Estimating financing needs for local services in Madagascar

TheWorld Bank N o v e m b e r PREMnotes 2 0 0 3 n u m b e r 8 1 Public Sector Estimating financing needs for local services in Madagascar As more countries decentralize public services, there is a growing need to assess local service needs and available financing. A study in Madagascar offers a methodology for conducting such assessments, which should be complemented by tools that measure the efficiency and quality of public spending. This note presents the methodology and find- financing needs with available resource flows ings of a field study on the financing needs of within a given year. This tool is not designed Madagascar's communes--the country's lowest to measure leakage in resource flows, which Local financing but most institutionally advanced level of sub- is analyzed through public expenditure track- national government. Following a first round ing surveys for health and education. The gap analysis offers of municipal elections in 1995, more than 1,500 approach has three steps: communes are now formally responsible for