World Bank2012-06-112012-06-112007-05-23https://hdl.handle.net/10986/7736Guinea-Bissau's large public sector wage bill poses a major threat to the country's macroeconomic stability: it hampers growth, limits the government's ability to service the domestic and external debt, and crowds out private investments. For this reason, the government decided in early 2006 to retrench more than 2,800 civil servants in a first phase, and about 1,600 military later. The objectives of this public expenditure review (PER) update are to: (i) review progress in macroeconomic and fiscal management since the previous PER; (ii) analyze the issue of compensation benefits in the context of the ongoing civil service reform; and (ii) update the debt sustainability analysis for Guinea-Bissau. Besides this introduction, the report includes three main chapters on macroeconomic management, improving the fiscal situation, and debt sustainability. The report also gives a final conclusion and discusses the way forward.CC BY 3.0 IGOACCOUNT DEFICITSBALANCE OF PAYMENTSBASELINE SCENARIOBASIC EDUCATIONBASIC SOCIAL SERVICESBUDGET BALANCEBUDGET CONTROLBUDGET CYCLEBUDGET DEFICITBUDGET EXECUTIONBUDGET PREPARATIONBUDGET SUPPORTBUDGETARY EXPENDITURESBUDGETARY RULESCAPITA INCOMECAPITAL EXPENDITURECAPITAL FORMATIONCAPITAL INFLOWCASH FLOWCENTRAL BANKCENTRAL GOVERNMENTCIVIL SERVANTSCIVIL SERVICECIVIL SERVICE REFORMCONSUMPTION TAXESCREDITORSCURRENT ACCOUNTCURRENT ACCOUNT DEFICITDEBTDEBT REDUCTIONDEBT RELIEFDEBT SERVICEDEBT SERVICE PAYMENTSDEBT SITUATIONDEBT SUSTAINABILITYDEBT SUSTAINABILITY ANALYSISDEBT UNITDEFICIT FINANCINGDEFICITSDOMESTIC DEBTDOMESTIC FINANCINGECONOMIC ANALYSISECONOMIC GROWTHECONOMIC PERFORMANCEECONOMIC POLICYECONOMIC RECOVERYELECTRICITYEXCHANGE RATEEXPENDITURE MANAGEMENTEXTERNAL AIDEXTERNAL ARREARSEXTERNAL BALANCESEXTERNAL BORROWINGEXTERNAL DEBTEXTERNAL DEBT SERVICEEXTERNAL DEBT SITUATIONEXTERNAL DEBT SUSTAINABILITYEXTERNAL PUBLIC DEBTFINANCIAL MARKETSFINANCIAL RESOURCESFINANCIAL SECTORFISCAL ADJUSTMENTFISCAL BALANCEFISCAL CONSOLIDATIONFISCAL DEFICITFISCAL DISCIPLINEFISCAL IMPACTFISCAL MANAGEMENTFISCAL PERFORMANCEFISCAL POLICIESFISCAL POLICYFISCAL STANCEFISCAL SUSTAINABILITYFORMAL SECTORGOVERNMENT ACCOUNTSGOVERNMENT EXPENDITUREGOVERNMENT REVENUEGOVERNMENT SPENDINGGROWTH RATEINFLATIONLICENSESMACROECONOMIC FRAMEWORKMACROECONOMIC MANAGEMENTMACROECONOMIC PERFORMANCEMACROECONOMIC POLICIESMACROECONOMIC STABILITYMARKET PRICESMATURITIESMINISTRY OF ECONOMYMONETARY UNIONNET CAPITALNET PRESENT VALUEPENSION REFORMPER CAPITA INCOMEPERSONNEL EXPENDITUREPOVERTY ASSESSMENTPOVERTY IMPACTPOVERTY REDUCTIONPOVERTY REDUCTION STRATEGYPRIMARY BALANCEPRIMARY BUDGETPRIMARY BUDGET BALANCEPRIMARY BUDGET DEFICITPRIMARY EXPENDITUREPRIVATE FIRMSPRIVATE INVESTMENTPRIVATE SECTORPROGRAMSPUBLICPUBLIC ADMINISTRATIONPUBLIC DEBTPUBLIC ENTERPRISESPUBLIC EXPENDITUREPUBLIC EXPENDITURE REVIEWPUBLIC FINANCEPUBLIC FINANCE MANAGEMENTPUBLIC FINANCESPUBLIC INVESTMENTPUBLIC INVESTMENT PROGRAMPUBLIC PROCUREMENTPUBLIC SECTORPUBLIC SECTOR DEBTPUBLIC SECTOR EMPLOYEESPUBLIC SECTOR RETRENCHMENTPUBLIC SECTOR SPECIALISTPUBLIC SECTOR WAGEPUBLIC SECTOR WAGE BILLPUBLIC SECTOR WAGESPUBLIC SERVANTSPUBLIC SERVICEPUBLIC SERVICESQUALITY CONTROLQUANTITATIVE INDICATORSRECURRENT EXPENDITURESREFORM AGENDARESTRICTIVE FISCAL POLICIESREVENUE COLLECTIONREVENUE PERFORMANCESALARY PAYMENTSSALES TAXSALES TAXESSERVICE DELIVERYSOCIAL POLICIESSTOCK OF DEBTSTRUCTURAL REFORMSSUSTAINABILITY ANALYSISSUSTAINABLE FISCAL BALANCETAX COLLECTIONTAX EXEMPTIONSTAXPAYERSTRANSITION ECONOMIESTREASURYWorld Bank10.1596/7736