3. MOEYS Contributions to Sector and EFA Financing Plan 2002/15

Taking account of the broader education financing policies outlined earlier, it is projected that MoEYS budget contributions to EFA implementation will rise from Riels 329 billion (in 2002) to around Riels 805 billion (by 2015). This includes MoEYS administration costs, contributions to early childhood education, non-formal education and literacy and formal basic education alongside MoEYS financing of pre and in-service teacher development. Overall, EFA implementation costs will remain roughly constant at between 85 per cent and 95 per cent over the EFA plan period. In other words, MoEYS spending will accord the highest priority to implementation of the EFA plan through formal and non-formal approaches.

Table 3.4: Total MoEYS Recurrent Costs, Sector and EFA Implementation - By Sub-Sector
	2002	2005	2010	2015
Administration
General Management	25,442	32,280	43,484	59,366
Quality Assurance /Monitoring	8,481	10,760	14,495	19,789
Total Cost	33,923	43,040	57,978	79,154
Early Childhood Education (ECCE)
Enrolment	59,620	95,000	180,000	280,000
Total Cost	4,993	11,654	18,176	16,171
Primary
Enrolment	2,859,117	2,860,335	2,382,807	2,568,444
Total Cost	200,578	241,351	265,818	378,657
Lower Secondary
Enrolment	424,003	841,743	1,302,512	1,218,775
Total Cost	77,834	137,403	272,105	317,163
NFE/Literacy
Enrolment	150,000	310,000	183,333	25,000
Total Cost	2,000	6,000	4,748	705
Teacher Development
Enrolment	11,422	20,000	15,000	10,000
Total Cost	9,917	21,858	17,765	13,127
Total EFA Cost	329,245	461,307	636,592	804,977
Post Basic Education
Enrolment	127,788	221,225	724,552	1,064,021
Total Cost	20,653	42,925	152,153	152,868
Total Recurrent Cost	349,897	504,232	788,745	957,845
Total EFA Cost	329,245	461,307	636,592	804,977
Total EFA Cost (%)	94%	91%	81%	84%
Source: Annex 4, Table 2

Consistent with maintaining an effective balance of financing between access and quality improvements, it is projected that non-salary shares will be sustained at between 45 per cent and 50 per cent for the period through equitable and efficient teacher deployment (see Annex 5). For basic education, it is projected that by 2015 non-salary shares could reach 55 per cent of overall recurrent spending as enrolment begins to stabilize.

The budget projections and assumptions are predicated by the need to retain high non-salary shares to increasingly assure quality improvement. These ambitious non-salary share targets also will allow for some scope in downward adjustment of non-salary share if the fiscal and donor outlook is less promising that anticipated, without undermining achievement of sectoral and EFA policy objectives. These sub-sectoral budget allocations are also designed to protect spending on basic education to ensure that in the event of financial pressure that progress towards EFA can be sustained.

4. Capital Program Budget Projections

The capital budget requirements are restricted to a combination of physical infrastructure development and capacity building programs. It is projected then capital requirements will rise from around Riels 95 billion per annum (US$ 24 million) in 2002 to Riels 170 billion per annum (US$ 42 million) in 2010 with further increases to Riels 233 billion per annum (US$ 59 million) by 2015 (see tables above and Annexes 4 and 5 for detail). It is projected that capital expenditure for education is based on conservative estimates of roughly 10 per cent of Government's overall capital expenditure over 2002/15.

Table 3.5: Total MoEYS Capital Spending, Sector And EFA Implementation
(Millions of Riels)	2002	2005	2010	2015
	MTEF	MTEF	PROJ	PROJ
Total Education Spending	94,686	121,676	170,250	233,257
Administration	1,894	2,434	3,405	4,665
Early Childhood Care & Education (ECCE)	2,841	3,650	3,405	4,665
Primary	25,776	22,983	8,513	34,989
Lower Secondary	30,300	46,237	81,720	48,984
NFE/Literacy	7,575	9,734	13,620	18,661
Teacher Development	9,469	12,168	17,025	23,326
Total EFA Cost	77,853	97,205	127,688	135,289
Facilities Development	64,618	80,680	105,981	112,290
Capacity Building	13,235	16,525	21,707	22,999
Post Basic Education	16,833	24,470	42,563	97,968
Total EFA Cost	77,853	97,205	127,688	135,289
Total Post Basic Cost	16,833	24,470	42,563	97,968
Total EFA Cost (%)	82%	80%	75%	58%
Note: Based on range of 7-13% of GDP over 2001/05 and average 10% of GDP 2006/15 (see Annex 5, Table H) Source: Annex 4, Table 3

The projections for capital expenditure are based on an assumption that additional facilities will be provided through private sector and community investment strategies. This will particularly be the case for those programs where Government is only a part provider of services, especially ECCE/ECCD, and NFE.

The capital investment program also includes capacity building support, estimated at around one sixth of overall capital spending. Much of this capacity building spending will focus on strengthening national EFA monitoring systems, at national, provincial, district and commune levels. It is anticipated that the micro-planning needed for commune level EFA planning and monitoring will be formulated in early 2003, alongside similar strategies at other levels of the EFA monitoring system.

It is projected that the capital expenditure (mainly additional facilities and capacity building) for EFA implementation will rise from estimated Riels 78 billion (US$ 20 million) in 2002 to Riels 135billion (US$ 34 million) in 2015. As the post basic and post EFA programs expand, it is anticipated that capital-spending share for EFA implementation will decline.

The main features of the capital expenditure program can be summarized as follows:

» Over the period 2002-10 the capital expenditure will focus on provision of primary and secondary schools, selective teacher accommodation and teacher training college refurbishment, especially in currently underserved districts and communes.

» Over the full period 2002-15 continuation of a comprehensive capacity building program for education planners, managers and teachers designed to enable greater education service decentralisation, incorporating logistical support, equipment and transport and on-the-job and short course training.

It is projected that in the medium to long-term, an increasing proportion of external assistance will be devoted to capital budget support programs.