23 March 2021

Update of the methodology for estimating public spending on children and adolescents

As part of its efforts to improve the quality of life of children and adolescents, the Peruvian Government developed, in 2014, a methodology to measure the Public Spending on Children and Adolescents (GPNNA). This methodology was developed by the GPNNA Monitoring Group (hereinafter the "Monitoring Group"), created within the framework of the Multisectoral Commission of the National Action Plan for Children and Adolescents (PNAIA), and which is made up of representatives of the Ministry of Economy and Finance (MEF), the Ministry of Women and Vulnerable Populations (MIMP), the Ministry of Development and Social Inclusion (MIDIS), the Ministry of Education (MINEDU), the Ministry of Health (MINSA), the Roundtable on Poverty Reduction (MCLCP) and the United Nations Children's Fund (UNICEF). The development of this methodology has been an important contribution to the country as it allows: Having timely information available for decision making on planning and budgeting issues related to children and adolescents. Making the needs of children and adolescents visible in the budget and thus mainstream the rights-based approach into the design, implementation and monitoring of public policies. Strengthening transparency and accountability mechanisms for the enforcement of children and adolescents' rights, established int he Law N° 30362, which raises the Supreme Decree N° 001-2012-MIMP to the status of a law, declaring the allocation of public resources to ensure the compliance of the National Action Plan for Children and Adolescents-PNAIA 2012-2021 as a matter of national interest, and preferential attention. Although the previous methodology has been a valuable tool, it was deemed appropriate to update it for the following reasons: The creation of new PPs with budget sequences that have not yet been included as GPNNA, given that they did not exist in 2014. The updating of PPs that may have experienced changes in their objectives or operation over time, that warrant a reclassification in terms of their contribution to the GPNNA. The population has experienced demographic changes that are reflected in the last National Census, conducted in 2017. This makes necessary to update the weighting factors for non-specific spending considered in the previous methodology. It was under this context, that the Monitoring Group made a decision to update the methodology for estimating the GPNAA (hereinafter referred to as the "new methodology"). This document outlines the process followed to update the methodology and its main results. The following section introduces the main definitions of public spending, describes the process carried out to update the budget sequences and the weighting factors used to estimate non-specific spending. The third section discusses the GPNNA estimates in line with certain disaggregation of the public spending. Finally, the last section, presents the main conclusions of the methodological update process.