World Bank2012-06-202012-06-202005-02https://hdl.handle.net/10986/8537This Public Expenditure Review (PER) builds on the commitments of the 2003 Country Economic Memorandum (CEM), and 2002 Country Assistance Strategy (CAS) Progress Report, being its primary objective to assess strengths and weaknesses in key areas of public expenditure, and identify policy options for fiscal sustainability. Jamaica's high debt aggravates debt sustainability and efforts to improve growth. Revenue performance is also a weak element in the country's overall fiscal framework, while the current level of public sector investment is too low to support strong sustained growth. Amidst mounting fiscal problems, the Government has been unable to spend the necessary on social sectors, and this has in turn catalyzed some innovative thinking on how to raise resources, and private sector involvement. Moreover, the effectiveness of the budget as a tool for fiscal policy has been muted by its perceived low credibility. The report suggests focusing on reconciling expenditure commitments to improve budget credibility, including direct and contingent commitments. This implies increased fiscal discipline, and improved expenditure management across all levels of government. Furthermore, the government should avoid the use of the capital budget as a de-facto contingency fund; rather, it should be a strategic development tool in the context of a live Public Sector Investment Program. Recommendations towards fiscal consolidation and a debt-reducing economic strategy, include reducing vulnerability, and the bilateral debt; increasing revenues and rationalizing Government expenditures to generate further growth; rationalizing education and health expenditures; and, improving the institutional framework for public expenditure management.en-USCC BY 3.0 IGOFISCALPOVERTY REDUCTIONPUBLIC EXPENDITUREPUBLIC EXPENDITURE REVIEW; BUDGET MANAGEMENT; CAPITAL BUDGETS; SOCIAL SECTOR INVESTMENT; FISCAL SUSTAINABILITY;ACCOUNTABILITYADJUSTMENT LENDINGAGRICULTURAL PRACTICESAGRICULTURAL PRODUCTSAGRICULTUREARSENICBIRTH RATEBUSINESS ENVIRONMENTCAPITA INCOMECIVIL SOCIETYCOMMODITIESCOMMUNITY LEVELCONSULTATION PROCESSCORRUPTIONCOST OF LIVINGCREDIT SCHEMESCULTIVABLE LANDDECISION MAKINGDEVELOPMENT PARTNERSDEVELOPMENT PROJECTSDEVELOPMENT STRATEGYDEVELOPMENT STUDIESDIETDISABILITIESDISASTERSDISCRIMINATIONDIVERSIFICATIONECONOMIC ACTIVITIESECONOMIC ACTIVITIESECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMICSEFFECTIVE USEEMPLOYMENTENDOWMENTSEQUIPMENTEXCHANGE RATEEXPENDITURE SURVEYEXPLOITATIONEXTENSIONEXTENSION SERVICESEXTERNAL CONDITIONSFARMERSFINANCIAL AIDFINANCIAL PERFORMANCEFINANCIAL SECTORFISHFISHERIESFISHINGFULL PARTICIPATIONGENDERGENDER INEQUALITYHEALTH SERVICEHOUSEHOLD INCOMEHOUSINGHUMAN CAPACITYHUMAN DEVELOPMENTILLITERACYIMPACT ASSESSMENTIMPROVING GOVERNANCEIMPROVING GOVERNANCEINCOMEINCOME/PURCHASINGINCOME/PURCHASING POWERINEQUALITYINFLATIONINSTITUTIONAL ARRANGEMENTSINTEGRATIONINTEREST RATESINTERMEDIARIESINTERNATIONAL RESERVESLAWSLOW INCOMEMACROECONOMIC FRAMEWORKMACROECONOMIC MANAGEMENTMACROECONOMIC STABILITYMALNUTRITIONMARKETINGMEDIAMICRO CREDITMIGRATIONMUNICIPALITIESNATIONAL LEVELNATIONAL POVERTYNATIONAL RESEARCHNATURAL RESOURCESPARITYPARLIAMENTPARTICIPATORY POVERTYPATIENTSPERFORMANCE INDICATORSPOLICY FRAMEWORKPOLICY REFORMSPOLICY REFORMSPOLITICAL INSTABILITYPOLITICAL SUPPORTPOOR POLICIESPOPULATION GROWTHPOVERTY REDUCTIONPOVERTY REDUCTIONPOVERTY REDUCTION STRATEGYPRIME MINISTERPRIVATE SECTORPRO-POORPRO-POOR GROWTHPRODUCTIVITYPROFESSIONSPUBLIC EXPENDITUREPUBLIC EXPENDITURE MANAGEMENTPUBLIC INSTITUTIONSPUBLIC SECTORRAPID GROWTHREDUCING POVERTYRESEARCH INSTITUTERESOURCE CONSTRAINTSRESOURCES MANAGEMENTRURAL AREASRURAL DEVELOPMENTSAFETYSAFETY NETSSANITATIONSAVINGSSOCIAL DEVELOPMENTSOCIAL ENVIRONMENTSOCIAL INDICATORSSOCIAL JUSTICESOCIAL PROTECTIONSOCIAL SECTORSSOCIAL SECURITYSOCIAL SERVICESSTATE- OWNED ENTERPRISESTAX ADMINISTRATIONTECHNICAL EDUCATIONTECHNICAL INPUTSTECHNICAL SUPPORTTECHNICAL SUPPORTTRADE LIBERALIZATIONTRADE POLICYTRADE REGIMETRANSPORTUNEMPLOYMENTUNEQUAL DISTRIBUTIONURBAN AREASVIOLENCEVOCATIONAL EDUCATIONVULNERABLE GROUPSWATER RESOURCESWorld Bank10.1596/8537