World Bank2013-10-022013-10-022013-02https://hdl.handle.net/10986/16034Khyber Pakhtunkhwa (KP) is one of the least-developed and crisis-prone provinces in Pakistan. Located in far north of the country, the province covers 10 percent of the total land area and is a home to 13 percent of the country's population spread over seven administrative districts. Majority of the population (83 percent) is rural, averaging 7.6 members per household-well above the national average of 6.6. The literacy rate remains low at 49 percent with more than half of population having no access to tap water while unemployment runs at 8.5 percent. KP's relative underperformance is primarily due to low levels of growth, socio-economic underdevelopment and lack of public services compared to other provinces of Pakistan. Cognizant of the challenges to growth in KP and acting upon the assessment of Pakistan Government's Post-Crisis Needs Assessment (PCNA) of the region in October 2010, the donors agreed on a harmonized approach to meet the short- and medium-term social and economic needs of KP, including the establishment of a Multi-Donor Trust Fund (MDTF). This Public Expenditure Review (PER) of KP was undertaken in partnership with the government of KP and is one of the important outcomes of PCNA funded by the MDTF. The report on Operationalization of Post Crisis Needs Assessment (OPCNA) highlighted the need for strengthening KP's public financial management (PFM) as fundamental to improving public services and therefore the quality of life in KP. The report acknowledges the strong government ownership of reform initiatives which are taken with a view of strengthening all aspects of public finances. KP adopted a comprehensive fiscal reform program in 2001-02 based on four pillars, namely: 1) enhancing resources; 2) strengthening ex-ante and ex-post PFM reforms; 3) fiscal decentralization; and 4) instituting an output-based accountability mechanism.en-USCC BY 3.0 IGOACCOUNTABILITY MECHANISMACCOUNTINGADMINISTRATIVE COSTSADMINISTRATIVE STRUCTUREADVERSE CONSEQUENCESALLOCATIONALLOCATION OF RESOURCESAMALGAMATIONANNUAL BUDGETANNUAL BUDGET PREPARATIONANNUAL RATEAPPROPRIATIONASSIGNMENT OF TAX REVENUESBASIC SERVICESBUDGET ALLOCATIONBUDGET ALLOCATIONSBUDGET DOCUMENTSBUDGET FORMULATIONBUDGET FRAMEWORKBUDGET PROCESSBUDGET STRATEGYBUDGETARY ALLOCATIONSBUDGETARY EXPENDITUREBUDGETARY REFORMSBUDGETARY RESOURCESBUDGETING PROCESSCAPITAL EXPENDITURECASH BALANCESCLASSIFICATION OF EXPENDITURESCOLLECTED REVENUESCOMMUNITY SERVICESDATA COLLECTIONDEBTDEBT INTERESTDEBT MANAGEMENTDEBT SERVICINGDISCRETIONARY ACTIONDONOR ASSISTANCEDONOR FINANCINGDONOR FUNDSECONOMIC CLASSIFICATIONECONOMIC GROWTHECONOMIC POLICYEDUCATION EXPENDITURESEDUCATION SERVICESEDUCATION SPENDINGEFFECTIVENESS OF GOVERNMENTEFFICIENCY OF EXPENDITUREEFFICIENCY OF PUBLIC SPENDINGEXPENDITURE COMMITMENTSEXPENDITURE LEVELEXPENDITURE LEVELSEXPENDITURE MANAGEMENT SYSTEMEXPENDITURE PLANNINGEXPENDITURESFEDERAL GRANTSFEDERAL TRANSFERSFIDUCIARY RISKFINANCIAL ACCOUNTABILITYFINANCIAL HEALTHFINANCIAL MANAGEMENTFINANCIAL MANAGEMENT SYSTEMFINANCIAL PERFORMANCEFINANCIAL POSITIONFINANCIAL SUPPORTFINANCIAL SYSTEMSFISCAL ACCOUNTSFISCAL ACTIONSFISCAL ADJUSTMENTSFISCAL AGGREGATESFISCAL AUTONOMYFISCAL CRISISFISCAL DECENTRALIZATIONFISCAL DEFICITFISCAL DEFICITSFISCAL IMPACTFISCAL IMPLICATIONSFISCAL MANAGEMENTFISCAL POLICYFISCAL POSITIONFISCAL PRUDENCEFISCAL REFORMFISCAL REFORMSFISCAL SOVEREIGNTYFISCAL SQUEEZEFISCAL STANCEFISCAL SUSTAINABILITYFISCAL TRANSFERSFISCAL YEARSFOREIGN EXCHANGEFOREIGN GRANTSGOVERNMENT EMPLOYMENTGOVERNMENT EXPENDITUREGOVERNMENT STRUCTUREGROSS DOMESTIC PRODUCTGROSS NATIONAL PRODUCTGROWTH RATEHARD BUDGET CONSTRAINTHEALTH CAREHEALTH DEPARTMENTSHEALTH EXPENDITUREHEALTH EXPENDITURESHEALTH FINANCINGHEALTH OUTCOMESHEALTH SECTORHEALTH SERVICESHEALTH SPENDINGHEALTH UNITIMPROVING BUDGET PREPARATIONINCOME DIFFERENTIALSINCOME TAXINTEREST PAYMENTSINTERGOVERNMENTAL TRANSFERSKEY FISCAL INDICATORSLOCAL CURRENCYMATCHING GRANTSMISALLOCATION OF RESOURCESMONETARY INCENTIVESNATURAL DISASTERSNET LENDINGOPERATING EXPENSESOUTCOME INDICATORSPENSION FUNDPENSION LIABILITIESPOVERTY ASSESSMENTPRIVATE SECTORPRIVATE SECTOR GROWTHPROGRAMSPROVINCIAL EXPENDITUREPROVINCIAL FINANCESPROVINCIAL GOVERNMENTPROVINCIAL GOVERNMENTSPROVINCIAL LEVELPROVINCIAL LEVELSPROVINCIAL REVENUESPROVISION OF HEALTH SERVICESPUBLIC EMPLOYMENTPUBLIC ENTERPRISESPUBLIC EXPENDITUREPUBLIC EXPENDITURE MANAGEMENTPUBLIC EXPENDITURE REVIEWPUBLIC EXPENDITURESPUBLIC FINANCEPUBLIC FINANCESPUBLIC FINANCIAL MANAGEMENTPUBLIC HEALTHPUBLIC INVESTMENTPUBLIC SCHOOLSPUBLIC SECTORPUBLIC SECTOR BUDGETINGPUBLIC SECTOR EMPLOYMENTPUBLIC SERVICEPUBLIC SERVICE DELIVERYPUBLIC SERVICESPUBLIC SPENDINGQUALITY OF LIFERECURRENT EXPENDITURERECURRENT EXPENDITURESREFORM AGENDAREFORM PROCESSREFORM PROGRAMREGULATORY FRAMEWORKRESOURCE ALLOCATIONREVENUE ASSIGNMENTREVENUE INCREASESREVENUE SHARINGSALES TAXSALES TAXESSANITATIONSECTOR BUDGETSECTOR EXPENDITURESECTOR POLICIESSECTOR POLICYSERVICE DELIVERYSERVICE PROVISIONSOCIAL INDICATORSSOCIAL OUTCOMESSOCIAL SERVICESSTRUCTURAL ADJUSTMENTTAX ADMINISTRATIONTAX ASSIGNMENTTAX BASETAX BASESTAX BURDENTAX COLLECTIONTAX DESIGNTAX EXEMPTIONSTAX POLICYTAX RATESTAX REVENUESTAX STRUCTURETAX SYSTEMTAXABLE CAPACITYTOTAL EXPENDITURETOTAL EXPENDITURESTOTAL PUBLIC SECTORTRANSFER PAYMENTSTRANSPARENCYWAGE EXPENDITUREWorld Bankhttps://doi.org/10.1596/16034