World Bank2014-12-162014-12-162014-06https://hdl.handle.net/10986/20749This policy note is part of the World Bank's Programmatic Public Expenditure Review (PER) work program for FY2012-2014. The PER consists of a series of fiscal policy notes, which aim at providing the Government of Tajikistan with recommendations to strengthen budgetary processes and analysis. This policy note, the fifth in the series continues the fiscal policy dialogue conducted in the previous notes. It is structured as follows. Chapter 2 reviews the role of state-owned enterprises (SOE) in Tajikistan's economy and identifies key issues. Chapter 3 assesses the fiscal risks posed by SOEs, especially those in the energy sector. Chapter 4 puts forth possible solutions. Chapter 5 summarizes the main conclusions of this note: 1) despite privatizations and attempts at restructuring, Tajikistan still has a large, inefficient, and heavily indebted public sector; 2) the lack of comprehensive information about the sector undermines budget credibility and budget integrity; 3) multiple but uncoordinated functions, responsibilities, and accountability lines limit government ability to form a comprehensive view of the SOE sector, define a consistent strategy, and effect transparency, performance, reporting, and oversight; 4) elaborate QFAs of SOEs and other public institutions create substantial fiscal risks and undermine the hard-earned benefits of fiscal consolidation; 5) liabilities, explicit and implicit, created by SOE operations are large and must be accounted for and properly delineated; 6) solutions proposed to address the major issues are phasing out QFAs, optimizing the size and scope of the SOE sector, and improving SOE management; and 7) SOE reform should be an integral part of the general reform agenda.en-USCC BY 3.0 IGOACCESS TO INFORMATIONACCOUNTABILITYACCOUNTINGACCOUNTING STANDARDSACCOUNTS RECEIVABLEALLOCATION OF RESOURCESAUDIT COMMITTEEAUDIT COMMITTEESAUTHORITYBAILOUTSBALANCE SHEETSBENEFICIARYBORROWERBUDGET MANAGEMENTBUDGET REVENUESBUDGETARY ALLOCATIONSBUDGETARY FUNDSCAPITAL STRUCTURECASH TRANSFERSCHECKSCIVIL CODECOMMERCIAL BANKSCOMPANY LAWCOMPETITION LAWCOMPETITION POLICYCONSTITUENCYCONSTITUTIONCONTINGENT LIABILITIESCONTINGENT LIABILITYCORPORATE GOVERNANCECREDIBILITYCREDIT CULTURECREDIT MARKETSCREDITORSCURRENCYDEBTORDEBTSDECISION MAKINGDEFICITSDEGREE OF TRANSPARENCYDEVELOPMENT BANKDISCLOSUREECONOMIC DEVELOPMENTENTERPRISE REFORMEQUIPMENTEXCHANGE RATEEXCHANGE RATESEXPENDITUREFINANCIAL ACCOUNTABILITYFINANCIAL ASSISTANCEFINANCIAL CONTROLFINANCIAL DISCIPLINEFINANCIAL INFORMATIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL MANAGEMENTFINANCIAL MANAGEMENT INFORMATIONFINANCIAL MANAGEMENT INFORMATION SYSTEMFINANCIAL PERFORMANCEFINANCIAL SECTORFINANCIAL STATEMENTSFINANCIAL SUPPORTFINANCIAL VIABILITYFISCAL DEFICITFISCAL MANAGEMENTFISCAL POLICYFISCAL PRESSURESFISCAL RISKSFIXED CAPITALFLOW OF INFORMATIONFORGIVENESSGLOBAL MARKETGOVERNANCE ISSUESGOVERNMENT AGENCIESGOVERNMENT ASSETSGOVERNMENT BUDGETGOVERNMENT DECISIONGOVERNMENT DEPARTMENTSGOVERNMENT ENTITIESGOVERNMENT EXPENDITURESGOVERNMENT GRANTSGOVERNMENT OFFICIALSGOVERNMENT POLICYGOVERNMENT STRATEGYGROSS DOMESTIC PRODUCTGUARANTEES FOR LOANSHOLDINGIMPLICIT SUBSIDIESIMPLICIT SUBSIDYINDEBTEDNESSINFORMATION SYSTEMINSOLVENCYINSOLVENCY PROCEDURESINSURANCEINTERNAL AUDITINTERNAL AUDIT FUNCTIONINTERNAL AUDIT PROCEDURESINTERNATIONAL DEVELOPMENTINTERNATIONAL FINANCIAL INSTITUTIONINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL STANDARDSINVESTMENT FUNDINVESTMENT RESOURCESISSUANCEJOINT STOCK COMPANIESJOINT STOCK COMPANYJOINT-STOCK COMPANIESJOINT-STOCK COMPANYLABOR PRODUCTIVITYLEGAL DISPUTESLEGAL FORMLEGAL FRAMEWORKLEGAL STRUCTURELEGAL SYSTEMLEGISLATIONLEGISLATURELEVEL PLAYING FIELDLIMITED LIABILITYLIQUIDITYLIQUIDITY PROBLEMSLIVING STANDARDSLOANLOAN AGREEMENTLOAN GUARANTEESLOCAL ECONOMYLOCAL GOVERNMENTSLONG-TERM INTERESTMACROECONOMIC ENVIRONMENTMARKET DISTORTIONSMARKET ECONOMYMARKET INFRASTRUCTUREMARKET PRICESMARKET REFORMMARKET REFORMSMEDIUM-TERM EXPENDITUREMEDIUM-TERM EXPENDITURE FRAMEWORKMINISTERSMINISTRY OF FINANCEMINORITY SHAREHOLDERSMODERN LEGISLATIONMONETARY FUNDNATIONAL BANKNATIONAL TREASURYOPPORTUNITY COSTSPORTFOLIOPOVERTY REDUCTIONPRIVATE INVESTMENTPRIVATE OWNERSHIPPRIVATIZATION OF STATEPUBLIC ADMINISTRATIONPUBLIC ADMINISTRATION REFORMPUBLIC DEBTPUBLIC EXPENDITUREPUBLIC EXPENDITURE REVIEWPUBLIC EXPENDITURESPUBLIC FINANCEPUBLIC INSTITUTIONSPUBLIC INVESTMENTPUBLIC POLICIESPUBLIC POLICYPUBLIC RESOURCESPUBLIC REVENUESPUBLIC SECTORPUBLIC SECTOR ACCOUNTINGPUBLIC SERVICEPUBLIC SPENDINGREFORM STRATEGYREGIONAL INTEGRATIONREGULATORY FRAMEWORKREHABILITATIONREMITTANCEREPAYMENTRETURNRISK FACTORSRISK MANAGEMENTRISK MANAGEMENT SYSTEMSSHAREHOLDERSOCIAL PROTECTIONSOCIAL RISKSSOCIAL SAFETYSOCIAL SECURITYSOFT BUDGET CONSTRAINTSSTATE ADMINISTRATIONSTATE ASSETSSTATE BANKSTATE BUDGETSTATE CONTROLSTATE GUARANTEESSTATE OWNERSHIPSTATE PROPERTYSTATE-OWNED ENTERPRISESSTOCK MARKETTAXTAX ADMINISTRATIONTAX ARREARSTAX AUTHORITIESTAX EXEMPTIONSTAX PAYMENTSTAX REVENUESTAXATIONTELECOMMUNICATIONSTOTAL DEBTTRANSACTIONTRANSITION ECONOMIESTRANSPARENCYTRANSPARENT PROCEDURESTREASURYTRUST FUNDTRUST FUNDSVARIABLE COSTVOTING10.1596/20749