UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education i © 2023 International Bank for Reconstruction and Development/International Development Association. The World Bank Group 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. 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Photo credits: Derrick Ssenyonyi, 2022 – 2023 and Rachel Mabala (2021-2022) Photo credit for the cover picture: (Derrick Ssenyonyi, 2023) Design/Layout: Artfield GraphicsPrinted in Uganda by Artfield Graphics Additional material relating to this report can be found on the World Bank Uganda website (www.worldbank.org/uganda). ii UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education iii Table of Contents ACKNOWLEDGEMENTS x EXECUTIVE SUMMARY xi 1.CONTEXT 3 2.OVERVIEW OF EDUCATION IN UGANDA 5 2.1. Structure of the Education System 5 2.2. Legal and Policy Framework 7 2.3. Governance Structure 10 2.4. Key Education Outcomes 14 3. PUBLIC SECTOR SPENDING ON EDUCATION 23 3.1 Level And Trends Of Public Spending 23 3.2 Spending Composition By Economic Classification 28 3.3 Contribution Of Private Expenditures To Education 30 4.ANALYZING THE PERFORMANCE OF UGANDA’S EDUCATION EXPENDITURES 33 4.1 Adequacy of Spending 33 4.2 Efficiency of Spending 36 4.3 Equity of Spending 42 5. ANALYZING INTER-GOVERNMENTAL FISCAL TRANSFERS AND THE EXPENDITURE AT SUBNATIONAL LEVEL 47 6. POLICY RECOMMENDATIONS 55 REFERENCES 60 ANNEX 66 Butebe Seed School, Ibanda, supported under UgIFT program (Brian Amanya, 2022). iv UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education v List of Figures Figure 1. Structure and Organization of the Uganda´s Formal Education System 6 Figure 29. Number of Students per Teacher (STR) and Number of Students in Government-Aid Figure 2. Percentage of Secondary and BTVET Students in USE/UPPOLET Programs, 2007-2016 9 Primary Schools by Districts, 2020/21 40 Figure 3. Distribution of GoU’s Education Spending by Administrative Level, 2010/11-2021/22 10 Figure 30. Number of Students per Teacher (STR) and Number of Students in Figure 4. Distribution of GoU’s Education Spending by Level of Education and Administrative Government-Aid Secondary Schools by Districts, 2020/21 40 Level (Spending Unit), 2021/22 11 Figure 31. Uganda. Distribution of Schools According to their Level of Teaching Staff in Figure 5. Distribution of GoU’s Education Spending of Local Governments by Government-Aid Primary Schools, 2020/21 41 Level of Education (Billion Shillings), 2010/11-2021/22 11 Figure 32. Distribution of government subsidies by income level, 2019/20 44 Figure 6. Gross Enrollment Rates, 2019 15 Figure 33. Uganda. Lorenz Curve of the Education Expenditure, 2019/20 45 Figure 7. Age at First Primary 1 Attendance 15 Figure 34. Attendance Rates and Poverty Level in Subregions, 2019/20 47 Figure 8. Schooling History Profile for Youth Aged 19-24 (Post-Secondary School Age Population) 16 Figure 35. Learning Poverty in Primary Education and Poverty Level by Subregions, 2018/2019 49 Figure 9. Early Grade Reading Assessment Results by Local Language, 2022. 19 Figure 36. Per-student UPE Grant and Poverty level for subregions, 2020/21 49 Figure 10. Public Expenditure on Education as a Share of the GDP, 2018 or latest 24 Figure 37. Per-student USE Grant and Poverty level for subregions, 2020/21 49 Figure 11. Public Expenditure on Education as a Share of the Total Government Expenditure, 2018 or Latest 24 Figure 38. Learning Poverty in Literacy and Student-Teacher Ratio for Primary Education, 2020 50 Figure 12. Government Per Student Expenditure as a Share of the GDP Per Capita, Figure 39. Learning Poverty and Per-Student UPE Transfer for Primary Education, 2020/21 50 Latest Year Available 24 Figure 40. Average Household Expenditure on School Fees in Government-Aid Figure 13. Evolution of the Public Expenditure on Education as a Share of the GDP, 2010-2021 25 Primary Schools and Poverty by Subregions, 2019/20 51 Figure 14. Public Expenditure on Education as a Share of the Total Government Figure 41. School Performance Assessment and Improvement Framework 52 Expenditure, 2010-2020 25 Figure 15. GoU’s Expenditure by Level of Education 26 List of Tables Figure 16. Government per Student Expenditure in 2021 Prices by Level of Education, 2010/11-2021/22 27 Figure 17. Uganda. GoU Expenditure by Economic Classification, 2010/11-2021/22 28 Figure 18. GoU Expenditure by Economic Classification, 2015-2016 (Latest Available) 28 Table 1. Percentage Distribution of the School Attendance by Level of Education and Figure 19. GoU Expenditure by Level of Education and Economic Classification, 2021/22 29 Ownership of Educational Institutions (%), 2019/20 7 Figure 20. Uganda. Source of Funding of Development Programs in 2021 Prices, 2010/11-2021/22 29 Table 2. Percentage Distribution of GoUís Education Spending at the Central Level Figure 21. Ratio of Teacher Salaries to Earnings of Similarly Educated Workers by Highest by Vote and Program, 2010/11-2021/22 11 Degree of Post-Secondary/Tertiary Education Completed and Age Group, 2019/20 29 Table 3. Education Sectorís Approved Budget by Source of Funding for Local Governments, 2020/21 12 Figure 22. Ratio of Teacher Salaries to Earnings of University Educated Workers by Level of Table 4. The Structure and Purpose of the Education Sector Grants for Local Governments, 2022/23 13 Instruction, 2019/20 (25-64 Years Old) 29 Table 5. Percentage Distribution of Reasons Cited to Leave Primary Education by Grade and gender, 2019/20 17 Figure 23. Private per Student Expenditure by Level of Education as a Share of the Table 6. Percentage Distribution of Reasons Cited to Leave Secondary Education by Grade and Gender, 2019/20 18 Average per Household Income, 2019/20 31 Table 7. Additional Recurrent and Capital Expenses to Guarantee Universal Primary and Figure 24. Composition of the Household Expenditure on Education by Level of Education and Secondary Education by 2030. 34 Type of School, 2019/20 31 Table 8. Approved vs Executed Budget in Education by Administrative Level and Economic Figure 25. School Age Population Growth, 2022–2050 34 Classification, 2018/19 and 2021/22 38 Figure 26. Learning Adjusted Years of School (Educational Outcomes) Compared Table 9. Distribution of Schools According to their Level of Teaching Staff in Government-Aid to the Level of Development and Expenditure on Education in 2020 37 Primary Schools, by District, 2020/21 41 Figure 27. Approved vs Executed Budget in Education 37 Table 10. Net Attendance Rate by Population Groups, 2019/20 43 Figure 28. Uganda. Number of Students per Teacher, 2020/21 40 Table 11. Capitation unit costs, 2018/19 ñ 2022/23 51 Table 12. Summary of Policy Recommendations 55 vi UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education vii List of Abbreviations BoQs Bill of Quantities MTEF Medium Term Expenditure Framework CCT Coordinating Center Tutor MTP Medium Term Plan DDEG Discretionary Development Equalization Grant NWR Non-Wage Recurrent DLI Disbursement Linked Indicator OPAMS Online Performance Assessment Management System EMIS Education Management Information System OPM Office of the Prime Minister FDSC Fiscal Decentralization Steering Committee OTIMS Online Transfer Information Management System FDTC Fiscal Decentralization Technical Committee PDM Parish Development Model FDU Fiscal Decentralization Unit PEF Program Expenditure Framework FINMAP Financial Management and Accountability Program PHC Primary Health Care FY Financial Year PIP Performance Improvement Plan GoU Government of Uganda PNFP Private Not-For Profit IGFTR Intergovernmental Fiscal Transfer Reforms POM Program Operations Manual IGFTRP Intergovernmental Fiscal Transfer Reforms Program PPDAA Public Procurement and Disposal of Assets Authority LG Local Government PRD Peace Recovery and Development Plan LGFC Local Government Finance Commission RBF Results Based Financing LGMSDP Local Government Management Service Delivery Project SESIL Strengthening Education Systems for Improved Learning LGPA Local Government Performance Assessment SPA School Performance Assessment LGPITF Local Government Performance Improvement Task Force TDMS Teacher Development and Management Systems LRDP Luwero-Rwenzori Development Program UBOS Uganda Bureau of Statistics MDA Ministry, Department or Agency UgIFT Uganda Intergovernmental Fiscal Transfer Program MoES Ministry of Education and Sports UGX Uganda Shillings MoFPED Ministry of Finance, Planning, and Economic Development UPE Universal Primary Education MoGLSD Ministry of Gender, Labour, and Social Development UPOLET Universal Post O Level Education and Training MoH Ministry of Health URMCHIP Uganda Reproductive Maternal and Child health Improvement Project MoLG Ministry of Local Government USE Universal Secondary Education MoPS Ministry of Public Service USMID Uganda Support to Municipal Infrastructure Project MoWE Ministry of Water and Environment WB World Bank viii UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education ix ACKNOWLEDGEMENTS EXECUTIVE SUMMARY The Uganda Public Expenditure Review 2022-23 was undertaken as a programmatic, analytical, and advisory task Uganda’s public spending in education has been consistently low over the last decades, well below international executed jointly between the Government of Uganda and World Bank staff and consultants. At the World Bank, the benchmarks and expenditures in other East African countries. Conversely, household expenditure on education is high overall task was led by Rachel K. Sebudde (Senior Economist, EAEM1). compared to international benchmarks. International comparisons suggest that the efficiency of public expenditures can be substantially improved; however, Uganda is an outlier primarily in the low levels of spending on education. From the government, great collaboration and leadership was provided by the Permanent Secretary and Secretary to Treasury, Ramathan Ggoobi, and Ishmael Magona (Ag Director Budget), with the core team working closely with the Low and inefficient public spending in education contributes to inadequate and inequitable access as well as poor World Bank led by Charles Byaruhanga (Advisor Budget), and comprising Albert Musisi, Moses Bekabye, Mohammed learning outcomes. The majority of children enter primary education, but completion rates are low. Grade repetition in Kabaale, Mustapha Achidri, Ivan Kasozi, Ian Mugizi, Rachael Mirembe, Francis Muhumuza, Timothy Namboga, Lillian primary education is high – especially in the first grade – mostly driven by under-provision of early childhood education. Nabiryo, and other staff of the Budget Department. Children may also leave schools before completing the primary cycle for cost-related reasons. Public spending in education is pro-poor in primary education, but it becomes increasingly regressive as students move through the The team appreciates the overall guidance from Vivek Suri (Practice Manager, EA1M1); Philip Schuler (Lead economists/ system. Ag. Practice Manager); Abha Prasad (Practice Manager AE1M1); Marek Hanush (Program Leader, AFCE2); Rosemary Mukami (Country Manager, AFMUG); and Keith Hansen (Country Director, AFCE2). The team would like to thank Esther Considering this context, Uganda will have to massively increase public expenditure on education to meet its long- Ampumuza and Pearl Namanya for providing logistical and administrative support throughout the process, and Virginia term development goals, respond to demographic growth, and expand equitable access to a high quality of education. Larby for the editorial support. However, increasing resources will only have impact if accompanied by measures to improve the efficiency, equity, and effectiveness of public expenditures. We are grateful for the good partnership we enjoyed with the Ministry of Finance, Planning and Economic Devel- opment, and for the access they gave to most of the data used in this report – the findings of which were shared and To ensure adequacy and effectiveness, the GoU could prioritize education expenditures to reflect an “Expansion with discussed extensively with them. Quality” scenario as the population increases and revisit the existing policy on Early Childhood Education (ECE) to expand access to pre-primary education. It is crucial that increased spending is accompanied by measures and reforms aimed at enhancing the efficiency and equity of education spending. Various options to improve efficiency are available, which entail minimal short-term fiscal implications, such as: 1. Prioritizing the education budget to provide for pre-primary and primary over further increases in tertiary education. 2. Leveraging technology – including EMIS, TELA, and e-inspection systems – and enhancing local capacity for an improved school inspection, monitoring, and support supervision to eliminate “ghost” teachers, students, and schools; reduce absenteeism; improve accountability; and improve quality of instruction. 3. Adopting a more transparent and formula-based approach to allocate teachers. Additionally, the equity in the sector could be enhanced by: 1. Revising the financing mechanism in tertiary education to better target students from disadvantaged backgrounds. 2. Taking steps to deescalate high-stakes examination culture and revisit the role and importance of PLE. 3. Implementing low-cost interventions to reduce dropouts, whilst taking gender-specific barriers into account e.g., pregnancy for girls. x UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education xi Finally, the effectiveness of the sector could be enhanced as follows: 1. Increase teacher salaries as part of a comprehensive reform of the teaching profession including recruitment, career incentives, and support. Making the profession more attractive to high-quality candidates and making teachers more accountable for basic performance standards will also complement basic efficiency interventions such as reducing absenteeism and “ghost” teachers. 2. Tackle the factors that are affecting the effectiveness of decentralization by (i) providing adequate financing to local governments; linking financial resources to performance improvement support; considering equity; and (ii) supporting subnational capacity building. This report is divided into five sections. The first section presents the country context, which includes the description of the governance structure, legal and policy framework, and main educational outcomes. The second section presents a brief overview of Uganda’s education spending, with breakdowns by economic and functional classification. The third section assesses public education expenditures in terms of their adequacy, efficiency, and equity. The fourth section describes the spending distribution at the subnational level. The fifth section concludes with policy recommendations. Kololo Secondary School, Kampala – Students map reading during a Geography lesson (Derrick Ssenyonyi, 2023). xii UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 1 1. CONTEXT T he World Bank and the Government of Uganda (through its Ministry of Finance, Planning and Economic Development) have undertaken a Public Expenditure Review (PER) of selected aspects of fiscal policy management and outcomes with a view to determine how Uganda can achieve a more inclusive growth agenda. One of the areas of assessment was to identify options for enhancing spending on human development. Uganda Public Expenditure Review Uganda’s public spending in education has been consistently low over the last decades – well below international benchmarks and expenditures in other East 2022-23 Modules African countries. This has implications for overall human capital development, especially for a country with one of the highest population growth rates in the world. The expenditure of households for education is high compared to international ‘‘Uganda’s public benchmarks. The COVID-19 pandemic, combined with responses to it, have spending in education has been seriously undermined Ugandans’ health and skill development in ways that threaten consistently low over the last long-term economic development. Even before the crisis, human capital outcomes decade.’’ had been deteriorating over the last two decades as both sectors faced serious funding challenges. The Uganda Public Expenditure Review 2022–23 focused on selected aspects 01 03 Module I: Module 3: of fiscal policy management and outcomes with a view to supporting a fiscal Identifying broad Identifying options adjustment to a more inclusive growth agenda. The task delivered jointly by macro-fiscal for enhancing effectiveness, the World Bank and the Government of Uganda was organized in four modules options for an effective and efficiency and including: (i) Module I: Identifying broad options for an effective and sustainable sustainable fiscal equity in spending fiscal adjustment; (ii) Module II: Identifying options for enhancing effectiveness, adjustment to build human capital (education efficiency, and equity of spending in two areas critical for service delivery: (a) and health) public investment management; and (b) the intergovernmental fiscal transfers (IGFT) system, including the plans/assumptions underpinning the Medium-Term Plan (MTP) for financing of local service delivery; (iii) Module III: Identifying options for enhancing spending on human development, by delving into the efficiency, effectiveness, and equity of spending within the education and health sectors; and (iv) Module IV: A summary report to synthesize the key messages from the preceding modules for policy and decision makers, and be the concluding part of 02 Module 2: Identifying options for enhancing 04 Module 4: A summary report to synthesize the key the PER. This report focuses on Module III(A) which is related to identifying options for enhancing spending efficiency and raising fiscal space to sustain and improve effectiveness, messages across service delivery in Uganda’s education sector. efficiency and equity the different modules for policy ‘‘Human capital in public spending in had been deteriorating over The report assesses the evolution in spending in the education sector over the last two critical areas of makers, and conclude the review the last two decades.’’ decade. It delves into the efficiency, effectiveness, and equity of spending within service delivery the education sector, with a view to find ways of improving service provision within the sector. 2 14 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Efficiency, & Equity in Enhancing Effectiveness, Efficiency, In Spending on On Education Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 3 2. OVERVIEW OF EDUCATION IN UGANDA T his section presents an overview of the structure of the education system, policy and legal frameworks that guide the provision of educational services at all levels, governance, and institutional arrangements for the public funding of the sector, as well as the progress and challenges of the Ugandan education system in recent years. Whereas the Foundation is Critical 2.1. Structure of the Education System (pre-primary and primary), Various Formal education in Uganda comprises four levels: pre-primary, Pathways Lead to Human Capital Formation primary, secondary, and tertiary education. As stipulated in the Education Act 2008, the pre-primary level is the first level of formal education and serves children from two to five years old. The Act specifies that pre-primary education is the responsibility of the private sector, while government retains a role in regulation, quality assurance, and teacher training. The primary level is compulsory and consists of seven grades (referred to as P1-P7), serving children from six to twelve years old. At the secondary level,1 students have two options: general secondary education and vocational and technical education. The general track has two levels: the O-level (ordinary level) and the A-level (Advanced level). The O-level or lower secondary takes 4 grades (S1-S4, where S stands for senior), intended for young people from 13 to 16 years old. The A-level or upper secondary education covers two grades (S5-S6) and caters for young people aged 17-18.² This level is only available for students who finish lower ‘‘Formal education general secondary education. in Uganda comprises four levels: pre-primary, primary, Tertiary education lasts three to five years. In addition to the academic track, there is secondary, and tertiary education’’ a vocational and technical education system offered in BTVET (Business, Technical, and Vocational Education and Training) institutions. Vocational education can take place at secondary, post-secondary and tertiary levels. Primary school graduates can also opt for entering four-year teacher training colleges (Figure 1). 1 In the Education Act 2008, secondary education is referred to as “Post primary education and training.” 2 Under the Uganda Vision 2040, primary school years will be maintained at seven years while the secondary school years will be reduced to four. 4 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 5 Figure 1. Structure and Organization of Uganda´s Formal Education System Table 1. Percentage Distribution of the School Attendance by Level of Education and Ownership of Educational Institutions (%), 2019/20 School Ownership/ Pre-Primary Primary Secondary Post-Primary Post- Total Level of Education Education Education Education Vocational Secondary Education and above Government 20 62 43 20 45 53 Private 76 36 55 73 51 45 NGO /Religious/ 3 1 2 7 4 2 Other Number of 2,360,102 10,647,073 2,216,000 152,004 289,135 15,587,730 students Source: World Bank based on the Uganda National Household Survey 2019/20. 2.2. Legal and policy framework The GoU introduced the Universal Primary Education (UPE) policy in 1997, which There is a robust legal and policy framework reduced the cost of primary education and protecting the right to education. The right to substantially increased enrollment. With the Source: UNESCO-IBE (2012) education is guaranteed in the Constitution (1995), which introduction of the UPE policy, the Government of Uganda establishes basic education as free and compulsory, (GoU) committed to the payment of school tuition, as well Progression through the various levels education (14 percent) and pre-primary education (15 and considers it a joint responsibility of the state and as Parent Teacher Association fees and textbook fees. of education depends on performance percent). Tertiary education and post-primary vocational parents. There are also acts and policies guiding the This policy aims to make education affordable, ensure in national learning assessments. National education make up the lowest shares at 2 percent and implementation of education such as the Government completion of the primary cycle of education, and equip examinations are designed for certification and selection. 1 percent, respectively. During the 2020 school year, White Paper (MoES 1992), the Education Services Act every individual with basic skills to reduce poverty. The The Primary Leaving Examination (PLE) is a mandatory approximately 425,675 teachers taught at the primary (2002), and the Education Act (2008). There are also evaluation conducted by the National Planning Authority examination that certifies completion of primary education and secondary levels. specific legal and policy instruments for the various (NPA) in 2018 indicates that UPE is largely pro-poor and and determines continuity into O-level or lower secondary levels such as Early Childhood Development policy (2007), has achieved its primary objectives. Primary enrollment education. At the end of O-level, students sit for the Compared to the regional context, students Special Needs and Inclusive Education policy (2011), Basic doubled from 2.6 million in 1995 to 5.3 million in 1997 Uganda Certificate of Education (UCE). Only UCE holders in Uganda are significantly more likely to Education policy for Educationally Disadvantaged Children right after the introduction of the UPE, and then it steadily are eligible for A-level or upper secondary education. At attend private institutions. During the 2019/20 (2006), the BTVET Act (2008), and the Universities and increased to reach 8.7 million in 2017. The increase in the end of upper secondary education, students sit for the school year, about 62 percent of primary students Tertiary Institutions Act (2001), among others. Uganda has educational attainment resulting from this policy has also Uganda Advanced Certificate of Education (UACE). The attended government-aided institutions, well below the also adhered to regional and international conventions had an impact on fertility and child health. Women with performance in this examination determines eligibility for average of select regional peers at 92 percent (Ethiopia, protecting the right to education. Finally, Uganda hosts more schooling tend to delay and have fewer pregnancies, university education. Kenya, Rwanda, and Tanzania).5 In secondary education, 1.27 million refugees and asylum seekers as of 2019, the which reduces overall fertility, increase investments in nearly 43 percent of student attended government-aided most of any country in Africa, and has a progressive policy early child health, and have fewer children who suffer from According to the most recent household institutions, half than that of regional average (85 percent). framework which provides free access to education and chronic malnutrition. The policy has also been associated survey, about 15.6 million students were Among pre-primary-age children, public schools account training for refugees. with improved employment outcomes and greater wealth attending public and private institutions, for 20 percent of the attendance, compared to a regional (Keats, 2018). However, the policy does not guarantee free representing approximately 37 percent of average of 76 percent (Table 1). Since pre-primary education since, as demonstrated later, school fees still the total population. Based on calculations from education is not formally provided in government the Uganda National Household Survey 2019/20, 3 schools, this likely represents under-age enrollment of primary education accounts for the largest share of pre-primary-age children in primary schools. school attendance (68 percent),4 followed by secondary 3 The data collection was conducted from September 2019 to February 2020 (pre-COVID-19) and from July 2020 to November 2022 (during COVID-19). There are no structural changes in key educational indicators before and during COVID-19, except for the household expenditure on education. 4 School participation in household surveys and censuses is commonly measured by whether pupils or students attended a given grade or level of education at least one day during the academic reference year (definition from UNESCO: http://uis. unesco.org/node/3079484). Currently, EMIS are being upgraded to include functions for tracking key educational data such as enrolment. 5 Calculations based on UNESCO UIS (2021). 6 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 7 account for the majority of household spending on primary The USE program has achieved some success in providing education. Additionally, as government spending in greater access to secondary education in Uganda over Figure 2. Percentage of Secondary and BTVET Students in USE/UPPOLET Programs, 2007–2016 education is low, it primarily focuses on teacher salaries, its implementation period, with enrollment increasing by 100 providing little scope to cover other expenses that support 502,949 between 2007 and 2016. However, despite these learning (NPA 2018). achievements, it has not been able to fully overcome all 80 the obstacles to enrollment or keep up with population In order to consolidate the gains with UPE growth, as evidenced by stagnant enrollment rates 60 and expand equitable access to secondary (described later in the Education Outcomes section). % education, the GoU introduced the UPPET/ Additionally, the increase in enrollment was not matched 40 USE program in 2007 and the UPOLET by an equivalent increase in teachers, classrooms, and program in 2012. The objective of the Universal Post 20 textbooks – undermining the quality of education. Primary Education & Training (UPPET/USE) program, 0 commonly known as Universal Secondary Education PPP also had some weaknesses, particularly in terms of 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (USE), is to expand the equitable access to secondary accountability to government. In 2014, the government % Secondary students in Government-aid schools in USE/UPOLET program education in O-level/lower secondary education. The made the decision to phase out the USE program in program was expanded to increase access at A-level/ private schools, starting from the first term of 2018 for S1 % Secondary students in private schools in USE/UPOLET program upper secondary education with the introduction of the students, and utilizing public funds to construct additional % Secondary students in USE/UPOLET program Universal Post O-level Education and Training (UPOLET). government secondary schools instead. However, a recent % BTVET students in USE/UPPOLET program These programs also cover post-primary students in study points out that approximately 30 percent of students BTVET institutions. An important component of the policy enrolled in PPP schools – about 130,000 students in total Source: World Bank based on the Education and Sports Sector Fact Sheet 2002–2016. is ‘Public Private Partnerships’ (PPPs) with existing private – wouldn’t be enrolled if it were not for the government secondary schools in areas with inadequate supply of subsidy; and it is less costly for government to subsidize Provision of Early Childhood Education often takes the form of a special Primary One class for government secondary schools. Through these PPPs, PPP schools than fund alternative public provision (ECE) is primarily a responsibility of parents. children below 6 years (commonly distinguished from GoU subsidizes the costs at secondary school level by (O’Donoghue et al 2018). The Government’s role in ECE focuses the regular P1 class as P1A and P1B) which lack both paying school fees, textbooks, and other instructional on policy development, while other East qualified teachers and appropriate learning resources materials, as well as the costs of co-curricular activities, African countries ensure public provision. The for pre-primary-aged children (MoFPED 2016, NPA and school administration and maintenance (MoES 2016). Government White paper (1992) and Education Act of MoGLSD 2020). The USE/UPOLET program has grown 2008 established that ECE should be financed by parents or guardians. The role of MoES is to concentrate on The private sector (parents and individuals) substantially since first implemented in 2007, is the primary source of funding for university but the GoU phased out the program in private creating enabling environments (i.e., policy development, standards setting, and quality assurance). In other East education, followed by government funding, external schools. In 2007, the program subsidized 17 percent funding, and Internally Generated Funds (IGFs). As of secondary students and ten years later, the program African countries, public provision is guaranteed through various mechanisms. In Kenya, pre-primary education mandated by law, the GoU covers: (i) salaries, allowances reached 69 percent of secondary students, of which 46 and other charges that pertain to staff; (ii) all pensions, percent were attending private schools (Figure 2). is free and compulsory; in Tanzania each primary school has a pre-primary classroom (financed from gratuities, and other charges regarding retirement capitation grants provided to primary schools); and in benefits; (iii) charges for maintenance of the buildings and Rwanda, the government has established and enforced other assets of the university; and (iv) reserve funds for the national standards (which define the objectives for the future or contingent liabilities. Public universities are partly subsector) and are responsible for teacher training as funded but fully owned by the state. These universities well as curriculum development. While the government’s enroll both government and private students – the current policy is to rely entirely on the private sector for private students are charged fees. Additionally, the Higher the provision of ECE, the government has encouraged Education Students Financing Act 2014 established the pre-primary schools to attach to primary schools to scale provision of Loans and Scholarships to Ugandan students them up in both public and private subsectors. In 2020, a to pursue higher education in recognized higher education significant portion (82 percent) of public primary schools institutions, who are unable to support themselves have already established a preschool within their existing financially (MoFPED 2018). facilities. However, in practice, pre-primary provision 8 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 9 2.3 Governance Structure Constitution and 1997 Local Government Act finally gave Figure 5. Distribution of GoU’s Education Spending of Local effect to the devolution of functions. During FY 2021/22, Figure 4. Distribution of GoU’s Education Spending by Level of Governments by Level of Education (Billion Shillings), Education spending is largely decentralized, about 20 percent of the education spending was executed Education and Administrative Level (Spending Unit), 2021/22 2010/11–2021/22 with local governments and higher education by central level agencies (MoE, KCCA, other agencies), 24 institutions executing about 80 percent of percent by universities (which are autonomous spending the national education budget. Decentralization units), and 56 percent by higher local governments (Figure 3). Not classified by levels 96% 4% 18.9 2100 in Uganda began in 1986 and aimed to promote people’s 1800 103.6 Tertiary Education 4% 96% participation in the democratic process and to improve 1500 4.7 88.2 415.0 695.9 service delivery and proximity to citizens. Uganda’s 1995 Skills Development 45% 55% 1200 130.8 328.8 900 2.5 20.0 600 137.5 1230.4 1134.0 Secondary Education 5% 95% 828.6 300 587.0 Figure 3. Distribution of GoU’s Education Spending by Administrative Level, 2010/11–2021/22 0 Pre-Primary and Primary 6% 94% 2010/11 2014/15 2018/19 2021/22 0% 20% 40% 60% 80% 100% Skills Development Central Government Local Government Central (Universities) Source: World Bank based on compilations from Budget Performance Reports Table 2. Percentage Distribution of GoU’s Education Spending at the Central Level by Vote and Program, 2010/11–2021/22 2010/11 2014/15 2018/19 2021/22 Ministry of Education and Sports 97.9 83.3 70.8 56.8 Pre-Primary and Primary Education 14.0 14.7 6.8 10.2 Secondary Education 51.0 16.8 1.1 5.6 Special Needs Education, Guidance, and Counselling 0.7 1.6 1.0 0.6 Source: World Bank based on compilations from Budget Performance Reports Skills Development 15.7 19.6 19.3 12.1 Higher Education 3.5 11.0 18.1 4.0 Local Governments are mainly responsible budget for secondary education (Figure 4). Over time, Physical Education and Sports 1.1 3.1 8.3 0.5 for the provision of pre-primary, primary secondary education has accounted for an increasing Policy, Planning and Support Services 3.4 6.1 11.0 20.2 and secondary education. According to the share, and primary education for a decreasing share, of Local Government Act, district/municipal councils are education expenditures through local governments Quality and Standards 8.6 10.5 5.2 3.6 responsible for the provision of pre-primary, primary, Kampala Capital City Authority (KCCA)6 - 14.3 10.8 6.4 secondary, science technology innovation, special (Figures 5). The MoES executed 57 percent of the budget at the central level in 2021/22, followed by the Uganda Uganda National Examinations Board (UNEB) - - 14.4 20.6 needs, and technical and vocational education (MoES National Examinations Board, which absorbed 21 percent Education Service Commission 2.1 2.4 2.2 2.5 2021). During the 2021/22 fiscal year, local governments executed 94 percent of the national education budget for of the education budget at the same level (Table 2). National Curriculum Development Centre (NCDC) - - 1.8 5.5 primary education and about 95 percent of the national National Council for Higher Education (NCHE) - - - 1.6 Uganda Business and Technical Examination Board (UBTEB) - - - 4.1 National Council of Sports (NCS) - - - 2.5 Central Government 100.0 100.0 100.0 100.0 Note: The dashes indicate that the expenditure for the agencies involved was registered under another budget line. The agencies were already functioning (except for KCCA in 2010), but not created as a vote in the budget system. In particular, the expenditure for the Uganda National Examinations Board (UNEB) and the National Curriculum Development Centre (NCDC) were included in the budget allocation for “Quality and Standards.” The National Council for Higher Education was registered under the “Higher Education” budget line, while the Uganda Business and Technical Examination Board under “Skills Development” and the National Council of Sports under “Physical Education and Sports.” 6 Kampala Capital City Authority (KCCA) is the central government body administering in Kampala City, created on March 1, 2011 by the Ugandan Parliament under the Kampala Capital City Authority Act of 2010. Before that, expenditures were registered at the local government level. 10 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 11 The national budget represents the predominant and local governments. Equalization grants provide Table 4. The Structure and Purpose of the Education Sector Grants for Local Governments, 2022/23 source of revenue for local governments. additional funds to the least developed districts. Overall, Therefore, fiscal decentralization in Uganda conditional grants make up the main source of funding Grant Purpose consists mainly of expenditure decentralization for local governments. The approved budget for LGs in Wage Conditional Grant To pay salaries of education staff in primary, secondary and rather than revenue decentralization. Article 2020/21 shows that conditional grants constituted 96 • Pre-Primary and Primary BTVET institutions. 193 of the Constitution envisaged three types of percent of the total budget. intergovernmental fiscal transfers: conditional, • Secondary Education unconditional, and equalization grants. Locally Raised Revenues only make up 0.19 percent (Table 3). Conditional grants and allocation formulas • Skills Development The unconditional grants are intended to provide a will be further described in Module IV – Analyzing Inter- Non-Wage Conditional Grant To fund: (i) operational costs of running primary, secondary, and minimum amount needed for LGs to run decentralized Governmental Transfers and the Expenditure at the BTVET institutions; (ii) the management and oversight of those • Pre-Primary and Primary services. Conditional grants finance specific programs, Subnational Level. and Education Management institutions including measures to improve learning outcomes and the funds must be expended only for the purposes and increase enrolment; (iii) sports & co-curricular activities; iv) and under the conditions agreed upon between central • Secondary Education emergency education response and (v) maintenance works. • Skills Development Table 3. Education Sector’s Approved Budget by Source of Funding for Local Governments, 2020/21 Development Conditional To finance capital development works of primary and secondary Source of Financing Ugandan Shillings (Billion) % Grant schools. Transitional Development – To fund ad hoc capital investments and rehabilitation works, Sector Conditional Grant (Non-Wage) 334.62 16.54 Presidential Pledges including presidential pledges. Sector Conditional Grant (Wage) 1,420.48 70.23 Source: Planning, Budgeting, and Implementation Guidelines for Local Governments, 2021/22 Sector Development Grant 182.39 9.02 Transitional Development Grant 6.03 0.30 The GoU has introduced greater autonomy The current fiscal decentralization framework and systems District Discretionary Development Equalization Grant 5.59 0.28 in the spending of the capitation grants, but for primary and secondary education in Uganda are not some aspects of education services have delivering the expected results. Despite political and Urban Discretionary Development Equalization Grant 0.13 0.01 not been fully devolved. With the introduction of nominal fiscal decentralization, this PER shows that there District Unconditional Grant (Non-Wage) 0.61 0.03 UPE in 1997, four major expenditure categories were is a sustained learning crisis, low access to education, District Unconditional Grant (Wage) 9.31 0.46 defined for the capitation grants: teaching and learning inefficient distribution of primary school teachers and materials, extra-curricular activities, administration, and classrooms, and inadequate levels of funding for nonwage Urban Unconditional Grant (Non-Wage) 0.19 0.01 management. The spending on these budget lines had expenditures. Urban Unconditional Grant (Wage) 1.31 0.06 to be 50 percent on instructional materials, 30 percent Fiscal decentralization is largely nominal, and LGs have Other Transfers from Central Government 22.88 1.13 on extra-curricular activities, 15 percent on school management, and 5 percent on school administration. The few discretionary fiscal resources and little ability to raise External Financing 35.01 1.73 them. Although recent increases have started to reverse new grant guidelines leave the decisions on how much to Locally Raised Revenues 3.94 0.19 allocate to each category at the discretion of the District the impact of a decade of decline, the level of financing for education services is inadequate, and capacity to Total 2,022.51 100 Education office (DEOs), Municipal Education office (MEOs), and schools (Kayabwe et al 2014). Additionally, implement education decentralization policies is weak Source: Approved budget estimates 2020/21 (MoES 2021). GoU adopted a decentralized salary payment processing due to insufficient funding for routine LG management system to make LGs directly accountable and responsible and oversight of service delivery, inadequate capacity Funds are transferred from the Consolidated Fund Account development grants for primary, secondary, and BTVET for the control of salary payments. However, some aspects development and technical support, and a lack of effective to the operational accounts of the MoES, universities, education (Table 4). The formulae for allocation are applied of these services have not yet been fully devolved, such data and accountability mechanisms (Al-Samarrai and and other education sector institutions (votes), districts, to non-wage recurrent and development grants. as recruitment and transfer of secondary school teachers Lewis 2021). The addressed to make decentralization municipalities, and schools. The MoES transfers funds Non-wage recurrent grants include capitation grants and vocational instructors, which are managed by the work. for institutions under it, such as the Uganda National Examinations Board (UNEB), the National Curriculum (UPE/USE/UPOLET), which are transferred directly to MoES, though wages are paid through grants to Local Development Centre (NCDC), and the National Council for schools from MoFPED; as well as budget lines such as Governments (MoES 2021). Higher Education (NCHE). The funds transferred to districts education management services and monitoring, and and municipalities for education include conditional grants school inspection, which are transferred to LGs (Makaaru such as wage grants, non-wage recurrent grants and et al 2015; MoFPED 2014; MoES 2021). 12 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 13 2.4. Key Education Outcomes share of the most productive age groups steadily grow. Figure 6. Gross Enrollment Rates, 2019 Consequently, Uganda is positioned at a critical moment Human capital has increasingly contributed in which policy actions aiming to improve educational 140 131 123 to the wealth generation in Uganda, but its attainment and equip Ugandans with relevant skills could 120 109 current level is insufficient to boost growth boost productivity and income growth and support socio- 106 97 100 96 and sustainable development. Human capital economic transformation. In this regard, various studies 100 refers to the combination of the “knowledge, skills, and suggest that a substantial portion of the demographic 80 71 health that people invest in and accumulate throughout dividend is an education dividend (Crespo-Cuaresma, % their lives, enabling them to realize their potential as Lutz, and Sanderson 2014). 60 53 46 49 productive members of society.”7 In Uganda, the share of 41 44 39 35 wealth derived from human capital has increased from Uganda has made significant progress towards 40 28 31 48.2 percent in 1995 to 73.0 percent in 2018, whereas its goal of ensuring universal education at the 20 the share of natural capital in total wealth declined from primary level, but enrollments are lagging in 45.1 percent to 13.4 percent during the same period.8 subsequent levels. Following the introduction of 0 Nevertheless, according to the World Bank’s Human the UPE policy in 1997, Uganda witnessed a significant Capital Index,9 a child born in Uganda today will be 38 increase in primary education enrollment. In 2019, the Uganda Ethiopia Kenya Rwanda Tanzania Regional Peers Average percent as productive when she grows up as she could gross attendance ratio (GAR)10 stood at 123 percent, which be if she enjoyed complete education and full health. This is higher than the rate in other East African countries and Source: UNESCO UIS (2020), Uganda National Household Survey 2019/20, and Kenya Education PER (Cerdan-Infantes & De Andrade Falcao 2022) is close to the averages for sub-Saharan Africa region reflects that a sizable share of children attending primary Note: The gross attendance ratio (GAR) for Uganda, based on the National Household Survey 2019/20. and low-income countries, ranking 154th out of 174 school are outside of the official age range. Conversely, economies. Low levels of human capital primarily derive despite the introduction of the USE/UPOLET programs, from poor outcomes in education. Uganda has one of the the Gross Enrollment Rate (GER) in secondary education Although the majority of children enter primary means they enter primary education at the age of eight lowest expected years of school among all economies in has remained comparatively low at a steady plateau of education, many do so late, which contributes or above instead of six to seven (Figure 7). Research the HCI index. Ugandan children can expect to complete 25 percent in 2007 and 27 percent in 2016.11 to low completion rates. In 2017, only 60 percent studies indicate that late entry is associated with dropout, 6.8 years of pre-primary, primary and secondary school by of children who started primary education remained in impeding Uganda’s efforts to elevate the educational The lack of progress in secondary enrollment rates may school at the end of P7.13 This indicates low efficiency attainment of its population and reap the benefits of its age 18. However, when years of schooling are adjusted for be attributed to various factors including rapid population and begins with high levels of late entry. In Uganda, investment in education. quality of learning based on the results of internationally growth, insufficient infrastructure, cultural factors (e.g., about one third of P1 students are over age,14 which comparable assessments, this is only equivalent to 4.3 early marriage). In 2019, the GAR in secondary education years – a learning gap of 2.5 years. stood at 39 percent,12 but it was 49 percent in the region. Figure 7. Age at First Primary 1 Attendance Uganda has potential to realize a demographic In pre-primary, enrollment rates lagged those in selected dividend by expanding education opportunities regional peer countries in 2019, most notably Kenya. now. With a population of 44 million, Uganda has one of Even though participation in pre-primary education is the fastest growing populations in Africa and the second not mandatory, it is critical to help children develop the youngest population in the world, in which 2 in 3 Ugandans cognitive and socioemotional skills they need to succeed are below the age of 24. Notably, the demographic trends in school (Figure 6). signal a shift in the population’s age structure where the share of school age population declines, while the 7 World Bank’s definition. For details see https://www.worldbank.org/en/publication/human-capital 8 The Changing Wealth of Nations (CWON) 2021. https://www.worldbank.org/en/publication/changing-wealth-of-nations/ data 9 The Human Capital Index (HCI) quantifies the contribution of health and education to the productivity of the next generation of workers. The index is designed to capture the amount of knowledge, skills, and health a child born today could attain by age 18. For definition and methodology see https://www.worldbank.org/en/publication/human-capital Source: UBOS, 2022 10 The gross attendance ratio (GAR) is the total number of students attending primary school, regardless of age, expressed as a percentage of the official primary school-age population. It is based on household surveys or census, versus enrollment rates which are based on official administrative records, such as EMIS. 11 Source: Ministry of Education Fact Sheet 2016. 13 UBOS 2022. 12 The current upgrade of EMIS will enable more precise computation of official enrollment rates. 14 Excluding repeaters. World Bank based on Uganda National Household Survey, 2019/20. 14 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 15 Grade repetition further undermines the efficiency of one grade of secondary education. In contrast, 52 percent Table 5. Percentage Distribution of Reasons Cited to Leave Primary Education by Grade and Gender, primary education. In 2019/20, about 18 percent of P1 of the population leaves school in primary education. 2019/20 students were repeating that grade, disproportionally The schooling history profile for the post-secondary school affecting students in public schools (26 percent vs 7 Female Male Total percent in private schools). On average, grade repetition age population reflects a similar situation. Although this Primary Education population should be attending post-secondary school, P1-P2 P3-P4 P5-P6 P7 P1-P2 P3-P4 P5-P6 P7 P1-P2 P3-P4 P5-P6 P7 in Grade 1 is more predominant among the most the last level attended by about 42 percent of them was No funding 34 37 42 44 29 35 37 45 31 36 40 44 socioeconomic vulnerable children, such as those in the poorest quintile of income (27 percent) and those living primary education, either complete or incomplete (Figure Too expensive 10 21 18 22 13 16 20 26 12 19 19 24 8). “No funding” and “Too expensive” are the two most in the Northern (29 percent) region. Not willing to attend 13 11 11 5 23 22 21 16 18 16 15 10 commonly cited reasons to leave primary education, and further Grade repetition in P1 is double that of P2-P7 grades both reasons are increasingly more relevant in higher (10 percent on average), resulting from the insufficient primary grades.15 Poor academic performance and Sickness or calamity in 16 7 6 4 17 6 6 5 16 6 6 4 investment in early childhood education. This, in turn, discouragement were also cited, especially for those family produces a ‘traffic jam’ in primary education, affecting leaving school in early grades, while pregnancy is a major Poor academic progress 9 9 6 4 10 11 10 3 10 10 8 4 the quality of education through overcrowded classrooms barrier for girls to remain in schools (Table 5). The problem Pregnancy 0 7 12 14 0 0 0 0 0 3 7 8 and increased pressures on limited learning resources. of teenage pregnancy worsened during COVID-19. Parents did not want 8 2 1 1 5 2 0 1 7 2 1 1 Reasons to leave primary education differ by Completed desired 0 1 1 3 1 4 2 2 0 2 1 2 gender, but the cost of education is the most schooling dominant one. In Uganda, only 17 percent of young Had to help at home 4 2 2 0 1 0 1 0 3 1 1 0 adult population (25–34-year-olds) has completed at least Other 5 3 2 3 1 3 3 2 3 3 3 2 Source: World Bank based on Uganda National Household Survey, 2019/20 Note: Each column totals 100%. Figure 8. Schooling History Profile for Youth Aged 19-24 (Post-Secondary School Age Population) The so-called ‘traffic jam’ and low completion mentioned earlier in this section, but also explained by rates of primary education, result in a low other factors, such as the low pass rate in the PLE and transition rate to secondary education, inadequate supply of secondary schools that cannot while cost-related factors lead to permanent absorb the growing demand for education. dropouts in secondary grades. The transition rate to S1 was 61 percent in 2017, which is low by peer Various demand and supply related factors negatively country and global standards. In Kenya, for instance, the affect the school permanency, but cost-related factors transition rate is 98 percent for males and 100 percent for are cited by the majority of students as key determinants females, and the global average is 91 percent. in their decision to leave secondary education. Pregnancy is still a significant barrier to girls’ persistence in school Furthermore, Uganda’s transition rate has deteriorated (Table 6). since 2013, when it was 72 percent. The ideal scenario is for all children who complete primary education to transition to secondary education, whether it be general or vocational. The low transition to S1 is a direct consequence of low completion in primary, for reasons Source: World Bank based on Uganda National Household Survey, 2019/20 Note: Drop-out in primary means that the child attended at least one grade of primary education, but didn’t continue further education. 15 The metadata of the household surveys does not offer a clear differentiation between “No funding” and “Too expensive”. 16 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 17 Table 6. Percentage Distribution of Reasons Cited to Leave Secondary Education by Grade and Gender, This is consistent with recent results from the Early Grade English as the language of instruction in P4. However, 2019/20 Reading Assessment administered by USAID, in which implementation of Early Grade Reading in local languages most students are rated as “non-reader” in their local has been challenged by the diversity of languages in Female Male Total language (Figure 9). Uganda, patchwork coverage of districts, and low fidelity Secondary Education of teachers to the methodology, which may reflect S1-S2 S3-S4 S5-S6 S1-S2 S3-S4 S5-S6 S1-S2 S3-S4 S5-S6 Consistent with international best practice (Crawford insufficient training and in-classroom support. No funding 41 39 39 40 47 43 41 43 41 et al 2021), Uganda has adopted instruction in mother tongue in the early years of primary, switching to Too expensive 17 26 15 29 26 28 21 26 23 Pregnancy 25 16 14 0 0 0 17 9 6 Figure 9. Early Grade Reading Assessment Results by Local Language, 2022. Not willing to attend further 7 6 4 13 9 12 9 8 9 Completed desired schooling 3 4 10 6 6 3 4 5 6 100 91 90 86 88 Poor academic progress 2 2 2 3 3 1 3 2 1 78 Sickness or calamity in family 2 3 0 3 2 2 2 3 1 80 75 70 66 Further schooling not available 1 1 0 3 3 1 2 2 1 60 Other 2 3 15 4 4 11 2 4 13 Source: World Bank based on Uganda National Household Survey, 2019/20 Note: Each column totals 100%. 50 % 40 Refugees in Uganda face a multitude of are prevalent among some refugees – notably with 30 22 20 obstacles that contribute to non-enrollment Congolese refugees who prioritize farming and business 19 20 and dropout rates, including the cost of over schooling. Additionally, internal conflicts between 12 11 8 9 10 4 3 education and language barriers. One of the most different ethnic groups from the same country can disrupt 1 1 2 2 0 0 0 0 1 prevalent challenges is the financial burden associated settlements and affect children’s attendance in schools 0 Non Reader Low Reader Emergent Reader Fluent Reader with education, which affects both refugees and (Mbabazi et al 2014). non-refugees and often leads to children leaving school. Luganda Runyankore/Rukiga Runyoro/Rutooro Lusoga Leblango LebAcoli This issue is particularly pronounced among refugees, Uganda’s education system is not delivering with over two-thirds of them citing a lack of financial basic skills for most students. Despite remarkable Source: USAID, 2022 resources as a major reason for not attending school, progress in enrollment in primary education, Uganda has compared to about half of the non-refugee population. not met its goal of equipping the population with basic competencies in literacy and numeracy. The COVID-19 pandemic exacerbated the learning Different school-related factors such as teacher Language barriers create difficulties in learning for crisis. A study assessing the effects of the COVID-19 absenteeism, inadequacy of educational resources, refugees, who come to Uganda speaking a wide variety According to the most recent results of the National pandemic on teaching and learning in Uganda found that and violence, contribute to a low quality of education. of native languages and little-to-no English. Many Assessment of Progress in Education (NAPE),16 at the end the percentage of learners rated “proficient” in English Teachers’ absenteeism and under-qualification have refugee children also arrive at settlement camps past of primary education, only 52 percent of students meet literacy dropped from 32 percent in 2018 to 27 percent in undermined the provision of a high quality of education. the typical school entry age, feeling mature and reluctant proficiency standards in English literacy, and 39 percent 2021; proficiency in numeracy dropped from 55 percent The Uganda National Panel Survey (UNPS) Report 2018/19 to begin their education. In certain settlements, the long meet proficiency standards in mathematics. Learning to 41 percent over the same period. indicates that in 2015, 10 percent of primary school distances children must travel to reach schools make the poverty indicators produced by the World Bank also reveal teachers were absent from the classroom on any given situation even more challenging. Moreover, the scarcity of poor learning outcomes in Uganda. About 83 percent of The study also reveals that learning losses were more day, which declined to 6 percent in 2018 (UBOS 2020). secondary schools raises concerns about the purpose of 10-year-olds cannot read or understand a simple text by pronounced in Numeracy skills (GoU; GPE, 2021), which The Uganda Service Delivery Indicators (SDI) Report 2013 attending primary school if higher education opportunities the end of primary school. are more likely to be formally learned at schools. suggests that one out of four teachers were not on the are limited. Negative attitudes towards formal education school premises at the time of the visit, and classroom 16 The National Assessment of Progress in Education (NAPE) is administered by the Uganda National Examinations Board. The NAPE assesses Grade 3 and Grade 6 (ISCED 1) students since 1996 and started assessing Grade 9 (ISCED 2) students in 2008. It targets students in public and private schools. 18 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 19 absence rate reached 52 percent nationally (Wane and Future job projections indicate a rising demand for entry- high-quality and demand-driven training programs in the advancements in higher education and training in Uganda, Martin 2013). Learning conditions have also deteriorated level and mid-level BTVET skills, which are crucial for agriculture, construction, and manufacturing sectors.17 the enrolment rates for STEM/STEI programs remain with the increase in enrolment outpacing the increase in supporting industrialization and transitioning from an Given the large numbers of youth requiring skilling and low. While there has been overall growth in tertiary-level educational and learning resources, such as teachers, agriculture-based economy to a modern, industrialized limited capacity to expand skills offerings in the short enrolment, the enrolment ratio for STEM/STEI programs classrooms and learning materials. economy. run, partnerships with the private sector are essential falls short of the targets set in NDP III: the current ratio to ensure successful labor market transition for trainees of humanities to science courses stands at 2:5, falling Violence against children is frequent in Ugandan Therefore, promoting BTVET skills is a vital component through internships, apprenticeships, and other on-the- short of the target ratio of 3:5. This disparity can hinder schools, disturbing the school climate and the learning of Uganda’s development paradigm. By equipping job learning experiences. the development of a skilled workforce capable of driving environment. School inspection, monitoring and support individuals with relevant technical skills, TVET programs technological innovation and industrialization (NPA 2022). supervision is inadequate and there is poor management can contribute to the growth of industries and facilitate Low enrolment rates in STEM/STEI programs in Ugandan of primary and secondary schools. economic transformation (NPA 2022). universities hinder the development of a skilled workforce for technological innovation and industrialization. Despite Skills Development and Higher Education Despite these opportunities, there is a low enrolment in BTVET programs, which is Skills development is considered to be of attributed to barriers such as high fees. Low paramount importance in the achievement enrolment in BTVET programs can be attributed to of Uganda’s ambitious development, Vision several barriers. First, tuition and other fees are high 2040, but various challenges in implementing (average annual cost per student at USD 829); Kenya, the “Skilling Uganda” strategy remain. The by contrast, reduced the annual cost of technical Government of Uganda has recognized BTVET as strategic training from USD 920 to USD 564 per student. BTVET to the achievement of its ambitious development goals enrollment may be particularly sensitive to cost as the under Vision 2040 and has designed a comprehensive subsector disproportionately serves students from poor “Skilling Uganda” strategy (Strategic Plan 2011–2020). communities. However, implementation was slow due to budgetary Academic entry requirements, negative attitudes towards constraints, the informal nature of the Ugandan economy, BTVET training, and limited entry and exit options within and limited government capacity. Many of the challenges inflexible curricula further limit enrolment. Furthermore, identified in the situation analysis conducted for the inadequate career guidance in secondary schools, “Skilling Uganda” strategy remain, such as fragmented limited career progression paths for BTVET graduates, governance, limited social dialogue, insufficient financing, and insufficient integration with industry hinder the weak information basis, lack of skills recognition and attractiveness of BTVET programs. Limited access to quality assurance, skill gaps, and mismatches (ILO 2020). startup capital, equipment, and markets exacerbates the Uganda’s labor market faces a shortage of challenges faced by aspiring BTVET learners (NPA 2022). job opportunities, making BTVET skills crucial Uganda has made strides toward developing for supporting industrialization and economic a private-sector-led BTVET system, and there transformation. Uganda’s labor market is characterized are further opportunities to leverage the private by a shortage of employment and work opportunities, sector for skills development. The World Bank with vulnerable employment in agriculture or informal supported the GoU to implement key reforms envisaged services being the only option for most Ugandan workers. under the Skilling Uganda Strategic Plan, including Nearly half of its 10.5 million youth (ages 15-29) require developing private sector-led sector skills councils and skilling to participate fully in the economy (World Bank enhancing the capacity of BTVET institutions to deliver staff calculations). 17 Skills Development Project P145309. 20 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 21 3. PUBLIC SECTOR SPENDING ON EDUCATION T his section presents an overview of the level and composition of Uganda’s public spending in education and highlights the contribution of the private sector in the provision for education. Both public and private education spending are broken down by function (level of education) and economic classification. Whenever possible, this section provides an international benchmark Level and Trends analysis of Uganda’s education spending. of Public Spending 3.1 Level and Trends of Public Spending Uganda’s public expenditure on education is far below that of other East African countries and international standards. The Education sector budget is primarily financed through domestic resources of the ‘‘Public spending in education Government of Uganda. In FY2021/22, the public expenditure from the national represented 2.7 of the GDP in budget totaled UGX 3,629 billion,18 while development partners contributed with 2021, about half the average Uganda’s public expenditure on education Private spending on education is equivalent for East African countries’’ UGX 83 billion.19 Local governments are encouraged to top off transfers from the is far below that of other East African to 3.2 percent of GDP, a full percentage countries and international standards. point greater than the historical average central government with locally raised resources, but these revenues represent for government spending. a small fraction of the consolidated budget. According to UNESCO Institute for Statistics (UIS), public spending in education represented 2.7 of the GDP in 2021, about fifty percent below the average spending in selected East African countries (4.2 percent) and it is far from reaching the minimum recommended level by the 03 04 Education 2030 Framework for Action (at least 4 percent of the GDP)20 (Figure 10). As a share of government expenditure, spending on education represented 11.3 percent of the total in 2021 (UNESCO UIS), also the lowest among regional peers, and below the benchmark encouraged by the Education 2030 Framework Capital expenditures Despite a high share of for Action – which is between 15 percent to 20 percent of public expenditure 02 05 have increased in the staff compensation in past four years but are total expenditure (62 towards education (Figure 11). The proposed budget for education in the National percent), teacher salaries with rising enrollment. are relatively low. Budget Framework Paper FY 2022/23 is UGX 3,614.4 billion. This implies that the expenditure from the national budget is anticipated to decrease slightly in nominal terms compared to the actual expenditure in FY2021/22. 01 06 ‘‘Budgeted education spending for FY2022/23 was 18 It only includes allocations to the education sector through the Human Capital Public education spending Development Program. It does not include education and skills strategies under UGX Uganda’s public expenditure on education is far below that of has grown in real terms over other NDPIII programs. However, in Uganda, the MoES is responsible for regulating, 3,614.4 other East African countries the past decade, but most of supporting, guiding, and coordinating all educational institutions in Uganda. Any 05 the additional resources 06 and international standards. other education programs are likely to be non-formal. have accrued to tertiary education and central agencies. billion’’ 19 National Budget Performance Reports 2021/22. 20 Education 2030 Framework for Action aims to mobilize all countries and partners towards achieving the Sustainable Development Goal (SDG) on education and its targets. It urges adherence to benchmarks established in the Addis Ababa Action Agenda of the Third International Conference on Financing for Development. These benchmarks involve allocating at least 4% to 6% of gross domestic product (GDP) towards education and/or allocating at least 15% to 20% of public expenditure towards education. https://unesdoc.unesco.org/ark:/48223/pf0000245656. As a member of the United Nations, Uganda is party to all conventions, resolutions, and commitments to sustainable development. https://unesco-uganda.ug/wp-content/ uploads/2022/10/Uganda-National-Education-for-Sustainable-Development-2030- Framework.pdf 22 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 23 Public education spending has grown over the past East African countries. Kenya is the neighbor that invests Figure 10. Public Expenditure on Education Figure 11. Public Expenditure on Education as a Share decade, but it has remained consistently low compared the most, with 4.9 percent of the GDP, and Tanzania the as a Share of the GDP, 2018 or latest of the Total Government Expenditure, 2018 or Latest to regional peers and stagnated in relation to government one that invests the lowest with 3.7 percent. Additionally, expenditure. Between 2010/11 and 2021/22 fiscal the public education spending in Uganda averaged 12 6.0 years, the education public spending financed through percent of total government spending, versus 20 percent 5.1 5.0 4.8 30.0 domestic resources increased 76 percent after adjusting in neighboring countries. Ethiopia is the country with the 4.2 4.0 3.8 3.9 25.0 24.0 for inflation, which means an average 6.9 percent annual highest allocations to the education sector relative to its 20.5 3.3 18.7 19.0 2.7 3.1 20.0 14.4 increase. Education spending averaged 2.2 percent of the total government expenditure (27 percent), followed by 3.0 % 12.4 15.0 11.3 GDP between 2010 and 2020, against 4.3 percent in other Kenya (19 percent) (Figures 13-14). % 11.3 2.0 10.0 5.0 1.0 0.0 0.0 Figure 13. Evolution of the Public Expenditure Figure 14. Public Expenditure on Education as a on Education as a Share of the GDP, 2010-2021 Share of Total Government Expenditure, 2010-2020 6.0 35.0 5.0 30.0 4.0 25.0 20.0 3.0 Source: Unesco (2022) Source: Unesco (2022) % % 15.0 2.0 10.0 1.0 5.0 Uganda’s per-student government expenditure percent of the GDP per capita in primary education, while 0.0 0.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 20192 020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20202 021 on education – including primary, secondary, the regional average is 9 percent. In secondary education, Uganda Ethiopia Kenya Uganda Ethiopia Kenya Rwanda Tanzania Regional Peers Average and tertiary levels, is consistently lower than the per-student expenditure represents 10 percent of the Rwanda Tanzania Regional Peers Average LIC LMIC LIC LMIC the regional average as a percentage of GDP GDP per capita, but the regional average is 19 percent. per capita. As a share of the GDP per capita, the The per-student cost in tertiary education is high across Note: %GDP in 2019 calculated based on Budget Performance Report. Source: Unesco (2022). per-student government expenditure across all levels the region. In Uganda, it represents the 63 percent of the of education are below the regional average, including GDP per capita, but the regional average is 98 percent tertiary education. Uganda spends the equivalent of 3 (Figure 12). Amid the COVID-19 pandemic, the GoU modestly The government has continued to implement actions to increased its education spending, but the sector dropped mitigate the impact of COVID-19 on the education sector. Figure 12. Government Per-Student Expenditure as a Share of the from third to fourth place among sectors with the highest For FY2023/24, the MoES plans to allocate UGX 0.8 billion GDP Per Capita, Latest Year Available public allocations. The allocations for education increased (0.17 percent of the approved budget for GoU)22 towards 300 266 in nominal terms between FY2017/18 (before COVID- minimizing the spread of COVID-19, Ebola Ebola and other 19) and FY2020/21 (during COVID-19), but the sector public health emergencies in schools and their impact on 250 dropped from third to fourth place among the sectors with learning outcomes.23 the highest public allocations (Development Initiatives 200 2021).21 150 % 98 98 100 76 63 50 17 22 22 19 11 10 15 8 4 10 9 3 0 21 As part of the COVID Emergency Education Response and with the World Bank support, public primary and Uganda Ethiopia Kenya Rwanda Tanzania Regional Peers Average secondary schools were provided with UGX 1.5 million per school in one disbursement per annum to support schools in implementing the Water Sanitation and Hygiene Program. The funds are being disbursed using the Straight Through Payment Process (STP) method which is also used for payment of capitation grants direct to the school accounts. Other Source: UNESCO UIS (2020) interventions included the distribution of learning materials, support remote self-learning, development of a customized e-learning platform, among others (MoES 2022). 22 Excluding external financing, arrears and A.I.A. 23 Ministry of Education Budget Framework Paper FY2023/24 https://budget.finance.go.ug/sites/default/files/Sector%20 Spending%20Agency%20Budgets%20and%20Performance/Ministry%20of%20Education.pdf. 24 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 25 The primary level receives the highest total As a result, per-student spending has risen Figure 16. Government per Student Expenditure in 2021 Prices by Level of Education, 2010/11–2021/22 public funding, but the second largest in higher education, while public spending 3,000 expenditure is allocated to tertiary education, per student has declined at the primary and Ugandan Shillings ('000) (2010=100) 2,497 which tends to benefit better-off youth. The secondary levels. Per-capita expenditure has 2,500 greatest percentage of public expenditures for education deteriorated in primary and secondary education driven 2,000 1,928 financed with domestic resources go towards the primary by an increase in enrollment to higher rates than the 1,500 1,321 level (36 percent), followed by higher education (25 growth of the education budget for those functions. Only 1,052 percent), secondary education (20 percent), and BTVET/ for secondary education did this trend seem to reverse 1,000 skills development (6 percent). High public expenditure after 2018. 394 335 350 500 247 for tertiary education raises equity concerns as tertiary 140 131 124 121 education is more likely to benefit better-off youth (Figure In contrast, the per-student spending in tertiary education - 15a). As shown and discussed later in section IIIC, higher increased by 8 percent per annum in real terms since 2010/11 2014/152 018/19 2021/22 education expenditures are the most regressive of all 2010/11. The average spending in tertiary education is 21 levels. times as high as the spending in primary education and Source: World Bank based on Annual Budget Performance Reports (Ministry of Finance) and MoES fact sheets and school census 2020. 7 times as high as the spending in secondary education. Note: Enrolment in 2018 and 2021 was projected using 2011–2016 trend. Tertiary education and unclassified expenses Primary education remains the sector with the lowest have received the largest share of the increased per-student allocations, only one third of the per-student education expenditure over the past decade. allocation in secondary education (Figure 16). Around 43 percent of the additional resources were Box 1. Methodology for Calculating Per-Student Expenditure on Education directed towards tertiary education and 24 percent of total to expenditures not classified by levels of education (Figure 15b). The latter include resources to support Between FY2015/16–FY2019/20, there was a drastic increase in the number of supplementary budgets national policies and programs under central agencies considered. The total supplementary expenditure approved by Parliament increased from UGX 889 billion (3.7 such as the Ministry of Education, Uganda National percent of the approved budget) in FY2015/16, to UGX 3.249 trillion (8.0 percent of the approved budget) in Examinations Board, Kampala Capital City Authority, FY2019/20. National Curriculum Development Centre and Education Source: https://parliamentwatch.ug/news-amp-updates/govt-commits-to-end-the-fiscal-indiscipline-of- Service Commission. supplementary-budgets/ During FY2021/22, the Government appropriated four rounds of supplementary budgets amounting to over UGX Figure 15. GoU’s Expenditure by Level of Education 9.138 trillion ($2.538 billion). See https://politicalfinanceafrica.org/what-explains-governments-fondness-for- a) Percentage distribution b) Expenditures in 2021 prices (millions) supplementary-budgets-which-have-no-impact-on-gdp-growth/ 4,000 Starting in FY2022/2023, the government committed to end the fiscal indiscipline of supplementary budgets. In presenting the UGX47 trillion national budget to Parliament, the state Minister for Finance (General Duties), 3,500 100% 3% 5% 436 7% 12% 11% Ugandan Shillings 2021=100 12% 3,000 80% 5% 22% 10% 2,500 185 572 911 60% 23% 22% 7% 17% 25% 6% Henry Musasizi, had indicated their determination to “limit supplementary expenditures to 3 percent of the total 67 105 approved budget as provided for in the law”. 2,000 262 230 20% 736 40% 1,500 483 450 466 57% 51% 20% 47% 1,000 36% 1,169 1,093 1,244 1,303 500 0% 2010/112 014/15 2018/19 2021/22 - 2010/11 2014/152 018/192 021/22 Source: UNESCO (2023). https://uis.unesco.org/en/glossary Skills Development Skills Development Source: World Bank based on Annual Budget Performance Reports (Ministry of Finance) Note: Domestic funding only. Excluding external financing and arrears 26 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 27 3.2 Spending Composition by Development/capital expenditure have increased, but Figure 19. GoU Expenditure by Level of Education Figure 20. Uganda. Source of Funding of Development Economic Classification amid severe infrastructure challenges, trends seem and Economic Classification, 2021/22 Programs in 2021 Prices, 2010/11–2021/22 inadequate. Development/capital expenditure has The total public education spending is skewed averaged 14 percent of the total expenditure from national towards wages, while non-wage expenses budget and external financing. After 2018, the budget Total 59% 29% 12% 600 have increased in recent years. Over most of the Ugandan Shillings ('000) (2021=100) allocated to development programs has substantially 15% 53% 32% 500 decade, wages made up approximately 62 percent of the increased. Therefore, over the last four years, there has 8% 92% 0% 400 total education spending. The Africa regional average in been an increase in classroom construction, but it has not 6% 55% 38% 300 2015 was 49 percent. Wages dominate the expenditure kept pace with the overwhelming increase in enrolment. 58% 35% 7% in primary education, with a share of 79 percent, and it Skills Development 38% 55% 8% 200 represents a small share in the expenditure for Special In primary education, for instance, newly built schools 58% 22% 20% 100 Needs Education and Physical Education and Sport. In have not compensated for the growth in UPE pupils, 79% 16% 5% 0 2010/112 014/152 018/192 021/22 parallel, non-wage expenses increased to 29 percent in and the average pupil-to-school ratio has been steadily 0% 20%4 0% 60% 80% 100% GoU Wage Non-wage Development 2021/22, reflecting that learning materials, and sanitation increasing across the country from a level of 582 in FY and hygiene resources were distributed in response to the 17/18 to a level of 690 in FY 21/22. The pupil-to-school Source: UNESCO UIS (2020) Source: World Bank based on Annual Budget COVID-19 pandemic. However, as compared to regional ratio worsened in LGs that had a relatively higher existing Performance Reports (Ministry of Finance) peers, Uganda invests less in other items that enhance ratio. In secondary education, access fared slightly better learning (Figures 17-19). The composition of education than for primary until FY 20/21, as donor funded projects spending reflects the low public expenditure on education, have been, for the most part, targeting secondary school Despite a high share of staff compensation in requiring all pre-primary and primary teachers to have as spending on teachers also needs to be increased construction (ODI, 2022). Additionally, about 26 percent total expenditure, teacher salaries are relatively a degree under the 2019 Teachers Policy. While raising due to low salaries. While teachers are a crucial factor of the existing classrooms for primary education are still low. Teacher salaries are below the national average teacher salaries without implementing other reforms in facilitating learning, investments in complementary in temporary structures (Figures 17 and 20).24 salary of other professionals. Salaries for teachers to increase professionalism and accountability has no areas such as infrastructure, materials, and training are with a university degree are 37-42 percent lower than impact on learning, the competitiveness of salaries is also crucial for achieving optimal learning outcomes. the national average of other professionals (Figures an important lever for the government to attract the best Without these complementary investments, teacher 21-22). While primary teachers do not all currently candidates into teaching (Béteille and Evans 2019). effectiveness will be limited. Therefore, it is necessary to have a university degree, teacher compensation will be allocate sufficient funds to recruit and support teachers, an important consideration as Uganda moves toward while also investing in complementary areas to improve the quality of education. Figure 21. Ratio of Teacher Salaries to Earnings of Similarly Figure 22. Ratio of Teacher Salaries to Earnings of Educated Workers by Highest Degree of Post-Secondary/ University Educated Workers by Level of Instruction, Figure 17. Uganda. GoU Expenditure by Figure 18. GoU Expenditure by Economic Classification, 2015–2016 Tertiary Education Completed and Age Group, 2019/20 2019/20 (25-64 Years Old) 24 Annual School Economic (ASC 2020) Census 2010/11–2021/22 Classification, (Latest Available)Classification, 2015–2016 (Latest Available) 100% 100 100% 94% 9% 14 7 13 70% 67%6 7% 14% 19 15% 18% 35 86% 80 32 80% 24 78% 60% 26% 45 32 80% 22% 29% 60 21% 19 48% 63% 63% 50% % 60% 40 58% 60% 62 61 40% 45 42 49 20 40% 65% 40% 30% 64% 60% 0 58% 20% Uganda Ethiopia KenyaR wandaR egional Peers 20% Average 20% Capital expenditure 10% 0% 2010/11 2014/152 018/19 2021/22 0% 0% Wage Non-wage Development Post primary/junior Post secondary Degree and above Primary school and University and specialized Specialized training early childhood teachers 25-34 25-64 teach teachers Source: World Bank based on Annual Budget Performance Reports (Ministry of Finance) Note: (i) Development includes External financing. (ii) It was included the historical average for Uganda for the regional comparison. Source: World Bank based on Uganda National Household Survey, 2019/20 (median salaries for teachers and similarly professionals had the same trend before and during COVID.) 24 Annual School Census (ASC 2020) 28 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 29 3.3 Contribution of Private Expenditures to Education Figure 23. Private per-Student Expenditure by Level of Education as a Share of the Average per Household Income, 2019/20 Private spending in education is high, with as high as the cost of attending primary education. The 80% 68% households spending more on education than household per-student expenditure on post-primary 70% Ugandan shillings (0000) government. In 2019/20, private spending in education vocational education and post-secondary education is 60% 52% amounted to 3.2 percent of the GDP. This indicates that even slightly higher in government-aided schools than in 50% 42% private investment is at least one percentage point above private schools (Figure 24). Altogether, households may 40% 28% 29% the historical average for government of 2.2 percent. struggle financially to keep children in schools, especially 30% 19% 18% 20% 13% Overall, for every UGX 1,000 the government invests those with a high number of children and with students 10% 3% 2% 3% in education, households add UGX 1,450. Likewise, in advanced levels.27 2% 0% the private contribution in Uganda exceeds the global Pre-primary Lower Secondary Upper Secondary Post-primary Postsecondary and average of 1.9 percent of the GDP and surpasses that of Despite the GoU’s funding of UPE/USE above other regional peers such as Ethiopia (0.3 percent) and policies, households still contribute with Pre-COVID During COVID Tanzania (1.4 percent).25 Rwanda is one of the regional school fees in government-aided schools. peers investing the most in education relative to the level The household expenditure includes direct payment to Source: World Bank based in Uganda National Household Survey 2019/20. of development, with household expenditure representing education institutions and payments outside education Note: Mean per household income USH4,071,156. 5.9 percent of the GDP and a public expenditure of 4.4 institutions on goods and services required for school percent of the GDP. In Uganda, public education spending attendance and private tuition. In primary education, has barely kept pace with the school-age population, and households should not pay tuition and fees at government- this may have heightened the reliance on households to aided schools, but schools still charge them. School fees use their own resources (NPA 2018). make up a sizable share of the household expenditure across all levels, even in public schools. Books and school Figure 24. Composition of the Household Expenditure on Education by Level of Education and Type of School, 2019/20 The household per-student cost is high, supplies and “expenses that cannot be broken down”28 3,000,000 especially for secondary and post-secondary constitute the second and third largest categories of 2,500,000 students. Both before and during COVID-19, the expenditures. The next largest household spending is on 2,000,000 per-student cost of attending secondary and post- uniforms and sport clothes, followed by others (pocket 1,500,000 secondary education represents a large portion of the money) and exam fees. Boarding expenses represented 1,000,000 household income (Figure 23).26 Likewise, the cost of the smallest share, except among students attending 500,000 transitioning from primary to secondary education entails government-aided school at the post-primary vocational a high cost for the families, even for students attending level (Figure 24). - Gov’t Private Gov’t Private Gov’t Private Gov’t Private Gov’t Private Gov’t Private governmentaided schools. On average, per-student cost Pre-primary education Primary Education Lower Secondary Education Upper Secondary Education Post-primary Vocational Education Postsecondary and above of attending lower secondary education is nine times School fees* Expenses that cannot be broken down Other educational expenses** Books and school supplies Boarding fees Transport to and from school Uniforms and sport clothes Registration fees Exam fees Expenses in day care facility Source: World Bank based in Uganda National Household Survey 2019/20. Note: including contribution to school development fund e.g., swimming, sports, school trips, pocket money, coaching etc. This figure includes the whole sample (pre-and during COVID-19). 25 UNESCO 2022: https://www.education-progress.org/en/articles/finance. 26 According to survey data from the height of the pandemic (July 2020–November 2022), the household education spending declined across all levels of education, as compared to September 2019–February 2020 (pre-COVID-19). The total household expenditure dropped 45 percent between these two periods – especially in school fees. 27 The average number of childen per household is 2.3 with a deviation of 1.9. 28 It is not clear from the survey instruments which items are included in “expenses that cannot be broken down.” It may include school meals, but also behaviors identified in the National Integrity Survey Report 2020 such as bribing an education provider (teacher, examiner etc.) for the delivery of a service that should be free. Motivations for paying bribes in public education may include ensuring good grades, securing a place for a child, or passing a test/exam (Fazekas et al 2021). 30 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 31 4. ANALYZING THE PERFORMANCE OF UGANDA’S EDUCATION EXPENDITURES T his section assesses the adequacy, efficiency, and equity of expenditures on education. The adequacy subsection presents different simulations reflecting the additional cost of meeting national development goals and key challenges Performance of Uganda’s in the sector. The efficiency subsection describes some areas where the spending can produce higher value for money from current levels of expenditure. Finally, the Education Expenditures equity section addresses the spending distribution by socioeconomic population groups to identify patterns of progressivity and regressivity in public spending. 4.1 Adequacy of spending Uganda aspires to achieve ambitious development goals over the next years, for which specific goals have been set up in the education sector on learning, access, and relevance. Through Vision 2040, Uganda aims to become an upper middle-income country, with drastic improvement in 33 human development indicators. These aspirations are operationalized in the National Development Plan III (2020) (NDP III),29 which is one of the bases for the formulation of the national budget. Key development goals for the education sector under the NDP III, linked to national budget priorities, include: increase average years of schooling from 6.1 to 11 years; increase learning adjusted years of schooling from 4.5 to 7 years; increase the percent of employers satisfied with the training provided by the TVET institutions from 40 percent to 65 percent; and increase the ratio of STEI/STEM graduates to Arts graduates from 2:5 to 3:5 . A set of intermediate outcomes for each level of education have also been established.30 The dynamic population growth jeopardizes the achievement of universal primary and secondary education and demands increased resources for the sector. In the context of a growing population, the demand for education is expected to increase across all levels of education. Over the period 2022– 2030, the primary and post-secondary school age population will experience the highest increase, by 21 percent each level. The school-age population for the other levels will also experience significant growth. Projected ADEQUACY increases are 19 percent in lower secondary education, 14 percent in pre-primary and 13 in upper secondary education (Figure 25). Altogether, the school-age population (ages 3–24) will increase by 4.6 million in only eight years (2022-2030). EFFICIENCY Vision 2040 Current public education spending does not match the demands of a youthful demographic profile, which highlights a sharp contrast in intra-sectoral priorities ‘‘Uganda aims to become an upper middle-income country, for the provision of public services. Despite having the second youngest population with improvement in 33 human in the world, with around 66 percent of the population under 24 years old, funding EFFECTIVENESS development indicators.’’ for education has not been prioritized. EQUITY 29 2020/21–2024/25. 30 https://budget.finance.go.ug/sites/default/files/12%20Human%20Capital%20 Development.pdf. 32 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 33 To increase quality of education in primary The GoU falls short of adequately providing Figure 25. School Age Population Growth, 2022–2050 education, the current education budget effective “demand-side” interventions that 90 would have to increase 12 percent by 2030. help students succeed in terms of progression Million 80 70 190 The Evaluation of UPE policy conducted by the National and learning. Examples include reduction or 180 60 170 Planning Authority in 2018 concluded that the policy elimination of school fees, school feeding programs, and 160 50 should not be understood as free education for all but information campaigns to educate families on the benefits 2022 =100 150 40 140 30 130 rather as subsidized education because the amount paid of attending school. In many countries, the abolition of 120 20 110 by government is below the required amount for quality school fees and other expenses linked to schooling 10 100 education. Currently, up to 83 percent of UPE expenditures has resulted in increased enrollments, indicating that 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 0 are taken up by operational costs at the expense of critical parents lacked the financial means to pay the fees. 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049 Pre-primary (3-5) Primary (6-12) Lower Secondary (3-16) Upper Secondary (17-18) Post-secondary (19-24) 0-14 Children 15-24 Youth 25-64 Working age 65+ Older persons scholastic materials and inspection. Providing information to parents and children regarding the economic returns of education, financial support Therefore, to achieve sustained quality UPE by 2030, it will options, and the quality of local schools has resulted in Source: World Bank based on UBOS 2022. require current spending per student to increase from UGX enhanced attendance and learning outcomes at a low 10,000 to UGX 63,546 in urban schools and UGX 59,503 cost.32 Providing financial aid based on need, such as The education budget for recurrent expenses – a 35.8 percentage increase in the current education in rural schools (NPA 2018). At the current per-student through conditional cash transfers, can play a pivotal role would have to increase 35.8 percent by 2030 budget (Scenario 2). These simulations assume that allocation of UGX 17,000 (FY 2020/21), this will entail in motivating children to stay in school, especially during to enable Uganda to provide for universal the government will maintain the current per-student an increase in the education budget in 12.3 percent by the secondary level, where families still face expenses primary and secondary education. To at least spending. Therefore, these calculations are lower bound 2030, assuming universal primary education and without (including opportunity costs), even for public schools. maintain the current enrollment rates in primary and estimates as the current per-student level of expenditure is factoring in internal inefficiencies.31 Public provision of school meals could be desirable as secondary education, recurrent expenses would have not adequate to provide for quality education. Substantial it increases access, reduces absenteeism and dropout The Government of Uganda set out to focus to increase by 12.3 percent by 2030 – around UGX 445 investment would also be required in construction of new rates, but currently, in Uganda there’s not enough money on the Early Childhood Development (ECD) billion in current prices (Scenario 1). Additionally, to classrooms. The current education budget would have for the implementation of school feeding programs for programme in order to achieve equitable meet the development goal of increasing average years to increase by 36.0 percent to expand infrastructure to public primary and secondary schools. The responsibility access to relevant and quality education and of schooling to 11 years, the country will have to both at least maintain the current GER, and by 82.9 percent of providing meals has been delegated to parents due to training. In the exercise conducted by the Ministry of absorb the influx of new students due to the population to attain universal primary and secondary education by the unaffordability and unsustainability of government Finance in 2016 to explore how universal pre-primary growth and attain universal (lower) secondary education, 2030 (Table 7). financing (World Bank 2018, World Bank 2020). education could be achieved, some challenges affecting which would cost 1,299 billion in current prices by 2030 quality of pre-primary education were described, such Demographic trends and increased as inappropriateness of learning materials, poor quality completion rates drive skill demand in the Table 7. Additional Recurrent and Capital Expenses to Guarantee Universal Primary and Secondary of infrastructure and shortage of qualified pre-school medium term, which requires TVET sector Education by 2030. teachers. expansion; public universities face staffing Scenario 1: Maintain GER Scenario 2: Universal Education At the regulation ratio of 1 teacher to 25 children, and financial challenges. Demographic trends, MoFPED estimates that universal access would require along with higher completion rates, are expected to Billion UGX % GoU Education Billion UGX % GoU Education an additional 102,400 teachers and as many equipped result in a significant increase in the demand for skills Expenditure Expenditure development, which demands the expansion of the classrooms, plus supervisory and administrative (MoFPED Recurrent 445.3 12.3% 1,299.3 35.8% 2016). Additionally, the most recent Education Abstract TVET sector. In universities, even though universities are Capital 1,306.1 36.0% 3,008.2 82.9% Report (2017) estimates that given that enrollments are encouraged to diversify their sources of income, all public on the increase, more than 22,387 structures are still universities are understaffed, there are salary disparities Total 1,751.4 48.3% 4,307.5 118.7% needed in the pre-primary subsector, e.g., classrooms, among staff and the welfare allowance for government Source: World Bank Calculations. sponsored students are not commensurate with the latrine stances, teacher housing etc. (MoES 2017). Note: (i) Scenario 1: Maintain GER=> Primary: 130%, Lower Secondary 42%; Scenario 2: Universal Education=> Primary: 130%, Lower Secondary 100%. (ii) for capital expenses, the current cost of living (MoFPED 2018). model estimates the number of additional classrooms that must be created. It does not include complementary infrastructure (latrine, teachers’ housing, equipment, etc.) (iii) capital expenses do not include the cost of rehabilitation of classrooms that are permanent but not functional (11,000 classrooms in primary education and 3,860 in secondary education). Therefore, the capital expenses are higher than calculated. (iv) the model assumes that the number of classrooms created will not exceed the required amount given the school age population, not the enrollment – which exceeds the population due to inefficiencies. (v) These simulations assume that the government will maintain the current per-student spending. Source: World Bank Calculations. 31 It is considered a gross enrollment in primary education of 100%, with a projected school-age population of 10.3 million students by 2030. 32 This information can be communicated through means such as text messages or videos (as used in Chile and Peru), parents’ meetings (conducted in Madagascar, Chile, and the Dominican Republic), or school report cards (implemented in Pakistan). 34 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 35 4.2 Efficiency of spending In Uganda, a better use of current educational and Figure 26. Learning Adjusted Years of School (Educational Outcomes) Compared to the Level of financial resources could result in better educational While the overall low level of expenditures Development and Expenditure on Education in 2020 outcomes. There is a strong link between the level of is the primary constraint to better education development, expenditure, and educational results. a) LAYS vs GPD per capita b) LAYS vs Education Expenditure outcomes in Uganda, more could be achieved However, Uganda and regional peers, except for Kenya,33 at current expenditure levels through have Learning-Adjusted Years of Schooling (LAYS) scores efficiency improvements, and fully realizing 14 below the average of countries with similar levels of 14 the benefits of higher spending similarly development and similar expenditure levels (Figures 26a- 12 12 requires efficiency improvements. Optimal results Learning-Adjusted Years of School 26b). When level of development, education expenditure 10 require an efficient allocation of funds among competing 10 Learning-Adjusted Years of School and percentage of population aged 24 and below are Kenya Kenya priorities and eliminating leakages in the system. A more 8 jointly considered, LAYS in Uganda are 11 percent below 8 efficient provision of education requires that resources 6 Uganda expected. Tanzania are directed to the areas where they can produce the 6 4 Rwanda Ethiopia Tanzania highest “value for money.” Educational efficiency is However, the scope for efficiency gains is even higher, as 4 Ethiopia 2 Uganda typically conceptualized as the ability to fulfill maximum this comparison is with the “average country” – which Rwanda 0 6 7 8 9 10 11 12 educational potential at the lowest possible cost, which Log GDP per capita, PPP (current interna onal $) may also have scope for efficiency gains – and not with 2 can be attained in two ways – by achieving the same those on the efficiency frontier. 0 outcomes at a lower amount of school funding (producing 0 2 4 6 8 Expenditure on Educa on as a share of GDP (Average 10 years) 10 12 Source: World Bank based on Human Capital project (HCP) and World Development Indicators (2022) cost-savings) or achieving better outcomes with the same level of funding (OECD 2017a). Budget Execution The actual spending is close to the approved budget. On average, the sector has utilized about 98.6 percent of the approved budget from domestic resources in the selected fiscal years between 2010/11 and 2021/22. The rate of resource utilization was 101.5 percent in 2018/19 and dropped to 98.7 percent in 2021/22. The deviation of spending with respect to what was approved is mainly driven by higher education in the most recent fiscal year, while there has been reallocation of funds among central level agencies. During 2021/21, the approved allocation of UGX 43.40 billion for higher education, was not absorbed – most of them for non-wages expenses, attributable to the second lockdown imposed by the pandemic. The GoU has been consistently struggling to fund the existing public universities and has not been able to fully provide for their financial needs (MoFPED 2018). At the local government level, it is not possible to know the actual transfers to facilities (Figure 27 and Table 8). Figure 27. Approved vs Executed Budget in Education a) Total b) By Administrative Level 4,000 120.0% 120% 108.9% 98.7% 100.0% 99.1% 101.5% 99.7% 99.6% 100.0% 3,500 95.2% 100% 95.3% 100.0% 3,000 80.0% 80% 2,500 Billion UGX 60% 2,000 60.0% 1,500 40% 40.0% 1,000 20% 20.0% 500 0% - 0.0% Central Local Government 2010/11 2014/15 2018/19 2021/22 Government Approved Expenditure 2018/19 2021/22 33 In the past two decades, Kenya implemented policies to ensure that education is free for everyone, leading to a remarkable rise in enrollment rates. It included the Free Primary Education (FPE) policy, which was introduced in 2003 and benefits children in public primary schools, including both pre-primary (also called early childhood education) and primary education. In 2018, Kenya abolished tuition fees for secondary schools, making secondary education free for all Source. World Bank based on Annual Budget Performance Reports (Ministry of Finance). Kenyan students. Currently, the country has initiated new reforms that aim to enhance the quality of education. These Note: At the local government level, it is not possible to observe the actual transfers to facilities. reforms comprise a competency-based curriculum (CBC), reforming teacher management and development, enhancing the accessibility of school resources like textbooks and infrastructure, strengthening school management structures, and gradually decentralizing management in the Ministry of Education (MoE) and the Teachers Service Commission (TSC) to county and sub-county-based education offices to improve sector management (Cerdan-Infantes and De Andrade 2022). 36 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 37 Table 8. Approved vs Executed Budget in Education by Administrative Level and Economic Classification, 2018/19 the cost for families in primary education to reduce the students have different average STRs. For example, some and 2021/22 prevalence of dropouts, thereby increasing the efficiency districts have more than double the national standard of of the sector. For instance, Uganda’s benefitto- cost ratio 53 primary students per teacher, while in others the STR Difference Expenditure vs Approved Rate of execution for pre-primary education is 1.6, which implies that is half the standard (Figure 29). A similar situation also Wage Non-wage Development Wage Non-wage Development money invested in pre-primary schooling has a return of occurs in secondary education (Figure 30). In secondary Central Government 60 percent in terms of future incomes, productivity, and education, no district has a staffing level approaching the health (MoFPED 2016).35 new standards adopted in 2020/21. More importantly, 2018/19 0.40 -5.10 3.60 101% 98% 105% some districts with the same number of students have 2021/22 -9.80 5.50 1.60 90% 101% 101% It is worth noting that empirical studies show that both stark differences in student-teacher ratios. government education expenditures and early education Local Government attendance are positively associated with better later There are also disparities within districts. Some 2018/19 0.00 0.00 0.00 100% 100% 100% school performance at the aggregate country level (Del districts have an acute deficit of teachers in almost all of 2021/22 0.00 0.00 0.00 100% 100% 100% Boca et al 2018). The results of the OECD’s Programme their schools, other districts have a surplus, and in yet for International Student Assessment in 2018 show that others, a reallocation of teachers across schools may be Tertiary institutions 15-year-old students who had attended pre-primary feasible.36 For instance, in Sheema district, 96 percent 2018/19 25.20 5.00 7.80 108% 107% 122% education for two years outperformed students who did of the primary schools have an STR above the norm 2021/22 12.30 -58.20 2.50 102% 83% 104% not attend that level or who only attended for one year (deficit of teachers), but in Karenga district, 95 percent Source: World Bank based on Annual Budget Performance Reports (Ministry of Finance) (OECD 2020). of schools have an STR below the norm (surplus of Note: Domestic budget. teachers). In Kaliro district, 39 percent of schools have a deficit of teachers and 42 percent of the schools a surplus, Efficiency in Teacher Distribution indicating opportunities for reallocation. Efficiency in the Distribution of Funds When students do not progress through the system as While standards for student-teacher ratios are expected and exit with insufficient knowledge, skills, In the country as a whole, 47 percent of schools have met at the national level, teacher allocation The inadequate public funding of ECD and competencies, it has a high cost for school systems a deficit of teachers and 37 percent a surplus (Figure disparities between districts indicate an services results in low internal efficiency in and individuals and is an important source of inefficiency 31, Table 9). The disparities across districts are likely inefficient teacher allocation system. In primary education. Failing to provide the adequate (OECD 2017a). In 2019/20, the inefficient public spending an outcome of the allocation of wage grants to local government-aided schools, the student-teacher ratios level of resources to sustain early childhood education on students who drop out and repeat a grade amounted governments, which are “allocated on the basis of a (STRs) for primary education comply with the national is likely to result in increased expenditure needs at to UGX 284 billion or 24 percent of the overall public bargaining process with little transparency between the standards on average (53 students per teacher).36 In later stages of the schooling process (OECD 2017a). A spending in primary education. Additionally, the inefficient central government and LG” (Fraser and Lockheed 2021). secondary education, the GoU recently reduced the UNICEF study indicates that for every UGX 1,000 invested spending in secondary education amounted to UGX 96 The inefficient distribution of teachers also raises equity student-teacher ratio to 10 – new standards adopted in Universal Primary Education (UPE), the government billion – 23 percent of the overall spending in that level.34 concerns on public spending. in 2020/21 (Figure 28). However, for both primary and loses UGX 600 because the majority of children have Prioritizing spending in pre-primary and secondary education, districts with a similar number of not accessed pre-primary education. This is because most Primary One classes are crowded (most of whom primary levels over tertiary education would are underage) and there are high repetition rates, yet yield higher value for money. In recent years, government continues to provide capitation grants for Uganda has notably increased the spending in tertiary these children (MoFPED 2016). education, which absorbs the second highest share of the education budget after primary education. Amid Additionally, the insufficient public spending the scarcity of public resources, the GoU can better in primary and secondary education is an allocate the education budget to prioritize programs important determinant of dropouts, weakening that produce high social and private benefits and have the efficiency in the sector. One of the most cited a large multiplicative effect. It may include increasing reasons for leaving primary and secondary education are the funding for pre-primary education and reducing cost related. 35 Research conducted by UNICEF in 2013. 36 It is assumed that a school has an adequate number of teachers if the STR is exactly 53:1 (national standards). A school has a deficit of teachers if there is one teacher fewer than expected given the standard of 53 students per teacher, while a school 34 World Bank calculations based on Uganda National Household Survey 2019/20. has a surplus of teachers if there is one teacher more than expected given the standard of 53 students per teacher. 38 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 39 Figure 28. Uganda. Number of Students per Teacher, 2020/21 Table 9. Distribution of Schools According to their Level of Teaching Figure 31. Uganda Distribution of Schools According to their Level Staff in Government-Aided Primary Schools, by District, 2020/21 of Teaching Staff in Government-Aided Primary Schools, 2020/21 60 Adequate; 17 Deficit; 47 Surplus; 37 Deficit Adequate Surplus 53 Deficit Adequate Surplus 50 Sheema 96 2 2 Rukungiri 92 5 3 40 34 Rukiga 90 7 3 30 Mbarara 90 6 4 21 Bushenyi 89 8 3 19 20 15 17 Adequate; Kiboga 89 9 2 17 Mitooma 86 9 5 10 Surplus; … 37 Kisoro 40 34 26 0 Kaliro 39 19 42 Namutumba 38 18 44 Government aided Private Total ; 47 Nabilatuk 38 44 19 Nwoya 37 42 21 Source: School census, 2020 (September 30th) Bugweri 37 26 37 Kikuube 35 25 39 … Kaabong 3 3 94 Figure 29. Number of Students per Teacher (STR) and Number of Figure 30. Number of Students per Teacher (STR) and Number of Students in Government-Aided Primary Schools by Districts, 2020/21 Students in Government-Aided Secondary Schools by Districts, 2020/21 Zombo 2 14 84 Butebo 0 6 94 Kaberamaido 0 9 91 50 120 45 Kalaki 0 6 94 100 40 Kapelebyong 0 15 85 Median STR in district Median STR in district 35 80 Karenga 0 5 95 30 60 25 Note: The table presents a selection of districts sorted by 40 20 Source: School census, 2020 (September 30th) the percentage of schools with deficit. Source: World Bank 15 calculations based on School census, 2020 (September 30th) 20 10 5 - - 50,000 100,000 150,000 200,000 250,000 0 Meeting standards for student-teacher ratios chronically absent from their classrooms. According to 01 0000 200003 0000 40000 50000 Number of students in district Number of students in district is important, but not sufficient, for quality and the most recent Service Delivery Indicators (SDI) Report efficiency. International evidence indicates that in most for Uganda, approximately one in four (23.3 percent) contexts, reducing class sizes alone does not improve public school teachers were absent from work and 52.3 Source: School census, 2020 (September 30th) learning outcomes in the absence of other reforms – percent were not teaching in the classroom. In other in particular pedagogy and a more close alignment of words, 47.7 percent of public school teachers were teaching with student learning levels (Banerjee et al 2023). not actively teaching at any given time (Wane & Martin Teacher absenteeism and poor classroom management 2016). Therefore, the inefficient public spending in Uganda are additional factors compromising quality and spending could amount to 449.5 billion in 2019/20, representing 12 efficiency. There is inefficient public spending resulting percent of the total public education spending.37 from the government expenses on salaries to teachers who are chronically absent from school. Inefficient public spending could be estimated by multiplying the 37 In calculations, only teachers in government-aided average primary teacher salary by the number of teachers students were considered. 40 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 41 Accountability, school inspection School inspection, monitoring and support public spending: vertical and horizontal equity. Vertical The net attendance rate for three to five-year-old children supervision is inadequate to enforce education equity could be understood as “unequal treatment is 57 percent for those who come from socioeconomically and EMIS standards and support the delivery of quality of unequals.” It refers to the notion that students with advantaged backgrounds, but access is about 17 percent education. With the aim to improve learning outcomes different characteristics receive differential treatment by for the poorest. In primary education, the attendance is Corruption and persistent problem of and attract more learners to schools, local governments virtue of their various characteristics. relatively high, but enrollment rates remain higher for “ghosts” are important sources of leakages have a statutory responsibility to provide support the richest students compared to their poorest peers (72 in the system. An empirical study aiming to estimate Horizontal equity, on the other hand, can be seen as “equal supervision, monitoring, and inspection of education percent vs 88 percent). In lower secondary education, the cost and extent of corruption in the Education Sector treatment of equals”, which means that populations with service provision (MoES 2021). However, various barriers the equity gap by income level and place of residence of Uganda exposes different practices that reduce the similar characteristics should be treated similarly (OECD weaken this function. For instance, there are weaknesses widens, while upper secondary and higher education effectiveness of public spending. These practices may 2017a). in the institutional and legal frameworks, as there is no remain mostly inaccessible to students from rural and include payment of bribes to education providers for legal requirement for LGs to share inspection reports Education opportunities in Uganda highly the poorest backgrounds (Table 10). the delivery of a service that should be free (UGX 39.1 with the Directorate of Education Standards (DES) – the depend on students’ socioeconomic level billion), diversion of funds or supplies intended for public central agency responsible for school inspection, policy, and place of residence, suggesting that the education (UGX 244.6 billion), and irregular employment and guidance. This gap limits DES ability to monitor and public education spending does not fully of unqualified teachers (UGX 16billion), among others enforce education standards nationally. Likewise, DES compensate for disadvantages. Across all levels (Fazekas et al 2021). The elimination of the above- and LGs are acutely underfinanced to undertake school of education, school attendance is the highest for the mentioned practices in the education sector of Uganda inspection. better-off children and those living in urban areas. could result in substantial annual savings of nearly UGX 299.7 billion. This is equal to 10 percent of annual In 2021/22, the budget provision for the inspection government spending on the sector in 2019. Additionally, function was UGX 112,000 per primary school, but the Table 10. Net Attendance Rate by Population Groups, 2019/20 it is estimated that over UGX 50 billion is lost annually adequate cost was estimated at UGX 152,292 in 2018. due to “ghosts” (i.e., schools and teachers that receive LGs and DES are also understaffed to effectively execute Pre-Primary Primary Lower Upper Post- payments but do not exist, are duplicates, or are not their mandates. As a result, the quality of inspection and Education Education Secondary Secondary Secondary providing services). The decentralization of the payroll reports produced is poor, and they are not used to inform Education Education and Above has helped to reduce ghost workers. School Improvement Planning (NPA 2018). Some of Total 34 81 23 6 5 these challenges, such as understaffing of inspectors are The lack of a sustainable, accountable, and Female 33 82 26 6 5 being addressed by the ongoing Intergovernmental fiscal efficient Education Management Information Sex Male 35 79 21 6 6 transfer reform (described in section V). Finally, under System (EMIS) has impeded Uganda to the Teacher Development and Management Systems Quintile 1 17 72 7 1 0 enhance education service delivery. Currently, (TDMS), Uganda is divided into 539 Coordinating Centers, Quintile 2 28 79 15 2 1 the EMIS in Uganda are being upgraded to include which are managed by Coordinating Center Tutors (CCTs). Income quintiles Quintile 3 33 81 20 4 2 functions for tracking enrolment, drop-out, retention, The CCTs are responsible for providing instructional and uniquely identify learners, teachers, and institutions. Quintile 4 44 86 34 6 4 support to teachers in consultation with school leaders. The new system will be connected to the National Unfortunately, many of these centers are understaffed, Quintile 5 57 88 49 17 15 Identification & Registration Authority (NIRA) database for resulting in infrequent classroom visits for most teachers. Rural 30 79 18 4 3 all bioinformation, and all learners will have NINs. It is also Urban Moreover, some zones do not have a CCT at all. Urban 50 85 40 11 11 linked to UNEB and other examination bodies to analyze performance at outcome level and has other variables Mountainous Mountainous 34 80 27 5 4 such as infrastructure, instructional materials, nutrition, 4.3 Equity of spending Areas and WASH (Budget Performance Report 2021/22). An When it comes to educational equity, the distribution of Non-Mountainous 34 81 23 6 6 effective education management information system (EMIS) is necessary to support overall education public spending plays a crucial role in compensating for Central 54 82 39 13 9 management. Ultimately, when EMIS is implemented pre-existing disadvantages. Equity does not necessarily Eastern 26 84 20 3 4 mean equality, but rather allows for differences in funding Region effectively, it could lead to higher student achievement Northern 18 74 8 3 3 and stronger education systems. The implementation to take into account the differential costs of providing similar educational experiences to different student Western 38 81 24 5 4 of unique identifiers for students, teachers, and schools can help further address the problem of “ghost” schools groups. In practice, two complementary concepts help Source: World Bank based on Household Survey 2019/20 and teachers. to operationalize the idea of equity in the allocation of 42 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 43 Government subsidies show some equity in percent in post-primary vocational education. Conversely, The regressivity of public spending in tertiary These include early school-leavers, students who opt their distribution for primary and post-primary students in the top two income quintiles are the main education is also common across most for vocational tracks of secondary education which do vocational education, but not in the other beneficiaries of government support in post-secondary education systems in the world. Inequities in not give direct access to tertiary education and students levels. Calculations from the UNPS 2019/20 indicate education, receiving 87 percent of the subsidies in that access to tertiary education is determined mostly by who do not meet the required qualifications (OECD 2022). that in primary and post-primary vocational education level. Public resources in secondary education also tend factors experienced earlier in life and at preceding levels the largest shares of students receiving a subsidy by the to benefit better-off students, but to a lesser extent than of education. Most disadvantaged students are under- government (including UPE/USE) are in the bottom two in post-secondary education (Figure 32). represented among those students who are eligible to income quintiles. Both income groups account for 59 access tertiary level. percent of the government support in primary and 46 Figure 32. Distribution of Government Subsidies by Income Level, 2019/20 Figure 33. Uganda. Lorenz Curve of the Education Expenditure, 2019/20 100% 8 12 100 ......... ..... 13 24 6 80% 36 ........ 20 57 80 ......... ..... 23 36 60% 8 . . . . ...... .... ..... 29 22 40% 12 60 ..... ..... 43 30 . . . . . 20% 15 34 ........ ..... 30 .... 16 4 40 .... 12 6 ..... 0% 1 3 ..... ..... Lower Secondary Upper Secondary Post-primary Postsecondary . . . . . 20 ........ ......... .... 0 ..... Source: World Bank based on National Household Panel Survey 2019/20 02 04 06 08 01 00 Overall, public spending in primary and students from poorest to richest, while the curve’s height postprimary vocational education is pro-poor, indicates the cumulative spending on students up to that regressive in secondary, but very regressive point in the wealth distribution. If expenditures are neutral in post-secondary. Benefit incidence analysis (BIA) to poverty, the curve will follow the 45-degree diagonal. is a method used to compare the distribution of public Equality line expenditure to the distribution of household income or However, pro-rich expenditures will cause the curve to wealth. This analysis categorizes expenditures as either bow downward, and pro-poor expenditures will cause it Note: Students benefiting from public investment either attend a public school or receive subsidies/scholarship progressive or “pro-poor,” which disproportionately to bow upward. From Figure 33 it can be inferred that the from the government. Source: World Bank calculations based on Uganda National Panel Survey 2019/20 benefit poorer citizens, or regressive or “pro-rich,” which public spending in Uganda is largely pro-poor in primary provide greater benefits to households with higher and post-primary vocational education, but it becomes wealth or income. To illustrate this, Figure 33 shows the increasingly regressive with higher levels of education. Lorenz curves for education expenditures at different More specifically, public spending in lower and upper levels based on household wealth, taking as a proxy secondary education tends to benefit better-off students, of government spending the distribution of enrollment while public spending in postsecondary education is in government-aided schools and the distribution of highly regressive (Figure 33). government subsidies by income quintile groups. The curve’s horizontal axis can be interpreted as an ordering of 44 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 45 5. ANALYZING INTER-GOVERNMENTAL FISCAL TRANSFERS AND THE EXPENDITURE AT SUBNATIONAL LEVEL T his section summarizes some of the challenges and in pre-primary, secondary and post-secondary, but progresses in the allocation of public resources in it is weaker in primary education. Overall, the poorest Adequacy, Equity, Efficiency, and education at the subnational level, with focus on adequacy, equity, efficiency, and effectiveness. It also subregions, such as Acholi and Karamoja also experience the lowest levels of school attendance. These subregions Effectiveness in the Allocation of highlights the role of the ongoing intergovernmental fiscal are both located at the northern region of the country. Public Resources for Education at transfers reform to address critical challenges – aspects The Karamoja sub-region has the highest poverty rate that are further developed in Module II. in northern Uganda at 74 percent. The Acholi sub-region the Subnational Level has the second-highest poverty incidence in the northern Education Outcomes at the region, followed by West Nile sub-region (Figure 34) Subregional Level (UBOS, UNICEF and the World Bank 2018). There is a strong link between poverty rates and school attendance across all levels of education, but to a lesser extent in primary education. At the subregional level, poverty is a strong predictor of school attendance Figure 34. Attendance Rates and Poverty Level in Subregions, 2019/20 a) Pre-Primary Education b) Primary Education 70 60 Kampala 60 Kampala 50 Buganda South Buganda South 50 Buganda North Ankole 40 Toro Buganda North 40 Elgon Kigezi Kigezi Toro 30 Ankole Lango Busoga 30 Busoga Elgon Bunyoro Bunyoro 20 Bukedi This section summarizes some of the challenges 20 Teso Bukedi Acholi Teso Lango Karamoja and progresses in the allocation of public 10 West Nile Karamoja 10 West Nile Acholi resources in education at the subnational level, 0 0 01 02 03 04 05 06 07 08 0 with focus on adequacy, equity, efficiency, and 01 02 03 04 05 06 07 08 0 Poverty level Poverty level effectiveness. Source: World Bank based on Household Survey 2019/20 46 UGANDA UGANDA PUBLIC PUBLIC Enhancing EXPENDITURE EXPENDITURE REVIEW REVIEW 2022–23 2022-23Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 47 c) Secondary Education d) Post-Secondary Education Figure 35. Learning Poverty in Primary Education and Poverty Level by Subregions, 2018/2019 a) Literacy b) Numeracy 100 Elgon 18 Teso Busoga 90 Kampala 16 Kampala Buganda South Bukedi 80 Bunyoro 14 Kigezi Acholi 80 West Nile 70 80 West Nile Lango Busoga Lango Busoga 12 Acholi Bunyoro Toro Lango 70 Elgon Karamoja 60 Bunyoro Bukedi Karamoja 70 Buganda South Bukedi Leanirning poverty in Numeracy 10 Toro Teso Ankole Teso Learning poverty in literacy Acholi 50 Buganda North 60 60 Toro Buganda North Elgon 8 40 Karamoja West Nile 50 Kigezi 50 6 Ankole Kigezi Buganda North 30 Lango Buganda South Elgon Bukedi 40 Buganda South 40 Kigezi 4 Buganda North 20 Teso Busoga Ankole Toro 30 30 Ankole 10 2 West Nile Acholi Bunyoro Kampala Karamoja 20 20 0 0 Kampala 01 02 03 04 05 06 07 08 0 01 02 03 04 05 06 07 08 0 10 10 Poverty level Poverty level 0 0 01 02 03 04 05 06 07 08 0 01 02 03 04 05 06 07 08 0 Poverty level Axis Title Source: World Bank based on Household Survey 2019/20 The learning poverty indicator, which covers P6.39 The poverty level across sub-regions explains most Source: World Bank calculations based on P6 NAPE Results 2018 and Uganda National Household Survey 2019/20 both access and quality aspects of schooling, of the variation in learning poverty, and indeed poverty also correlates with poverty at the subregional is a better predictor of learning poverty than it is of Uganda’s public spending has historically in wages), and in the per-pupil direct school transfers level, even for primary education. The World Bank access alone, indicating that poorer regions suffer from been distributed inequitably, which has (non-wage expenses). This ultimately leads to inequities developed the learning poverty indicator, a synthetic index lower quality of education in addition to lower access.40 tended to reinforce patterns of poverty and in access to quality of education (Figure 38 and 39). which combines the shares of children who are out of Addressing imbalances in access to quality education disadvantage. In many countries, per capita education Resource allocation criteria have traditionally been input- school, unable to read a simple text, or both.38 Figure 35 is fundamental to the objective of narrowing regional spending is significantly lower in poorer regions than based, following students, staffing and infrastructure, presents a version of this index using the share of students disparities and accomplishing greater socio-economic in wealthier regions (Al-Samarrai and Lewis 2021). In which tend to be higher in better-off local governments. that do not meet the minimum level of proficiency in NAPE prosperity for all Ugandans. Uganda, poorer regions are not necessarily more likely The ongoing intergovernmental fiscal transfers reform to benefit from public resources, whereas instructional has had important results in reversing these inequities, costs of disadvantaged students tend to be higher incorporating parameters of needs in the allocation of (Figure 36-37). In Uganda particularly, there has been capitation grants, as described later in the next subsection. an inequitable distribution of teachers (and consequently Figure 36. Per-student UPE Grant and Figure 37. Per-student USE Grant and Poverty Level for Subregions, 2020/21 Poverty Level for Subregions, 2020/21 20000 80 185000 80 19500 70 180000 70 19000 60 175000 60 18500 50 170000 50 18000 40 165000 40 17500 30 160000 30 17000 20 155000 20 16500 10 150000 10 16000 0 145000 0 38 The methodology of the learning poverty indicator, produced by the World Bank, can be found here: https://www. worldbank.org/en/topic/education/brief/what-is-learning-poverty. Per-student UPE Grant Poverty Per-student USE Grant Poverty 39 The results cannot be directly compared with the learning poverty indicator developed by the World Bank because the learning outcomes are from different sources, with varying thresholds for proficiency and age groups of students. 40 The amount of variation explained by poverty is summarized in the R-squared (R²), a statistical measure that represents the proportion of the variance in a dependent variable (education outcomes) that can be explained by an independent Source: World bank calculations based on Uganda National Household Survey 2019/20 and MoFPED (Education IPF). variable or variables in a regression model (poverty levels). R-squared ranges from 0 to 1, with a value of 0 indicating that none of the variance in the dependent variable is explained by the independent variables, and a value of 1 indicating that all of the variance in the dependent variable is explained by the independent variables. In general, a higher R-squared value indicates a better fit between the regression model and the data. 48 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 49 Table 11. Capitation Unit Costs, 2018/19–2022/23 Figure 38. Learning Poverty in Literacy and Figure 39. Learning Poverty and Per-Student Student-Teacher Ratio for Primary Education, 2020 UPE Transfer for Primary Education, 2020/21 Capitation per Student (UGX) 2018/19 2019/20 2020/21 2021/22 2022/23 UPE Capitation fixed per school 1,350,000 1,350,000 1,350,000 1,350,000 1,350,000 80 80 UPE Capitation per student 10,000 12,000 17,000 20,000 14,500 Lango Lango Busoga USE Capitation per student 123,000 165,000 175,000 180,000 160,000 70 Busoga 70 Bukedi Bukedi AcholiKaramoja Toro Acholi Karamoja Teso Buganda North Kigezi Teso Learning Poverty Literacy 60 West Nile 60 West Nile UPOLET Capitation per student 240,000 264,000 270,000 285,000 260,000 Elgon Toro Bunyoro Elgon Bunyoro Learning PovertY 50 Kigezi 50 Buganda North 40 Buganda South 40 Buganda South Ankole Ankole 30 30 Inadequacy of non-wage recurrent grants, Additionally, the UPE capitation grant in its design 20 20 which are designed to cover school operation takes into account differences in the costs of students’ 10 10 costs and instructional materials, also have instruction based on needs; however, amid the lack of 0 17,000 17,500 18,000 18,500 19,000 19,500 20,000 0 01 02 03 04 05 06 07 08 0 a negative incidence on equity, affecting the adequate funding, it is not clear that those additional Per-student UPE transfer STR most disadvantaged students. Decentralization recourses are being used to enhance learning outcomes may not be effective if funding is inadequate. When local for the most disadvantaged, because those funds are authorities do not receive enough resources overall, likely used to cover the operational costs of running Source: World bank calculations based on P6 NAPE Results 2018, Uganda National Household Survey 2019/20, school census 2020 those with higher fiscal capacity can supplement schools. Theoretically, the additional resources and MoFPED (Education IPF). educational expenditures from other sources, increasing are meant to provide further help for pupils such as economic inequalities. In Uganda, due to low funding, additional teaching time, specialized learning material Ongoing Intergovernmental Improvement Support. some schools collect additional fees to finance their and in some cases smaller classes (OCED 2012). needs. The collection of fees doubly disadvantages Fiscal Transfer Reforms The adequacy of the non-wage recurrent grant poorer regions, since there will be more households has improved recently, but the per-student To address the above-mentioned unable to afford any fees at all, while the per-student fees allocation is insufficient to deliver quality of challenges, the GoU has been implementing are lower in poorest regions, exacerbating inequalities education. The allocation formula for UPE and USE intergovernmental fiscal transfer reforms with in school-level financing (Figure 40). capitation grant include two components: minimum the support of the World Bank since 2018/19. allocations per student to cover school capitation (nearly In its original design, the Uganda Intergovernmental Fiscal 90 percent of the grant for UPE) and additional allocations Transfers Program Figure 40. Average Household Expenditure on School Fees in Government-Aid Primary Schools based on variables and weightings (remaining 10 percent) (See Annex A1 for details). Since implementation of UGIFT, and Poverty by Subregions, 2019/20 (UGIFT) aimed to enhance the adequacy and equity of distribution of LG transfers across districts by providing capitation rates have increased. However, the per student additional resources and targeting the least-funded allocation for UPE is still far below that recommended LGs. The program also focused on strengthening the by the National Planning Authority in 2018: UGX 63,546 management of education and health services at LG in urban schools and UGX 59,503 in rural schools. In level. In 2020/21, the program extended its original scope. 2022/23, capitation unit costs decreased for all non-wage Some of the interventions relevant for the education sector recurrent grants (Table 11). include the introduction of a results-based financing mechanism, operationalized in a school performance assessment and improvement framework; reduce the understaffing in LGs and schools; strengthen the core oversight and support functions of central government to local service delivery; and deliver Performance Source: World Bank based on Uganda National Household Survey, 2019/20 50 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 51 Formulae allocation in non-wage recurrent and budget allocations to LGs, allowing them to hire more To improve the effectiveness and efficiency use of information from school inspections; (ii) provide development grants led to a slight decrease teachers and increase staffing levels to a minimum level. of service delivery, MoES has designed a incentives (financial and technical support) to promote in inequality of the total education allocation. School Performance Assessment (SPA) and school performance improvements; and (iii) strengthen The new non-wage recurrent allocation formula was To this end, staffing gaps were estimated at LG level to Performance Improvement (SPI) Framework. local government (LG) and central government (CG) fully adopted in 2019/20. The changes included adding inform the minimum staffing requirements that each The purpose of the School Performance Assessment (SPA) oversight, monitoring, and support supervision functions in variables such as a performance index, aimed at directing LG should achieve by the completion of the program. System is to promote improvements in quality by linking the Education sector. The SPA will be conducted annually more funds towards less performing districts, the share of In primary education, the minimum requirement performance improvement support provided to schools (MoES 2022).41 International experiences show promising hard-to-reach population and total land areas (for details corresponds to a pupil-to-teacher ratio (PTR) of 65 and and the size of the capitation/non-wage recurrent grant results from this approach (Please refer to Annex A3, Case see Annex 1). From FY 20/21, the formula also takes into for secondary education, the minimum requirement is allocation (Figure 41). The school performance assessment 1 for the results of Performance-Based Mechanisms for 18. LGs falling above the pupil-to-teacher minimum account refugee populations. system is expected to: (i) enhance the impact of school Intergovernmental Transfers in the State of Ceará, Brazil). threshold are required to recruit extra staff to reach the inspections on the quality of education by promoting the In primary education, non-wage recurrent grants have target by the end of the program. However, the extra staff also stopped favoring better-performing districts. In needed to satisfy the national standards would exceed the contrast, the secondary education non-wage recurrent available resources provided by the program (ODI 2022). allocation per capita is significantly more unequal (and Therefore, Uganda will have to create additional fiscal remained almost unchanged) than for primary allocation. space for this purpose and introduce more sustainable In a similar way, the development grants are now partly mechanisms to encourage the reduction in disparities being allocated based on formulae which take into in teacher distribution, not only between, but also within account the size of the targeted population of beneficiaries districts. The management of services by LGs in areas to progressively close the service delivery gap (ODI 2022). such as recruitment, deployment and management of teachers is also part of the comprehensive approach of Under the UgIFT program, the GoU has been the UgIFT program. addressing the marked disparities across LGs in terms of the availability of critical staff. However, further improvements will be needed beyond the UgIFT program.The UgIFT program aims to improve both the adequacy and equity of wage Figure 41. School Performance Assessment and Improvement Framework Performance Inspection Improvement 1+TELA Support Focused SPA Inspection Results Inspection (SPA)+TELA Improved 2+TELA School Learning Performance Outcomes Based Reward Support and Incentivize Improvements in School Performance 41 MoES (2022 52 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 53 6. POLICY RECOMMENDATIONS Education spending in Uganda is low, inefficient, and inequitable. In the short and medium term, the country will have to massively increase the public expenditure on education to meet long-term development goals, respond to the upward school-age population growth and expand equitable access to high quality education. Alongside this increase, it is crucial to implement measures and reforms aimed at improving the efficiency and equity of education spending, thereby maximizing the impact of both current and increased resources. Policy Recommendations Table 12. Summary of Policy Recommendations Challenge Recommendation Adequacy Current legal and policy framework in ECE devolves Revisit policy on Early Childhood Education (ECE) to responsibility to parents. Underfunding results in poor improve provision and expand access to pre-primary quality and inequitable access in pre-primary, as well as education. significant inefficiencies in primary and secondary. Budget pressures will increase due to population growth, Prioritize education expenditures to reflect an “Expansion lack of universal secondary education, and low education with Quality” scenario as the population increases and quality. Uganda strives to achieve universal secondary education and improve the quality of education. Demographic trends, along with higher completion Mobilize resources from the private sector through levy- Adequacy rates, are expected to result in a significant increase in financed training funds for skills development to increase the demand for skills development; and TVET financing financing and link allocations of funds to rewarding predominantly relies on inputs without considering reforms and results. outcomes or reform efforts Efficiency Primary education characterized by low efficiency, including late entry, low completion rates, and high Equity dropout rates. Grade repetition in Grade 1 contributes to overcrowded classrooms and limited resources. Prioritize the education budget to provide for pre-primary Factors such as the cost of education, poor academic and primary over further increases in tertiary education. performance, discouragement, and teenage pregnancy also lead to early school leaving. However, budget increases have primarily favored tertiary education, which tends to benefit better-off students. Effectiveness Corruption, ghost teachers and students, teacher absenteeism, poor classroom management, and inadequate EMIS hinder Uganda’s education system. Prioritize the education budget to provide for pre-primary Insufficient inspection and monitoring hamper the and primary over further increases in tertiary education. enforcement of standards and the delivery of quality education. 54 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 55 Challenge Recommendation Options to Improve Adequacy: not allocate funds, for example, to increase the number of teachers in already understaffed districts, which is also Corruption, ghost teachers and students, teacher Recommendation 1: Revisit policy on Leverage technology – including EMIS, TELA, and essential for quality. Massive investment should also be absenteeism, poor classroom management, and Early Childhood Education (ECE) as part of e-Inspection systems – and enhance local capacity made in the construction of new classrooms. inadequate EMIS hinder Uganda’s education system. Education Policy Review Commission (short for improved school inspection, monitoring, and term). In Uganda, ECE is underfunded, and provision Recommendation 3: Mobilize resources from Insufficient inspection and monitoring hamper the support supervision to reduce absenteeism, improve is predominately private. The current legal and policy the private sector through levy-financed enforcement of standards and the delivery of quality accountability, and improve quality of instruction. framework that guides the provision of ECE devolves training funds for skills development to education. this function to parents. Some measures to increase increase financing and link allocations of There is an inefficient teacher allocation system, with ECE provision have been attempted, such as attaching Adopt a transparent and formula-based approach to funds to rewarding reforms and results (medium an uneven distribution of teachers within and across pre-primary classrooms to primary schools; but lack allocate teachers. term). In the medium term, demographic trends, along districts. of funding has resulted in poor quality and inequitable with higher completion rates, are expected to result in a Equity access to pre-primary education, and in significant significant increase in the demand for skills development. Revise the financing mechanism in tertiary education. inefficiencies in primary and secondary education. To By attracting private contributions, additional resources Higher education remains mostly inaccessible to improve provision of ECE, Uganda could significantly can be brought in, addressing the low public spending Consider redirecting a portion of current sponsorships students from rural and the poorest backgrounds. Most benefit from revisiting current policies. One option is on TVET. Strategic use of levy-financed training funds to support academically outstanding students from disadvantaged students are under-represented among to pilot one year of government-funded pre-primary can align TVET with national priorities and address skill disadvantaged backgrounds and allocate the remaining those students who are eligible to access tertiary level. education meeting quality standards (which is listed as shortages. Employer training levies effectively pool funds to expand the loan scheme. a “Project Idea” in NDP III) and moving toward universal resources and support public financing, active labor The Primary Leaving Examination (PLE) determines implementation of one year of ECE with quality. Another market programs, and training for the informal economy. continuity into lower secondary education; but the low Revisit the role and importance of PLE to provide equal alternative within the current policy context is to increase The Global Review of Training Funds (UNESCO 2022) found pass rate is a contributing factor to low transition rate to opportunities for all. poor families’ ability to access pre-primary education that, in 2020, 75 different countries operated levy-financed secondary education through private providers, whether through public-private training funds of various types. Sub-Saharan Africa alone Completion rates are low. The high cost of education is partnerships or subsidies. accounted for over one-third of all countries with such Implement low-cost and demand-side interventions, one of the most cited reasons to drop out for primary training funds. As adequacy of skills development can considering gender-specific barriers to reduce dropouts Recommendation 2: Prioritize education and secondary students and there are gender-specific be sought through levy-financed training funds, Uganda and improve learning. These interventions may include expenditures to reflect an “Expansion with barriers, such as pregnancy. However, Uganda invests can simultaneously realign the financing of TVET to addressing school fees, implementing school feeding Quality” scenario as the population increases relatively little in demand-side interventions to reduce reward reforms and results. Currently, TVET financing programs, and conducting information campaigns. (short term). In Uganda, the public education spending is dropouts. predominantly relies on inputs without considering notably low. Access to primary and secondary education outcomes or reform efforts. However, financing can be a Effectiveness has increased significantly, but the rapid population potent tool to enhance outcomes, reduce inefficiencies, Increase teacher salaries and reform the teaching growth will put additional pressure on the education Low teacher salaries, lack of career incentives, and and encourage innovation in service delivery (UNESCO profession with recruitment, career incentives, and budget to accommodate the influx of new students. inadequate support. 2022; World Bank, UNESCO and ILO 2023). support. Additional resources should be used to hire more teachers, cover non-salary recurring expenses, and expand school Ensure adequate financing for local governments. infrastructure. In particular, to absorb the increasing This should be done by linking financial performance demand for education and deliver universal primary and Options to improve efficiency Ineffective decentralization due to insufficient financing, to performance improvement support and considering secondary education by 2030, the education spending Recommendation 4: Prioritize the education budget weak capacity, and accountability mechanisms. equity considerations. Additionally, support subnational in recurrent expenses will have to increase by about to provide for pre-primary and primary over further capacity building to enhance the capabilities and 36 percent, at current level of per-student expenditure. increases in tertiary education (Short term). Between effectiveness of local governments. However, the education budget will have to increase 12 2010/11 and 2021/22 fiscal years, public education percent more to adequately finance schools and provide spending financed through domestic resources increased for quality in primary education. Even this may be a lower 6.9 percent annually on average and around 43 percent bound for what will be required to ensure quality education of the additional resources was directed towards tertiary for all; it includes additional spending to increase the UPE education. While various challenges remain in tertiary (Universal Primary Education) capitation grants to the level education, the GoU could consider allocating further recommended by the National Planning Authority, but does 56 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 57 increases in the education budget to prioritize programs will enhance its functionality, address emerging needs, certifies completion of primary education and determines process for teachers should be based on merit and that produce high social and private benefits. Adequate and improve overall teacher effectiveness. Additionally, continuity into O-level or lower secondary education; but followed by a probationary period to ensure that the quality financing of pre-primary and primary education will promptly addressing identified issues of teacher the low pass rate is a contributing factor to low transition of the teaching force is enhanced. To motivate teachers, increase the efficiency of the overall education sector and absenteeism using TELA tool data will inform interventions rate to secondary education. Uganda could revise the role continuous support in the form of high-quality in-service consequently have a significant positive on the welfare and accountability measures. of PLE in the transition to secondary education to mitigate training and effective school leadership is essential for of Uganda’s society. Building strong foundations in basic existing inequities in education and provide more equal ongoing improvement. Additionally, technology should Recommendation 6: Adopt a more transparent opportunity to all. be used intelligently to augment teachers’ ability to reach education was the first step in Singapore’s approach to and formula-based approach to allocate every student, taking into account their areas of strength becoming – relatively quickly – one of the most successful teachers (medium to long term). In Uganda, there is Recommendation 9: Implement low-cost and development (Béteille and Evans 2019). education systems in the world. Singapore’s experience an inefficient teacher allocation system, with an uneven and demand-side interventions to reduce also offers valuable lessons for other countries, such as distribution of teachers within and across districts. The dropouts taking gender-specific barriers into Recommendation 11: Tackle the factors the importance of investing in human capital, aligning Planning, Budgeting and Implementation Guidelines for account e.g., pregnancy for girls (medium term). that are affecting the effectiveness of education with economic needs, and promoting a culture Local Governments establish that school and BTVET Demandside interventions, which aim to alleviate financial decentralization (short term). The expected outcomes of innovation and lifelong learning (See Case 2 in Annex allocations should follow the MoES staffing norms. constraints on households, are highly effective in reducing of fiscal decentralization and primary and secondary A3 for Singapore case). However, in practice, allocation remain inputbased, household costs and providing students with incentives education systems in Uganda are not being achieved Recommendation 5: Leverage technology depending on the number of teachers hired in the district. to continue attending school. These interventions due to several factors that hinder the effectiveness of – including EMIS, TELA, and e-Inspection In the medium term, Uganda could consider linking the help overcome barriers that hinder households from decentralization. In particular, the level of financing for systems – and enhance local capacity for budget for local governments with the number of staff that investing in education, thus promoting increased school education services remains insufficient at the local level, improved school inspection, monitoring, and can be contracted based on standards and the payroll that participation. In Uganda, the most important determinants and there is a weak capacity to implement education support supervision to reduce absenteeism, can be paid for. This approach can encourage the efficient of school dropouts are money related. The high cost of decentralization policies due to inadequate funding for improve accountability, and improve quality use of staff and mitigate inequities in available resources education is one of the most cited reasons to drop out inspections and oversight of service delivery, insufficient of instruction (short term). Corruption, “ghosts,” (OECD 2019a). for primary and secondary students. However, Uganda capacity development and technical support, and teacher absenteeism, poor classroom management, and invests relatively little in demand-side interventions to ineffective data and accountability mechanisms. Different inadequate EMIS hinder Uganda’s education system. Options to Improve Equity: reduce dropouts, including school fees (still are being approaches can be adopted to address these challenges Additionally, improved inspection, monitoring, and Recommendation 7: Consider revising the paid despite UPE), school feeding programs, information (OECD 2019b): accountability measures are needed to enforce standards financing mechanism in tertiary education campaigns. Additionally, gender considerations should be and deliver quality education while minimizing leakages. to improve adequacy, equity, and efficiency taken into account in these demand-side interventions. • Ensure adequate financial resources at each level The use of information-communication technology (ICT) (medium term). Higher education remains mostly Teen pregnancy is the most important reason for girls, of government to fulfill responsibilities, avoiding is one way to increase transparency and accountability inaccessible to students from rural and the poorest after money-related reasons. Please refer to Box 2 for the unfunded mandates that weaken accountability and in public spending. It offers cost-effective tools that allow backgrounds. Most disadvantaged students are under- cost of implementing a school feeding program. service delivery. Consider increasing allocations to accurate and timely data, which are critical for informed represented among those students who are eligible to districts and schools to improve school inspections, decision-making, to identify possible risks, and ensure access tertiary level. Options to Improve Effectiveness: oversight, and school fees, linking them to that resources and time are placed where they are most Recommendation 10: Increase teacher performance improvement support and equity needed. Accessibility to timely data provides evidence Therefore, the GoU could consider offering loans, rather salaries as part of a comprehensive reform of considerations (See Case 1 in Annex A3 for a case that decision makers require to strive for effectiveness, than sponsorships. Currently, the Ugandan government the teaching profession including recruitment, study on Brazil’s performance-based allocation efficiency, and equity (Abdul- Hamid, Saraogi, and Mintz awards 4,000 scholarships to students every year, to those formulas). career incentives, and support (medium to long 2017; World Bank 2015). Uganda is currently upgrading who perform academically based on their performance in term). Teacher salaries in Uganda are not competitive and • Support capacity building for local governments its EMIS. The Annex A4 presents the factors that drive the Uganda Advanced Certificate of Education (UACE). Part do not attract highly skilled individuals to the teaching through regular assessments, mandatory training, effective EMIS in policy intent and implementation that of the current sponsorships could be redirected to benefit profession. However, increasing teacher salaries alone guidance documents, open competitive hiring, and should be considered to ensure a successful and impactful academically outstanding students from disadvantaged cannot guarantee improved educational outcomes. To special agencies to provide technical expertise upgrade process. Additionally, Uganda recently rolled out backgrounds, while the rest to increase the funds to enhance teacher effectiveness, it is also important to (See Case 3 in Annex A3 for a case study on Chile’s the “Teachers Effectiveness and Learner Achievement” expand the loan scheme. improve the prestige and compensation policies, and to establishment of special agencies to provide (TELA) tool, a mobile-based inspection mechanism that Recommendation 8: Take steps to deescalate establish better career progression structures. Pre-service technical support). tracks teacher absenteeism at school through a facial highstakes examination culture and revisit education must also include a robust practicum recognition system. It is recommended to conduct regular role and importance of PLE (medium term). The component to ensure that teachers are equipped to • Enhance transparency, improve data collection, and monitoring and evaluation of the TELA tool’s effectiveness, progression through the various levels of education transition and perform well in the classroom. The selection strengthen performance monitoring. identify challenges, and seek areas for improvement. depends on performance in national learning Continuously updating and upgrading the TELA tool assessments. 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USAID (United States Agency for International Development). “Learning Recovery in Primary Schools in Uganda.” PowerPoint presentation, 6 December 2022. 64 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 65 Annex Kololo Secondary School, Advanced Level female students walking to their classroom after a break. Rachel Mabala, 2021. 66 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 67 ANNEX Annex A2. Education Development Conditional Grant Allocation Development grants. The development grant is also allocated across LGs in two steps: First, funds for the jointly selected projects are allocated based on the construction unit costs (approx. 70%). The remainder of the grant is then Annex A1. Education Non-Wage Recurrent Grant Allocation allocated using an allocation formula with two components: (i) the basic component is calculated using the variables The non-wage recurrent grants are allocated across LGs in two steps. First, minimum allocations to cover school and weights (50%); and (ii) the performance component is calculated based on the results of the LG performance capitation are calculated based on the unit costs. The remainder of the grant is then allocated based on a formula assessment system (50%). using the variables and weightings. Capitation unit costs, FY 2021/22 Capitation unit costs, FY 2021/22 Variable Weight Justification Type of school Unit Minimum per year (UGX) Is a proxy for the number of potential children who should be in Population of school going age 30% UPE Per school 1,350,000 school and the corresponding need for education infrastructure. Per learner 17,000 For increased targeting to fund maintenance etc. in districts Inverse Net enrolment1, 2 30% where net enrolment is lower. Per learner (SNE) 18,700 USE – Government Aided Per learner 175,000 A fixed allocation ensures that there is a minimum development Fixed Allocation 19% grant allocation for each LG. Per learner (SNE) for inclusive 192,500 schools Those local governments with lower proficiency in English and Performance Index USE3 5% Math will receive additional resources to help reduce class sizes Special Needs Education Per learner for exclusive schools 1,230,000 and improve education facilities. UPOLET – Government Aided Per learner 270,000 Performance Index UPE4 5% Mountainous, islands, rivers etc. have peculiar terrain which Population in Hard to Reach, Hard Education non-wage recurrent grant formula 3% impacts the cost of education services. The greater allocations to Stay Areas are provided to these areas. Variable Weight Justification Land area can impact the cost of providing education, especially The actual number of children in school is a key driver for operational Land area 2.5% in sparsely populated areas with a large land size. Number of learners 90 costs of education services. More students need more capitation Islands 0.5% For the additional costs incurred by Islands in two votes. grants and other school inputs. Urban population 5% So that Municipal LGs’ allocations better reflect their population. Those local governments with lower proficiency in English and Math Performance index1, 2 6 will receive additional resources to be used to help equalize key education performance outcomes. Performance component of the allocation formula: Mountainous, islands, rivers, etc., have peculiar terrain which increase An annual performance assessment is conducted for each local government with the results posted on the budget Population in Hard to Reach, Hard 2 the cost of providing services. The formula provides greater allocations website. Local governments that score above average (the mean score) in this assessment will receive a larger share of to Stay Areas to these areas. the development grant relative to other local governments in the next fiscal year. Scores are squared for the allocation calculation. This means that a district that performs well, receives a relatively greater reward than if the scores were Land area can impact the cost of providing education, especially in not squared. Land area 2 sparsely populated areas with a large land size such as Karamoja region. The formula therefore makes allowances for this. 68 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 69 Annex A3. Case Studies Case 2. Prioritizing Education Sub-sectors and Spending: Multiple high school options were established, including applied to countries of different scales and governance Singapore academic high schools, polytechnic high schools, and structures, albeit with necessary adaptations. Singapore’s Case 1. Results-Based Mechanisms for Intergovernmental technical institutes, catering to different student aptitudes success is not solely limited to its specific context. Transfers in the State of Ceará, Brazil Singapore has achieved unprecedented success in the and career aspirations. The expansion of vocational Source: OECD, 2010 field of education. Over the span of a single generation, education, such as the Institute for Technical Education The state of Ceará, located in the Northeast of Brazil – a Singapore transformed itself from a struggling Case 3. Chile’s Municipal and Regional Training Academy relatively impoverished region – serves as a noteworthy (ITE), helped improve the status of technical and vocational developing country into a global hub of trade, finance, training. Singapore’s commitment to producing technical example of how to effectively enhance educational The Academia de Capacitación Municipal y Regional and transportation. The country’s remarkable educational workers at all levels contributed to its economic growth outcomes through the implementation of results-based (Municipal and Regional Training Academy), under the achievements have been widely recognized, with its and competitiveness. mechanisms for intergovernmental transfers. Over Subsecretaría de Desarrollo Regional (SUBDERE), is a students consistently ranking among the top performers the past decade, Ceará, has witnessed remarkable program aimed at enhancing the knowledge and skills in international assessments. This text aims to explore Embracing the Global Knowledge Economy: improvements in its education system, transforming itself of human resources in municipalities and regional the factors that contributed to Singapore’s success in Ability-based, Aspiration-driven Phase (1997 into a model for successful educational policies. Initially, governments through free training. It offers training education, the policies and practices implemented by the present): As the global economy shifted towards the state was ranked among the bottom 10 performers in to employees in various areas through three formats: government, and the potential lessons that other countries knowledge-based industries, Singapore recognized the country when the Education Development Index (IDEB) face-to-face sessions (100% classroom training), semi- can learn from Singapore’s experience. the need to foster innovation, creativity, and research was introduced in 2005. However, through dedicated attendance (combining classroom and non-classroom in its education system. The government established efforts and strategic interventions, Ceará managed to rise Singapore’s success in education can be attributed to classes), and virtual spaces (100% e-learning via a the Agency for Science, Technology, and Research through the ranks over the course of ten years, eventually several factors. The government prioritized education virtual platform). The Academy provides three categories (A*Star) to provide funding for research and attract emerging as one of the top five states in educational as a means to build the economy and create a national of training: management training, skills training, top scientists and scientific companies. Singapore’s performance. identity. They recruited talented individuals and focused contingent training: i.e., one-time focused seminars and universities developed research partnerships with on economic growth and job creation. The education courses given by specialists. Additionally, the Academy In Brazil, the state-level consumption tax (ICMS) leading institutions worldwide, emphasizing selected system evolved in three phases: survivaldriven, efficiency- collaborates with other public institutions to offer courses constitutes the largest intergovernmental transfer and fields such as bioinformatics, information sciences, and driven, and ability-based. and seminars on specific and timely topics. mandates that 25% of its revenue be transferred to medical technologies. At the school level, Singapore municipalities. Ceará allocates a portion of ICMS to each Building a Strong Foundation: Survival-driven implemented the “Thinking Schools, Learning Nation” Since the enactment of Law 20.742 in April 2014, municipality based on an index of educational quality, Phase (1959-1978): During the survival-driven phase, vision, promoting creative thinking skills, lifelong learning, the Academy manages the Fondo Concursable de incorporating grade promotion rates and student learning Singapore focused on expanding basic education to and nationalistic commitment. The introduction of new Capacitación Municipal (Municipal Training Contestable outcomes, thereby providing a significant incentive for ensure that all children received a minimum of 10 years of teaching approaches, the integration of information and Fund). This fund aims to develop specific competencies municipalities to improve their educational outcomes. education. The government rapidly built schools, recruited communication technology (ICT), and the emphasis on and skills among municipal officials, with annual teachers, and merged different ethnic group schools into a holistic education and character development reflected allocations from the Budget Law. It provides individual Ceará’s implementation of an incentive-driven approach unified system. The introduction of a bilingual policy, with Singapore’s vision for the future. subsidies to finance training leading to technical or through the allocation of ICMS revenue based on English as the medium of instruction, aimed to provide professional diplomas. Beneficiaries of the grant are educational achievements has yielded remarkable results. School Autonomy, Accountability, and students with proficiency in both their mother tongue required to work in the municipality for the same number The state’s municipalities have experienced the most Leadership Development: Singapore’s education and English. Although the quality of education during this of years as the duration of their studies. significant improvements in primary and lower secondary system also underwent structural reforms, granting phase was not initially high, Singapore achieved universal education quality since 2005, making Ceará the leader in schools greater autonomy and fostering innovation. The Academy takes a proactive approach to training by primary education by 1965 and universal lower secondary education quality when socioeconomic factors are taken Schools were organized into clusters and given the identifying and anticipating training needs and designing education by the early 1970s. into account. As a result, mayors in Ceará’s municipalities flexibility to set their own goals while being held a curriculum focused on developing human capital in have increased their spending on education, recognizing Enhancing Quality and Efficiency: accountable for their performance. The introduction of regional and municipal governments. It has established the benefits of investing in this crucial area. Efficiencydriven Phase (1979-1996): Recognizing external reviews and the abolishment of the traditional partnerships with academic institutions across the the need to evolve into a higher-skilled economy, inspection system promoted a culture of continuous country to provide training nationwide. The remarkable improvement in education quality in Singapore shifted its focus to improving the quality and improvement. The government also focused on identifying Ceará has also been attributed to the PAIC program, which and developing highly effective school leaders who could Website: https://academia.subdere.gov.cl/?page_ efficiency of its education system. Streaming, or tracking, promoted early grade reading skills through targeted id=392 based on academic ability was introduced to provide drive school transformation and innovation. teacher training, curriculum delivery, and student progress different pathways for students and reduce dropout rates. monitoring, as well as technical support to municipalities. Finally, despite the unique characteristics of Singapore’s Source: Loureiro, Cruz and Mello 2021 education system, its principles and practices can be 70 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 71 NOTES Annex A4. Factors Driving Effective • Quality data: The processes for collecting, saving, Education Management Information producing, and utilizing information should ensure Systems accurate, secure, and high-quality data for decision- making. Data quality goes beyond accuracy and SABER-Education Management Information Systems includes timely and reliable information that meets aims to help countries improve data collection, data and specific needs. system management, and data use in decision-making, thereby improving different elements of the education • Utilization for decision-making: An effective EMIS system and contributing to the end goal of improving should be used throughout the education system to learning for all children and youth. The SABER-EMIS make informed decisions and improve educational framework evaluates education systems based on four quality. It requires accurate information on education cross-cutting policy areas, which are critical factors for sector performance, the capacity to analyze and effective EMIS: interpret data, and the availability of specific data to inform decisions. • Enabling environment: This includes the legal framework, organizational structure, institutional In summary, effective education management information processes, human resources, infrastructure, and systems are driven by clear policy intent and effective budget of the system. It encompasses the laws policy implementation. They require an enabling and policies surrounding the EMIS and provides the environment, system soundness, quality data, and context in which it exists. utilization for decision-making. Source: World Bank 2016 • System soundness: A sound system ensures that the processes and structures of the EMIS support the integrated components of the system. Education data are sourced from different institutions and feed into the EMIS. Databases within the EMIS are not viewed as separate entities but are part of the overall system. 72 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 73 NOTES NOTES 74 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education 75 76 UGANDA PUBLIC EXPENDITURE REVIEW 2022–23 Enhancing Effectiveness, Efficiency, & Equity in Spending on Education