programme hasrecorded almost 71,000 working LHWs in mid 2003 (Table 4.3). 18 This number continued tofall in 2004, followed by a steady increase over the subsequent four years.By June 2005, when 100,000 LHWs were to have been recruited, there were 83,280 LHWson record. It was not until June 2008 that the Programme could record around 90,000 LHWs,including fewer than 1,000 in their first three months’ training (Table 4.3).Table 4.3LHWs working and in training, FY 2003/04–2007/08 (includingthose funded by the RHP and WHP)June 2003 2004 2005 2006 2007 2008Working at end of FY, including RHPand WHP70,738 69,690 78,595 85,620 87,119 89,125LHWs in training 4,300 3,208 4,685 1,293 2,047 949Total of LHWS working and intraining75,038 72,898 83,280 86,913 89,166 90,074Note: The record is taken from the month of June, the end of the financial year. It includes those funded underRHP and WHP.Source: PSP database January 2009, LHWP, MoH.Insufficient funding to achieve target recruitment A simple explanation for theProgramme being unable to reach the target number of LHWs is insufficient funding (Table4.4). The funding required increases as a function of each working LHW. The LHWP’s fixedcosts are low. The budget forecast (FYs 2003/04–2007/08) was based on funding for100,000 LHWs and 4,000 LHSs. However, by the end of this period the Programme had onlyreceived 87 percent of their allocated funds. Each year the budget allocation and releaseswere less than the Programme requested. In addition to releases that were lower than therequest, the LHW stipend had doubled. Salary increases had been budgeted for, but thiswas on the extraordinary orders of the Prime Minister and the President. Salary increaseswere awarded and, in June 2007, the Programme received additional funds. 19Table 4.4Comparison of budget and expenditure for the LHWP (Rs. million)2003/04 2004/05 2005/06 2006/07 2007/08 TotalPC-1 request 4,493.591 3,913.643 4,080.083 4,403.134 4,643.050 21,533.500PSDP provision (budgetallocation)2,600.000 3,430.780 3,880.000 4,962.343 4,892.000 19,765.120Funds released 2,434.012 3,088.288 3,880.000 4,962.342 4,634.870 18,999.510Total expenditure 2,427.017 2,951.117 3,862.182 4,945.734 4,632.628 18,818.680Expenditure/budgetallocation (%)93 86 100 100 95 95Expenditure / release (%) 100 96 100 100 100 99Expenditure/PC-1 request(%)54 75 95 112 100 87Source: LHWP, MoH.184,000 fewer than the number recorded in the PC-1.19See the Finance and Economic Analysis Report, Oxford Policy Management, August 2009.12