Publication: Eswatini Public Finance Review: Leveraging Fiscal Adjustment for Better Development Outcomes
Loading...
Date
2025-02-27
ISSN
Published
2025-02-27
Author(s)
Editor(s)
Abstract
Eswatini’s fundamental policy challenge is to address the longstanding factors that have constrained growth and hindered broad-based improvements in living standards. Given the state’s significant role in the economy, the build-up of macro imbalances, and slow improvements in social indicators, it is vital to reform fiscal policy to transition to faster, more inclusive, and sustainable private sector-led growth. Eswatini development prospects continue to hinge on its attractiveness as an investment destination relative to its neighbors. The government has an opportunity to address binding constraints on growth by pivoting from a state-led to a private sector-led development model through five fiscal pathways: (1) ensuring macroeconomic stability for greater competitiveness, including reforming the way the country collects and manages revenues to smooth expenditures and avoid disruptions caused by inconsistent funding (e.g., SACU); (2) advancing fiscal reforms to encourage private investment through competition and market contestability; (3) improving public financial management to support fiscal consolidation and greater expenditure efficiency. Aligning budget allocations more closely with the government’s stated development priorities would make public spending a more effective policy instrument, and enhanced financial oversight and better management of public procurement would further improve expenditure efficiency; (4) fiscal policies for building more productive physical capital through better public investment management; and (5) fiscal policies for building human capital.
Link to Data Set
Citation
“World Bank. 2025. Eswatini Public Finance Review: Leveraging Fiscal Adjustment for Better Development Outcomes. © World Bank. http://hdl.handle.net/10986/42875 License: CC BY-NC 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Angola : Public Expenditure Review, Volume 1. Policy Briefing(Washington, DC, 2007-12-20)This report concerns about policy briefing and outlines the main findings and policy options associated with the analysis of public spending in terms of equity and allocative efficiency. This Public Expenditure Review (PER) covers the sectors of Education, Health, Agriculture, and the area of decentralization. The main objective of this Public Expenditure Review is to examine the allocative efficiency and equity of public spending in Angola. Five cross-cutting messages are drawn from the analysis of public spending and fiscal management in the context of this Public Expenditure Review: (i) the need to prepare public spending plans within a multiyear perspective; (ii) the need to improve the efficiency of public spending; (iii) the need to improve the quality of the data on social indicators and on the budget; (iv) the need to observe equity considerations in the preparation of the budget ; and (v) the need for steady progress with decentralization. The first volume, a policy briefing, outlines the main findings and policy options associated with the analysis of public spending in terms of equity and allocative efficiency. The second volume presents a fuller assessment of each sector and on decentralizationPublication Gabon Public Expenditure Review : Better Management of Public Finance to Achieve Millennium Development Goals(Washington, DC, 2012-03)Although Gabon has witnessed a significant decline in oil production over the last fifteen years, it still generates significant oil revenue which, due to its small population enables the country to have a per capita gross national income that is among the highest in Africa (8643 USD in 2010) and to be classified as an upper-middle income country. Despite this high level of wealth, the country is ranked 106th out of 187 countries in the Human Development Index of the United Nations (0.674 in 2011). Consequently, the major challenge for Gabon remains the effective use of its oil resources to diversify its economy, improve its basic social services and infrastructure, while accumulating financial savings that will enable the country to avoid sudden and sharp cuts in public spending once the oil resources have been used up. The Growth and Poverty Reduction Strategy Paper (GPRSP) that covered the period from 2006 to 2008 targeted the reversal of the downward trend of the main development indicators and a significant improvement in the living conditions of the population. It was prepared using a consultative approach, based on the broad participation of civil society, and results-oriented, with the ultimate goal of achieving the Millennium Development Goals (MDGs). It was structured around four strategy areas: (i) promoting strong, sustainable, high quality and pro-poor economic growth, (ii) significantly improving access of the entire population to basic social services, (iii) improving infrastructure, and (iv) promoting good governance. The analysis of budgetary expenditure in the priority sectors during the period 2006-08, shows that this expenditure was far below the envisaged envelopes. The achievement rates for road programs fluctuate between 0 percent and 55 percent. This may partly explain the slow progress towards achieving the millennium development goals (MDGs).Publication Croatia Public Finance Review : Restructuring Spending for Stability and Growth(2014-10-01)The Croatia poverty rate, as measured by the international line of moderate poverty at dollar 5 in public-private partnership (PPP) terms, is estimated at 2.8 percent for 2012. The share of the population at risk of poverty, based on a higher national and relative poverty line, also declined substantially prior to the 2008 global financial crisis, although has subsequently increased markedly. The global financial crisis, with the loss of credit, has exposed Croatia's macroeconomic vulnerabilities. This report shows that without addressing macroeconomic weaknesses, through sustained fiscal adjustment and institutional reforms, Croatia will not be able to reignite higher growth and benefit fully from European Union (EU) membership, and the quest for future prosperity may prove elusive. Similarly, without accelerating structural reforms, especially in the area of labor market, investment climate, and public sector efficiency, Croatia will face further stifled competitiveness and any prospects for recovery of growth and jobs. Focusing on the fiscal and public sector related deficiencies, this report systematically analyzes three interrelated issues to assist the Croatian government in informing public policy, strengthening macroeconomic stability, and laying the foundation for a robust recovery: first, it analyzes Croatia's major fiscal weaknesses, risks, and alternative fiscal scenarios, and on that basis, calculates the required fiscal adjustment needed over the medium term. Second, it analyzes the institutional weaknesses and requirements for the efficient use of EU funds in the coming years. Third, the report analyzes the structure of Croatia's public finances and provides a blueprint of the fiscal adjustment of around 5 percentage points of gross domestic product (GDP) over the medium term.Publication Plurinational State of Bolivia : Agriculture Public Expenditure Review(World Bank, Washington, DC, 2011-03-15)Agriculture is one of the most important sectors for reducing poverty, improving food security, and contributing to the development of Bolivia. There is a need for re-organization and re-prioritization of spending within the sector before an argument for more resources can be made. Recommendations include allocating more resources towards agricultural public goods (such as research and extension among others) to improve sectoral performance and to support a heterogeneous agricultural sector in the context of rapid technological change, climate pressures and food price volatility. There is a need for resource allocations towards research and extension, adherence to the types of production systems in the country. Improving the balance between current and capital expenditures in agriculture is imperative. Within the current component of sectoral expenditures, more money should be spent on human capital. Prioritization and targeting of public agricultural investments is a good starting point for improving sector performance. This prioritization within the agricultural sector should consider the diversity of production systems and agricultural economic units in rural areas. Bolivia needs a coordinated monitoring and evaluation system that enables the tracking of results of the sector as a whole and facilitates the planning of investments. Strong recommendations are made to ensure better implementation of available resources in agriculture.Publication Albania Public Finance Review : Part 1. Toward a Sustainable Fiscal Policy for Growth(Washington, DC, 2014-01)Albania's rapid growth in the decade up to the 2008 global financial crisis propelled it to middle-income status and helped to reduce poverty. The global financial crisis in 2008 slammed the brakes on Albania's largely domestic-demand-driven growth. The government has accumulated sizable arrears in payments for public works and value-added tax (VAT) refunds. In a baseline scenario of no policy reforms, Albania's public debt-to-gross domestic product (GDP) ratio is projected to reach 73.5 percent in 2015 and stay above 72 percent over the medium term. Empirical evidence confirms that high public debt depresses economic activity and significantly increases the probability of default. This report examines closely the opportunities for fiscal consolidation on both the revenue and expenditure sides. Combined effect of structural reforms will reduce Albania's public debt to GDP ratio significantly over the medium term. It can in parallel rebalance its capital spending, particularly in transport, toward maintenance to support growth. Albania needs to strengthen its institutions to reinforce financial discipline and strengthen fiscal policy. Institutional reforms are particularly needed with regard to public financial management (PFM) and introducing a fiscal rule to anchor policy over the medium term.
Users also downloaded
Showing related downloaded files
Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.Publication Zambia Poverty and Equity Assessment 2025(Washington, DC: World Bank, 2025-02-25)Zambia is simultaneously amongst the poorest and the most unequal countries in the world. In 2022, 64.3 percent of the population - about 12.6 million individuals - was living on less than US$2.15 a day. This level is not only the 6th highest in the world but it is also misaligned with the country’s Gross Domestic Product (GDP) per capita level. In four of the five poorer countries, GDP per capita is between one-quarter and one-half of Zambia’s GDP per capita. The remaining country is South Sudan, which is immersed in a protracted fragility and conflict situation. At the same time, consumption inequality is high, even when compared with the sub-group of highly unequal resource-rich countries. In 2022, the Gini index stood at 51.5 - significantly above the World Bank’s newly adopted high-inequality threshold of 40. This places Zambia as the country with the 4th highest inequality in the region and the 6th highest globally. Resource-rich countries with similar or higher inequality have substantially lower poverty levels.Publication Equatorial Guinea Country Economic Memorandum(Washington, DC: World Bank, 2025-03-12)The focus of this Country Economic Memorandum (CEM) is to review key policy and reform options for Equatorial Guinea to build the foundations for renewed, diversified, and more inclusive growth. The CEM thus aims to contribute to the government’s economic development and diversification agendas. The first chapter of the report examines the drivers of past growth, and the country’s asset portfolio, and discusses possible long-term growth trajectories. The second chapter examines fiscal policy as the main instrument for efficient transformation of natural capital into physical and human capital, and outlines the fiscal challenges associated with the reliance on the volatile oil and gas markets. It identifies the key gaps in public financial management, including the challenges posed by climate change and provides reform options for implementing an effective fiscal policy. The third chapter explores the present state of education, health, and social protection and discusses priority options to boost human capital. The fourth chapter then turns to the private sector and the main cross-cutting issues that need to be addressed to encourage higher investment, innovation, and productivity. The final chapter drills down into some key sectors which are likely to play a prominent role in any new growth strategy. These include digitalization in both the public and private sectors, and integration into the world economy through trade and ecotourism.