2010年-世界发展银行全球_Romania___Public_Expenditure_and_Institutional_Review___Background_Papers_122页_1023kb

Romania Public Expenditure and Institutional Review Summary

Core Content Overview

This report, Romania Public Expenditure and Institutional Review (Report No. 51191-RO), provides a detailed analysis of Romania's fiscal framework, public sector pay and employment, pensions, education, health, and agriculture and rural development in the context of its economic and institutional landscape. The report is part of a two-volume series and was published in February 2010 by the World Bank's Poverty Reduction and Economic Management Unit for the Europe and Central Asia Region.

Main Sections and Key Points

1. The Fiscal Framework

A. Current Fiscal Context and Challenges

• Public spending increased significantly from 31% of GDP in 2004 to 37% in 2008.
• The majority of the increase was in current spending, particularly wages and pensions, with public sector wages becoming the second highest in the country.
• Public employment expanded by over 15% between 2005 and 2008.
• Pensions were a major driver of the fiscal deficit, pushing the pension fund from surplus to deficit.
• Romania entered the global crisis with the largest structural budget deficit in the EU (7.9% of GDP in 2008).
• The fiscal policy was highly pro-cyclical, leading to a widening of the deficit beyond sustainable levels.
• The government turned to International Financial Institutions (IFIs) for support, with a package totaling €19.95 billion agreed for 2009–2011.

B. Patterns of Revenue and Expenditure

• Public spending in Romania remained below the EU average despite increases.
• In 2007, public spending was 10% below the EU average, with only five countries spending less.
• Education spending was the lowest in the EU, at 4.2% of GDP.
• Health spending was 4.3% of GDP, two percentage points below the EU average.
• Social protection and general public services were roughly half of the EU mean.
• Economic affairs spending was significantly higher than the EU average (6.8% of GDP).
• Government revenue in 2008 was 33.1% of GDP, compared to the EU-27 average of 44.5%.
• Income and wealth taxes were particularly modest, at 6.9% of GDP.
• Social contributions were 10.3% of GDP, lower than the EU average of 13.7%.
• Public wage bill became one of the largest in Europe as a share of government revenue, reaching 10.2% of GDP in 2008.
• Personnel expenditure was consistently overestimated, with a large gap between planned and actual spending in key sectors.

2. Public Sector Pay and Employment

• Public employment had a significant impact on the budget.
• A medium-term strategy was needed to address public pay issues.
• A roadmap for improving the effectiveness of public pay was proposed.

3. Pensions

• The pension system faced sustainability challenges due to rising expenditure.
• Equity concerns were noted, particularly in the distribution of benefits.
• Pension reform was necessary to ensure long-term fiscal stability.
• The fiscal impact of pension reform was projected to be significant over 2010–2020.

4. Education

• Key challenges included low public spending, inefficiencies, and lack of relevance.
• Constraints were identified in primary and secondary education systems.
• Policy options for improving quality and relevance were outlined.

5. Health

• Institutional setup and challenges in health care provision were discussed.
• Public spending on health services was below the EU average.
• Equity issues were identified, including access and affordability.
• The Ministry of Health had a strategic focus on improving service delivery.
• Recommendations and next steps for health sector reform were provided.

6. Agriculture and Rural Development

• Priorities in agriculture and rural development were outlined.
• Direct income support under the Common Agricultural Policy (CAP) Pillar 1 was analyzed.
• Rural development support under CAP Pillar 2 was detailed.
• State aid mechanisms and their alignment with EU standards were discussed.
• Conclusions and recommendations for agricultural and rural development policies were provided.

Key Information

• Currency: New Romanian Leu (RON), with 1 USD = 2.9509 RON.
• Fiscal Year: January 1 to December 31.
• Key Institutions:
  • Ministry of Public Finance (MoPF)
  • Ministry of Education, Research and Innovation (MERI)
  • Ministry of Health (MOH)
  • Ministry of Agriculture, Forests and Rural Development (MAFRD)
• Key Concepts:
  • CAP: Common Agricultural Policy
  • EAGF: European Agricultural Guarantee Fund
  • EAFRD: European Agricultural Fund for Rural Development
  • CNDP: Complementary National Direct Payments
  • MTEF: Medium-Term Expenditure Framework
  • PBB: Performance-Based Budgeting
  • OBI: Open Budget Index
  • SAPS: Single Area Payment Scheme
  • SFP: Single Farm Payment Scheme
  • SOP: Sectoral Operational Program
  • ROP: Regional Operational Program
  • NHIF: National Health Insurance Fund
  • DPHA: District Public Health Authority
  • DHIF: District Health Insurance Fund
  • CoA: Court of Accounts
  • GDP: Gross Domestic Product
  • HiT: Health in Transition Report
  • PIRLS: Progress in International Reading
  • PISA: Program for International Student Assessment
  • RNCMNR: Romanian National Company of Motorways and National Roads
  • USD: United States Dollar
  • VAT: Value-Added Tax
  • LPIS: Land Parcel Identification System
  • UAA: Utilized Agricultural Area

Conclusion

The report emphasizes the need for fiscal discipline and structural reforms to ensure the long-term sustainability of public finances in Romania. It highlights the challenges in revenue collection, the high burden of public spending on wages and pensions, and the underfunding of key social sectors such as education and health. Recommendations include better budget management, improving tax compliance, and aligning public spending with long-term development goals.