World Bank2013-07-252013-07-252003-12-29https://hdl.handle.net/10986/14578Despite high levels of per capita incomes and good social service provision, poverty remains a persistent problem in St. Kitts and Nevis. To improve competitiveness, restore rapid economic growth, and ensure its medium-term sustainability in the context of the currency union, the main challenges to the St. Kitts and Nevis government are to (a) tighten fiscal policy, notably through expenditure cuts; (b) increase the efficiency of public investments and public service delivery; (c) strengthen regulation and efficiency of public utilities and sea/air transport; and (d) promote education and skills development to prepare the population, notably the poor, to take advantage of new opportunities in the global environment. The report is organized as follows: Chapter 1 discusses fiscal sustainability in St. Kitts and Nevis and presents options for fiscal consolidation; Chapter 2 discusses the role of the business cycle in the design of fiscal policy by reviewing the cyclical components of the fiscal accounts; Chapter 3 discusses the budget management system in place and its effect on budgetary outcomes; Chapter 4 examines the Public Sector Investment Program; Chapter 5 discusses public sector employment and compensation; Chapters 6 and 7 examine public expenditures and outcomes in the education and health sectors; and Chapter 8, the final chapter, discusses social protection programs.en-USCC BY 3.0 IGOBORROWINGBUDGET BALANCESBUDGET MANAGEMENT SYSTEMBUSINESS CYCLEBUSINESS CYCLESCAPITAL BUDGETCAPITAL EXPENDITURECAPITAL EXPENDITURESCAPITAL SPENDINGCAPITAL STOCKCENTRAL BANKCENTRAL GOVERNMENT FISCALCOMPETITIVENESSCONTINGENT LIABILITIESCYCLICAL EFFECTSDEBT MANAGEMENTDEBT RATIOSDEBT SERVICEDEPOSIT ACCOUNTSDOMESTIC BORROWINGECONOMIC COOPERATIONECONOMIC GROWTHECONOMIC SHOCKSECONOMIC SLOWDOWNECONOMIC STRUCTUREEXPENDITURE CUTSEXPENDITURE GROWTHEXTERNAL SHOCKSEXTREME POVERTYFINANCIAL MANAGEMENTFISCAL ACCOUNTSFISCAL ADJUSTMENTFISCAL BALANCEFISCAL CONSOLIDATIONFISCAL CONVERGENCEFISCAL CONVERGENCE CRITERIAFISCAL DEFICITFISCAL DEFICITSFISCAL FRAMEWORKFISCAL GAPFISCAL INFORMATIONFISCAL ISSUESFISCAL MANAGEMENTFISCAL OPERATIONSFISCAL PERFORMANCEFISCAL POLICIESFISCAL POLICYFISCAL REFORMFISCAL RESPONSIBILITYFISCAL RULEFISCAL RULESFISCAL SURPLUSFISCAL SUSTAINABILITYFIXED EXCHANGE RATEGDPGDP PER CAPITAGOVERNMENT ASSETSGOVERNMENT BUDGETGOVERNMENT DEBTGOVERNMENT DEFICITGOVERNMENT EXPENDITUREGOVERNMENT EXPENDITURE COMPOSITIONGOVERNMENT REVENUEGOVERNMENT SECURITIESGROSS DOMESTIC PRODUCTGROWTH POTENTIALGROWTH RATEGROWTH RATESHEALTH SPENDINGHOUSINGHUMAN CAPITALINCREASE IN EXPENDITURESINFLATIONINFLATION RATEINTERNATIONAL MONETARY FUNDMACROECONOMIC STABILITYMONETARY POLICYMONETARY UNIONMONOPOLIESNATIONAL INCOMEOPEN ECONOMYPER CAPITA INCOMESPORTSPRIMARY DEFICITPRIMARY EXPENDITUREPRIMARY SURPLUSPRIVATE SECTORPUBLICPUBLIC DEBTPUBLIC ENTERPRISESPUBLIC EXPENDITUREPUBLIC EXPENDITURESPUBLIC GOODSPUBLIC INVESTMENTSPUBLIC SECTORPUBLIC SECTOR COMPENSATIONPUBLIC SECTOR EMPLOYMENTPUBLIC SECTOR REFORMPUBLIC SERVICEPUBLIC SERVICE DELIVERYPUBLIC UTILITIESPURCHASING POWERREAL WAGESREDUCTION IN TAXREGULATORY FRAMEWORKRESOURCE ALLOCATIONSAFETY NETSSAVINGSSECTOR INVESTMENTSECTOR RESTRUCTURINGSOCIAL SECURITYTAXTAX ADMINISTRATIONTAX COLLECTIONTAX EXEMPTIONSTAX POLICYTAX REVENUETAX REVENUESTAXATIONTREASURYTREASURY BILLSWorld Bank10.1596/14578