World Bank2012-03-192012-03-192010-02-17https://hdl.handle.net/10986/2895The government has embarked upon a comprehensive and difficult medium term program for reforming the public sector aimed at rebalancing the relation between revenue and spending and enhancing the efficiency and efficacy of service delivery. The Romanian economy has been hit hard by the global economic downturn. Latest estimates suggest that real Gross Domestic Product (GDP) may have contracted by around 7 percent in 2009, before modestly recovering in 2010. The severe decline in output has had a significant adverse effect on consolidated budget revenues, which fell substantially below the initial target in 2009. To prevent a further deterioration of the already large fiscal deficit, the shortfall in revenue has led to adjustments in spending. Consolidation of expenditure needs however continue in order to put public finances on a sustainable trajectory over the medium term. The report is structured in two volumes. The first volume synthesizes the menu of options suggested to reduce the short term gap between budget expenditure and revenues. It also highlights the key challenges and recommendations for improving efficiency and efficacy of spending in the sectors investigated. Volume two consists of the background analyses, with individual chapters dedicated to the fiscal framework; public pay; pensions; education; health; and agriculture. The report makes the case that, in the current crisis environment and consistent with experience worldwide, the gap between expenditure and revenue should be done primarily by reducing the level of current spending.CC BY 3.0 IGOACCOUNTABILITYACCOUNTABILITY FOR RESOURCESACCOUNTABILITY FOR RESULTSACCOUNTINGADMINISTRATIVE REFORMSAGGREGATE DEMANDALLOCATION OF RESOURCESANNUAL BUDGETANNUAL BUDGET PROCESSANNUAL REPORTANNUAL TARGETSAPPROPRIATIONSAUTOMATIC STABILIZERSBENEFICIARIESBRIDGEBUDGET BALANCEBUDGET DEFICITBUDGET ENVELOPEBUDGET EXECUTIONBUDGET EXPENDITUREBUDGET PROCESSBUDGET RESOURCESBUDGET SUPPORTBUDGETARY ALLOCATIONSBUDGETARY RESOURCESCAPACITY BUILDINGCAPACITY BUILDING PROGRAMCAPACITY CONSTRAINTSCAPITAL EXPENDITURECOMPANY CARSCOST-EFFECTIVENESSDECENTRALIZATIONDECENTRALIZATION OF EDUCATIONDECISION-MAKINGDEMAND FOR SERVICESECONOMIC CLASSIFICATIONECONOMIC DOWNTURNECONOMIES OF SCALEEDUCATION REFORMEMERGENCY SERVICESEMISSIONEMISSIONSEVALUATION METHODOLOGYEXCISE TAXESEXPENDITURE CUTSEXPENDITURE PLANSEXPENDITURESFINANCIAL PROGRAMMINGFINANCIAL RESOURCESFINANCIAL SECTORFINANCIAL STABILITYFINANCIAL SUPPORTFISCAL ADJUSTMENTFISCAL ADJUSTMENT EFFORTFISCAL ADJUSTMENTSFISCAL CONDITIONSFISCAL CRISISFISCAL DEFICITFISCAL DISCIPLINEFISCAL FRAMEWORKFISCAL IMBALANCESFISCAL POLICYFISCAL SAVINGSFISCAL STANCEFISCAL VULNERABILITIESFREIGHTGOVERNMENT EXPENDITUREGOVERNMENT OUTLAYSGOVERNMENT REVENUEGOVERNMENT REVENUESGOVERNMENT SPENDINGGROSS DOMESTIC PRODUCTHEALTH CAREHEALTH EXPENDITURESHEALTH FINANCINGHEALTH INSURANCEHEALTH INSURANCE FUNDHEALTH MINISTRYHEALTH PROGRAMSHEALTH SECTORHEALTH SERVICESHIGHWAYIMPROVING RESOURCE ALLOCATIONINCOME TAXINCOME TAXESINFLATIONINFRASTRUCTURE COSTINFRASTRUCTURE COSTSINSPECTIONLABOR TAXESMAINTENANCE OF ROADSMASTER PLANMEASURABLE INDICATORSMEDICAL SERVICESMEDIUM-TERM EXPENDITUREMEDIUM-TERM EXPENDITURE FRAMEWORKMEDIUM-TERM PLANNINGMINISTRY OF TRANSPORTMOBILITYMODE OF TRANSPORTMOTORWAYSMUNICIPALITIESNATIONAL AGENCYNET SAVINGSORGANIZATIONAL STRUCTURESPASSENGER SERVICEPASSENGER SERVICESPASSENGERSPAYMENT SYSTEMPAYROLL TAXPENSION FUNDPENSIONERSPERFORMANCE ANALYSISPERFORMANCE BUDGETINGPERFORMANCE MEASUREMENTPERFORMANCE MONITORINGPERSONNEL EXPENDITUREPERSONNEL MANAGEMENTPOLICEPOLICY FORMULATIONPOVERTY REDUCTIONPRICE INDEXPRIVATE SECTORPRIVATE SECTOR INVOLVEMENTPROGRAMSPUBLIC ADMINISTRATIONPUBLIC AGENCIESPUBLIC BUDGETPUBLIC EMPLOYMENTPUBLIC ENTERPRISEPUBLIC ENTITIESPUBLIC EXPENDITUREPUBLIC FINANCEPUBLIC FINANCESPUBLIC FINANCIAL MANAGEMENTPUBLIC FUNDINGPUBLIC INFORMATIONPUBLIC INSTITUTIONSPUBLIC PENSIONPUBLIC PENSION SYSTEMPUBLIC PENSIONSPUBLIC RESOURCESPUBLIC SAFETYPUBLIC SECTORPUBLIC SECTOR EMPLOYMENTPUBLIC SECTOR ENTITIESPUBLIC SECTOR SERVICE DELIVERYPUBLIC SERVICEPUBLIC SERVICE DELIVERYPUBLIC SERVICESPUBLIC SPENDINGPUBLIC TRANSPORTATIONPUBLIC TRANSPORTATION NETWORKQUALITY ASSURANCEQUALITY OF EDUCATIONQUALITY OF SERVICESRAILRAIL COMPANIESRAILWAYRAILWAY LINESRAILWAY NETWORKRAILWAY NETWORKSRAILWAYSREFORM AGENDAREFORM PROCESSREFORM STRATEGYRESOURCE ALLOCATIONSRESOURCE MANAGEMENTROADROAD MAINTENANCEROAD NETWORKROAD SECTORROAD USERROAD USER CHARGESROADSROLLING STOCKRURAL INFRASTRUCTURESAFETYSERVICE DELIVERYSOCIAL ASSISTANCESOCIAL CONTRIBUTIONSSOCIAL INSURANCESOCIAL PROTECTIONSOCIAL SECURITYSOCIAL SECURITY ADMINISTRATIONSOCIAL SECURITY CONTRIBUTIONSSTATE BUDGETSTRUCTURAL DEFICITSTRUCTURAL REFORMSSUB-NATIONAL GOVERNMENTSTAXTAX ADMINISTRATIONTAX BASETAX COLLECTIONTAX SYSTEMTOTAL PUBLIC SECTORTOTAL SPENDINGTRAFFICTRAFFIC CONTROLTRAFFIC INTENSITYTRAFFIC LEVELSTRANSPARENCYTRANSPORT COSTSTRANSPORT INFRASTRUCTURETRANSPORT SECTORTRANSPORT SERVICESVEHICLESWorld Bank10.1596/2895