Argentina : Reforming Policies and Institutions for Efficiency and Equity of Public Expenditures
This report seeks to identify policy, and institutional reforms to enhance the efficiency, equity, and effectiveness of public expenditures at the federal, and provincial levels in Argentina. These are crucial to generate the kinds of fiscal surplu...
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Format: | Public Expenditure Review |
Language: | English en_US |
Published: |
Washington, DC
2013
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Online Access: | http://documents.worldbank.org/curated/en/2003/09/2519542/argentina-reforming-policies-institutions-efficiency-equity-public-expenditures http://hdl.handle.net/10986/14637 |
Summary: | This report seeks to identify policy,
and institutional reforms to enhance the efficiency, equity,
and effectiveness of public expenditures at the federal, and
provincial levels in Argentina. These are crucial to
generate the kinds of fiscal surpluses needed for fiscal
solvency, and macroeconomic stability. Otherwise, efforts to
stimulate private-sector-led growth, and generate employment
- which are key for sustained poverty reduction - may not
succeed. The report analyzes both sectoral, and
process-related issues. The sectoral analysis focuses on the
major expenditure categories within the social, and
infrastructure sectors, which accounts for over 70 percent
of total expenditures. Effective provision of social, and
infrastructure services is crucial for poverty reduction,
equity, and improved living standards. The process-related
issues focus on two areas affecting expenditure efficiency,
and fiscal solvency: federal-provincial government
relations, and public expenditure management. Though
important, federal tax policy, and public administration
issues are excluded from this report in order to keep its
scope manageable. The report further highlights that only
the private sector is able to finance Argentina's
projected infrastructure investments. To this end, investor
confidence will need to be restored, which will in turn,
require concluding the renegotiations with private
operators, and addressing certain second-generation reforms.
The alternative of a return to public ownership, and control
is not desirable, given the higher efficiency in the private
sector, the other demands on fiscal resources, and problems
with public provision of services. As outlined below, what
Argentina needs is a fair resolution of renegotiations,
better regulatory arrangements, better protection for the
poor, and better financing mechanisms. |
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