Publication: Honduras : Public Expenditure Review, Volume 1. Executive Summary and Main Report
Date
2007-11-19
ISSN
Published
2007-11-19
Author(s)
World Bank
Abstract
Macroeconomic developments in Honduras
over the last four years have been generally favorable,
largely reflecting a benign external environment.
Honduras' medium-term macroeconomic outlook, however,
is clouded by several significant fiscal challenges. These
challenges include: (a) rising operating losses of the
public enterprises; (b) rising public wages; and (c) popular
pressures to increase subsidies in transport, fuel, and
electricity, as well as to freeze gasoline and energy
prices, in the wake of international oil price hikes. To
satisfy the rapidly rising demand for education in Honduras,
the educational wage bill will have to rise by approximately
41 percent in real terms over the next 10 years. Even
without any further adjustments in 2010, due to the
agreement reached with the teachers union in August 2006
(PASCE) salary increases are coupled with projected
enrollment demand the educational wage bill stands to
increase by 141 percent over the next 10 years.
Citation
“World Bank. 2007. Honduras : Public Expenditure Review, Volume 1. Executive Summary and Main Report. © Washington, DC. http://openknowledge.worldbank.org/entities/publication/29282bfa-8a31-5c49-a720-60ff527bf1dd License: CC BY 3.0 IGO.”