2016 PRIMARY & SECONDARY EDUCATION BUDGET BRIEF

Transcription

1 ZIMBABWE 216 PRIMARY & SECONDARY EDUCATION BUDGET BRIEF Key Messages Primary and Secondary Education was aocated US$81.43 miion about 2.3% of tota budget, but 9.5% ower than 215 aocation; The 216 aocation is higher than the Sub-Saharan Africa (SSA) average of 16.5% of state budget; Empoyment costs represent a staggering 98.4% of the 216 budget aocation; Continued reiance on off-budget non-wage education support by donors estimated at approximatey US$6 miion in 216; This donor support, abeit much needed at this current time, is not ony decining, but is aso unsustainabe in the medium-to-ong term and carries the risk of undermining government systems and capacities; Further reiance on parents and famiies who bear an increasing burden of financing the education sector through payment of schoo fees; Proposed wage bi reforms are predominanty targeted at reducing the education sector wage bi by reducing the number of teachers on the government payro; Critica that the savings made from wage bi reform estimated at US$17 miion benefits chidren; Pubic spending data shoud be disaggregated to district eves to enabe anaysis and deveopment of innovative soutions to existing chaenges within the sector.

2 INTRODUCTION Zimbabwe s education sector fas under two Ministries, i.e. the Ministry of Primary and Secondary Education (MoPSE) and the Ministry of Higher and Tertiary Education, Science and Technoogy Deveopment. This brief focuses on the provision of basic education, which fas under the MoPSE. The Ministry s overa mandate is to provide quaity, incusive, reevant and competent driven Infant, Junior, Secondary and non-forma education. It is aso oversees the nationa examination system, managed by the Zimbabwe Schoos Examination Counci. Having deveoped a new education curricuum and syabi in 215, the Ministry seeks to impement the new curricuum and finaize the ICT poicy in education. Other priority arears in 216 incude, among others: construction of new schoos through joint venture partnerships; strengthening the Teacher Capacity Deveopment Programme; and reaignment of the Education Act to the New Constitution. Education Indicators The has been some improvement in some of the seected indicators in education over time but significant chaenges remain in eary chidhood deveopment (ECD) and secondary net attendance /6 ZDHS Source: MICS MIMS 21/11 ZDHS MICS ECD a endance (3-5 years) Literacy rate Secondary net a endance rate Primary net a endance rate Transi on rate 51 6 Source: MICS 214 2

3 216 Budget Aocation To impement the above priorities, and other projects, the Ministry was aocated US$81.43 miion, which is about 2.3% 1 of the US$4 biion tota budget and 5.7% of GDP. Other Ministries such as Home Affairs (9.9%), Defence (8.9%), Heath and chid Care (8.3%) and Higher and Tertiary Education, Science and Technoogy Deveopment (7.6%), compete the top 5 aocations. The 216 aocation is 9.5% ower than the US$89.14 miion aocated to the sector in 215, mainy on account of expected weak revenue outturn. Operating on a cash budgeting basis, and given the economic chaenges, revenue coections are expected to decine impacting on the actua non-wage disbursement rates in the education sector. Despite the drop in education aocation, it remains higher than the Sub-Saharan Africa (SSA) average. By end-213, SSA countries were aocating an average of 16.5% of their state budgets and 4.2% of their GDP to education, compared to the 2.3% of tota budget and 5.7% of GDP in 216 for Zimbabwe. Aoca ons in US$ Miions Figure 1: Trends in Education Budget Aocations (21-15) Est 216 Proj Aoca ons % of Tota Budget % of Tota Budget (SSA Avge) % of GDP (SSA Avge) % of GDP Source: Zimbabwe Nationa Budget Documents, Percent This notwithstanding, the high aocations to education may not be a true refection of the Government s financia commitment to improving education. The Ministry of Primary and Secondary Education (MoPSE) was aocated the highest budget, (Figure 2). However, a staggering 98.4% of the education budget goes to empoyment costs, thus the aocation argey refects the number of empoyees in the ministry. Tota empoyees (teachers and administrative staff) in the Ministry, account for two thirds of the tota number of civi servants in Zimbabwe. Nonwage education aocation amounts to US$13 miion. With an estimated tota of 8 schoos, excuding ECD, this woud transate to ess than US$1,64 per schoo per year. This transates to ess than US$3.34 per year per chid. Figure 2: Top 2 Aocations to Ministries US$ Miions Pri & Secondary Educa on Home Affairs Defence Heath & Chid Care Higher & Ter ary Education, Science & Tech Dev OPC Pubic Service, Labour & Socia Wefare Agric Mech & Irriga on Deveopment Jus ce Lega & Par Affairs Loca Gvt, Pbc Works & Nat Housing Transport & Infrastructure Deveopment Foreign Affairs Env Water & Cimate Finance & Econ Deveopment Wefare Services for WVWC&FDR Pariament of Zimbabwe Youth Indigenisa on & Econ Empowerment Pubic Services Commission Industry & Commerce Rura Dev & Preserva on of Cuture Source: 216 Nationa Budget Statement 1 The share for the Education Sector has been cacuated by using the vaue of the tota State Budget ess debtservice payments as a denominator. It incudes Statutory & Constitution and Vote Appropriations. 3

4 Projected Sources of Education Resources In addition to direct budget aocations, the education sector is expected to receive additiona funding from deveopment partners and statutory funds. Tota resources are projected at US$ miion, with government revenues accounting for 96% (Figure 3). Statutory funds, which incudes fees and evies coected and retained by state owned enterprises in education and institutions, is expected to account for 3.3% (US$27.7 miion) of the tota resources. Other onbudget resources, mainy from deveopment partners are expected to account for.7% of the tota resources (US$6.3 miion). Figure 3: Sources of Education Resources in 216 Statutory Funds 3.3% Other Resources.7% Importanty, the.7% ony refects donor contributions through the government systems. It is worth noting that deveopment partners have been paying a key roe in supporting the education sector and other socia sectors, particuary with regards to non-wage spending. Deveopment partners have been channeing their Government support through pooed funding mechanisms such as Revenues the Education Transition Fund, and its successor, the 96.% Education Deveopment Fund (EDF). For exampe, in 215 estimates show that government spending in teaching and earning materia amounted to US$16.9 miion Source: 216 Nationa Budget Statement compared to the US$32.7 miion from the EDF, (Tabe 1). In 216, the EDF support to education is projected at US$21 miion, about 1.6 times the government budget support of US$13.1 miion. Tabe 1: Actua EDF Expenditure in US$ ( ) Proj EDF 35,239,558 32,73,345 21,, Source: UNICEF Composition of the Education Budget Aocation Figure 4: Trends in the Composition of Education Aocations Percent of Tota Aoca on Est 216 Proj Empoyment Other Recurrent Costs Capita Source: Various Budget Statement As aready auded to, aocative efficiency in Zimbabwe s pubic expenditure system is ow, particuary the education sector. Aocative efficiency is a measure of assessing whether the distribution of resources is optima across different expenditure categories to achieve the desired objectives. It heps answer the question of whether resources are being aocated towards the right activities to ensure the provision of quaity education or can a reaocation of resources make the sector more efficient? 4

5 Hence, with ess than 2% of the budget being spent on non-wage investments, the risks to the sector remain high, characterized by diapidated and inadequate schoo infrastructure, teaching and earning environments and acute shortage of teaching-earning materias. Persistent under-funding of the capita budget has resuted in a deficit of 33,6 cassrooms nationwide, severey impacting on chidren s webeing, particuary in the rura and resettement areas. This is further fueing the deprivations and inequities that Zimbabwean chidren face. Therefore, to rectify the situation, as fisca space grows, the size and quaity of government investment in non-wage education infrastructure woud need to be increased, prioritizing the more deprived provinces and districts, to ensure equitabe education outcomes of a the chidren. 216 Budget Aocations by Programme Area Junior education (covering grades 1-7), received the argest share of the Sector budget, accounting for 46.1%. Thirty four percent of the education budget was aocated towards Secondary Education, 17.8% was aocated towards Infant Education, whist Education Coordination & Deveopment and Administration & Genera got a combined 2.1%, (Figure 5). With empoyment costs accounting for 98.4% of the tota education aocation, these numbers are a refection of the number of empoyees in each of the two sub-categories. Hence, the 46.1% aocated towards Junior Education refects that the sub-category empoys a higher number of staff compared to secondary education. Figure 5: 216 Aocation by Programme Area Admin & Genera 1.4% Sec Educa on 33.9% Infant Educa on 17.8% Source: 216 Budget Statement Junior Educa on 46.1% Educa on Cordinan on & Dev.7% There was a significant increase in the amount of resources aocated to Infant Education (Eary Chidhood Deveopment (ECD)) from US$2 miion in 215 to US$144 miion in the 216 Budget. The increase in the ECD aocation argey refects the re-direction of a significant amount of teaching staff to ECD. This woud need to be matched with increased investment in ECD infrastructure. This is particuary important given that 46.1% of the cass room deficit nation-wide is attributed to ECD. Such mutuay reinforcing investments woud hep ensure that chidren are schoo-ready by the time they enro for primary education. MICs 214 resuts showed that ony 21.6% of chidren aged 3-5 years were attending organized ECD, of which 26.2% were in urban areas compared to 2.1% in rura areas. This in turn affects schoo readiness, which is estimated at 86.2% (MICS 214). Schoo readiness measures the percentage of chidren in first grade of primary schoo, who attended pre-schoo during the previous schoo year. It is inked to earning, schoo competion, ater ski deveopment, and acquisition of academic competencies and non-academic success. Chidren who enter schoo ready to earn are more ikey to stay in schoo and succeed at schoo. 5

6 Budget Execution Actua spending in the education sector has been above the budget aocations, mainy refecting expenditure on empoyment cost overruns. Given that the education budget is amost entirey consumed by empoyment cost, actua spending has been equa or higher than aocations, (Figures 6). Empoyment cost overruns between 21 and 213, wherein spending on wages exceeded % (Figure 7) refected wage increases in the genera pubic service, eading to higher actua spending compared to aocations. Percentage Figure 6: Aocation Vs Actua Spending as % of Tota Budget Aoca on Act Spending Source: Various Budget Statements However, in 214, government experienced cash fow constraints resuting in some of its wage obigations being carried over into 215. Ony 94.1% of the wage obigations were paid in 214, (Figure 7). As such, ony 9.9% of the aocation was utiized resuting in tota actua expenditures being ower than the sector s budget aocation. By end- September 215, 73.6% of the tota aocation had been spent, with an empoyment budget utiization of 74.6% of what was budgeted, as the government incurred empoyment costs and pension arrears, on account of ower-than-expected monthy revenue outturn. Figure 7: Actua Spending in Education (21-15) Sept-215 Empoyment Other Recurrent Costs Capita Act Spending (% of Aoca on) Source: Various Budget Statements Empoyment cost overruns, crowd out non-wage spending resuting in ower execution on the nonsaary items. This trend has been witnessed since 21, (Figure 6). In 213, for instance, the MOPSE reported a.3% execution rate of its overa budget. Of which, wages were at 13.3%, whist other recurrent and capita budget utiization were at 54.8% and 39.4%, respectivey. The same trend prevaied in 214 through to 215. By end- September 215, budget execution for operating costs and invest in capita improvements was at 22.4% (US$16.9 miion). This transates to US97 cents per chid or US48 cents per chid for each of the schoo terms, on operating costs and investments in earning infrastructures. Equity in Resource Aocation Achieving equaity in education shoud be a key priority of any government. Resource aocation shoud directed to those provinces and districts with the greatest need (i.e. worst socia indicators). However, Zimbabwe foows a centraized budgeting system, making it difficut to view the budget of the Education sector by province or individua districts. It woud thus be important for the MoPSE to have its budget aocations disaggregated at district eve. This woud 6

7 hep faciitate equity anaysis at district eve against other education indicators such as out-of-schoo, competion rates, schoo readiness, pass rates, which are disaggregated at district eve. Zimbabwe is a country that has achieved much for its chidren in education, however significant equity gaps sti exist. Across a weath/income groups, there has been improvement in education access both at primary and secondary eve, but huge disparities begin to emerge at high eve and tertiary education eve. Figure 8: Net Attendance Ratio - Primary Education NAR: Primary Educa on (%) WQ1 WQ2 WQ3 WQ4 WQ5 Tota Weath Quin es MIMS 29 ZDHS 21/11 MICS 214 Source: MICS 214 Figure 9: Net Attendance Ratio - Secondary Education 9 8 NAR: Secondary Educa on (%) WQ1 WQ2 WQ3 WQ4 WQ5 Weath Quin es MIMS 29 ZDHS 21/11 MICS 214 Source: MICS 214 There was equity in primary education and significant inequity in secondary education as expressed by the steeper ines in secondary education. The secondary education dropouts were concentrated in the poorer weath quinties. The payment for secondary schoo was a game changer as chidren in the poorest 7

8 weath quinties drop out, and diminishing equity. Another equity barrier is O-eve examinations that prevent chidren with poor O-eve resuts from continuing to A- eve. The quaity of education in schoos attended by chidren in the poorest weath quintie (WQ1) and parents imited abiity to pay fees for their chidren might have caused approximatey one percent of chidren from WQ1 to proceed to A-eve. In comparison, 31% of chidren in the richest weath quintie proceeded to A-eve Concusion and Recommendations The MoPSE has been receiving the highest budget aocation over the recent past. However, this argey refects the size its workforce, as nonwage spending has remained ow and inadequate to make a rea impact on improving the education infrastructure, and thus affecting chidren s earning experience in terms of over-crowded cassrooms and insufficient infrastructure and equipment. Dependency on donor support for non-wage education expenditure wi continue, with an estimated backog of 2 schoos in Zimbabwe, and this remains a huge botteneck for equity and access to quaity education. In addition, parents through various out-of-pocket payments to schoos are compementing donor funding in keeping the education system aive in the absence of adequate fisca funding. In order to achieve the sector s mandate and improve education outcomes, the Government must review the education wage bi, with a view to create fisca space to increase the size, efficiency and equity of investment to education infrastructure. This is important to safeguard gains recorded over the ast 6 years, whist at the same time graduay reducing dependence on deveopment partners for non-wage spending. Improvements in fisca space shoud be channeed towards those districts and provinces with the greatest need to achieve equitabe education outcomes. This coud aso incude targeted interventions to ensure adequate ECD coverage in marginaized and hard to reach areas. Significant bottom-up funding, as parents are shoudering the greater burden of responsibiity in financing the education system through schoo fees. Significant inequity gaps based predominanty on socio-economic status, exist within the education system, and this becomes more acute at higher eves of education attainment. Poor income househods are ceary not accessing higher and tertiary education and this, eft unchecked, has a ong term impact on adoescent deveopment. Furthermore, quaity data on pubic spending woud need to be disaggregated at district eve to enabe anaysis and deveopment of innovative soutions to existing chaenges bedeviing the sector. Indeed, equity in the education sector is a critica factor affecting overa education outcomes. 8

9 LIST OF ACRONYMS ECD EDF GDP MICS MoPSE OOS SCR SSA Eary Chidhood Deveopment Education Deveopment Fund Gross Domestic Product Mutipe Indicator Custer Survey Ministry of Primary and Secondary Education out-of-schoo Student Cassroom Ratio Sub-Saharan Africa UNICEF, 215 UNICEF ZCO 6, Fairbridge Avenue, Begravia, Harare 9