The process may provide different budgetary paths for capital (or devel-opmental) expenditures and operating expenditures. Such dual budget
systems have created problems in a number of developing countries because
the recurring funds needed to operate developmental capital projects are
ignored in the budget process,
14
because coordination between donor-financed
(mostly developmental) and domestically financed (mostly operating)
programs is not undertaken and priorities get distorted from local choices, and
because development programs are often planned without regard to resource
constraints (Alm and Boex 2002; Sarraf 2005). Indeed, failure to integrate the
two budgets and to recognize their total cost of implementation has historically
been a fiscal problem in several African countries.