Incentives Program to Improve Municipal Management …mddb.apec.org/Documents/2013/EC/WKSP1/13_ec_wksp1_009.pdf · Incentives Program to Improve Municipal Management and ... “Incentives

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2013/SOM1/EC/WKSP/009 Session 4

Incentives Program to Improve Municipal Management and Modernization

Submitted by: Peru

Macro APEC New Strategy for Structural Reform Workshop: Mid-Term Progress in

Implementing ANSSR Jakarta, Indonesia

30-31 January 2013

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Ministerio de Economía y Finanzas Dirección de Calidad del Gasto Público-DGPP

República del Perú Ministerio de Economía y FinanzasRepública del Perú


Karina Vargas

Jakarta, January 2013

Ministerio deEconomía y Finanzas

Despacho Viceministerial de Hacienda

Ministerio deEconomía y finanzas

Viceministerio de HaciendaDirección General dePresupuesto Público

Contents

1. ANSSR Priorities2. Incentives Program3. Objectives of the program 4. Classification of Municipalities. 5. Program operation.6. Program timeline.7. Results and Achievements.8. Some goals in the program.9. Success stories



Dirección General dePresupuesto Público

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1. ANSSR Priorities

o More open, well-functioning, transparent and competitive markets.

o Better functioning and effectively regulated financial markets.

o Labor market opportunities, training and education.

o Sustained SME development and enhanced opportunities for women

and for vulnerable populations.

o Effective and fiscally sustainable social safety net programs. Tax

collection






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2. Incentives Program

“Incentives Program to Improve Municipal Management andModernization” consists on direct transfers to localgovernments. The transfers are conditioned on achieving goalsthat are checked twice a year. The goals are defined both onthe needs of the district and the potential for improvement.The program also provides technical assistance, oriented toimprove the managerial skills of the personnel working inthese districts.

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3. Program Objectives

Objectives

a) Increase local tax collection levels, strengthen the stability and efficiency ontheir perception .

b) Improve the execution of projects, considering the guidelines forimprovement in the quality of expenditure.

c) Reduce chronic children malnutrition

d) Simplify procedures

e) Improve the supply of public services; and

f) Prevent disaster risks

Municipalidades de Ciudades Principales Tipo “A”

Municipalidades de Ciudades Principales Tipo “B”

Municipalidades no consideradas ciudadesprincipales, con 500 o más viviendas urbanas

Municipalidades no consideradas ciudadesprincipales, con menos de 500 viviendas urbanas

40

209

555

1034

CLASIFICACIÓN DE MUNICIPALIDADES PARAPRIORIZACIÓN DE INCENTIVOSSimbolo

Número deMunicipalidades

Distritales

Fuente: MEF

0 80 160 240 320 400 480Km

1:5,500,000Escala:

Sistema de coordenadas GCS WGS 1984

MAPA DE CLASIFICACIÓN DE DISTRITOSSEGÚN CARACTERISTICAS DEMOGRÁFICAS

LEYENDA

Paises LimítrofesLímite DepartamentalLímite Departamental

®

LORETO

UCAYALI

PUNO

CUSCO

LIMA

JUNIN

ICA

AREQUIPA

PIURA

MADRE DE DIOS

ANCASH

SAN MARTIN

AYACUCHO

HUANUCO

PASCO

AMAZONAS

CAJAMARCA

TACNA

APURIMAC

LA LIBERTAD

HUANCAVELICA

MOQUEGUA

LAMBAYEQUE

TUMBES

CALLAO

Brazil

Ecuador

Colombia

Bolivia

Chile

70°0'0"W

70°0'0"W

75°0'0"W

75°0'0"W

80°0'0"W

80°0'0"W

0°0'

0"

0°0'

0"

5°0'

0"S

5°0'

0"S

10°0

'0"S

10°0

'0"S

15°0

'0"S

15°0

'0"S

4. Classification of Municipalities

40 Municipalities of Main Cities “A”

40 Municipalities of Main Cities “A”

209 Municipalities of Main Cities “B”

209 Municipalities of Main Cities “B”

556 Municipalities, not considered Main Cities, which have 500 or more

urban housing

556 Municipalities, not considered Main Cities, which have 500 or more

urban housing

1033 Municipalities, not considered Main Cities, which have less than 500

urban housing

1033 Municipalities, not considered Main Cities, which have less than 500

urban housing

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• Previously to start a year, the Ministry of Economyand Finances (MEF) approves the economicsresources that will be transfer to the municipalities.

• In January, the goals presented for other Ministriesand institutions, that passed the standards definedfor the MEF, will be approved.

• Immediately, we start the capacitation cycle , someworkshops are in Lima and others in different cities ofthe country according their classification.

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5. Program Operation




• The goals have two periods of evaluation:• January – February (for the goals at December 31)-

August – September (for the goals at July 31)• After the evaluation we proceed to transfers of

economical resources. (May and October)• Each goal is evaluated, according the indicator that

was established when the goal was approved.

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5. Program Operation

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6. Program Timeline 2010 - 2013

0

5

10

15

20

25

30

2010 2011 2012 2013

8 1016

23

820

15

29

Goals per semester 2010 - 2013

Goals 31 July Goals 31 December

SUS$ 426 Millions

SUS$ 303 Millions

SUS$ 301 Millions

SUS$ 271 Millions

1 US$= S/. 2.58 (Nuevos Soles)

Goals

7. Results and Achievements (1/2) Property tax collection:At July,31, 2012; the goal was to raise just over S /. 409 million and grossed more than S /. 570 million.Simplification of procedures, creating a business climate conducive to private investment.645 of 804 municipalities simplified certain procedures, including deadlines for issuing operating licenses.Strengthen children's access to health and social programs in their most vulnerable age to malnutrition problems:The goal was to increase the enrollment of children under 5 years Integrated Health System (SIS) in just over 309 000 children and achieved an increase of over 1 million children.The goal was to increase by more than 766,000 cases of identity registration of children under five years and achieved an increase of nearly a million and a half children registered.

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7. Results and Achievements (2/2)

• Reduce the risk levels and urban disaster:.At December 2011, 1156 local governments was achieved with a map studies warning of disaster risk and 181 studies identifying critical areas of disaster.

• Reduce pollution levels:At July 2012, segregation programs were implemented in 137 municipalities with an impact at 177, 578 homes sensitized and trained.

• Local investment in strategic areas for the country's development:At December 2012, 90% of rural municipalities, scheduled resources in electrification, telecommunications, road safety, rural water supply and sanitation.

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8. Some goals in the Program.Goals


a) Increased property tax collection (IP).

b) Issuing operating licenses and Building Permit in less time, to facilitate the

business climate in the economy.

c) Development of a technical study of risk analysis and vulnerability.

d) Implement segregation and separate collection of household solid waste.

e) Prioritize people to access social programs.

f) Set financial resources in electrification, sanitation, telecommunications, road

safety and disaster risk.

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Promotion Center and Community Surveillance of mother and child

Somoa - Moquegua

Foto: Centro de vigilancia comunal de Chichucancha

9. Success stories

Education on healthy practices

Community Watch

Decision making

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Make foods suitable for each age "Combination - Quantity - Frequency - Consistency"

Demonstration lessons in "food preparation"

Demonstration sessions on "Clean hands"

Education on healthy practices

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control of healthy children, with vaccinations, periodical health checks, ensuring that they assist to school

Ministeriode Economía y Finanzas

KARINA VARGAS [email protected]

¡THANK YOU!