Strengthening Public Revenue and Expenditure Management to Enhance Service Delivery
To achieve higher growth and reduce poverty and inequality, Mexico needs to improve public service delivery. Mexico is a middle-income country with continuing high levels of poverty (46.2 percent of the population). To improve public sector service...
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Format: | Policy Note |
Language: | English en_US |
Published: |
Washington, DC
2014
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Online Access: | http://documents.worldbank.org/curated/en/2013/04/17570557/strengthening-public-revenue-expenditure-management-enhance-service-delivery http://hdl.handle.net/10986/16950 |
Summary: | To achieve higher growth and reduce
poverty and inequality, Mexico needs to improve public
service delivery. Mexico is a middle-income country with
continuing high levels of poverty (46.2 percent of the
population). To improve public sector service delivery,
Mexico needs to ensure sufficient financial and human
resources relative to the needs of the population, and
effective and efficient public management of spending
programs to address those needs-two basic prerequisites for
an effective public sector. Mexico's public service
delivery is hindered by low tax collection and expenditure
inefficiencies at all three levels of government: federal,
state, and municipal. Mexico's tax collection is also
low by Latin American standards. The problem of low tax
collection is particularly acute at the local level, as many
subnational governments lack incentives and administrative
capacity. At the local level, improving tax collection faces
additional challenges. Low subnational tax collection
increases the volatility of subnational finances within
Mexico's fiscal federalism framework. Subnational
governments need incentives and assistance to improve their
tax administration to increase own revenues. As part of an
ambitious strategy to modernize public sector financial
management, the government has started to harmonize the
public accounts and accounting practices of the federal and
subnational governments. |
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