Project Info

Project Code
2023U
Tranche
T12
Tranche Type
Regular
Status
Closed
Title
Social Expenditure Monitor: An Integrated Framework for Supporting Macro-Fiscal Policies and the SDGs in the Arab region

Entities

Implementing Entity (Lead)
ESCWA
Collaborating DA Entities
ECLAC
Other Collaborating Entities
Other UN entities

Financial and Evaluation Info

Total Budget
$490,000.00
Project Selected for Evaluation
No

Countries and Regions

Countries or Areas: Jordan, Tunisia
Regions: Africa, Asia
Sub-Regions:
Intermediate Regions:
Countries in Special Situations:

Areas of Work

SDG
1
2
3
4
5
6
8
10
17
SDG Targets
1.3
10.4
Thematic Clusters
Social Development
Macroeconomics and Finance

Brief Description

Public social expenditure is an important means of implementation for the Sustainable Development Goals (SDGs). Its effectiveness depends on how informed and efficient public expenditure choices are, given fiscal space and macroeconomic policy coherence. Currently, member States of the Economic and Social Commission for Western Asia (ESCWA) do not have a comprehensive mechanism for monitoring public social expenditure and for linking it to macroeconomic policy coherence. As a result, budget allocations sometimes support multiple and overlapping social programs, and policies are often mismatched or inadequate for achieving social development priorities and realizing the SDGs. Given the pressure on public budgets across Arab countries, such expenditure management is unsustainable. A central question therefore is: what is the way to better link the public social expenditure with social development objectives and macro-fiscal sustainability toward achieving the sustainable development goals (SDGs)? ESCWA has embarked on a project entitled “Social Expenditure Monitor (SEM): An Integrated Framework for Supporting Macro-Fiscal Policies and the SDGs”. A pioneering tool for Arab States, SEM will provide comprehensive mapping of public social expenditure to inform budgeting and social policy reforms. SEM is an enabling tool for rationalizing expenditure components to achieve different objectives: delivering quality public services; making “social investments” that promote inclusive development and social stability; enhancing economic growth and revenues over time. Setting the right mix of expenditures is important to drive the economy and society towards achieving the SDGs, as emphasized in the ESCWA 2017 report “Rethinking Fiscal Policy for the Arab Region” (E/ESCWA/EDID/2017/4). The main expected results of the project would be: Improved capacity of policy-makers to identify gaps toward improving efficiency and effectiveness of social expenditure; and improved macroeconomic and social policy coherence by supporting policy reforms toward optimizing the relationship between social expenditure, social development priorities and macro-fiscal sustainability. The expected result would be evidenced by each participating country having established social expenditure monitor and undertaken at least one policy reform or administrative measure, such as setting a fiscal rule or expenditure targeting reform, toward improving social development and macro policy coherence.

Objective and Expected Outcomes

Objective
To improve macroeconomic and social policy coherence for improved equity and efficiency in public social expenditure in selected Arab countries
Expected Outcome 1
Enhanced technical capacity of stakeholders in each project country to successfully establish and update Social Expenditure Monitor (SEM) annually.
Expected Outcome 2
Strengthened capacity of policy makers in selected countries to better formulate policy or budgeting reforms taking into account the linkages between social expenditure, social development priorities and macro-fiscal objectives.