Greening Public Budgets in Eastern Europe, Caucasus and Central Asia

This report aims to help EECCA environmental administrations to harness the potential benefits of on-going PFRs; particularly the shift to multi-year budgeting, stability of funding, and, ultimately, a more effective use of public money.



More specifically, the extent to which the environmental sector is integrated into medium-term budgetary processes is analysed. On this basis, the opportunities for, and limits to, achieving financial sustainability of public environmental programmes are identified. The analysis is based on a regional survey of 10 EECCA countries that involved both ministries of environment and finance.

Table of Contents
Executive Summary
Abbreviations
Part I: Cross-country analysis
Chapter 1: Setting the scene
Objectives and context of the analysis
The medium-term expenditure framework (MTEF): An overview
The survey framework and methodology
Target audience and structure of the report
Chapter 2: The regional and international context
Macro-economic performance of the countries of Eastern Europe, Caucasus and Central Asia
Environmental situation in the EECCA countries
Public finance reforms in the EECCA countries
Environmental governance structure and main environmental authorities
Demand for robust multi-year environmental programmes
Major findings
Chapter 3 : Public environmental expenditure trends
Trends in the size of public environmental expenditure
Degree of consolidation of public sources of environmental financing
Public environmental expenditure structure and its deficiencies
Main findings
Chapter 4: Budget planning and management practices
Budget planning and formulation
Budget approval and the role of the legislature
Budget transparency
Major findings
Chapter 5: Budget planning and management practices in the environmental sector
Medium-term programming and planning in the environmental sector in the EECCA countries
Design and costing of environmental programmes
Donor aid and aid management
Institutional capacity needs
Major findings
Chapter 6: Major findings and recommendations
The shift in donor financing approaches may bring new opportunities, but there is a risk of a further marginalisation of the environmental sector
Developing technical expertise and promoting further transparency are crucial
Analytical tools for greening MTEFs are needed
Major recommendations
Annex A: Budget classification systems
Part II: Country fact sheets
Armenia
Azerbaijan
Belarus
Georgia
Kazakhstan
Kyrgyz Republic
Moldova
Russian Federation
Ukraine
Uzbekistan.
Country references