Public Expenditure Reviews : Progress and Potential
The note reviews the potential of public expenditure reviews as objective analysis of a country's public spending issues, and in advancing the development agenda in the Bank's client countries. It examines the experiences with these revie...
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Format: | Brief |
Language: | English |
Published: |
World Bank, Washington, DC
2012
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Online Access: | http://documents.worldbank.org/curated/en/1999/04/748722/public-expenditure-reviews-progress-potential http://hdl.handle.net/10986/11492 |
Summary: | The note reviews the potential of public
expenditure reviews as objective analysis of a
country's public spending issues, and in advancing the
development agenda in the Bank's client countries. It
examines the experiences with these reviews, setting the
approach for improving them, finding that: most public
expenditure reviews define the public sector deficit as the
central government deficit, while relevant macroeconomic
variables are being ignored; those reviews do not examine
the rationale for public intervention, as an analysis on the
efficiency of the public budget allocation; do not integrate
capital, and recurrent expenditures, thus sidesteps the
issue of future recurrent cost implications of the capital
budget, introducing uncertainty regarding the sustainability
of policies, and projects; and, only a minimal percentage of
public expenditure reviews, adequately focus on
institutional issues, such as budget management, or
incentives in the public sector. The note suggests
questioning the exercise of these reviews, as to what will
its performance accomplish, and who should participate in
the review, followed by a focused process, ensuring
ownership, poverty reduction, and information dissemination,
to finally build an analysis based on two complementary
themes: getting policies right, and building
well-functioning institutions to deliver efficient public services. |
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