Public finance management and data availability for nutrition financing in India

Abstract

For investments to translate into improved public service delivery, having a strong public finance management (PFM) system that lays out the rules, institutions and processes by which public funds are managed is critical. To enable a better understanding of the nutrition financial landscape, this paper seeks to determine whether the current PFM system in India allows for capturing required nutrition data. It does this by mapping the availability and comparability of data for a set of key nutrition-specific interventions through the budget cycle: from budget formulation, to execution, and finally, evaluation. The study finds significant gaps in data availability including absence of financial data by level of governance, geography and intervention components. These challenges relate to gaps in PFM design in India from weak planning processes, line-item budgeting, unavailability of time costs, inefficient fund release processes, difficulties in estimating target populations and the lack of output costing. These gaps in the PFM system and consequent data issues have several implications which may lead to strained delivery. This in turn impacts quality and the possibility of course correction. Some of these challenges can be overcome by ensuring planning processes are enforced, expanding existing data systems, making more data available in the public domain, using existing research better and using assumptions carefully to cover data gaps.