World Bank2014-08-142014-08-142014-05https://hdl.handle.net/10986/19310The current approach to fiscal policy is delivering suboptimal outcomes for the citizens of the Kyrgyz Republic. The past five years have been difficult for the Kyrgyz Republic, with one shock following another. Government spending ballooned to 39 percent of GDP in 2012 one of the highest ratios among developing countries globally, as the authorities tried to mitigate the shocks. However, despite increases in spending, the quality of health services remains poor; above 80 percent of 15 year-olds are classified as illiterate; wages in the public sector are low; and only 6 percent of social assistance reaches the poorest members of society. In addition, risks are mounting in the pension system, few instruments exist to support the vulnerable and the physical capital stock is depreciating, especially in the energy sector. This Public Expenditure Review (PER) focuses on the effectiveness, level, and composition of public spending in number of sectors. The objective of this synthesis note is to better understand the overall environment for fiscal policy as well as the nature and composition of public revenues and expenditures. The sectoral policy notes review the challenges and options in specific sectors, namely, education, health, pensions, social protection, and energy as well as cross-cutting themes such as the wage-bill and public investment management and intergovernmental relations. While more detailed sector-specific recommendations are contained in the sectoral policy notes, more general recommendations on fiscal policy will also contribute to sustainable fiscal consolidation.en-USCC BY 3.0 IGOACCOUNTABILITYACCOUNTINGAMORTIZATIONANNUAL RATEANTI-CORRUPTION PROGRAMASSET RATIOBALANCE OF PAYMENTSBANKING SECTORBASELINE SCENARIOBORROWING STRATEGYBROAD MONEYBUDGET ALLOCATIONBUDGETINGBUSINESS CYCLECAPACITY BUILDINGCAPACITY CONSTRAINTSCAPITAL EXPENDITURESCAPITAL GAINSCAPITAL INFLOWSCAPITAL SPENDINGCAPITAL STOCKCASH MANAGEMENTCENTRAL BANKCHECKSCLASSIFICATION OF EXPENDITURESCOMPOSITION OF PUBLIC SPENDINGCONSUMER GOODSCONSUMER PRICE INDEXCONTINGENT LIABILITYCOST-RECOVERYCOUNTRY RISKCREDIBILITYCREDIT INFORMATIONCREDITWORTHINESSCURRENCYCURRENT ACCOUNT DEFICITDEBT BURDENDEBT FLOWSDEBT LEVELSDEBT MANAGEMENTDEBT RATIODEBT SERVICEDEBT SERVICINGDEBT SUSTAINABILITYDEFICIT REDUCTIONDEMOCRATIC GOVERNANCEDEPOSITDEPOSITSDEVELOPING COUNTRIESDEVELOPMENT BANKDISCOUNT RATEDOMESTIC DEBTDOMESTIC DEBT MARKETDOMESTIC DEMANDDOMESTIC MARKETSECONOMIC DEVELOPMENTECONOMIC SHOCKSEDUCATION POLICYEDUCATION SPENDINGEQUIPMENTEXCHANGE RATEEXCHANGE RATESEXOGENOUS SHOCKSEXPENDITUREEXPENDITURE CUTSEXPENDITURESEXTERNAL DEBTEXTERNAL DEFICITEXTERNAL FINANCINGEXTERNAL SHOCKSFINANCIAL CRISISFINANCIAL MANAGEMENTFINANCIAL POSITIONFINANCIAL SECTORFINANCIAL SECTOR DEVELOPMENTSFINANCIAL STATEMENTSFISCAL ACCOUNTSFISCAL ADJUSTMENTFISCAL ADJUSTMENTSFISCAL BALANCEFISCAL CONSOLIDATIONFISCAL DEFICITFISCAL DEFICITSFISCAL IMBALANCEFISCAL POLICIESFISCAL POLICYFISCAL POSITIONFISCAL SUSTAINABILITYFOREIGN CURRENCYFOREIGN CURRENCY DEBTFOREIGN DEBTFOREIGN DIRECT INVESTMENTFOREIGN DIRECT INVESTMENTSFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVESFOREIGN FINANCINGGOVERNANCE ISSUESGOVERNMENT BUDGETGOVERNMENT BUDGETSGOVERNMENT REVENUESGOVERNMENT SPENDINGGOVERNMENT SUPPORTGRACE PERIODSGROSS DOMESTIC PRODUCTGROWTH POTENTIALHEALTH SERVICESINCOME LEVELSINCOME TAXINFLATIONINFLATION RATESINFLATIONARY PRESSURESINFORMATION SYSTEMINFORMATION SYSTEMSINFRASTRUCTURE PROJECTSINSTRUMENTINSURANCEINTEREST RATESINTERGOVERNMENTAL TRANSFERSINTERNAL AUDITINTERNATIONAL DEVELOPMENTINTERNATIONAL STANDARDSINVESTMENT CLIMATEINVESTMENT POLICIESJUDICIAL SYSTEMLACK OF TRANSPARENCYLEGAL FRAMEWORKLEVYLIQUIDITYLIVING STANDARDSLOANLOCAL INFRASTRUCTUREMACROECONOMIC INDICATORSMACROECONOMIC POLICIESMACROECONOMIC STABILITYMACROECONOMIC VOLATILITYMARKET PRICEMARKET PRICESMICRO ENTERPRISESMINISTRY OF FINANCEMISTRUSTMONETARY FUNDMONETARY POLICYNATIONAL AUTHORITIESNATIONAL BANKOPEN ECONOMYPENSIONPENSION SYSTEMPENSIONSPERCEPTIONS OF GOVERNMENTPERSONAL INCOMEPOLICY RESPONSESPOLITICAL STABILITYPORTFOLIOPOTENTIAL INVESTORSPOVERTY REDUCTIONPRESENT VALUEPRIVATE INVESTMENTPRIVATE SECTORPUBLIC AUTHORITIESPUBLIC DEBTPUBLIC EXPENDITUREPUBLIC EXPENDITURE POLICYPUBLIC EXPENDITURE REVIEWPUBLIC FINANCEPUBLIC FINANCIAL MANAGEMENTPUBLIC FUNDSPUBLIC INVESTMENTPUBLIC INVESTMENT PROGRAMPUBLIC INVESTMENTSPUBLIC PENSIONPUBLIC REVENUESPUBLIC SECTORPUBLIC SECTOR REFORMPUBLIC SERVICESPUBLIC SPENDINGPUBLIC SPENDING PATTERNSREAL EXCHANGE RATEREFERENDUMREGULATORY FRAMEWORKSREMITTANCEREMITTANCESRESERVESRETURNSRULE OF LAWSECTOR POLICIESSECTOR POLICYSECTORAL POLICYSECURITIESSMALL BUSINESSSMALL BUSINESSESSOCIAL ASSISTANCESOCIAL CAPITALSOCIAL INSURANCE FUNDSOCIAL INSURANCE SYSTEMSOCIAL PROTECTIONSTRUCTURAL DEFICITSTRUCTURAL REFORMSSUSTAINABILITY ANALYSISTAXTAX BASETAX COLLECTIONTAX POLICYTAX RATETAX RATESTAX REGIMETAX REGIMESTAX SYSTEMTRADE CREDITSTRADINGTRADING COSTSTRANSITION ECONOMIESTRANSPARENCYTREASURYTURNOVERUNCERTAINTY10.1596/19310