Ethiopia Public Expenditure Review : The Emerging Challenge, Volume 2. Medium-term Trends and Recent Developments in Public Spending (including Statistical Annexes)
This Public Expenditure Review (PER) features the expenditure requirements confronting the government which are enormous; and, the expenditure requirements confronting Ethiopia which are compounded by rapid population growth. The expenditure conseq...
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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/2004/06/4938468/ethiopia-public-expenditure-review-emerging-challenge-vol-2-2-medium-term-trends-recent-developments-public-spending-including-statistical-annexes http://hdl.handle.net/10986/15652 |
Summary: | This Public Expenditure Review (PER)
features the expenditure requirements confronting the
government which are enormous; and, the expenditure
requirements confronting Ethiopia which are compounded by
rapid population growth. The expenditure consequences are
significant, because social programs are intensive in their
demands on recurrent resources, so the expansions being
committed to today, could overwhelm budget obligations in 20
years time, crowding out the capacity to fund other
investments for growth. Furthermore, because of the very
limited capacity to finance these needs domestically, they
will heavily influence foreign aid requirements over the
next two decades. Finally, because the cost of these
programs fall primarily on the regional and local
governments, they imply the need for a major increase in the
share of resources transferred to lower level governments.
The object of this PER is to put the numbers on the table to
inform this debate. Current spending on education, health,
population, food security transfers, and water supply is
examined, along with an assessment of its adequacy,
effectiveness, and absorptive capacity. The PER then
projects the costs of alternative coverage targets over the
next 20 years, including the costs of reaching the
Millennium Development Goals (MDGs), and examines the
implications for financing, and sectoral policy choices.
Three cost scenarios are forecast for each sector: a
'business-as-usual' scenario that shows the cost
of just keeping up with population growth; an 'Extended
(Poverty Reduction Strategy Paper ) PRSP' scenario,
that projects the costs of continuing with moderately
ambitious targets developed over the past few years; and,
finally an 'MDGs Plus' scenario that forecasts the
full costs of implementing the most ambitious plans that
government is currently proposing in various policy
documents. The report comprises two volumes: public spending
in the social sectors 2000-2020 (V. 1), and, medium trends
and recent developments in public spending (v. 2), that
includes statistical annexes. |
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