Pakistan - Reforming Provincial Finances in the Context of Devolution : An Eight Point Agenda
Public finances in Pakistan have been characterized by unsustainably, high fiscal deficits; poor revenue mobilization; a persistent trend of centralization; massive vertical imbalances between the federal, and provincial governments; problematic ex...
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| Language: | English en_US |
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Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2000/11/729324/pakistan-reforming-provincial-finances-context-devolution-eight-point-agenda http://hdl.handle.net/10986/14964 |
| Summary: | Public finances in Pakistan have been
characterized by unsustainably, high fiscal deficits; poor
revenue mobilization; a persistent trend of centralization;
massive vertical imbalances between the federal, and
provincial governments; problematic expenditure structures;
weak financial management; the atrophy of local governments;
and, lack of accountability. Recently the Government has
announced a bold, and potentially path-breaking devolution
initiative to address some of these problems, by
establishing strong, accountable local governments.
Focussing on the provinces, their financial health, and the
delivery of infrastructure, and public services, this report
puts forward recommendations for reform in the following
areas: 1) adjusting federal-provincial fiscal relations to
reduce vertical fiscal imbalances; 2) improving the
effectiveness of public services through devolution; 3)
prioritizing provincial expenditures in favor of critical
non-wage operations and maintenance, and reducing the
dominant share of establishment costs; 4) improving
expenditure programming, and management; 5) restructuring
provincial civil services; 6) mobilizing provincial revenue,
streamlining tax structures, and rationalizing user charges;
7) strengthening financial management; and, 8) developing
systematic approaches to provincial debt management. |
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