World Bank2014-01-312014-01-312013-06https://hdl.handle.net/10986/16766This public expenditure review (PER) for Moldova is the result of a body of programmatic fiscal work. This PER focuses on capital expenditure. It supports the first pillar of the country partnership strategy (improving economic competitiveness) and complements the 2012 development policy operation. In the context of economic recovery and stabilization, government requested World Bank assistance in improving its capital allocation mechanism, as its fiscal consolidation program attempted to create space for critical infrastructure whilst gradually reducing the state's footprint in the economy. This report recommends ways to strengthen public investment processes, institutions, and sector policies to achieve better outcomes for public capital expenditures in Moldova. This report suggests reforms in public investment management and sector policies to raise cost-effectiveness and allocative efficiency of capital expenditures. Three key areas of reform are: (i) raise the quality of new projects by improving preliminary screening and project appraisal mechanisms; (ii) improve selection of new projects and ensure continuity of funding for ongoing projects through better prioritization and budgeting processes; and (iii) strengthen monitoring of project implementation for cost efficiency and timely delivery of public services. The report has four chapters. The first chapter presents the macroeconomic outlook and its implications for fiscal policy, particularly with respect to the capital budget. The second chapter presents the structure and classification of the capital budget as well as recent trends in capital expenditure levels and execution, and reviews the adequacy of resource allocations and utilization across sectors, given investment needs, national priorities and implementation capacity. The third chapter reviews public investment management processes and presents recommendations to improve the efficiency of public capital expenditure in Moldova. The fourth chapter discusses specific sector challenges and offers recommendations for improving capital expenditure outcomes.en-USCC BY 3.0 IGOACCOUNTINGALLOCATIONALLOCATION OF CAPITALANNUAL BUDGETANNUAL BUDGET PROCESSARTICLEBALANCE SHEETSBENEFICIARIESBUDGETBUDGET CLASSIFICATIONBUDGET DEFICITBUDGET EXECUTIONBUDGET EXPENDITUREBUDGET FRAMEWORKBUDGET PREPARATIONBUDGET PREPARATION PROCESSBUDGET SUBMISSIONBUDGETARY CONSTRAINTSBUDGETARY PROCESSBUDGETARY SYSTEMBUDGETING PROCESSBUDGETSCAPACITY CONSTRAINTSCAPITAL ASSETSCAPITAL BUDGETCAPITAL BUDGETINGCAPITAL EXPENDITURECAPITAL EXPENDITURESCAPITAL INVESTMENTCAPITAL INVESTMENTSCAPITAL PROJECTSCAPITAL SPENDINGCAPITAL TRANSFERSCENTRAL GOVERNMENTCENTRAL GOVERNMENT BUDGETCOMPETITIONCORPORATE INCOME TAXCOST EFFECTIVENESSCOST ESTIMATESCOST-BENEFIT ANALYSISCOST-EFFECTIVENESSDEBTDEBT DYNAMICSDEBT SUSTAINABILITYDECENTRALIZATIONDECISION-MAKINGDOMESTIC FUNDINGDOMESTIC INVESTMENTDONOR FUNDSDUE PROCESSECONOMIC CLASSIFICATIONECONOMIC GROWTHECONOMIC RECOVERYECONOMIES OF SCALEEDUCATION REFORMEDUCATION SYSTEMEFFICIENCY GAINSEQUITY ISSUESEVALUATION CANEXCHANGE RATEEXCHANGE RATESEXCHANGE RESERVESEXPENDITURE ANALYSISEXPENDITURE LEVELSEXPENDITURE OUTCOMESEXTERNAL ASSISTANCEEXTERNAL DEBTEXTERNAL FINANCINGEXTERNAL GRANTSEXTERNAL LOANSEXTERNAL SHOCKSFINANCIAL ACCOUNTABILITYFINANCIAL ASSETSFINANCIAL CRISISFINANCIAL MANAGEMENTFINANCIAL MANAGEMENT INFORMATIONFINANCIAL MANAGEMENT INFORMATION SYSTEMFINANCIAL PERFORMANCEFINANCIAL RESOURCESFINANCIAL SECTORFISCAL ADJUSTMENTFISCAL ANALYSISFISCAL BALANCEFISCAL CONSOLIDATIONFISCAL CONSTRAINTSFISCAL DEFICITFISCAL DISCIPLINEFISCAL ENVELOPEFISCAL POLICYFISCAL PRESSURESFISCAL REPORTINGFISCAL SUSTAINABILITYFOREIGN EXCHANGEFOREIGN FINANCINGGOVERNMENT BUDGETGOVERNMENT DEFICITGOVERNMENT FINANCEGOVERNMENT FINANCE STATISTICSGOVERNMENT REVENUEGOVERNMENT SPENDINGGROSS DOMESTIC PRODUCTGROSS FIXED CAPITAL FORMATIONGROWTH MODELGROWTH RATEHEALTH CAREHEALTH CARE SECTORHEALTH CENTERSHEALTH SECTORINFLATIONINFLATION TARGETINFRASTRUCTURE INVESTMENTINTANGIBLE ASSETSINVESTMENT BUDGETINVESTMENT BUDGETINGINVESTMENT EXPENDITUREMACROECONOMIC INDICATORSMACROECONOMIC MANAGEMENTMACROECONOMIC STABILITYMASTER PLANMEDIUM-TERM EXPENDITUREMINISTRY OF ECONOMYMINISTRY OF FINANCEMUNICIPALITIESNATIONAL AUTHORITIESNATIONAL BANKNATIONAL DEVELOPMENTNATIONAL ECONOMYNATIONAL PRIORITIESNATIONAL STATISTICSNATIONAL STRATEGIC OBJECTIVESNET INFLOWSPERFORMANCE INFORMATIONPOVERTY PROFILEPOVERTY REDUCTIONPRICE INDEXPRIVATE CONSUMPTIONPRIVATE SECTORPRIVATE SECTOR INVOLVEMENTPROGRAM DESIGNPROGRAMSPUBLIC AUTHORITIESPUBLIC AUTHORITYPUBLIC CAPITALPUBLIC CONSUMPTIONPUBLIC DEBTPUBLIC EXPENDITUREPUBLIC EXPENDITURE REVIEWPUBLIC FINANCEPUBLIC FINANCIAL INSTITUTIONSPUBLIC FINANCIAL MANAGEMENTPUBLIC GOODSPUBLIC INVESTMENTPUBLIC INVESTMENTSPUBLIC PRIVATE PARTNERSHIPSPUBLIC PROCUREMENTPUBLIC RESOURCESPUBLIC SECTORPUBLIC SERVICEPUBLIC SERVICE DELIVERYPUBLIC SERVICESQUALITY OF SERVICESREAL GROWTHREALLOCATIONSRECURRENT EXPENDITURERECURRENT EXPENDITURESREFORM AGENDAREFORM PROGRAMREFORM STRATEGYREGULATORY FRAMEWORKRESOURCE ALLOCATIONRESOURCE ALLOCATIONSRESOURCE CONSTRAINTSREVENUESROAD FUNDROAD MAINTENANCEROAD NETWORKROAD TRANSPORTSANITATIONSANITATION SERVICESSECTOR POLICIESSECTOR POLICYSECTOR PROGRAMSSERVICE PROVIDERSSOCIAL ASSISTANCESOCIAL BENEFITSSOCIAL CONTRIBUTIONSSOCIAL INSURANCESTRATEGIC PRIORITIESSTRUCTURAL DEFICITSTRUCTURAL REFORMSSUSTAINABILITY ANALYSISTAX ADMINISTRATIONTAX BURDENTAX COLLECTIONTAX POLICYTAX RATESTAX REVENUETAXESTOTAL EXPENDITURETRANSPARENCYUNCERTAINTYWorld Bank10.1596/16766