World Bank2013-02-122013-02-122012-11https://hdl.handle.net/10986/12315Economic growth has rebounded strongly in Georgia during 2010-12 and commendable fiscal consolidation has been implemented, although considerable medium-term macro-fiscal challenges remain. This public expenditure review (PER) considers possible sources of expenditure pressure that may affect the fiscal consolidation program and suggests options to manage them. This PER presents a number of options for consideration to manage fiscal consolidation, which can contribute toward greater selectivity in capital expenditures, enhanced sustainability of the road investment program, and containing medium-term social expenditure pressures. The rest of this synthesis report is in five chapters. Chapter first summarizes the macroeconomic context and assesses trade-offs associated in balancing the overall composition of public expenditures. The second and third chapters illustrate policy options and implications associated with containing social expenditure pressures and improving effectiveness of health expenditures, respectively. Chapter fourth reviews the international experience in strengthening capital budgeting and provides options for consideration for Georgia. Finally, the fifth chapter discusses options associated with rebalancing road sector expenditures.en-USCC BY 3.0 IGOACCOUNTINGAGGREGATE DEMANDALLOCATIONANNUAL BUDGETARREARSASSET MANAGEMENTASSET VALUEBALANCE SHEETBANK LENDINGBANKING SECTORBENEFICIARIESBENEFICIARYBUDGET ACCOUNTSBUDGET CODEBUDGET LAWBUDGET PREPARATIONBUDGET PROCESSCAPITAL BUDGETCAPITAL BUDGETINGCAPITAL EXPENDITURECAPITAL EXPENDITURESCAPITAL FLOWSCAPITAL INFLOWSCAPITAL INVESTMENTSCENTRAL AGENCIESCENTRAL GOVERNMENTCOMPETITIVE BIDDINGCOMPOSITION OF EXPENDITURESCOST EFFECTIVENESSCOST-BENEFIT ANALYSISCREDIT GROWTHCURRENCYCURRENT ACCOUNTCURRENT ACCOUNT DEFICITCURRENT ACCOUNT DEFICITSCURRENT ACCOUNT SURPLUSESDEBT BURDENDEBT LEVELSDEBT RATIODEBT REPAYMENTDEBT REPAYMENT SCHEDULEDEBT REPAYMENTSDEBT SUSTAINABILITYDECISION-MAKINGDEPOSITSDOMESTIC SAVINGSDONOR ASSISTANCEECONOMIC CLASSIFICATIONECONOMIC DOWNTURNECONOMIC GROWTHECONOMIC RECOVERYEMPLOYMENT OPPORTUNITIESEUROBONDEXCHANGE RATEEXPENDITURE PRIORITIESEXPORT SHAREEXTERNAL BORROWINGEXTERNAL DEBTEXTERNAL FINANCINGEXTERNAL IMBALANCESFINANCE MINISTRYFINANCIAL CRISISFINANCIAL INFORMATIONFINANCIAL INSTRUMENTSFINANCIAL SECTORFINANCING REQUIREMENTFISCAL ADJUSTMENTFISCAL ANALYSISFISCAL BALANCEFISCAL CONSOLIDATIONFISCAL COSTFISCAL COSTSFISCAL DEFICITFISCAL DEFICITSFISCAL DISCIPLINEFISCAL ENVELOPEFISCAL EXPENDITUREFISCAL FRAMEWORKFISCAL POLICYFISCAL STABILITYFOREIGN CAPITALFOREIGN DIRECT INVESTMENTFRAUDGENERAL REVENUESGLOBAL CAPITALGOVERNMENT BORROWINGGOVERNMENT BUDGETSGOVERNMENT CONSUMPTIONGOVERNMENT INVESTMENTGOVERNMENT SUBSIDIESGROSS DOMESTIC PRODUCTGROWTH MODELGROWTH RATEHEALTH CAREHEALTH EXPENDITURESHEALTH INSURANCEHEALTH OUTCOMESHEALTH SECTORHEALTH SERVICESHEALTH SPENDINGHOUSEHOLDSHUMAN CAPITALINFLATIONINFORMATION SYSTEMINFRASTRUCTURE DEVELOPMENTINFRASTRUCTURE EXPENDITUREINFRASTRUCTURE INVESTMENTINFRASTRUCTURE INVESTMENTSINFRASTRUCTURE SERVICESINSTRUMENTINTERNAL CONTROLINTERNATIONAL DEVELOPMENTINTERNATIONAL MARKETSINTERNATIONAL STANDARDSINVESTMENT PROJECTSINVESTMENT PROPOSALSISSUANCESJOB OPPORTUNITIESKEY CHALLENGELABOR FORCE PARTICIPATIONLIVING STANDARDSLOCAL GOVERNMENTMACROECONOMIC FRAMEWORKMACROECONOMIC MANAGEMENTMEDIUM TERM EXPENDITUREMEDIUM TERM EXPENDITURE FRAMEWORKMINISTRY OF FINANCEMONETARY FUNDNATIONAL BANKNATIONAL SAVINGSNET LENDINGNONPAYMENTOIL PRICESOLD-AGEOLD-AGE INCOMEOLD-AGE PENSIONOLD-AGE PENSIONSOUTREACHPENSION REFORMPENSION SYSTEMPENSION SYSTEMSPOLICY RESPONSEPOVERTY REDUCTIONPRIVATE CAPITALPRIVATE CAPITAL INFLOWSPRIVATE DEBTPRIVATE INVESTMENTPRIVATE PENSIONPRIVATE SAVINGSPRIVATE SECTORPRIVATE SPENDINGPRIVATIZATIONPROGRAMSPUBLIC CAPITALPUBLIC DEBTPUBLIC EXPECTATIONSPUBLIC EXPENDITUREPUBLIC EXPENDITURE POLICYPUBLIC EXPENDITURE REVIEWPUBLIC EXPENDITURESPUBLIC FINANCEPUBLIC FINANCESPUBLIC FUNDINGPUBLIC HEALTHPUBLIC INVESTMENTPUBLIC INVESTMENT PROGRAMMINGPUBLIC SAVINGSPUBLIC SECTORPUBLIC SERVICESPUBLIC SPENDINGPURCHASING POWERRATE OF RETURNREAL EXCHANGE RATERECEIPTRECEIPTSRECURRENT EXPENDITURESREMITTANCESRENEGOTIATIONREPAYMENTREPAYMENTSRESERVERESOURCE CONSTRAINTSROAD NETWORKRURAL ACCESSSAFETY NETSCHOOL PERFORMANCESERVICE QUALITYSOCIAL ASSISTANCESOCIAL BENEFITSOCIAL BENEFITSSOCIAL EXPENDITURESOCIAL EXPENDITURESSOCIAL PROGRAMSSOCIAL PROTECTIONSOCIAL PROTECTION EXPENDITURESSOCIAL SERVICESSTATE BUDGETSTATE ENTERPRISESSTATE GOVERNMENTSTRUCTURAL REFORMST-BILLTAXTAX BASETAX POLICYTAX RATESTAX REGIMETAX REVENUESTAX TREATMENTTOTAL EXPENDITURESTOTAL SPENDINGTRANSPARENCYUNEMPLOYMENTUNIONUSE OF RESERVESVOUCHERSWorld Bank10.1596/12315