Honduras Public Expenditure Review : Towards Restoring Fiscal Consolidation
Fiscal consolidation remains the central challenge facing Honduras, mainly due to increasing current expenditures. The widening fiscal deficit has been driven by a significant increase in current expenditures. These increased current expenditures,...
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| Format: | Public Expenditure Review |
| Language: | English en_US |
| Published: |
Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2013/08/18903974/public-expenditures-decentralized-governance-honduras-towards-restoring-fiscal-consolidation http://hdl.handle.net/10986/17364 |
| Summary: | Fiscal consolidation remains the central
challenge facing Honduras, mainly due to increasing current
expenditures. The widening fiscal deficit has been driven by
a significant increase in current expenditures. These
increased current expenditures, which add rigidity to the
budget, have occurred at the expense of investments. The
efficiency of spending remains a key constraint. Limited
improvements, especially in health and education outcomes
despite high allocations to these sectors, suggest the need
to improve the efficiency and quality of expenditures.
Increased public expenditures have not delivered in terms of
growth and improved public services, and whether the country
is ready for decentralization remains an open question.
Growing fiscal deficits and weak public financial management
practices have constrained the ability of the central
government to implement and finance the decentralization
process. Current decentralization targets would pose
significant fiscal challenges to the central government. The
deterioration of the fiscal deficit is not a result of
fiscal decentralization. However, further decentralization
efforts could pose significant fiscal challenges to the
central government. |
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