Defending Dignity A Manual for National Human Rights Institutions on Monitoring Economic, Social and Cultural Rights 12.2. WHY IS IT IMPORTANT TO ANALYSE RESOURCE EXPENDITURE? Transparency in and accountability for actual resource expenditure is essential. Access to this information enables citizens to participate in determining how public resources are spent in practice and to ensure that these resources are best utilized to benefit society, in line with the State’s international human rights obligations. When actual expenditure deviates from planned budgets, less money ends up going to the policies, plans and programmes that can fulfil ESCR. If wasteful, or even extravagant, spending diverts resources away from spending on basic rights, this raises questions about whether the State is meeting its obligation to dedicate the maximum available resources to ESCR. It might also be the case that a diversion of funds or a redirection of expenditure disproportionately impacts particular groups, raising concerns about equality and non-discrimination. Common reasons why governments’ actual expenditures deviate from planned budgets include poor and inefficient financial management systems, corruption, fund diversion, use for unexpected events, inadequate funding, off-budget donor funds or weak oversight. Poor and inefficient financial management systems weaken the quality of budget expenditures and a government’s ability to manage the flow of funds. For example, funds to line ministries might not be dispersed until midway through the financial year. In such situations, ministries might feel pressured to spend the money before the end of the financial year, leading to wasteful and even extravagant spending. Corruption flourishes when financial management systems are weak and allow public officials to get away with “creative accounting” and procurement irregularities. Fund diversion sometimes takes place through legitimate channels that are part of the budget process to redirect expenditures. Nevertheless, it is important to determine whether such diversions are for legitimate purposes. Unexpected events, such as a natural disaster, sometimes require a government to spend contingency reserves. Thus, budgets are sometimes altered by budget amendments. Inadequate funding to assistance programs that beneficiaries are legally entitled to apply for may obligate a government to increase funding during the year. Off-budget donor funds (i.e. funding from bilateral and multilateral donors that goes directly to line ministries, and is not reflected in the government budget) may mean that analysing allocations will not give a full picture of funding to a particular issue. Weak oversight might prevent public audit institutions and legislatures from providing effective oversight of national budgets. Finally, although it is beyond the scope of this chapter, the procurement of goods and services by a government from private actors has several consequences for the enjoyment of human rights. For example, the human rights and dignity of older people or persons with disabilities may not be respected by private homecare services outsourced by local authorities. If you are interested in learning more about these issues, they are discussed in detail in Public Procurement and Human Rights in Northern Ireland, a report published by the Northern Ireland Human Rights Commission. 120