2004年-世界发展银行全球_Senegal___Public_Expenditure_Review_178页_11mb

Public Expenditure Review of Senegal (Report No. 29357-SN)

Core Content

This document presents a comprehensive analysis of Senegal's public expenditure performance and reform strategies in the context of the Poverty Reduction Strategy Paper (PRSP) and its implementation. It outlines the macroeconomic and budget performance during the PRSP period, the equity and efficiency of social sector spending, and the institutional reforms aimed at improving the effectiveness of public finances.

Main Points

I. Macroeconomic and Budget Performance Under the PRSP

• Economic Growth: Senegal experienced an average growth rate of 5.3% from 1994 to 2001. In 2002, growth slowed due to a poor crop season, but it rebounded to 6.5% in 2003 and is projected to remain around 6% in 2004 and 5.8% in 2005.
• Inflation: Inflation was reduced from 3% in 2001 to 2.3% in 2002, and further to -0.037% in 2003. Projections indicate inflation will remain below 2% in the coming years.
• Public Investment: The investment ratio increased from 18.1% of GDP in 2001 to 19.9% in 2003, with a projected 21.1% in 2005. Public investment rose by 23.8% in 2002.
• External Debt: The external debt stock increased slightly from US$3,442.5 million in 2001 to US$3,580.8 million in 2002. The HIPC Initiative is expected to reduce the debt-to-GDP ratio to 42.9% by 2005.
• Public Deficit: The overall deficit on a commitments basis decreased from 2% of GDP in 2001 to 1.3% in 2002, and is projected to average 3.9% of GDP for the 2003-2005 period.
• Wage Bill to Tax Receipts Ratio: The ratio averaged 30.6% over the 2003-2005 period, well within the WAEMU threshold of 35%.

II. Equity and Efficiency of Social Sector Spending

• Education: The PRSP aims for universal primary education by 2010. The education budget includes a focus on improving access for girls, enhancing literacy, and improving the quality of university education.
• Health: The health strategy targets improving access for the poor, developing community-based services, and enhancing hygiene and sanitation in rural and suburban areas. It also focuses on reducing health expenditures for the poorest households and improving disease prevention behaviors.
• Inequity and Efficiency: The report highlights the need for improved distribution of resources and efficiency in service delivery, particularly in education and health sectors. It notes disparities in access to health services and the importance of aligning budgets with social objectives.

Key Information

• Currency: CFA Francs (CFAF), with 1 US$ = 485 CFAF.
• Government Fiscal Year: January 1 – December 31.
• Budget Trends: The budget increased from CFAF 880.1 billion in 2000 to CFAF 1,085.6 billion in 2004, representing a 23.3% increase. As a percentage of GDP, it averaged 28.2% over the period.
• Functional and Economic Classifications:
  • Economic actions accounted for 34% of the budget.
  • Educational, cultural, and social actions accounted for 7.7%.
  • Infrastructure, procurement, and transportation accounted for 9.6%.
  • Agriculture and livestock accounted for 6.1%.

Reform Strategy

III. Summary of the Reform Program

• Reform Objectives: Strengthening the budget system to improve transparency, efficiency, and accountability, especially in the context of poverty reduction.
• Key Components:
  • Medium Term Expenditure Framework (MTEF): A tool for planning and managing public expenditure over the medium term.
  • Decentralization: Promoting financial decentralization to enhance local governance and service delivery.
  • Public Finance Information System: Strengthening the system for better transparency and monitoring.
  • Procurement Reforms: Enhancing supervision and regulation of government procurement to ensure efficiency and accountability.
  • Capacity Building: Improving internal and external controls to ensure effective resource absorption and management.
  • Community Participation: Encouraging community involvement in setting priorities and monitoring outcomes.

IV. Why Reforms? Why Now?

• Implementation of PRSP: The reforms are necessary to ensure the effective implementation of the PRSP, which includes a participatory and decentralized approach to poverty reduction.
• Macro-economic Stability: Ensuring fiscal sustainability and maintaining macroeconomic stability is a key motivation.
• Service Delivery: Improving the quality and efficiency of public services, especially in education and health, is crucial for poverty reduction.
• Recent Studies and Activities: The reforms are informed by recent studies and ongoing donor support, including the planned PRSP program.

V. Budget Reform Strategy

• Background: The PRSP was developed with the support of multiple donors, including the World Bank and IMF.
• Strategic Vision: The reform program aims to improve the efficiency and transparency of public expenditure, with a focus on decentralization and participatory budgeting.
• Priority Axes:
  • Strengthening the budget system.
  • Enhancing fiscal decentralization.
  • Improving the capacity of local authorities to absorb resources.
  • Strengthening financial accountability and control mechanisms.
  • Implementing a monitoring system for the PRSP.
  • Conducting expenditure surveys to better understand the flow of public funds.

Conclusion

• The PRSP has set ambitious goals for poverty reduction, which require a significant investment in key sectors.
• The government has made progress in fiscal consolidation and macroeconomic stability.
• Reforms are necessary to improve the effectiveness of public spending and ensure better service delivery to vulnerable groups.
• The implementation of the PRSP requires coordination with donors and a stronger institutional framework for budget management and financial accountability.

Summary of Key Reforms

• Decentralization: Promoting financial decentralization to improve local governance and resource allocation.
• Transparency: Enhancing budget transparency and reporting mechanisms.
• Accountability: Strengthening internal and external controls to ensure efficient use of public funds.
• Community Participation: Encouraging community involvement in setting priorities and monitoring outcomes.
• Capacity Building: Improving the capacity of local authorities and public institutions to manage and absorb resources.
• Procurement Reforms: Implementing better supervision and regulation of government procurement to ensure efficiency and fairness.

Annexes and Supporting Materials

• The document includes a list of annexes that provide detailed data and supporting information on various aspects of the budget and PRSP implementation.
• These annexes cover topics such as the PRSP Monitoring System, the role of the FDD, and the recruitment strategy for the civil service.