World Bank2014-02-062014-02-062013-04https://hdl.handle.net/10986/16950To achieve higher growth and reduce poverty and inequality, Mexico needs to improve public service delivery. Mexico is a middle-income country with continuing high levels of poverty (46.2 percent of the population). To improve public sector service delivery, Mexico needs to ensure sufficient financial and human resources relative to the needs of the population, and effective and efficient public management of spending programs to address those needs-two basic prerequisites for an effective public sector. Mexico's public service delivery is hindered by low tax collection and expenditure inefficiencies at all three levels of government: federal, state, and municipal. Mexico's tax collection is also low by Latin American standards. The problem of low tax collection is particularly acute at the local level, as many subnational governments lack incentives and administrative capacity. At the local level, improving tax collection faces additional challenges. Low subnational tax collection increases the volatility of subnational finances within Mexico's fiscal federalism framework. Subnational governments need incentives and assistance to improve their tax administration to increase own revenues. As part of an ambitious strategy to modernize public sector financial management, the government has started to harmonize the public accounts and accounting practices of the federal and subnational governments.en-USCC BY 3.0 IGOACCESS TO INFORMATIONACCOUNTABILITYACCOUNTINGACCOUNTING FRAMEWORKACCOUNTING STANDARDSACCOUNTING SYSTEMADMINISTRATIVE CAPACITYADMINISTRATIVE REFORMAGENCY COORDINATIONASSET MANAGEMENTAUCTION MECHANISMSBANK POLICYBIDBUDGET ALLOCATIONBUDGET CLASSIFICATIONBUDGET CLASSIFICATION SYSTEMBUDGET CONTROLBUDGET CYCLEBUDGET DISCIPLINEBUDGET EXECUTIONBUDGET FORMULATIONBUDGET INFORMATIONBUDGET MANAGEMENTBUDGET PREPARATIONBUDGETARY PROGRAMSCADASTRECAPACITY-BUILDINGCASH MANAGEMENTCIVIL SERVICECONSTITUTIONAL REFORMCONTINGENT LIABILITIESDATA COLLECTIONDEBTDECISION-MAKERSENFORCEMENT MECHANISMENFORCEMENT PROCESSESEVALUATION CAPACITYEXOGENOUS SHOCKSEXPENDITUREEXPENDITURE EFFICIENCYEXPENDITURE EXECUTIONEXPENDITURE INEFFICIENCIESEXPENDITURE MANAGEMENTEXPENDITURE MONITORINGEXPENDITURE POLICYEXPENDITURESFEDERAL ADMINISTRATIONFEDERAL BUDGETFEDERAL BUDGET PROCESSFEDERAL REVENUESFEDERAL TRANSFERSFINANCIAL INFORMATIONFINANCIAL MANAGEMENTFINANCIAL MANAGEMENT INFORMATIONFINANCIAL MANAGEMENT INFORMATION SYSTEMFINANCIAL MANAGEMENT SYSTEMFINANCIAL MANAGEMENT SYSTEMSFISCAL CONSOLIDATIONFISCAL DISCIPLINEFISCAL FEDERALISMFISCAL REFORMFISCAL RISKFISCAL TRANSPARENCYFRAUDGENERAL ACCOUNTSGOVERNMENT ACCOUNTINGGOVERNMENT ACCOUNTING SYSTEMGOVERNMENT ACCOUNTSGOVERNMENT FINANCEGOVERNMENT PERFORMANCEGOVERNMENT POLICIESHUMAN RESOURCESINCOMEINEFFICIENT EXPENDITUREINFORMATION TECHNOLOGIESINFORMATION TECHNOLOGYINSTITUTIONAL CAPACITYINTERNAL EFFICIENCYINTERNAL REGULATIONSINVESTMENT PROJECTSLEGAL FRAMEWORKLEGAL REFORMLEGAL REFORMSLICENSESLOCAL LEVELMACROECONOMIC STABILITYMEDIUM-SIZE MUNICIPALITIESMINISTRY OF FINANCEMUNICIPALITIESNOTARIESOIL PRICESOVERSIGHT FUNCTIONPAYROLL TAXESPERFORMANCE AUDITSPERFORMANCE BUDGETINGPERFORMANCE CULTUREPERFORMANCE EVALUATIONPERFORMANCE EVALUATION SYSTEMPERFORMANCE INDICATORSPERFORMANCE INFORMATIONPERFORMANCE ORIENTATIONPOLICY GOALSPOLICY PRIORITYPOLICY REFORMPOLICY REFORMSPOVERTY REDUCTIONPROCUREMENT SYSTEMSPROGRAM PERFORMANCEPROGRAMSPROPERTY TAX ADMINISTRATIONPROPERTY TAX COLLECTIONPROVISION OF SERVICESPUBLICPUBLIC ACCOUNTSPUBLIC ADMINISTRATIONPUBLIC CREDITPUBLIC ENTITIESPUBLIC EXPENDITUREPUBLIC EXPENDITURESPUBLIC FINANCESPUBLIC FINANCIAL MANAGEMENTPUBLIC GOODSPUBLIC MANAGEMENTPUBLIC POLICYPUBLIC PROCUREMENTPUBLIC PROGRAMSPUBLIC PROJECTSPUBLIC REVENUEPUBLIC SECTORPUBLIC SECTOR ACCOUNTABILITYPUBLIC SECTOR BUDGETPUBLIC SECTOR FINANCIAL MANAGEMENTPUBLIC SECTOR INSTITUTIONSPUBLIC SECTOR MANAGEMENTPUBLIC SECTOR MANAGERSPUBLIC SECTOR PERFORMANCEPUBLIC SECTOR SERVICE DELIVERYPUBLIC SERVICEPUBLIC SERVICE DELIVERYPUBLIC SERVICESPUBLIC SPENDING PROGRAMSQUALITY OF PUBLIC SPENDINGRED TAPEREGULATORY FRAMEWORKRESOURCE ALLOCATIONRESOURCE MANAGEMENTRETURNREVENUE COLLECTIONREVENUE MANAGEMENTREVENUE REFORMREVERSE AUCTIONREVERSE AUCTIONSRISK MANAGEMENTSAVINGSSECTOR MINISTRIESSECTOR POLICIESSECTOR PROGRAMSSERVICE DELIVERYSOCIAL PROGRAMSSTATE GOVERNMENTSSTRATEGIC PLANSSUBNATIONALSUBNATIONAL GOVERNMENTSTAXTAX ADMINISTRATIONTAX ADMINISTRATION CAPACITYTAX COLLECTIONTAX EXEMPTIONSTAX POLICYTAX REVENUETAX REVENUESTAXPAYERSTRANSPARENCYTRANSPARENT ACCOUNTINGTREASURYTREASURY MANAGEMENTUNCERTAINTYVALUATION TECHNIQUESWorld Bank10.1596/16950