Georgia - Managing Expenditure Pressures for Sustainability and Growth : Public Expenditure Review

World Bank

Georgia - Managing Expenditure Pressures for Sustainability and Growth : Public Expenditure Review

Autores

World Bank

Editor

Washington, DC

Descripción

Economic growth has rebounded strongly in Georgia during 2010-12 and commendable fiscal consolidation has been implemented, although considerable medium-term macro-fiscal challenges remain. To meet the challenge of generating rapid and sustainable growth in an uncertain global environment, Georgia will need to continue to implement and potentially deepen its fiscal consolidation program. This public expenditure review (PER) considers possible sources of expenditure pressure that could undermine the fiscal consolidation program and suggests options to manage them. Social expenditure pressures arise from the need to provide adequate old-age income to an aging population that relies primarily on the publicly funded pension benefit, as well as from needs to improve social assistance coverage of the poor, and improve health outcomes. Capital expenditure pressures arise from the need to rehabilitate a large backlog of the secondary and local road network in poor condition, continued improvement the East-West Highway, and from new investment needs in energy, water, agriculture, and regional development. The PER presents a number of options for consideration to manage fiscal consolidation, which can contribute toward greater selectivity in capital expenditures, enhanced sustainability of the road investment program, and containing medium-term social expenditure pressures. The specific policy options discussed above could collectively curtail expenditure pressures estimated at about 2.8 percent of GDP by 2015, thus enabling Georgia to meet its fiscal consolidation targets.

Palabras clave

ACCOUNTING, ADMINISTRATIVE COSTS, AGING, ANNUAL BUDGET, BENEFICIARIES, BENEFICIARY, BENEFIT ANALYSIS, BREAST CANCER, BUDGET CODE, BUDGET COVERAGE, BUDGET FRAMEWORK, BUDGET PROCESS, CAPITAL BUDGET, CAPITAL BUDGETING, CAPITAL EXPENDITURE, CAPITAL EXPENDITURES, CAPITAL INFLOWS, CAPITAL PROJECTS, CAPITAL SPENDING, CENTRAL AGENCIES, COMPOSITION OF EXPENDITURES, CONSUMPTION SMOOTHING, COST BENEFIT ANALYSIS, COST SAVINGS, CPI, CURRENCY, CURRENT ACCOUNT DEFICIT, DEBT LEVELS, DEBT RATIO, DEBT REPAYMENT, DEFENSE EXPENDITURES, DISABILITY PENSION, DISTRIBUTION FUNCTION, DONOR ASSISTANCE, ECONOMIC CLASSIFICATION, ECONOMIC GROWTH, ECONOMIC RECOVERY, EMERGING ECONOMIES, ENVIRONMENTAL, ENVIRONMENTAL PROTECTION, EXCHANGE RATE, EXPENDITURE LEVELS, EXTERNAL DEBT, EXTERNAL FINANCING, FAMILIES, FINANCE MINISTRY, FINANCIAL ASSETS, FINANCIAL CRISIS, FINANCIAL INFORMATION, FINANCING REQUIREMENT, FISCAL ADJUSTMENT, FISCAL BALANCE, FISCAL BURDEN, FISCAL CONSOLIDATION, FISCAL COSTS, FISCAL DEFICIT, FISCAL ENVELOPE, FISCAL EXPENDITURE, FISCAL FRAMEWORK, FOREIGN DIRECT INVESTMENT, GENERAL TAX REVENUES, GOVERNMENT BUDGET, GOVERNMENT INVESTMENT, GROWTH RATE, HEALTH CARE, HEALTH EXPENDITURE, HEALTH EXPENDITURES, HEALTH INSURANCE, HEALTH INTERVENTIONS, HEALTH OUTCOMES, HEALTH PROGRAMS, HEALTH SECTOR, HEALTH SPENDING, HOUSING, HYPERTENSION, INCOME LEVELS, INCOME SUPPORT, INFLATION, INFRASTRUCTURE DEVELOPMENT, INFRASTRUCTURE EXPENDITURE, INFRASTRUCTURE INVESTMENTS, INSTRUMENT, INTERNATIONAL COMPARISONS, INTERNATIONAL STANDARDS, INVESTMENT INSTRUMENTS, ISOLATION, LABOR FORCE, LABOR MARKET, LIFE EXPECTANCY, LIVING CONDITIONS, MACROECONOMIC FRAMEWORK, MACROECONOMIC MANAGEMENT, MARKETING, MEDICAL TREATMENT, MEDIUM TERM EXPENDITURE, MEDIUM TERM EXPENDITURE FRAMEWORK, MORTALITY, NATIONAL INCOME, NATIONAL SAVINGS, NET LENDING, OIL, PATIENT, PENSION, PENSION REFORM, PENSION SYSTEM, PENSION SYSTEMS, PENSIONS, PERFORMANCE INDICATORS, PORTFOLIO, POVERTY IMPACT, POVERTY REDUCTION, PRICE CHANGES, PRIVATE DEBT, PRIVATE SAVINGS, PRIVATE SECTOR, PROGRAM BUDGETING, PROVISIONS, PUBLIC, PUBLIC CAPITAL, PUBLIC DEBT, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE REVIEW, PUBLIC EXPENDITURES, PUBLIC HEALTH, PUBLIC INSTITUTIONS, PUBLIC INVESTMENT, PUBLIC INVESTMENTS, PUBLIC SAVINGS, PUBLIC SECTOR, PUBLIC SERVICES, PUBLIC SPENDING, REFORM AGENDA, REPAYMENT, RETIREMENT INCOME, ROAD NETWORK, ROADS, SAFETY NET, SCREENING, SECTOR MINISTRY, SERVICE DELIVERY, SMOKING, SOCIAL ASSISTANCE, SOCIAL BENEFIT, SOCIAL BENEFITS, SOCIAL EXPENDITURE, SOCIAL EXPENDITURES, SOCIAL PROTECTION, SOCIAL PROTECTION EXPENDITURES, STATE BUDGET, STRATEGIC PLANS, STRATEGIC PRIORITIES, SUSTAINABLE GROWTH, TAX, TAX REFORMS, TAX REVENUES, TAX TREATMENT, TAXATION, TOTAL EXPENDITURES, TOTAL PUBLIC EXPENDITURE, UNEMPLOYMENT, UNEMPLOYMENT RATE, USE OF RESERVES, VENTILATION, WAGES, WITHDRAWAL