Figure 5. Total budget and expenditure by outcome (USD millions) for the 2017-20 period

Finding 20. Despite a challenging financial context, UNDP has been able to mobilize a higher than expected amount of resources. However, its delivery operational capacity was not matched, and internal resources were stretched.

UNDP estimated that $92 million would be needed to implement its 2017-21 programme, of which $1.8 million (2 percent) from core resources. As shown in figure 5, between 2017 and mid-2020,174 the programme enjoyed a budget allocation of $209.3 million, exceeding its five-year target by 128 percent and reaching its highest level in 2020 with $143.2 million. These figures are attributable to the democratic governance and human rights portfolio (Outcome 39), for which UNDP mobilized $175.3 million against an initial target of $22.8 million for the 2017-21 period. This is mainly due to the Identifícate project which secured $104 million in 2019-20, the ‘COVID-19 response’ with $40 million in 2020, and an increase in funding for the ‘Transparency in the Strategic Management of Hondutel’ project, which received $24 million over the 2017-20 period. For the two other outcomes, citizen security, access to protection mechanisms and citizen participation (Outcome 40) and sustainable production and consumption, climate change, income and decent work (Outcome 41), UNDP did not achieve its resource mobilization targets. Outcome 40 mobilized $6 million against a target of $10.8 million,175 and outcome 41 mobilized only $28 million against a target of $58.4 million.

The country office successfully mobilized non-core resources through government cost-sharing (59 percent), vertical trust funds (24 percent), and bilateral/ multilateral funds (17.4 percent). Government cost sharing funds have been the most important part of the UNDP portfolio, representing approximately $37.3 million (58 percent) of total expenditure. Funding from Hondutel, which contributed $21 million, represents 32 percent of total expenditure for the 2017-21 CPD period, and approximately half (49 percent) of Outcome 39 total expenditure. The Government of Honduras was the second largest contributor, at $16.1 million (25 percent), followed by the GEF Trust with $10.3 million (16 percent of expenditure) and USAID (6 percent).

FIGURE 5. Total budget and expenditure by outcome (million US$) for the 2017-20 period

$200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 $175.3

$43.0

Outcome 39

Source: Data from Power BI as of 21 August 2020 $5.9

$4.0 Outcome 40 Budget Expenditure

$28.0

$17.6 Outcome 41

174 The financial resources have been extracted from Power BI as of 21 August 2020. 175 Partially due to the discontinuity of funding from USAID.