Publication: Honduras : Public Expenditure Management for Poverty Reduction and Fiscal Sustainability
Loading...
Published
2001-06-28
ISSN
Date
2013-08-29
Author(s)
Editor(s)
Abstract
As a highly indebted poor country, Honduras faces a dual challenge of reducing poverty while ensuring medium-term sustainability of its public spending to avoid recurrence of over indebtedness. This Public Expenditure Review (PER) is intended to contribute to the government's overall poverty reduction efforts through efficient use of public resources and fiscally sustainable improvement in public services. It provides an assessment of Honduras' institutional capacity for good expenditure management and identifies key policy priorities in selected sector (health, education, and infrastructure). A good institutional arrangement of effective public expenditure management requires achieving the three inter-related objectives of aggregate fiscal discipline, allocation of resources to strategic priorities, and operational efficiency. One of the problems in Honduras' public expenditure management that can be tackled immediately is the need for improvement in the budget classification system for better fiscal transparency. Besides, a medium-term expenditure framework (MTEF) is useful to guide budgetary decision-making that balances medium-term fiscal affordability/sustainability and strategic priorities of policies and expenditure programs. This report presents an illustration that emphasizes developing a MTEF for personnel expenditures, whose control is critical for fiscal sustainability and the government's ability to fund other critical spending item for poverty reduction.
Link to Data Set
Citation
“World Bank. 2001. Honduras : Public Expenditure Management for Poverty Reduction and Fiscal Sustainability. Public expenditure review (PER);. © World Bank. http://hdl.handle.net/10986/15506 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication From the International Financial Crisis towards Inclusive Growth in the Dominican Republic(Washington, DC: World Bank, 2010-01-01)During the second half of the year 2008, the world experienced the worst worldwide economic crisis in over 70 years. The effects deriving from this crisis can still be felt over most of the planet. Low or negative economic growth in developed nations and emerging economies, high levels of unemployment and millions of persons below the poverty line, are some of the starkest examples. In the Dominican Republic, the effects of this international crisis are manifested in the reduction in international trade, the drop in tourism and in remittances, and an economic growth rate lower than expected. In this regard, the Dominican Republic asked the World Bank to prepare nine policy notes which are presented in this volume. These notes focus on the following topics: 1) long run economic growth in the Dominican Republic; 2) ease of doing business; 3) logistics for competitiveness; 4) access to financial services with emphasis on financing for micro, small and medium enterprises (MSMEs); 5) the electricity sector; 6) climate change and the Dominican Republic, 7) the health sector, 8) territorial development, and 9) accountability and performance system. The policy notes presented here argue that an inclusive development is possible in the Dominican Republic. However, great challenges must be faced to meet this goal. From the analysis presented in this volume four challenges emerge which must be faced head-on in order to achieve sustainable and inclusive development.Publication Mongolia - Consolidating the Gains, Managing Booms and Busts, and Moving to Better Service Delivery : A Public Expenditure and Financial Management Review - Core Report(World Bank, 2009-01-02)Mongolia's external economic outlook is dramatically changing as it faces sharp reductions in the copper price, caused by the financial crisis and global downturn. This compels the government now to drastically cut spending to prudently manage the budget. The budget is extremely dependent on mining revenues. Government is taking the right step in proposing a balanced budget for 2009. But further adjustments will be needed given the continuing fall in copper prices. A prudent fiscal stance will also be needed to manage inflation, which accelerated in the past year to over 30 percent. The current situation highlights the need to manage mining revenues better than in recent years. Mongolia saved little during the boom years, but instead dramatically increased expenditures on wages and salaries, and poorly-targeted social transfers. Adopting a multi-year fiscal framework-which enforces saving during the boom years, sets limits to expenditure growth and debt, and ensures transparency to the public-can help. Since much of the past windfall revenues have been spent, the country enters the down-turn with little savings and high inflation, forcing it to cut expenditures with every drop in the copper price. To avoid such situations in the future, the government has the opportunity to adopt a transparent, multi-year budget framework for expenditures and investment. This includes adopting a new fiscal responsibility law. It will ensure that the government saves during the 'boom' years, so that it can continue to spend during the 'bust' years. It will also set limits to expenditure growth and public debt. Within the limits set by this framework, parliament can then exercise its constitutional rights to amend the budget.Publication Moldova : Public Economic Management Review(Washington, DC, 2003-03-24)Unfavorable initial conditions, and extreme vulnerability to external shocks, as experienced by Moldova's economic transition, culminated in the 1998 regional financial crisis, which fostered the need for radical fiscal retrenchment, namely, reductions in social sectors expenditures. Currently, and despite a seemingly reasonable, attainable growth, the challenge for the Government is to improve basic outcomes in social sectors, and address inequities in access to basic social services. Key recommendations in this report suggest: a) launching a major program of public service reform; b) strengthening the government decision-making process, through the introduction of a system of Cabinet Committees, and the restructuring of the State Chancellery into a non-political Government Secretariat; c) strengthening strategic prioritization in budget formulation, through a structured approach to developing, and implementing the Medium Term Expenditure Framework; d) strengthening the budget process, through increased budget coverage - deepening Treasury coverage - and setting a stronger, internal/external accountability framework. Similarly, recommendations call for a strengthened civil service management, by amending the Civil Service Law, securing the application of key merit principles, and de-politicization, while launching a functional program to rationalize government structures. Furthermore, sector-specific reforms in the social sectors should be accelerated, particularly for education and social assistance, balancing basic education, primary health care, and emergency services.Publication Albania : Public Expenditure and Institutional Review, Volume 2. Main Report(Washington, DC, 2001-04-16)This report presents an in-depth evaluation of the budgetary planning process in Albania and the institutional arrangements required for better management of public expenditures. The report does not provide a detailed analysis of expenditures or an assessment of investment projects and their outcomes in each sector. Such a shift in emphasis is appropriate given the currently weak institutional capacities in Albania and the need to enforce accountability in the public sector.The report is arranged as follows: Chapter 1 deals with the macroeconomic frmaework and policies needed to maintain fiscal sustainability and improve fiscal discipline. Chapter 2 discusses revenue and expenditure patterns, presents measures that would enhance revenue performance and analyzes the allocation of expenditures. This chapter is designed to highlight the key expenditure priorities that should be more fully addressed as Albania moves forward with the medium-term expenditure framework process (MTEF). The bulk of the report--Chapters 3, 4, and 5--addresses key challenges facing Albania to improve its institutional environment and its capacities. Chapter 3 assesses the public expenditure management process and its weaknesses and how this process should be reformed. Chapter 4 explains how establishing the MTEF mechanism could provide a better linkage between policy planning and the allocation of resources. Chapter 5 discusses meeting institutional capacity requirements.Publication Kosovo, FR Yugoslavia : Medium-Term Public Expenditure Priorities(Washington, DC, 2002-10-16)Given the tight overall resource constraints in Kosovo, and in the face of declining donor support and limited access to external finance, difficult choices and trade-offs on spending decisions will need to be made. The main challenge will be to develop expenditure policies which will preserve macro-stability and ensure that public services are sustainable, comprehensive, and efficiently provided. Public spending policies need to lay the basis for broad-based equitable economic growth, and target the most needy, in an effective and efficient fashion. Through introducing the Medium Term Expenditure Framework (MTEF) approach in 2002, the United Nations Interim Administration in Kosovo (UNMIK) and the Provisional Institutions of Self Government (PISG) have started to make progress in adding a medium-term context to budget policy. This report identifies the several important expediture measures that require action. First, spending has to be reallocated across sectors, so reduce subsidies, reassess public sector employment, and provide finance for investment needs. Second, improve the efficiency of existing spending in the health, education, and social protection sectors. Third, increase the budget spending on health to provide a greater range of services and target educational finance to reduce inequality. Fourth, strengthen the effectiveness of the budget as a policy tool. Fifth, further improve transparency and accountability.
Users also downloaded
Showing related downloaded files
Publication Guinea-Bissau Country Climate and Development Report(Washington, DC: World Bank, 2024-10-23)Guinea-Bissau is endowed with a wealth of natural resources, with the highest natural capital per capita in West Africa (US3,874 dollars per capita), which could be leveraged for sustainable and resilient growth. However, Guinea-Bissau faces significant development hurdles, such as high poverty rates, political instability, and economic challenges, including an over-reliance on cashew nuts. Rural poverty has increased, and the nation's infrastructure, education, and health care systems are underdeveloped. Climate change poses a severe threat, potentially impacting agriculture, fisheries, and infrastructure. Without adaptation, it could lead to a significant cut in real GDP per capita (minus 7.3 percent by 2050) and increase in poverty (with up to over 200,000 additional poor by 2050, that is, 5 percent of the expected population, in the worst scenario). The country's low greenhouse gas emissions are expected to rise, mainly due to agriculture and land-use changes, with deforestation being a major contributing factor. Although Guinea-Bissau is a low emitter, it has high mitigation ambitions, targeting a 30 percent reduction in greenhouse gas emissions by 2030. The Nationally Determined Contribution outlines significant climate actions, with initiatives focused on forest conservation, sustainable agriculture, and community development. However, the country's political instability, institutional weaknesses, and limited financial resources pose challenges to implementing these climate commitments, which depend heavily on external funding. The financial sector's underdevelopment and vulnerability to external shocks limit its ability to support green investments, though reforms could enhance resilience. Guinea-Bissau must consider its climate financing as development financing and vice-versa, engage the private sector, and integrate climate goals with national development plans to ensure a sustainable future. Concessional climate financing is vital due to the underdeveloped financial sector and the government’s limited borrowing capacity. Addressing Guinea-Bissau's vulnerability to climate change and its structural issues requires a cohesive approach that integrates development and climate strategies. This could involve improving governance, diversifying the economy, protecting natural capital, developing human capital, and investing in sustainable agriculture and infrastructure. The transition to a more sustainable and inclusive development pathway that supports economic growth is possible, but requires focusing on key strategic sectors, enhancing institutional capacity, and creating the conditions to mobilize finance. As a highly vulnerable country, there are myriad needs in the different sectors; however, to be more efficient and effective, Guinea-Bissau should prioritize actions in a few sectors, especially actions on biodiversity, agriculture, and social protection. Low carbon development, especially in energy and forestry sectors, could provide cost-efficient solutions and attract climate finance, including from the private sector, which will support the overall development agenda.Publication Kyrgyz Republic Country Climate and Development Report(Washington, DC: World Bank, 2025-11-03)This Country Climate and Development Report (CCDR) on the Kyrgyz Republic aims to support the country’s development goals amid a changing climate. The CCDR considers two policy scenarios up to 2050: the business-as-usual (BAU) and high-growth scenarios. As it quantifies the likely impacts of climate change on the Kyrgyz economy between now and 2050, the report highlights key government actions to best prepare for and adapt to climate impacts (referred to as “with adaptation” measures), with a particular focus on the time horizon up to 2030. The CCDR also outlines a path to net zero emissions by 2050 (referred to as “with mitigation” measures, “decarbonization,” or, simply, “net zero 2050”), highlighting associated development co-benefits.Publication Jobs in a Changing Climate: Insights from World Bank Group Country Climate and Development Reports Covering 93 Economies(Washington, DC: World Bank, 2025-11-05)The World Bank Group’s Country Climate and Development Reports (CCDRs) provide a crosscutting look at how countries’ development prospects, and the job opportunities they offer to their people, can be threatened by climate impacts and supported by climate policies. Climate change and policies affect jobs through impacts on productivity, energy and material efficiency, and physical, human, and natural capital. They can also transform employment opportunities, especially through complementary measures that help workers and firms adapt to and benefit from new technologies and production practices. Prepared by the World Bank, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA), CCDRs integrate country perspectives, climate science and economic modeling, private sector information, and policy analysis to assess how countries can successfully grow and develop their economies and create jobs despite increasing climate risks and while achieving their climate objectives and commitments. Each CCDR starts from the country’s development priorities, opportunities, and challenges, and is developed in close consultation with governments, businesses, and civil society, ensuring the recommendations reflect national priorities. By combining evidence on adaptation, resilience, and emissions pathways, CCDRs highlight where climate action can reinforce development and job creation, and where targeted policies are needed to manage risks and smooth labor market transitions. Taken together, these elements can help create local jobs, ensure economic transitions are just and inclusive, and equip workers and firms to navigate the disruptions and opportunities of a changing climate and changing technologies.Publication Mongolia Country Climate and Development Report(Washington, DC: World Bank, 2024-10-22)Mongolia’s development prospects are uniquely challenged by both the impacts of climate change and the global shift toward a low-carbon economy. The country’s efforts toward decarbonization pose significant challenges given the structurally high-emission intensity of its economy. While challenging, climate action also presents Mongolia with opportunities to achieve important development benefits. The effects of climate risks and the shift away from coal will have diverse impacts across different regions, communities, and socioeconomic levels. The report assesses the critical interconnections between Mongolia’s development ambitions and climate change action and identifies ways to transition to a more economically diversified, inclusive, and resilient development path. It highlights key climate and transition risks affecting Mongolia’s future development and presents a pathway to enhance climate mitigation and adaptation. The report also makes a case for strengthening policies to enhance resilience to climate change and ensure a just transition, particularly for the most vulnerable. The report is structured as follows: section 1 gives introduction. Section 2 delves into the linkages between development and climate in Mongolia and presents model-based findings on the economic and poverty impacts of climate change under different scenarios. Section 3 covers four in-depth sectoral analyses. The first two mainly focus on adaptation to climate change in the agriculture and water sectors. The third considers prospects for the extraction sector, while the fourth sectoral analysis focuses on decarbonizing power and heat generation. Section 4 shifts the focus to how the government can boost resilience for climate-vulnerable populations. Section 5 outlines options for mobilizing private and public financing and private investments to support the green transition. Section 6 examines the existing institutional and governance structure for climate action and presents recommendations to improve its effectiveness, and section 7 concludes with a framework for prioritizing the policy actions outlined in this report.Publication Comoros Country Climate and Development Report(Washington, DC: World Bank, 2025-06-18)The Union of the Comoros (The Comoros) has significant vulnerability to climate change-related risks but has considerable opportunities to strengthen preparedness and resilience against these challenges. According to the Notre Dame Global Adaptation Index, the Comoros is the 29th-most vulnerable country to climate change and the 163rd most ready to adapt (out of 191). The Comoros archipelago is exposed to many natural hazards that adversely affect the country’s natural capital, people, and physical infrastructure. In 2014, the economic cost of climate-related disasters was estimated at 5.7 million dollars annually, equivalent to 9.2 percent of Gross Domestic Product (GDP). Between 2018 and 2023, as many as 11 tropical depressions or cyclones impacted the country, with Cyclone Kenneth causing the greatest damage, equivalent to 14 percent of GDP, resulting in total economic growth falling from 3.6 percent in 2018 to 1.9 percent in 2019. More than 345,000 people (40 percent of the population) were affected by the cyclone, with 185,000 people experiencing severe impacts and 12,000 people displaced. However, there is an opportunity for the country to grow more robust and shock-responsive, and to establish pre-positioned funding mechanisms to enhance future crisis response efforts. For the Comoros, adaptation and climate-resilient development are the key climate change focus areas, with the country projected to face 836 million dollars 2050 in additional costs due to climate-related impacts. Current plans to adapt to the impacts of climate change in the Comoros include efforts to improve water management, strengthen coastal protection, and develop climate-smart agriculture practices. Given the country’s reliance on its natural resource base for economic growth and mobility, protection of these resources from climate change will be essential for promoting resilient growth and development. In addition to growing the adaptive capacity of the country’s natural resource sectors, strategic economic diversification will be important to help minimize future climate impacts, and development activities will need to be undertaken in such a way as to attract low-carbon co-benefits. The Union of the Comoros is committed to addressing climate change through its Nationally Determined Contribution (NDC) and national priorities. The country’s NDC (which was revised in 2021 for a ten-year horizon) sets ambitious targets, with a goal of reducing greenhouse gas emissions by 23 percent by 2030. The country also plans to significantly increase the share of renewable energy in its energy portfolio, reaching 33 MW by 2030. This will not only promote low-carbon development but also reduce the country’s dependency on imported oil and coal, which currently make up 95 percent of the energy mix. Additionally, the Comoros has declared its intention to increase CO2 removals by 47 percent by 2030, compared to BAU.