Kingdom of Lesotho Public Expenditure Review : Improving Expenditure Efficiency for Inclusive Development and Growth
This Public Expenditure Review (PER) was prepared in response to a request from the Ministry of Finance (MoF) and is designed to inform Lesotho’s fiscal consolidation due to a narrowing of its fiscal space. Lesotho is facing a tough macro-fiscal ou...
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| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/739221532956650763/Kingdom-of-Lesotho-Public-expenditure-review-improving-expenditure-efficiency-for-inclusive-development-and-growth http://hdl.handle.net/10986/30222 |
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okr-10986-302222021-09-17T05:10:45Z Kingdom of Lesotho Public Expenditure Review : Improving Expenditure Efficiency for Inclusive Development and Growth World Bank PUBLIC EXPENDITURE MACROECONOMIC POLICY SOCIAL SPENDING REVENUE MANAGEMENT PUBLIC FINANCIAL MANAGEMENT TAXATION TAX ADMINISTRATION TAX POLICY PUBLIC SECTOR EMPLOYMENT PUBLIC PENSIONS PUBLIC INVESTMENT MANAGEMENT This Public Expenditure Review (PER) was prepared in response to a request from the Ministry of Finance (MoF) and is designed to inform Lesotho’s fiscal consolidation due to a narrowing of its fiscal space. Lesotho is facing a tough macro-fiscal outlook due to a sharp decline in Southern African Customs Union (SACU) revenues. This situation necessitates a significant adjustment in the current fiscal stance to ensure longer-term fiscal sustainability. However, the adjustment should be tailored to minimize any adverse growth and poverty impacts. Thus, this PER is intended to support the government’s efforts to adjust its policies to better address Lesotho’s current macro-fiscal circumstances. Lesotho is one of the poorest and most unequal countries in the world, despite a relatively good growth performance over the past 15 years. Lesotho’s per capita gross national income is about 1550 US dollars. Lesotho’s poverty rate is 59 percent (1.90 US dollars purchasing power parity [PPP] per day), its Gini coefficient is 0.541, and about 59 percent of the population now lives below the international poverty line of 1.90 dollar/day. Both poverty and extreme poverty disproportionately affect the rural population, and the bottom 40 percent of Lesotho’s population experienced a decline in consumption each year between 2002 and 2011. This compares to increases, albeit meager, for the remaining 60 percent of the population over the same period. Lesotho’s gross domestic product (GDP) grew at an annual average rate of 4 percent between 2000 and 2016, whereas its GDP per capita grew at an average rate of 2.8 percent during the same period. Despite the high level of government spending, Lesotho faces challenges in addressing inclusive growth and providing access to quality services for the poor, while also operating in a highly fragile environment. After political turmoil, the new government with a fragile coalition of 7 parties was established in June 2017. The government is facing a significant challenge to improving access to and the quality of public services. It is also seeking to invigorate the domestic private sector to diversify the growth sources of its economy. The level of unemployment is very high, with a low employment-to working-age population ratio, which limits prospects for social mobility and poverty reduction. 2018-08-15T15:20:15Z 2018-08-15T15:20:15Z 2018-06 Report http://documents.worldbank.org/curated/en/739221532956650763/Kingdom-of-Lesotho-Public-expenditure-review-improving-expenditure-efficiency-for-inclusive-development-and-growth http://hdl.handle.net/10986/30222 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Public Expenditure Review Africa Lesotho |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
PUBLIC EXPENDITURE MACROECONOMIC POLICY SOCIAL SPENDING REVENUE MANAGEMENT PUBLIC FINANCIAL MANAGEMENT TAXATION TAX ADMINISTRATION TAX POLICY PUBLIC SECTOR EMPLOYMENT PUBLIC PENSIONS PUBLIC INVESTMENT MANAGEMENT |
| spellingShingle |
PUBLIC EXPENDITURE MACROECONOMIC POLICY SOCIAL SPENDING REVENUE MANAGEMENT PUBLIC FINANCIAL MANAGEMENT TAXATION TAX ADMINISTRATION TAX POLICY PUBLIC SECTOR EMPLOYMENT PUBLIC PENSIONS PUBLIC INVESTMENT MANAGEMENT World Bank Kingdom of Lesotho Public Expenditure Review : Improving Expenditure Efficiency for Inclusive Development and Growth |
| geographic_facet |
Africa Lesotho |
| description |
This Public Expenditure Review (PER) was
prepared in response to a request from the Ministry of
Finance (MoF) and is designed to inform Lesotho’s fiscal
consolidation due to a narrowing of its fiscal space.
Lesotho is facing a tough macro-fiscal outlook due to a
sharp decline in Southern African Customs Union (SACU)
revenues. This situation necessitates a significant
adjustment in the current fiscal stance to ensure
longer-term fiscal sustainability. However, the adjustment
should be tailored to minimize any adverse growth and
poverty impacts. Thus, this PER is intended to support the
government’s efforts to adjust its policies to better
address Lesotho’s current macro-fiscal circumstances.
Lesotho is one of the poorest and most unequal countries in
the world, despite a relatively good growth performance over
the past 15 years. Lesotho’s per capita gross national
income is about 1550 US dollars. Lesotho’s poverty rate is
59 percent (1.90 US dollars purchasing power parity [PPP]
per day), its Gini coefficient is 0.541, and about 59
percent of the population now lives below the international
poverty line of 1.90 dollar/day. Both poverty and extreme
poverty disproportionately affect the rural population, and
the bottom 40 percent of Lesotho’s population experienced a
decline in consumption each year between 2002 and 2011. This
compares to increases, albeit meager, for the remaining 60
percent of the population over the same period. Lesotho’s
gross domestic product (GDP) grew at an annual average rate
of 4 percent between 2000 and 2016, whereas its GDP per
capita grew at an average rate of 2.8 percent during the
same period. Despite the high level of government spending,
Lesotho faces challenges in addressing inclusive growth and
providing access to quality services for the poor, while
also operating in a highly fragile environment. After
political turmoil, the new government with a fragile
coalition of 7 parties was established in June 2017. The
government is facing a significant challenge to improving
access to and the quality of public services. It is also
seeking to invigorate the domestic private sector to
diversify the growth sources of its economy. The level of
unemployment is very high, with a low employment-to
working-age population ratio, which limits prospects for
social mobility and poverty reduction. |
| format |
Report |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Kingdom of Lesotho Public Expenditure Review : Improving Expenditure Efficiency for Inclusive Development and Growth |
| title_short |
Kingdom of Lesotho Public Expenditure Review : Improving Expenditure Efficiency for Inclusive Development and Growth |
| title_full |
Kingdom of Lesotho Public Expenditure Review : Improving Expenditure Efficiency for Inclusive Development and Growth |
| title_fullStr |
Kingdom of Lesotho Public Expenditure Review : Improving Expenditure Efficiency for Inclusive Development and Growth |
| title_full_unstemmed |
Kingdom of Lesotho Public Expenditure Review : Improving Expenditure Efficiency for Inclusive Development and Growth |
| title_sort |
kingdom of lesotho public expenditure review : improving expenditure efficiency for inclusive development and growth |
| publisher |
World Bank, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/739221532956650763/Kingdom-of-Lesotho-Public-expenditure-review-improving-expenditure-efficiency-for-inclusive-development-and-growth http://hdl.handle.net/10986/30222 |
| _version_ |
1764471459444424704 |