Ukraine Public Finance Review
Despite bold efforts to consolidate public finances, Ukraine’s growth potential remains undermined by a large public sector, high public debt levels and inefficient provision of critical public services. The Ukraine government faces new public spen...
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| Format: | Report |
| Language: | English en_US |
| Published: |
Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/476521500449393161/Ukraine-Public-finance-review http://hdl.handle.net/10986/28301 |
| Summary: | Despite bold efforts to consolidate
public finances, Ukraine’s growth potential remains
undermined by a large public sector, high public debt levels
and inefficient provision of critical public services. The
Ukraine government faces new public spending pressures
which, if realized, would reverse recent fiscal
consolidation gains. In this context, the objective of this
Public Finance Review (PFR) is to inform the government of
Ukraine about fiscal reform options to restore
sustainability of public finances while improving critical
public services and improving medium-term growth prospects.
The PFR offers reform options for a gradual and sustainable
fiscal deficit reduction and mitigation of risks to debt
sustainability through broadening the tax base, improved tax
administration, and more efficient public spending. Chapter
1 provides an overview of Ukraine’s fiscal situation and key
pressures to fiscal sustainability. Chapter 2 focuses on
options to broaden the tax base and improve tax
administration following the recent tax reform measures.
Although Ukraine already collects a high share of Gross
domestic product as taxes, it can improve tax compliance,
broaden the tax base, and reduce the tax burden. Improving
tax administration and broadening the tax base are critical
to improve fiscal sustainability in the short term and to
create a foundation for sustainable economic growth in the
medium term. Chapter 3 focuses on options to improve the
fiscal sustainability of the pensions system, which is the
largest public finance expenditure item and a source of
fiscal vulnerability on the expenditure side. Chapters 4, 5,
6 and 7 look at opportunities for delivering public
services, specifically, education, health, social assistance
and decentralization, that are more efficient, equitable and
higher quality. Reforms in these areas are anchors of
Ukraine’s long-term fiscal sustainability and core elements
of the strategy to reduce the fiscal deficit. Analyses of
expenditures in this review are structured according to
functions rather than economic categories. |
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