Publication: Improving Public Expenditure Efficiency for Growth and Poverty Reduction : A Public Expenditure Review for the Republic of Moldova
Date
2007-02
ISSN
Published
2007-02
Author(s)
World Bank
Abstract
The Government of Moldova's
Economic Growth and Poverty Reduction Strategy Paper
(EGPRSP) lays out an ambitious plan for sustaining growth
and poverty reduction and reshaping the government to meet
the needs of a market economy. The public expenditures
envisaged under this ambitious plan, however, vastly exceed
the domestic resources available to the Government.
Additional foreign budgetary support may help alleviate some
of that resource constraint. Recognizing that the share of
tax revenues and expenditures to GDP in Moldova already
greatly exceed comparable international levels, generating
additional domestic tax resources risks crowding out the
private sector and undermining growth prospects. This
suggests that in order to finance higher order public
expenditures priorities, the Government needs to create
fiscal space from within the existing resource envelope.
This will require inter and intra-sectoral reallocation of
expenditures and an increase in the efficiency of public
spending rather than increasing the relative size of government.
Citation
“World Bank. 2007. Improving Public Expenditure Efficiency for Growth and Poverty Reduction : A Public Expenditure Review for the Republic of Moldova. © Washington, DC. http://openknowledge.worldbank.org/entities/publication/1560ef1c-dddd-58f2-b335-7e465c89dd76 License: CC BY 3.0 IGO.”