World Bank2012-03-192012-03-192011-03-01https://hdl.handle.net/10986/2740Until 2008, Seychelles pursued a state-led economic model of self sufficiency which ultimately proved unsustainable. In 2008, precipitated by rising global commodity prices, Seychelles entered a balance of payments and debt crisis, as international reserves were virtually depleted and external debt service payments were missed. The Government of Seychelles responded quickly by floating the rupee and liberalizing the foreign exchange regime, and agreeing a program with the International Monetary Fund under a 2 year stand-by agreement in November 2008. Although the liberalization of the exchange rate in November 2008 led to initial inflation rates in excess of 60 percent, the relative prices shock was quickly absorbed. Annual inflation fell from a high of positive 63.3 percent in December 2008 to negative 1.0 in August 2010. As the price and foreign exchange controls were lifted, the informal market in foreign currency quickly disappeared. This Public Expenditure Review (PER) also provided the Bank with an analytical basis to inform development policy lending in 2010. The specific objectives of the review are to: (i) provide an update on the macroeconomic stabilization efforts and changes to the fiscal policy for medium term debt sustainability and a more efficient and affordable public sector; (ii) analyze key public enterprise reform issues, including a review of the recently introduced legal and institutional changes to improve governance and oversight of the sector; and (iii) review the performance of the social security and labor market and an assessment of the ability of the private sector to absorb employees being retrenched as a result of the civil service reforms.CC BY 3.0 IGOACCOUNTABILITYACCOUNTINGADMINISTRATIVE COSTSANNUAL BUDGETANNUAL BUDGET CYCLEANNUAL BUDGET PREPARATIONANNUAL REPORTANNUAL REPORTSAPPROPRIATIONARTICLEAUDITOR GENERALAUDITORSBALANCE OF PAYMENTSBENEFICIARIESBUDGET CIRCULARBUDGET CONSTRAINTSBUDGET COVERAGEBUDGET CREDIBILITYBUDGET EXECUTIONBUDGET EXPENDITUREBUDGET FRAMEWORKBUDGET POLICYBUDGET PREPARATIONBUDGET PROCESSBUDGET STRATEGYBUDGET SUBMISSIONBUDGET SUPPORTBUDGET TRANSFERSCAPACITY BUILDINGCAPITAL EXPENDITURECAPITAL EXPENDITURESCAPITAL GRANTSCAPITAL INVESTMENTSCAPITAL SPENDINGCAPITAL STOCKCASH BALANCESCASH MANAGEMENTCASH TRANSFERSCENTRAL BANKCENTRAL BUDGETCENTRAL GOVERNMENTCENTRAL GOVERNMENT BUDGETCHART OF ACCOUNTSCIVIL SERVICECIVIL SERVICE REFORMSCOMMODITY PRICESCOMPOSITION OF EXPENDITURESCONSUMPTION SMOOTHINGCONTINGENT LIABILITIESCOST-BENEFIT ANALYSISCOSTS OF GOVERNMENTCREDIT RATINGSDATA COLLECTIONDEBTDEBT CRISISDEBT MANAGEMENTDEBT SERVICEDEBT SERVICE PAYMENTSDEBT SUSTAINABILITYEARLY RETIREMENTSECONOMIC DOWNTURNECONOMIC GROWTHECONOMIC GROWTH RATEECONOMIC RECOVERYEDUCATION SYSTEMEDUCATIONAL ATTAINMENTENTITLEMENT PROGRAMSENTITLEMENTSEXCHANGE RATEEXCHANGE RATESEXPENDITURE CONTROLSEXPENDITURE OUTCOMESEXPENDITURESEXTERNAL ARREARSEXTERNAL AUDITEXTERNAL DEBTEXTERNAL SHOCKSFINANCIAL AUDITSFINANCIAL CRISISFINANCIAL PERFORMANCEFINANCIAL POSITIONFINANCIAL STATEMENTSFINANCIAL SUPPORTFISCAL ADJUSTMENTFISCAL ANALYSISFISCAL BALANCEFISCAL CRISISFISCAL FRAMEWORKFISCAL IMPACTFISCAL IMPLICATIONSFISCAL OUTTURNFISCAL PERFORMANCEFISCAL POLICYFISCAL PRESSUREFISCAL PRESSURESFISCAL PROBLEMSFISCAL REFORMFISCAL RISKFISCAL RISKSFISCAL SUSTAINABILITYFOREIGN CURRENCYFOREIGN EXCHANGEGOVERNMENT FINANCEGOVERNMENT FINANCE STATISTICSGOVERNMENT GUARANTEEGOVERNMENT REVENUEGOVERNMENT REVENUESGOVERNMENT SPENDINGGROSS DOMESTIC PRODUCTGROWTH RATEHARD BUDGET CONSTRAINTHEALTH CAREHEALTH CARE SYSTEMINFLATIONINFLATION RATEINFLATION RATESINTEREST PAYMENTSINTEREST RATEMACROECONOMIC FRAMEWORKMACROECONOMIC INDICATORSMACROECONOMIC MODELMACROECONOMIC PROJECTIONSMACROECONOMIC SITUATIONMACROECONOMIC STABILIZATIONMINISTRY OF FINANCEMONETARY DATAMONETARY POLICYMONITOR COMPLIANCEMONTHLY RELEASE SYSTEMNATIONAL ACCOUNTINGNATIONAL INCOMENATIONAL SAVINGSNET LENDINGPENSION FUNDPERFORMANCE AUDITSPERFORMANCE MONITORINGPERFORMANCE MONITORING SYSTEMPERSONAL INCOMEPERSONAL INCOME TAXPOVERTY IMPACTPOVERTY REDUCTIONPRIVATE FIRMSPRIVATE PROVIDERSPRIVATE SECTORPUBLIC ACCOUNTSPUBLIC ADMINISTRATIONPUBLIC AGENCIESPUBLIC DEBTPUBLIC ENTERPRISEPUBLIC ENTERPRISE REFORMPUBLIC ENTERPRISESPUBLIC ENTITIESPUBLIC EXPENDITUREPUBLIC EXPENDITURE REVIEWPUBLIC EXPENDITURESPUBLIC FINANCIAL MANAGEMENTPUBLIC PROCUREMENTPUBLIC SECTORPUBLIC SECTOR ACCOUNTINGPUBLIC SECTOR EMPLOYMENTPUBLIC SECTOR ENTITIESPUBLIC SPENDINGPUBLIC TRANSPORTPUBLIC TRANSPORTATIONPUBLIC UTILITIESQUALITY ASSURANCEQUALITY OF SERVICESRED TAPEREFORM AGENDAREFORM PROCESSREFORM PROGRAMREVENUE FORECASTINGREVENUE PROJECTIONSSALES TAXSERVICE DELIVERYSHORT-TERM INTEREST RATESSIZE OF GOVERNMENTSOCIAL ASSISTANCESOCIAL PROGRAMSSOCIAL PROTECTIONSOCIAL SECURITYSOCIAL SECURITY CONTRIBUTIONSSOCIAL SECURITY SYSTEMSOCIAL WELFARESTRUCTURAL REFORMSTRUCTURAL REFORMSSUSTAINABILITY ANALYSISTAX ADMINISTRATIONTAX BASETAX BURDENTAX INCENTIVESTAX POLICYTAX RATETAX REFORMTAX REVENUESTAX SYSTEMTAXABLE INCOMETOTAL EXPENDITURETOTAL EXPENDITURESTOTAL SPENDINGTRANSFER PAYMENTTRANSPARENCYVOUCHER SYSTEMWELFARE PROGRAMWorld Bank10.1596/2740