Publication: Turkey - Public Expenditure and Institutional Review : Reforming Budgetary Institutions for Effective Government
Loading...
Published
2001-08-20
ISSN
Date
2013-08-29
Author(s)
Editor(s)
Abstract
This Public Expenditure and Institutional Review presents the findings of an analysis of the budget, and institutions of public expenditure management, and accountability, fundamental to policy decisions, and economic management. It builds on extensive analysis undertaken by the Special Ad Hoc Committee on Fiscal Transparency, and Public Finance, and, the review suggests that the current economic crisis is deep-rooted in the institutions of collective decision making in government, confirming that unless fundamental improvements are made to the processes for formulating public policy, allocating resources, and implementing budgets, any economic recovery will almost certainly be fragile, and short-lived. Thus, from the perspectives of system performance, and structural and institutional aspects, an improved budgetary system should enable the government to achieve aggregate fiscal magnitudes, based on expenditures, sustained by tax, and non-tax resources; the budget should generate the adequate information to ensure funding of key policy objectives; and, public accountability should generate incentives to support performance objectives. The report identifies aggregate fiscal management as a major weakness, compromised by the significant growth of off-budget activity, while the weakness of the budget system in terms of ability to support decision-making, is equally pernicious. A series of actions to restore fiscal discipline are outlined for the short-term (2001), and initiatives for a multi-year budget commencing in 2002 are included. Recommendations include strengthening the aggregate fiscal program management capacity; reviving policy formulation capacity, and institutional framework to define budgetary policy; and, initiating budget control devolution, introducing a budget performance approach.
Link to Data Set
Citation
“World Bank. 2001. Turkey - Public Expenditure and Institutional Review : Reforming Budgetary Institutions for Effective Government. Public expenditure review (PER);. © World Bank. http://hdl.handle.net/10986/15482 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 Serbia and Montenegro : Public Expenditure and Institutional Review, Volume 1. Executive Summary(Washington, DC, 2003-02)This Public Expenditure and Institutional Review (PEIR) aims to help the government of the Federal Republic of Yugoslavia (FRY) in taking their public expenditure reforms further. It analyzes public expenditure practices, and institutions of the two Republics - Serbia and Montenegro - and of the Federal Government, and, evaluates their decision-making, and implementation processes. The cross-cutting topics of the PEIR are: sustainability of public expenditures; strategic allocation of public spending, to maximize growth and welfare within fiscally sustainable limits; and, accountability of the public expenditure system, needed to maintain domestic, and international support for the reconstruction programs of the two Republics. The success of reforms depends on difficult strategic choices: 1) the inherited, distorted fiscal systems, and inefficient budget management practices, call for a realistic focus in selecting the goals of reform; 2) the best solution choice must be derived from the existing structures, and practices; and, 3) the Governments of Serbia and Montenegro should focus on deepening the reforms already initiated, rather than launching a number of new ones. The first volume provides an overview of the public expenditure reform agenda; volume two focuses on the Republic of Serbia and the Federal Government, while volume three discusses public expenditure management issues in Montenegro. The public expenditure problems of the Federal level receive a somewhat limited treatment, as the contours of the future union government takes shape. Similarly, challenges of fiscal decentralization below the Republic level, receive only a brief treatment, actually only in the Serbia volume.Publication Government of Karnataka Public Financial Management Reform Action Plan, 2014, Volume 1. Main Report(Washington, DC, 2014-05-01)The main report comprises the following chapters: executive summary provides the overall view of the reform action plan. Chapter one outlines the background, scope and methodology for the study; chapter two outlines the overview of the state finances; chapter three describe the accomplishments made against the 2004 agreed PFMA action plan; chapter four provides an overview of the analysis, gaps and recommendations made in the study; chapter five describes the way forward for implementation of the action plan; annex one: PFM reform action plan - 2014 contains a thematic-wise plan outlining the actions to be taken, the responsible department for the actions, and the expected timeframe for completing the actions. The detailed analysis of the issues and the logic for the action plan are provided in the respective sections of the appendix; annex two: 2004 PFMA action plan, outlines the current status of action taken on 2004 PFMA action plan: this contains the action plan as proposed in the 2004 report, updated with the current status of actions in the identified areas. In case where the actions have been taken and completed by the Government of Karnataka, the impact has been documented. The appendix comprises the following sections: section one: theme one: strengthening PFM legal and institutional framework; section two: theme two: enhancing comprehensiveness and credibility of the budget; section three: theme three: strengthening accounting, reporting, controls, and transparency; section four: theme four: improving fiscal assets and liability management system; section five: theme five: strengthening audit and legislative oversight; section six: theme six: improving PFM in local self-governments; section seven: theme six: improving PFM in public sector undertakings (state owned); each section describes the various areas of public financial management in the Government of Karnataka grouped into thematic reform areas. Each reform area has a discussion of the background, the reform actions proposed in the 2004 PFMA action plan, the progress of reforms over the last decade, the issues presently identified, and the rationale for the reform actions proposed; and section eight: 2014 action plan: this section describes the action plan with next steps to be followed under each activity of the action plan.Publication FYR of Macedonia : Public Expenditure and Institutional Review(Washington, DC, 2002-04-02)The review was undertaken, and completed against a background of substantial political economic disruption: the Kosovo crisis of 1999 threatened to undermine the country's accomplishments in building macroeconomic, and fiscal stability; and, the security crisis of 2001, tested once again Macedonia's political, and economic integrity. Both instances were successfully surpassed, showing significant steps towards becoming a market oriented state within the European context, and, in its willingness to accept, and ratify the Peace Agreement of November 2001. But, expenditure pressures rose, leading to additional spending, while revenues declined owing to economic weakness, and decreased tax enforcement; clearly, fiscal stability stands on the balance. Not surprising, the quality of expenditures became an important issue, for although acceptable aggregate targets were being achieved, the budget's economic composition was not suited for promoting economic growth. Institutional aspects show that budget preparation, and processes provide no link between policy commitments, and available resources, aggravated by unfounded credibility on the budget, as an instrument for policy formation. Recommendations call for improved resource allocation within fiscal constraints, i.e., reducing public resources, and, laying the foundation for a budget process legal framework. In addition, reforms should be institutionalized through accountability, and capacity building.Publication Poland - Toward a Fiscal Framework for Growth : A Public Expenditure and Institutional Review(Washington, DC, 2003-01-21)The objective of this report is to assess the status of public expenditures, and develop recommendations to promote fiscal stability and growth in Poland, towards the consolidation and restructuring of its public finances, strengthening its budget management, and better leverage in EU financing. This report examines those social and structural reform issues that affect, or are affected by the stance of public finance. First, it reviews Poland's economic performance with a focus on its macroeconomic policy mix, public debt sustainability issues, and developments in public finance, and expenditure composition. It highlights the need to tighten fiscal policy as a means to further rebalance the macroeconomic policy mix, and to reverse unfavorable debt dynamics. It also points out that Poland's public sector is relatively large for its income level, and that social protection and assistance related expenditures have been a major source of this situation. In particular, investment in physical infrastructure has been relatively neglected during the last decade in favor of expenditures on social programs and consumption. Fiscal consolidation has also been hampered by over-indexation of social expenditures. Second, the report examines the extent to which the current budgetary outcomes are the result of weaknesses in the incentive arrangements for good budgeting. The report suggests significant reforms in budget processes for sustainable improvements in public finances, in particular, priority areas include measures to consolidate the budget, to ensure a comprehensive picture of public finances, and effective cash management; to strengthen budgetary processes by exercising a Medium-Term Expenditure Framework, and incentives for improved public service delivery; and, to strengthen ex-post internal and external audit systems. Third, the report examines options for expenditure cuts and restructuring, necessary for fiscal sustainability, in particular, it discusses those sectoral programs that could potentially: (i) provide significant savings to the budget (social protection); (ii) contribute to Poland's human and physical capital; (iii) unlock the growth potential of underutilized factors of production in agriculture and Poland's rural areas; and, (iv) improve the country's living conditions, by upgrading its environmental standards as agreed with the EU.Publication Iraq Public Expenditure and Institutional Assessment, Volume 1(Washington, DC, 2008-06)The public expenditure and institutional assessment (PEIA) were motivated by a number of factors. First, both the Government of Iraq (GoI) and its international development partners have recognized the critical importance of sound management of Iraq's substantial public financial resources. Both parties support the reform and modernization of public financial management (PFM), as articulated in the International Compact for Iraq (ICI). Secondly, international experience demonstrates the importance of establishing a baseline against which progress in PFM over time can be measured. This implies the need for an assessment which provides the information necessary to measure the performance of a country's PFM system. Thirdly, the devastating circumstances in Iraq during the past 5 years have made the institutional arrangements for PFM the subject of considerable uncertainty. The PEIA can help to shape and prioritize the necessary development program. The report is organized in two main parts. Volume one contains a summary of the main issues to emerge from the public expenditure and financial accountability (PEFA) assessment and a discussion of a number of specific PFM issues of current importance to Iraq, including: capital investment budgeting (CIB), oil revenue management, the Iraq financial management information system (IFMIS), public accounting and accountability, and payroll management. Volume two contains a detailed technical analysis behind the PEFA assessment.
Users also downloaded
Showing related downloaded files
Publication Digital Africa(Washington, DC: World Bank, 2023-03-13)All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.Publication iTEKAD(Washington, DC: World Bank, 2025-06-25)This report provides a comprehensive review of the implementation of the iTEKAD initiative, a social finance initiative first introduced by Bank Negara Malaysia in 2020. The review examines the implementation practices of Participating Financial Institutions and their Implementation Partners, focusing on human resource allocation, participant selection, program interventions, stakeholders’ collaboration, and monitoring and evaluation practices. The report highlights key findings related to strengthening participants’ selection process, training interventions, and monitoring and evaluation methods. The report concludes with recommendations to key stakeholders to enhance the iTEKAD implementation moving forward.Publication Commodity Markets Outlook, October 2025(Washington, DC: World Bank, 2025-10-29)Commodity prices are expected to decline by about 7 percent overall this year, reflecting subdued global economic activity, elevated trade tensions and policy uncertainty, ample global supply of oil, and weather-related supply shocks. In 2026, commodity prices are forecast to fall by a further 7 percent, a fourth consecutive year of decline, as global growth remains sluggish and the oil market oversupplied. Energy price movements are envisaged to continue contributing to global disinflation in 2026. Metals and minerals prices are expected to remain stable in 2026, while agricultural prices are projected to edge down, primarily due to strong supply conditions. Precious metals prices are expected to rise another 5 percent, after a historically large, investment-driven rally of about 40 percent in 2025. Risks to the commodity price projections are tilted to the downside. Key downside risks include weaker-than-expected global growth, a longer-than-assumed period of economic policy uncertainty, and additional oversupply of oil. Upside risks include intensifying geopolitical tensions, the market impact of additional oil sanctions, supply reductions stemming from additional trade restrictions, unfavorable weather conditions, faster-than-expected rollout of new data centers. Commodity price volatility in recent years has revived interest in supply management via international commodity agreements. Historical experience, however, shows that the most effective policy is to promote diversification, innovation, transparency, and market-based pricing—measures that build lasting resilience to commodity price volatility.Publication The Global Findex Database 2025: Connectivity and Financial Inclusion in the Digital Economy(Washington, DC: World Bank, 2025-07-16)The Global Findex 2025 reveals how mobile technology is equipping more adults around the world to own and use financial accounts to save formally, access credit, make and receive digital payments, and pursue opportunities. Including the inaugural Global Findex Digital Connectivity Tracker, this fifth edition of Global Findex presents new insights on the interactions among mobile phone ownership, internet use, and financial inclusion. The Global Findex is the world’s most comprehensive database on digital and financial inclusion. It is also the only global source of comparable demand-side data, allowing cross-country analysis of how adults access and use mobile phones, the internet, and financial accounts to reach digital information and resources, save, borrow, make payments, and manage their financial health. Data for the Global Findex 2025 were collected from nationally representative surveys of about 145,000 adults in 141 economies. The latest edition follows the 2011, 2014, 2017, and 2021 editions and includes new series measuring mobile phone ownership and internet use, digital safety, and frequency of transactions using financial services. The Global Findex 2025 is an indispensable resource for policy makers in the fields of digital connectivity and financial inclusion, as well as for practitioners, researchers, and development professionals.Publication Global Economic Prospects, June 2025(Washington, DC: World Bank, 2025-06-10)The global economy is facing another substantial headwind, emanating largely from an increase in trade tensions and heightened global policy uncertainty. For emerging market and developing economies (EMDEs), the ability to boost job creation and reduce extreme poverty has declined. Key downside risks include a further escalation of trade barriers and continued policy uncertainty. These challenges are exacerbated by subdued foreign direct investment into EMDEs. Global cooperation is needed to restore a more stable international trade environment and scale up support for vulnerable countries grappling with conflict, debt burdens, and climate change. Domestic policy action is also critical to contain inflation risks and strengthen fiscal resilience. To accelerate job creation and long-term growth, structural reforms must focus on raising institutional quality, attracting private investment, and strengthening human capital and labor markets. Countries in fragile and conflict situations face daunting development challenges that will require tailored domestic policy reforms and well-coordinated multilateral support.