Publication: Georgia Public Expenditure Review : Strategic Issues and Reform Agenda
Loading...
Date
2014-06-11
ISSN
Published
2014-06-11
Author(s)
Editor(s)
Abstract
Generating growth and creating jobs within a sustainable fiscal framework is Georgia s biggest macroeconomic challenge. Although Georgia registered rapid growth of 5.7 percent a year during 2010-13, unemployment remains high at 15 percent. New growth companies, especially in tourism and other service sectors, did not generate enough formal or even informal employment. Fiscal policy played a crucial role in Georgia s recent growth performance with a fiscal stimulus driven post-crisis recovery which increased deficit and debt levels followed by fiscal consolidation during 2010-12 when recovery took hold. The weak execution of the budget in 2013 and policy uncertainty were largely responsible for the growth slowdown during the year. Tackling the growth and jobs agenda in Georgia will require significant investment in human and physical capital and the government has a large role to play here. Additional spending, where it is needed, should be undertaken within the fiscal consolidation agenda of the government, designed to help restore the macroeconomic buffers needed to secure stability and sustain confidence in the future. The change in government in 2012 marked a shift in fiscal policy with prioritization of recurrent social expenditures over capital spending, thereby, increasing budget rigidity. During 2012-13, the government raised the benefit levels under the targeted social assistance (TSA) and pensions and introduced universal health care (UHC). As a result, the fiscal deficit is likely to increase from 2.6 percent of gross domestic product (GDP) in 2013 to 3.7 percent in 2014. Over the medium term, an aging population and the need to improve health outcomes and coverage of the poor in social assistance programs will keep social expenditures high at more than 9 percent of GDP. The share of capital expenditures will level off, meanwhile. Such an outcome will reduce the government s flexibility in trimming current expenditures in the future.
Link to Data Set
Citation
“World Bank. 2014. Georgia Public Expenditure Review : Strategic Issues and Reform Agenda. © http://hdl.handle.net/10986/19301 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Moldova - Agricultural Policy Notes : Policy Priorities for Agricultural Development, Volume 2. Public Expenditures(Washington, DC, 2006-06-01)The objective of this policy note on land is to assist the Government of Moldova in improving the effectiveness of land management in agriculture, with a view to enhancing the sector's contribution to Moldova's economic growth and poverty reduction objectives. The note reviews the progress that has been made to date on land reform in Moldova, and provides rigorous economic analysis of the impacts of the reforms and the state of land markets today. It also makes recommendations on options for improving the functioning of land markets. This note is organized as follows. Chapter one explore in detail the progress of land reform, including changes in land ownership and land use since 1990; then describe the results of farm reorganization efforts, including some comparisons with farm structure in market economies. Chapter two examines the impacts of land reform on economic indicators such as productivity for different farm types. Chapter three analyze the development of land markets to date based on new information gathered for this work from the Cadastre Agency, a survey of farms carried out for this study, and other sources. Finally, chapter four provide recommendations based on international best practice for increasing the efficiency of land use by improving the functioning of land markets, including practical advice for implementing pilot land re-parceling projects.Publication Republic of Tajikistan : Evaluation of the Poverty Reduction Strategy Paper Process and Arrangements Under the Poverty Reduction and Growth Facility(Washington, DC, 2004-07-06)The International Monetary Fund (IMF) and the World Bank introduced the Poverty Reduction Strategy Paper (PRSP) process in 1999 to strengthen the poverty alleviation focus of their assistance to low-income countries. This report reviews Tajikistan s experience with the PRSP process, focusing on the effectiveness of IMF and World Bank support to the process and the extent to which the two institutions lending and non-lending activities in the country are aligned to the objectives of the PRSP approach. The rest of the report is organized as follows. Part two provides brief background accounts of political and economic developments since independence in 1991, including poverty incidence in the late 1990s. The relevance of the PRSP approach, application of the underlying principles, and preliminary evidence on results, are examined in part three. Part four considers the effectiveness of World Bank support, including alignment of that support to the objectives of the PRSP approach. The effectiveness of IMF support, including alignment of programs supported under the Poverty Reduction and Growth Facility (PRGF) and its predecessor, the Enhanced Structural Adjustment Facility (ESAF), to PRSP objectives, is assessed in part five. Part six reviews IMF-World Bank collaboration, include the Joint Staff Assessments (JSA) of the PRSP and of collaboration on country operations. Part seven presents main conclusions and lessons.Publication Gabon Public Expenditure Review : Better Management of Public Finance to Achieve Millennium Development Goals(Washington, DC, 2012-03)Although Gabon has witnessed a significant decline in oil production over the last fifteen years, it still generates significant oil revenue which, due to its small population enables the country to have a per capita gross national income that is among the highest in Africa (8643 USD in 2010) and to be classified as an upper-middle income country. Despite this high level of wealth, the country is ranked 106th out of 187 countries in the Human Development Index of the United Nations (0.674 in 2011). Consequently, the major challenge for Gabon remains the effective use of its oil resources to diversify its economy, improve its basic social services and infrastructure, while accumulating financial savings that will enable the country to avoid sudden and sharp cuts in public spending once the oil resources have been used up. The Growth and Poverty Reduction Strategy Paper (GPRSP) that covered the period from 2006 to 2008 targeted the reversal of the downward trend of the main development indicators and a significant improvement in the living conditions of the population. It was prepared using a consultative approach, based on the broad participation of civil society, and results-oriented, with the ultimate goal of achieving the Millennium Development Goals (MDGs). It was structured around four strategy areas: (i) promoting strong, sustainable, high quality and pro-poor economic growth, (ii) significantly improving access of the entire population to basic social services, (iii) improving infrastructure, and (iv) promoting good governance. The analysis of budgetary expenditure in the priority sectors during the period 2006-08, shows that this expenditure was far below the envisaged envelopes. The achievement rates for road programs fluctuate between 0 percent and 55 percent. This may partly explain the slow progress towards achieving the millennium development goals (MDGs).Publication Lao PDR Economic Monitor, November 2006(Vientiane, 2006-11)Lao PDR economic performance has continued to improve during 2006. Real GDP grew at 7.0 percent in 2005 and is now expected to be slightly higher at 7.3 percent in 2006. This growth is in large part due to foreign investment inflows in mining and hydro-power and growing mineral exports, but the share of non-mining contributions has increased this year, reaching 4.9 out of 7.3 percent. Agriculture, manufacturing and services sectors are expected to sustain growth, due to rising FDI in agriculture, manufacturing, and increasing trend in services (especially tourism). Inflation (of Consumer Price Index) has continued to remain in single digits: after rising early this year it has dropped remarkably during the last few months, to 5.5 percent in September and 3.7 percent in October 2006. This paper includes the following headings: introduction; part 1 recent economic developments -- the macroeconomic situation, elaboration and implementation of the Poverty Reduction Strategy; part 2 structural reforms -- public expenditure policy and management, reform of state-owned enterprises, financial sector reform, trade reform, and private sector development; and part 3 donor assistance to the reform agenda -- public sector governance; reform of state owned enterprises & financial sector; trade reform; and private sector, tourism development, and land reform.Publication Sierra Leone(Washington, DC, 2015-02)This agriculture public expenditure review (AgPER) provides key background information and guidance in this endeavor by presenting and analyzing historic data on public spending on agriculture, examining the efficiency of spending, and identifying areas where additional funds can be applied effectively to achieve national agricultural policy and comprehensive Africa agriculture development program (CAADP) objectives. The goals of the AgPER in Sierra Leone are as follows: gain a better understanding of the countrys performance in the context of the 2003 Maputo declaration; draw lessons from the past in terms of budget execution in the agricultural sector and identify bottlenecks, inefficiencies, and deviations from goals; seek and recommend corrective actions for existing and future programs with a view to improving their impact and making them more efficient and equitable; initiate the implementation of the databases and methodology required for conducting similar reviews regularly and thus contribute to the institutionalization of the process; help the government establish an environment and capabilities for results-based management, with particular emphasis on improving planning, execution, and monitoring and evaluation; and increase visibility for the government and the financial and technical partners over the sectors absorptive capacity so that the decision may be made to allocate more resources to agricultural development. This report consists of five chapters: first chapter introduces the strategic and institutional context; second chapter studies the level of public agricultural expenditure in Sierra Leone; third chapter analyzes the economic and functional composition of public agricultural expenditure (allocative efficiency); fourth chapter assesses the technical efficiency of the processes of preparation, execution, and monitoring and evaluation of agricultural budgets; and fifth chapter contains our findings and recommendations.
Users also downloaded
Showing related downloaded files
Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Lebanon Economic Monitor, Fall 2022(Washington, DC, 2022-11)The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.Publication Doing Business 2014 : Understanding Regulations for Small and Medium-Size Enterprises(Washington, DC: World Bank Group, 2013-10-28)Eleventh in a series of annual reports comparing business regulation in 185 economies, Doing Business 2014 measures regulations affecting 11 areas of everyday business activity: Starting a business, Dealing with construction permits, Getting electricity, Registering property, Getting credit, Protecting investors, Paying taxes, Trading across borders, Enforcing contracts, Closing a business, Employing workers. The report updates all indicators as of June 1, 2013, ranks economies on their overall “ease of doing business”, and analyzes reforms to business regulation – identifying which economies are strengthening their business environment the most. The Doing Business reports illustrate how reforms in business regulations are being used to analyze economic outcomes for domestic entrepreneurs and for the wider economy. Doing Business is a flagship product by the World Bank and IFC that garners worldwide attention on regulatory barriers to entrepreneurship. More than 60 economies use the Doing Business indicators to shape reform agendas and monitor improvements on the ground. In addition, the Doing Business data has generated over 870 articles in peer-reviewed academic journals since its inception.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.