Maldives Public Expenditure Review : Restoring fiscal health
How the government of Maldives chooses to spend state revenues has consequences for the country’s future Decisions on what, where, how, and how much governments spend on have a significant impact on a country’s growth and development. Allocating re...
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| Format: | Report |
| Language: | English English |
| Published: |
Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099205108062235369/P174394036aa910c309ecf0fbecff0d7654 http://hdl.handle.net/10986/37879 |
| Summary: | How the government of Maldives
chooses to spend state revenues has consequences for the
country’s future Decisions on what, where, how, and how much
governments spend on have a significant impact on a
country’s growth and development. Allocating resources
efficiently and effectively across atolls can ensure that
all Maldivians, no matter where they live, have good access
to services. The Maldives Public Expenditure Review (MPER)
aims to help the government identify reforms to reduce
fiscal and debt vulnerabilities and thus ensure a more
secure, sustainable, and inclusive future. Although Maldives
has bounced back strongly from the Coronavirus (COVID-19)
pandemic, the shock has illuminated longstanding
vulnerabilities in the tourism-dependent economy. With
public and publicly guaranteed debt at unprecedented levels,
any sudden stop in external financing and/or a
materialization of fiscal risks, such as from natural
disasters, climate change, or a bailout of state-owned
enterprises (SOEs) could lead to a costly and sudden
macroeconomic crisis. To avoid such a situation in Maldives,
the MPER recommends policy actions in several expenditure
areas, namely: (i) public infrastructure, (ii) health, (iii)
SOEs, (iv) public housing, (v) the public sector wage bill
and (vi) pensions. |
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