Publication: Spending for Development : Making the Most of Indonesia's New Opportunities
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2008
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2012-05-24
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This Public Expenditure Review (PER) examines and explains some of the constraints facing the government in public resource management and allocation, and offers recommendations for improvements in six critical areas: fiscal space, education, health, infrastructure, public financial management, and decentralization. Although Indonesia has made important progress in reforming its public finances and increasing transparency, Indonesia's reform agenda, as highlighted by the PER, is far from complete. Equity and efficiency of spending remain major issues, for instance finding an optimal allocation of resources that reflects development priorities, and achieving an annual spending pattern that is no longer strongly skewed towards the end of the financial year. This report tries to establish the facts about Indonesia's public expenditures, presenting trends over time and analyzing the composition across sectors and levels of government. It presents comprehensive information on key sectors, including sub-national governments and state-owned enterprises in key infrastructure sectors. Based on these facts, the report asks: Who benefits from these substantial amounts of public resources? Where are the gaps? Which regions are well-endowed? Which regions are lagging behind? In addition to these questions, this report also tries to respond to key concerns that are in the minds of many ordinary Indonesians and friends of Indonesia, such as: Can Indonesia afford to spend more? Is the current level of education and health spending sufficient? How to revitalize infrastructure investment, and which sectors are the priorities? Why is it so difficult to disburse funds through the government budget system? How unequal is Indonesia and how should fiscal transfers be structured to equalize disparities? This report addresses seven critical expenditure areas. The first two chapters (Chapter 1 on fiscal space and Chapter 2 on cross-sectoral allocations) discuss how much money is available to the government and how it is allocated across sectors and levels of government. The following three chapters on education, health, and infrastructure analyze how resources are currently allocated within these critical sectors and how effectively they are used. The final two chapters (Chapter 6 on public financial management and Chapter 7 on decentralization) highlight institutional and crosscutting issues in effective public expenditure management
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“World Bank. 2008. Spending for Development : Making the Most of Indonesia's New Opportunities. © World Bank. http://hdl.handle.net/10986/6347 License: CC BY 3.0 IGO.”
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Publication Spending for Development : Making the Most of Indonesia's New Opportunities, Indonesia Public Expenditure Review 2007(Washington, DC, 2007-06)This Public Expenditure Review (PER) 2007 examines and explains some of the constraints facing the government in public resource management and allocation, and offers recommendations for improvements in six critical areas: fiscal space, education, health, infrastructure, public financial management and decentralization. Although Indonesia has made important progress in reforming its public finances and increasing transparency, Indonesia's reform agenda, as highlighted by the PER, is far from complete. Equity and efficiency of spending remain major issues, for instance finding an optimal allocation of resources that reflects development priorities, and achieving an annual spending pattern that is no longer strongly skewed towards the end of the financial year. This report tries to establish the facts about Indonesia's public expenditures, presenting trends over time and analyzing the composition across sectors and levels of government. It presents comprehensive information on key sectors, including sub-national governments and state-owned enterprises in key infrastructure sectors. Based on these facts, the report asks: Who benefits from these substantial amounts of public resources? Where are the gaps? Which regions are well-endowed? Which regions are lagging behind? In addition to these questions, this report also tries to respond to key concerns that are in the minds of many ordinary Indonesians and friends of Indonesia, such as: Can Indonesia afford to spend more? Is the current level of education and health spending sufficient? How to revitalize infrastructure investment, and which sectors are the priorities? Why is it so difficult to disburse funds through the government budget system? How unequal is Indonesia and how should fiscal transfers be structured to equalize disparities? This report addresses seven critical expenditure areas. The first two chapters (Chapter 1 on fiscal space and Chapter 2 on cross-sectoral allocations) discuss how much money is available to the government and how it is allocated across sectors and levels of government. The following three chapters on education, health, and infrastructure analyze how resources are currently allocated within these critical sectors and how effectively they are used. The final two chapters (Chapter 6 on public financial management and Chapter 7 on decentralization) highlight institutional and crosscutting issues in effective public expenditure management.Publication Towards 2015 : Spending for Indonesia's Development, Shaping the Prospects of a Middle-Income Country(Washington, DC, 2009-08)This report discusses the future of Indonesia's public expenditures as it enters the 21st century. It contributes to the discussion on Indonesia's spending priorities for the years ahead. These choices will impact the lives of Indonesians, and their opportunities to grow richer and receive better services. The report will contribute to Indonesia s next five-year plan, the RPJM, which will take effect in January 2010. Indonesia has been one of the most successful countries in reducing its debt-to-GDP ratio. Since 1999, when debt levels reached over 90 percent of GDP, Indonesia has reduced its debt levels to just above 30 percent of GDP by the end of 2008. Education spending increased from 11 percent of total government spending in 2001 to 15 percent in 2008. Chapter 1 discusses public spending from 2001 to 2009, including discretionary spending, key sectors, subsidies and decentralization. Chapter 2 analyzes Indonesia's economy in the current (2009) economic downturn. Indonesia is in a position of relative economic strength despite the impact of the global financial crisis. 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The findings are robust to different regression methodologies, as well as the inclusion of short- and medium-term data.Publication Moldova Public Expenditure Review : Capital Expenditures - Making Public Investment Work for Competitiveness and Inclusive Growth in Moldova(Washington, DC, 2013-06)This public expenditure review (PER) for Moldova is the result of a body of programmatic fiscal work. This PER focuses on capital expenditure. It supports the first pillar of the country partnership strategy (improving economic competitiveness) and complements the 2012 development policy operation. In the context of economic recovery and stabilization, government requested World Bank assistance in improving its capital allocation mechanism, as its fiscal consolidation program attempted to create space for critical infrastructure whilst gradually reducing the state's footprint in the economy. This report recommends ways to strengthen public investment processes, institutions, and sector policies to achieve better outcomes for public capital expenditures in Moldova. This report suggests reforms in public investment management and sector policies to raise cost-effectiveness and allocative efficiency of capital expenditures. Three key areas of reform are: (i) raise the quality of new projects by improving preliminary screening and project appraisal mechanisms; (ii) improve selection of new projects and ensure continuity of funding for ongoing projects through better prioritization and budgeting processes; and (iii) strengthen monitoring of project implementation for cost efficiency and timely delivery of public services. The report has four chapters. The first chapter presents the macroeconomic outlook and its implications for fiscal policy, particularly with respect to the capital budget. The second chapter presents the structure and classification of the capital budget as well as recent trends in capital expenditure levels and execution, and reviews the adequacy of resource allocations and utilization across sectors, given investment needs, national priorities and implementation capacity. The third chapter reviews public investment management processes and presents recommendations to improve the efficiency of public capital expenditure in Moldova. The fourth chapter discusses specific sector challenges and offers recommendations for improving capital expenditure outcomes.Publication Cape Verde - Enhancing Planning to Increase Efficiency of Public Spending : Background chapters(World Bank, 2009-02-01)A Public Expenditure Review (PER) update was conducted in 2006 which highlighted: (i) the large and increasing weight of non-discretionary expenditures in the total budget; (ii) the importance of improving coordination among the various planning instruments; (iii) the need to strengthen public finance management; (iv) the fiscal risks that emerge from the energy sector; and (v) the need to further progress with the pension reform. During 2006-07 the Government implemented several of the 2006 PER update recommendations. Building on the findings of the 2006 PER update, in mid 2007 the Government and the World Bank decided to prepare jointly an updated PER that would inform the preparation of the second Growth and Poverty Reduction Strategy Paper (GPRSP-2) and the Country Assistance Strategy (CAS). The objectives of the PER were to: (i) examine recent macro and fiscal developments (chapter one and two); (ii) provide an update of the strengths and shortcomings of the public finance management system, the recent reforms implemented in this area and the new emerging challenges (chapter three); (iii) conduct an analysis of the fiscal decentralization issues, with particular emphasis on the municipalities' resources, expenditures, budget processes, capacity and systems, and accountability to the citizens (chapter four); and (iv) examine public expenditure issues in infrastructure, focusing on issues of adequacy, allocation and efficiency of spending in electricity, water, roads, air transportation, and ports (chapter five).
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