Editor's note: An helpful article from Tamara Billima-Mulenga (ZIPAR) on the Constituency Development Fund (CDF). It does not address the fundamental problems, nsmely CDF corrupts the proper functions of MPs; encourages corruption and mismanagement; and, is a poor attempt at "fiscal decentralisation". But the paper is helpful in contributing to the debate in this area. We need more such discussions to ensure public money is being properly utilised.
As the Ministry of Finance commences the preparation of the 2015 National budget, it is worth asking how the government allocates spending across the different programmes it funds. These decisions are often based on existing historic allocations and developmental plans. It is, however, rare for the government to base spending decisions on some measure of 'need': that is targeting funding at those areas that experience higher levels of poverty, or where the cost of delivering services is higher.
While there is evidence in Zambia of spending decisions based on some measure of need, for example funding to districts under the Ministry of Health uses a resource allocation formula, this is still rare. Governments tend to be weary of using measures of need because of the complexities it introduces to the budgetary process. ZIPAR believes that there is scope for a needs based funding approach. The aim should be to start small and innovate with an appropriate fund. One of the strongest candidates is the Constituency Development Fund (CDF), which accounts for 0.5% of the national budget but which is not distributed equitably.
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