Publication: Honduras : Public Expenditure Management for Poverty Reduction and Fiscal Sustainability
Date
2001-06-28
ISSN
Published
2001-06-28
Author(s)
World Bank
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);. © Washington, DC. http://hdl.handle.net/10986/15506 License: CC BY 3.0 IGO.”