Mauritania : Improving Budget Management to Promote Sustainable Development and Reduce Poverty, Public Expenditure Review Update
The Public Expenditure Review (PER) has provided a basis for analysis and action under the Public Sector Capacity Building Program(PRECASP), one of components is related to the improvement of public finance management and is expected to support the...
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| Format: | Public Expenditure Review |
| Language: | English en_US |
| Published: |
Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/12/8984660/mauritania-improving-budget-management-promote-sustainable-development-reduce-poverty-public-expenditure-review http://hdl.handle.net/10986/7635 |
| Summary: | The Public Expenditure Review (PER) has
provided a basis for analysis and action under the Public
Sector Capacity Building Program(PRECASP), one of components
is related to the improvement of public finance management
and is expected to support the implementation of the
measures proposed in this document. These analyses deal with
issues closely related to this review, including (i) the
problems faced by the financial sector and their impact on
public finances; (ii) the issue of transparency with regards
to the management of oil revenues, and (iii) medium-term and
long-term macroeconomic projections that determine the
prospects for growth and for achieving the Millennium
Development Goals (MDGs). Its objectives are to identify
ways to improve public financial management in the sector
and to alleviate the constraints on agriculture development,
with a view to increasing productivity and reducing poverty
in rural areas. Moreover, the PRECASP will finance
expenditure reviews in priority sectors. Oil-related
research, promotion and exploration activities are being
intensified and are expected to lead to the exploitation of
additional fields in the short term. Exploitation of other
off-shore reserves is expected to start in the next few
years. The largest oil field, Thof, should be operational by
2010. As a result of oil revenues, per capita GNP is
expected to double. Mauritania must rise to the challenge
posed by that windfall by establishing adequate mechanisms
for the rational management of public resources, including
oil revenue. The mobilization of tax revenue should be
intensified and an adequate tax base ensured, compatible
with private sector development, so that public spending
relies more on stable revenue sources, not volatile ones
like oil. Monetary and budget policies should aim at
controlling inflation and ensuring a real effective exchange
rate (REER) favorable for Mauritania's competitiveness. |
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