Publication: Russia : Towards Improving the Efficiency of Public Investment Expenditures
Loading...
Published
2001-09-18
ISSN
Date
2013-08-29
Author(s)
Editor(s)
Abstract
This report documents the current levels and patterns of public investment in Russia, analyzes the institutional arrangements in place for investment budgeting, and develops short- and medium-term recommendations where policy or institutional strengthening is required for improving the efficiency of investment expenditures. The analysis of public investment is based primarily on the federal government though some issues of subnational investment budgeting are also touched upon In any case, many of the issues and recommendations at the federal level are likely to have relevance for subnational investment budgeting also. While the Government is embarked upon overall budgetary reforms, the special characteristics of multi-year investment programs require special attention in the face of evidence of inefficiencies in the use of public funds for investment purposes, improvements in their efficiency--both in terms of their allocation across sectors and activities, and in terms of their cost-effectiveness--are clearly important. It is also clear that many gains would come from the strengthening of the institutional arrangements for investment budgeting--in the areas of budget preparation, implementation, and ex post evaluation and accountability.
Link to Data Set
Citation
“World Bank. 2001. Russia : Towards Improving the Efficiency of Public Investment Expenditures. Public expenditure review (PER);. © World Bank. http://hdl.handle.net/10986/15479 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 Brazil : Country Financial Accountability Assessment(Washington, DC, 2002-06-30)This Country Financial Accountability Assessment (CFAA) is also a "fiduciary" assessment, given it examines Brazil's Public Financial Management system, to form a judgment on the risk to Bank, and country funds within the Brazilian budget, and the level of accountability and transparency concerning such spending. Moreover, this CFAA will feed into the Bank's lending program, in particular a second Fiscal Reform and Structural Adjustment Loans in FY03. Partly reflecting the lack of a Public Expenditure Review, this CFAA also focuses on upstream budget development issues, including linkages with the government planning systems, as well as downstream budget execution issues. The Brazilian Government appears strongly committed to improving its public financial management, in particular, two major initiatives have been recently undertaken, which significantly impacts on public financial management: a) the Multi-Annual Plan for 2000-2003 adopted a new approach, aimed at improving resource allocation through a program-based approach covering all budget expenditures, involving the setting of program objectives, and measuring performance; and, b) the Law on Fiscal Responsibility, which appears likely to significantly impact on reinforcing commitments to fiscal discipline at the federal government level, and enforcing greater fiscal discipline on sub-national government. Nevertheless, the budget system is fragmented, and complex, hampering resource allocation in line with stated priorities, and, its execution does not reflect program priorities. Notwithstanding needed improvements, the overall conclusion of this assessment is that the Brazilian public financial management system, provides reliable information, adequate systems exist to manage funds at the national level, and, there is a high level of fiscal transparency, both supporting an adjustment lending program.Publication Ukraine Public Investment Management Performance Assessment 2012(Washington, DC, 2013)Ukraine has extensive public infrastructure inherited from the Soviet times but much of it has fallen into disrepair over the past decades and needs major rehabilitation or replacement so that growth may continue. Creating fiscal space for investing more is one of the critical tasks that facing the country, but a constrained fiscal space together with the use of investments as a stimulus for growth call for more efficiency in public investment management practices. There are a number of fundamental issues that need to be addressed if Ukraine is to make progress in its reform ambitions for public investment management (PIM). The most significant are: (1) most projects avoid scrutiny due to loopholes in classification (lack of definition of a public investment project); (2) there is no effective economic appraisal and appraisal review procedures in place due to limited human resource (HR) capacity, and no common technical standards; (3) the PIM system does not seem to block new projects from entering the budget but allows ministries to delay ongoing ones and squeeze in new ones; and (4) lack of strategic guidance with which to prioritize complicates project selection. One of the fundamental building blocks of a sound PIM system is a clear, legal definition of what counts as a public investment project and what does not. It should be pointed out that this already high discrepancy is only a comparative measure of input values. Developing projects that are output and performance driven should yield even greater efficiencies. Between 2000 and 2008, Ukraine was an average growth performer in a fast growing region, with gross domestic product (GDP) growth averaging 7 percent. As the global financial crisis hit the Ukrainian economy it contracted by 15 percent in 2009, exposing its underlying macroeconomic and structural vulnerabilities. As a result of the insufficient structural transformation and impact of the economic crisis, Ukraine now faces substantial fiscal pressures that threaten economic stability and growth. The Government of Ukraine recognized the need for a modern public financial management (PFM) system and put considerable emphasis on several aspects of PFM reforms. Training for the development of capacity in the PIM system is tricky in Ukraine. It is becoming clear that due to the dynamic nature of the Ukrainian civil service, officials are rapidly moving from one area of the Administration to another.Publication Georgia Public Expenditure Review : Diagnostics of Public Investment Management System(Washington, DC, 2014-06-11)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.Publication Nigeria - A Fiscal Agenda for Change : Public Expenditure Management and Financial Accountability Review, Volume 2. Executive Summary(Washington, DC, 2007-05-25)This report reviews the trends in expenditure patterns in public financial management (PFM) in Nigeria since 2001, and assesses the impact thus far of the ongoing government reform efforts. The public expenditure management and financial accountability review (PEMFAR) covers areas that have been traditionally undertaken by separate Bank reports such as the public expenditure reviews (PER), the country financial accountability assessment (CFAA), and the country procurement assessment review (CPAR). This analysis covers fiscal policies and performance at both federal and state government levels. The PEMFAR is a consolidated diagnostic tool designed to enhance Bank, development partners' and member countries' knowledge of PFM arrangements and reform challenges. The core objective of the Nigeria PEMFAR is to advise the Government (federal and participating states) on how (i) to better focus and sequence its PFM, including the procurement reform agenda within a broader economic reform framework, and (ii) identify directions and instruments of restructuring its expenditure patterns on both macro and sectoral levels. The PEMFAR also aims to inform international development partners on how they could provide more efficient support for the PFM reforms in Nigeria by identifying the main bottlenecks within the existing reform process.Publication Russian Federation : Country Financial Accountability Assessment(Washington, DC, 2003-09-16)This CFAA concentrates, by design, on federal-level public sector financial management in the Russian Federation. Its results feed into the fiduciary discussion presented in the new Russian Federation Country Assistance Strategy (CAS), and into the Core Integrative Fiduciary Assessment (CIFA). In budget management the CFAA recommends 1) strengthening the strategy phase of budget preparation to link macroeconomic resource constraints and sectoral and program targets; 2) adopting a uniform, simplified budget coding structure; 3) adopting a more participatory approach to budget planning and formulation; 4) introducing accounting principles by entities with extra-budgetary funds and preparing reports that are compatible with Treasury accounts and fiscal reporting; 5) preparing a program of institutional development for the MOF and applying modem information technology; and 6) amending the chart of accounts (COA) to fully reflect the budget classification. The development and implementation of a full-function Treasury system will take several years and is not expected to become fully operational before 2004/05. In the interim, the CFAA recommends immediate implementation of an improved system of expenditure monitoring, extension of Treasury control of expenditure commitments to all items of the economic expenditure classification, and replacement of weekly cash finding limits by monthly funding of established expenditure commitments. In accounting and financial reporting, some recommendations are to 0 review of existing budget classifications and coding structures and design of a revised structure and COA that conform with the IMF GFS classification; and to integrate the two existing coding systems. To improve internal controls and internal auditing, the report recommends regarding the internal audit as an important management tool, shifting to a new model, based on service orientation and performance/risk assessment, internal audit functions becoming independent from other organizational and functional departments, staff reporting directly to the head of the organization, regulating the entity by an audit charter, and audit functions be carried out by multi-disciplinary teams. As for external audits, the CFAA strongly supports the Chambers' program of institutional and methodological improvements, in particular its preparation of a long- term plan to assess public institutions' performance (value for money) in the use of public funds. Finally, the CFAA finds that the World Bank is adequately discharging its financial management fiduciary responsibilities with respect to its lending operations. The CFAA risk assessment concludes that the current ring-fencing approach to project implementation arrangements should be maintained, recognizing that--based on the effective operationalization of the reforms being introduced in public financial accountability--the present arrangements could in due course be subject to revision.
Users also downloaded
Showing related downloaded files
Publication Morocco Economic Update, Winter 2025(Washington, DC: World Bank, 2025-04-03)Despite the drought causing a modest deceleration of overall GDP growth to 3.2 percent, the Moroccan economy has exhibited some encouraging trends in 2024. Non-agricultural growth has accelerated to an estimated 3.8 percent, driven by a revitalized industrial sector and a rebound in gross capital formation. Inflation has dropped below 1 percent, allowing Bank al-Maghrib to begin easing its monetary policy. While rural labor markets remain depressed, the economy has added close to 162,000 jobs in urban areas. Morocco’s external position remains strong overall, with a moderate current account deficit largely financed by growing foreign direct investment inflows, underpinned by solid investor confidence indicators. Despite significant spending pressures, the debt-to-GDP ratio is slowly declining.Publication Global Economic Prospects, June 2024(Washington, DC: World Bank, 2024-06-11)After several years of negative shocks, global growth is expected to hold steady in 2024 and then edge up in the next couple of years, in part aided by cautious monetary policy easing as inflation gradually declines. However, economic prospects are envisaged to remain tepid, especially in the most vulnerable countries. Risks to the outlook, while more balanced, are still tilted to the downside, including the possibility of escalating geopolitical tensions, further trade fragmentation, and higher-for-longer interest rates. Natural disasters related to climate change could also hinder activity. Subdued growth prospects across many emerging market and developing economies and continued risks underscore the need for decisive policy action at the global and national levels. Global Economic Prospects is a World Bank Group Flagship Report that examines global economic developments and prospects, with a special focus on emerging market and developing economies, on a semiannual basis (in January and June). Each edition includes analytical pieces on topical policy challenges faced by these economies.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.Publication Digital Africa(Washington, DC: World Bank, 2023-03-13)All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.