Bolivia : Public Expenditure Management for Fiscal Sustainability and Equitable and Efficient Public Serivces

This Public Expenditure Review (PER) - an update of the 1999 PER - is intended to provide recommendations that will allow Bolivia to regain control of its public finances, and further improve the equity, and efficiency of public services. The first...

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Main Author:	World Bank
Format:	Public Expenditure Review
Language:	English en_US
Published:	Washington, DC 2013
Subjects:	PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC SERVICES SUSTAINABILITY
Online Access:	http://documents.worldbank.org/curated/en/2004/11/5600786/bolivia-public-expenditure-management-fiscal-sustainability-equitable-efficient-public-serivces http://hdl.handle.net/10986/14385

id	okr-10986-14385
recordtype	oai_dc
spelling	okr-10986-143852021-04-23T14:03:18Z Bolivia : Public Expenditure Management for Fiscal Sustainability and Equitable and Efficient Public Serivces World Bank PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC SERVICES SUSTAINABILITY This Public Expenditure Review (PER) - an update of the 1999 PER - is intended to provide recommendations that will allow Bolivia to regain control of its public finances, and further improve the equity, and efficiency of public services. The first part of the report looks at the macroeconomic setting and fiscal balance, significantly deteriorated in recent years, with an annual GDP growth of only 2.4 percent during 1997-2003. Weaker economic activity, the winding down of privatizations of public enterprises, and poor fiscal policy decisions (particularly on hydrocarbons) led to stagnant government revenue. Part II looks at the structure and trends of public expenditures, pointing that Bolivia's high indebtedness is an indication that the public sector is too large, considering the country's low level of revenue collection. The report explores the principal components of increased government spending, where by and large, wages, pensions, and interest payments amount to 70 percent of total revenues, and have increased by around 20 percent of GDP since 1998. Capital spending (public investment) has also increased recently, and current spending is required to maintain these capital investments, i.e., they will have a future impact on the budget. Recommendations suggest addressing the current fiscal imbalance by implementing expenditure caps on total fiscal expenditure; proposing reforms to increase efficiency of pension cost administration; adjusting local prices of fuel in accordance to changes in international prices; and, deepening the civil service reform. In the long run, subsidies to diesel fuel for electricity generation should be eliminated, and, regressive health insurance fund subsidies should be reviewed. 2013-07-08T16:01:57Z 2013-07-08T16:01:57Z 2004-11-18 http://documents.worldbank.org/curated/en/2004/11/5600786/bolivia-public-expenditure-management-fiscal-sustainability-equitable-efficient-public-serivces http://hdl.handle.net/10986/14385 English en_US Public expenditure review (PER); CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Public Expenditure Review Economic & Sector Work Latin America & Caribbean Bolivia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC SERVICES SUSTAINABILITY
spellingShingle	PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC SERVICES SUSTAINABILITY World Bank Bolivia : Public Expenditure Management for Fiscal Sustainability and Equitable and Efficient Public Serivces
geographic_facet	Latin America & Caribbean Bolivia
relation	Public expenditure review (PER);
description	This Public Expenditure Review (PER) - an update of the 1999 PER - is intended to provide recommendations that will allow Bolivia to regain control of its public finances, and further improve the equity, and efficiency of public services. The first part of the report looks at the macroeconomic setting and fiscal balance, significantly deteriorated in recent years, with an annual GDP growth of only 2.4 percent during 1997-2003. Weaker economic activity, the winding down of privatizations of public enterprises, and poor fiscal policy decisions (particularly on hydrocarbons) led to stagnant government revenue. Part II looks at the structure and trends of public expenditures, pointing that Bolivia's high indebtedness is an indication that the public sector is too large, considering the country's low level of revenue collection. The report explores the principal components of increased government spending, where by and large, wages, pensions, and interest payments amount to 70 percent of total revenues, and have increased by around 20 percent of GDP since 1998. Capital spending (public investment) has also increased recently, and current spending is required to maintain these capital investments, i.e., they will have a future impact on the budget. Recommendations suggest addressing the current fiscal imbalance by implementing expenditure caps on total fiscal expenditure; proposing reforms to increase efficiency of pension cost administration; adjusting local prices of fuel in accordance to changes in international prices; and, deepening the civil service reform. In the long run, subsidies to diesel fuel for electricity generation should be eliminated, and, regressive health insurance fund subsidies should be reviewed.
format	Economic & Sector Work :: Public Expenditure Review
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Bolivia : Public Expenditure Management for Fiscal Sustainability and Equitable and Efficient Public Serivces
title_short	Bolivia : Public Expenditure Management for Fiscal Sustainability and Equitable and Efficient Public Serivces
title_full	Bolivia : Public Expenditure Management for Fiscal Sustainability and Equitable and Efficient Public Serivces
title_fullStr	Bolivia : Public Expenditure Management for Fiscal Sustainability and Equitable and Efficient Public Serivces
title_full_unstemmed	Bolivia : Public Expenditure Management for Fiscal Sustainability and Equitable and Efficient Public Serivces
title_sort	bolivia : public expenditure management for fiscal sustainability and equitable and efficient public serivces
publisher	Washington, DC
publishDate	2013
url	http://documents.worldbank.org/curated/en/2004/11/5600786/bolivia-public-expenditure-management-fiscal-sustainability-equitable-efficient-public-serivces http://hdl.handle.net/10986/14385
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Bolivia : Public Expenditure Management for Fiscal Sustainability and Equitable and Efficient Public Serivces

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