2000年-世界发展银行全球_Kazakhstan___Public_Expenditure_Review_Volume_1_Summary_Report_39页_2mb

Kazakhstan Public Expenditure Review Summary

Core Content

The Kazakhstan Public Expenditure Review (PER), prepared at the request of the Government of Kazakhstan, evaluates the country's public expenditure policies and processes in the context of its transition to a market-oriented economy. The report outlines key issues and proposes strategies and policy reforms to improve fiscal sustainability, public service delivery, and resource mobilization.

Main Issues Identified

• Persistent fiscal imbalance: Kazakhstan continues to face significant underlying fiscal deficits, which have not been resolved despite economic reforms.
• Deficient domestic resource mobilization: The current system fails to promote savings and private investment, and inefficient tax and customs administration has hindered revenue collection.
• Lack of transparent expenditure prioritization: The process of determining public spending priorities is not clear, undermining governance and effective resource allocation.
• Inefficient public sector management: The public sector is plagued by low efficiency, poor service delivery, and inequitable resource distribution.
• Weak intergovernmental fiscal relations: The fiscal decentralization process is not well-defined, leading to ambiguity in decision-making and coordination between levels of government.
• Large disparities in social expenditures: There are significant regional differences in the quality and access to health, education, and social assistance services.
• Unstable public finances: The reliance on volatile oil and gas revenues has led to a high share of debt interest in the budget, compromising future spending capacity.

Key Recommendations

1. Fiscal Sustainability Strategy:

   • Reduce fiscal deficit: The government must prioritize deficit reduction, especially through a primary surplus of 1.4% of GDP.
   • Implement a Medium-Term Expenditure Framework (MTEF): This will ensure consistency in resource mobilization and expenditure planning.
   • Stabilize public debt/GDP ratio: The government should aim to stabilize the debt ratio at current levels, which requires a 7% fiscal adjustment over the next few years.

2. Reform Domestic Resource Mobilization:

   • Restructure tax and customs policy: This includes eliminating excessive exemptions and privileges, promoting transparency, and expanding the tax base.
   • Implement a new Tax Code: The tax system should be reformed to support national savings and private sector development.
   • Establish the Oil Stabilization and Heritage Fund (OSHF): This fund should be used to save oil/gas rents abroad and ensure they are not consumed in the short term, helping to insulate the economy from price fluctuations and support long-term development.

3. Streamline Government Role and Prioritize Public Expenditures:

   • Focus on market failures and equity: Government actions should be concentrated on areas where market failure is significant or equity is at stake.
   • Adopt merit-based programs: Prioritize programs based on output/outcomes, multiyear budgeting, and performance evaluation.
   • Improve public service delivery: Focus social assistance on the poor, restructure service facilities, and enhance the quality and access to public services.

4. Strengthen Fiscal Decentralization:

   • Clarify tax and expenditure assignments: The government should reach a consensus on fiscal decentralization and reform the tax sharing and transfer mechanisms.
   • Enhance accountability and autonomy: Local governments should be given more autonomy and accountability in managing public finances.
   • Review Budget System Law: This should align with the principles of fiscal decentralization and support capacity building at the subnational level.

5. Accelerate Privatization:

   • Speed up large enterprise privatization: Focus on sectors like banking, energy, and telecommunications to improve efficiency and reduce state involvement.
   • Disentangle the state from privatized entities: Avoid local government participation in commercial and industrial activities to prevent distortions in resource allocation.

Main Findings and Options

• Tax system inefficiencies: The current tax and customs system is not aligned with the evolving economic structure and has led to low revenue collection and high moral hazard.
• Need for structural reforms: The government must accelerate ongoing reforms and prepare for a new generation of reforms to support a sustainable market economy.
• Public service reform: The education and health sectors are underperforming and require restructuring to improve efficiency and service quality.
• Debt interest burden: The increasing share of debt interest in the budget indicates a shift from investment to current spending, which could compromise long-term growth.

Conclusion

The Kazakhstan Public Expenditure Review highlights the need for a comprehensive and strategic approach to fiscal management, emphasizing the importance of reducing deficits, improving resource mobilization, and enhancing the efficiency and equity of public expenditures. These reforms are essential for transitioning to a well-functioning market economy and ensuring sustainable economic growth.