_ANNEX 8 INTERPRETATIONS OF THE 20 PERCENT “RULE”_ Alternative Interpretations of How to Compute the Education Spending Ratio

|**Numerator**<br>Central government spending on education programs<br>**_including salaries_**|(1)|**Denominator**<br>Total central government spending<br>**_(excluding transfers to regions)_**|(1)|**Ratio**<br>9.4|
|---|---|---|---|---|
|Central government spending on education programs<br>**_excluding salaries_**|(2)|Total central government spending<br>(excluding transfers to regions)|(1)|7.4|
|Central government spending on education programs<br>excluding salaries|(2)|Total central government spending<br>**_(excluding transfers to regions and_**<br>**_salaries of all other sectors) _**|(2)|10.1|
|Central government spending on education programs<br>including education related budget**_from all line_**<br>**_ministries and institutions_*****_including salaries_**|(3)|Total central government spending<br>(excluding transfers to regions)|(1)|11.8|
|Central government spending on education programs<br>including other education related budget for all line<br>ministries and institutions**_excluding salaries_**|(4)|Total central government spending<br>(excluding transfers to regions)|(1)|9.6|
|Central government spending on education programs<br>including other education related budget for all line<br>ministries and institutions excluding salaries|(4)|Total central government spending<br>(excluding transfers to regions and<br>salaries of all other sectors)|(2)|11.75|
|Central government spending on education programs<br>including other education related budget for all line<br>ministries**_and an estimate of the amount of transfers to_**<br>**_regions that is allocated to education_**|(5)|Total central government spending<br>**_(including transfers to regions)_**|(3)|19.3 *|
|Central government spending on education programs<br>including other education related budget for all line<br>ministries and an estimate of the amount of transfers<br>to regions that is allocated to education**_excluding_**<br>**_salaries_**|(6)|Total central government spending<br>(including transfers to regions)|(3)|7.6|
|Central government spending on education programs<br>including other education related budget for all line<br>ministries and an estimate of the amount of transfers<br>to regions that is allocated to education excluding<br>salaries|(6)|Total central government spending<br>**_(including transfers to regions,_**<br>**_excluding salaries of all other sectors)_**|(4)|8.65|
|**Total spending in education from central**<br>**government, provinces and districts (including**<br>**salaries)**|**(7)**|**Total national spending: Central**<br>**(APBN minus transfers) + Province**<br>**(APBD I) + District (APBD II)**|**(5)**|**16.5**|

_Source:_ Computed by World Bank staff based on MoF and SIKD data. _Note:_ Numbers in parentheses denote all the different figures in denominator and numerator. Changes in the definition relative to a previously used definition are highlighted and in italics. *For example, other education-related expenditures by line ministries are capacity development efforts for civil society to join the military and police academy, training for heads of sub-district

* This estimation was presented on the Constitutional Court on February 7 2006, by MoF and MoNE. It includes education and training allowances for 16 ministries beside MoNE, as well as an estimation of the education expenditures by subnational governments from the (DAU) and (DAK)

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