Public Expenditure Review of the Palestinian Authority : Towards Enhanced Public Finance Management and Improved Fiscal Sustainability
The difficulty of pursuing a conventional market-oriented development strategy in the Palestinian territories led in the early part of the 2000s to a second-best reliance on public sector employment and wage bill expansion to boost aggregate demand...
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Format: | Report |
Language: | English en_US |
Published: |
World Bank, Washington, DC
2016
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Online Access: | http://documents.worldbank.org/curated/en/2016/09/26505871/west-bank-gaza-palestinian-territories-public-expenditure-review-2013--2014-towards-enhanced-public-finance-management-improved-fiscal-sustainability-public-expenditure-review-palestinian-territories http://hdl.handle.net/10986/25100 |
Summary: | The difficulty of pursuing a
conventional market-oriented development strategy in the
Palestinian territories led in the early part of the 2000s
to a second-best reliance on public sector employment and
wage bill expansion to boost aggregate demand. The main
objective of this Programmatic Public Expenditure Review
(PER) is to inform policy and institution-building efforts
of the Palestinian Authority (PA) and its donor partners
about improving the sustainability of public expenditures
and the efficacy and efficiency in the provision of
essential public services.In particular, this PER aims to
provide an assessment of public revenue and expenditure
policies offering specific policy and institutional measures
to reduce the size of the Palestinian territories fiscal
deficit and make it more sustainable.The fiscal situation of
the Palestinian Authority is not sustainable.The difficult
fiscal situation facing the Palestinian Authority today
results from a unique confluence of challenges.As this
report will argue, there is considerable further scope for
reforms that would raise additional tax revenues, and reduce
expenditures without compromising the quality of public
services or negatively impacting public welfare.However, the
PER notes that there are limits to what can be achieved by
PA fiscal policy alone.The PER is organized as follows:
Chapter one provides an overview of recent macroeconomic and
fiscal developments; it also contains a brief assessment of
priority fiscal policy issues facing the PA, and serves as
an introduction to the in-depth analysis of the issues that
follow in subsequent chapters. Chapter two analyzes the
factors driving the size of the PA’s wage bill, and shows
how these can be tackled. Chapter three reviews expenditures
in the public health sector. Chapter four analyzes the
Palestinian public pension system, and looks into how its
sustainability can be assured. Chapter five assesses the
quality of intergovernmental fiscal transfers, including net
lending transfers. Chapter six reviews the way in which
public investment projects are planned and implemented, and
identifies steps to improve investment quality. Further
details on health and pensions are provided in the annexes. |
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