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(District Stakeholder, Tanzania) "It is really discouraging…when you come to financing you find that there is (an) expenditure ceiling, this is the biggest impediment which prevented us from covering the area.
"It is really discouraging…when you come to financing you find that there is (an) expenditure ceiling, this is the biggest impediment which prevented us from covering the area.
As a consequence, and after taking into account pilot projects, preparatory actions and the transfer of the common costs of EU delegations to the EEAS section, the agreed level of commitments is set at EUR 17 551.7 million, leaving a margin of EUR 114.3 million under the expenditure ceiling of sub-heading 1a.
As a consequence, taking into account pilot projects, preparatory actions as well as the transfer of the common costs of EU delegations to the EEAS section, the agreed level of commitments is set at EUR 8 660.5 million, leaving a margin of EUR 415.5 million under the expenditure ceiling of heading 5.
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Subsequent analyses [ 65, 67] have strengthened the case against expenditure ceilings.
Furthermore, the IEO revealed a long-standing IMF practice that explains how health expenditure ceilings are applied without foreign assistance for health being refused.
They provided no country-specific evidence to counter the argument that such expenditure ceilings are compromising national governments' ability to meet basic needs.
In addition, the structure of public service salaries in some countries is not easily altered because of public expenditure ceilings or public service commissions that consider it unfair or unwise to raise salaries in one sector alone [ 18].
In response, World Bank and IMF officials argued that Medium-Term Expenditure Frameworks (MTEFs) incorporating public sector expenditure ceilings "are not a reflection of some malign intent," but rather "state what money is available and what programmes are possible within the context of that resource envelope" [ 66].
Further questions about the architecture of development assistance and debt relief involve effects on public health and education budgets of the expenditure ceilings on which the IMF, in particular, is reported to insist as elements of PRSPs and macroeconomic management plans, even when the necessary resources have been committed by external donors.
For example, IMF insistence on public expenditure ceilings led to a situation in which 'thousands of trained nurses and other health workers remain[ed] unemployed' in Kenya circa 2006, and thousands more had left the country in search of work elsewhere, 'despite a health worker shortage across all health programs' (Korir and Kioko 2009: 2).
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