2014年-世界发展银行全球_Kyrgyz_Republic_Public_Expenditure_Review_Policy_Notes___Public_Wage_Bill_31页_974kb

Kyrgyz Republic Public Expenditure Review: Public Wage Bill

Core Content

This policy note from the World Bank provides an analysis of the public wage bill in the Kyrgyz Republic, focusing on its growth, structure, and fiscal implications over the past decade. It highlights the challenges in managing public sector employment and wages, particularly in the health and education sectors, and offers recommendations for sustainable reforms.

Main Views and Key Information

1. Wage Bill Trends

• The public wage bill in the Kyrgyz Republic has nearly doubled over the last decade, increasing from 5.1% of GDP in 2000 to 9.9% of GDP in 2011.
• Including special means and health wage bill expenditures, the total wage bill reached 12.2% of GDP in 2011.
• The wage bill as a percentage of general government expenditure increased from 34.3% in 2008 to 32.6% in 2011.
• As a percentage of revenues, the wage bill rose from 24.9% in 2008 to 29.6% in 2011.

2. Wage Bill Composition

• The education sector accounts for the largest share of the wage bill at 5% of GDP, followed by health at 2.1%.
• In 2011, the wage bill for health increased by almost 200%, and for education by 65%, driven by significant salary increases in 2010.

3. Public Employment Levels

• Public sector employment in the Kyrgyz Republic has remained relatively stable over the past three years, with the education sector being the largest employer at 44.2% of total employment.
• The health sector employed 6.2% of the population, with education contributing 2.7%.
• The ratio of teachers to students in the Kyrgyz Republic is 74.2 per 1,000 students, lower than the OECD average of 74.6 and EU19 average of 82.7.
• The teacher-pupil ratio varies significantly across regions, from 10.5 in Naryn to 18.6 in Chuy.

4. Wage Levels and Comparisons

• Public sector wages in the Kyrgyz Republic are 70% higher than GDP per capita, which is a significant concern.
• The average public sector wage is 30% higher than in Central and East European countries.
• Health and education sectors have seen a sharp increase in wages, while civil service pay systems remain complex, non-transparent, and uncompetitive.

5. Structural and Institutional Challenges

• The health sector has a low number of medical professionals per 100,000 population, with 236 physicians and 548 nurses in 2011, significantly below CIS and OECD averages.
• Support and technical personnel in the health sector account for 35% of total employment, with cleaning/sanitary and catering personnel making up 18%.
• The education sector also faces overstaffing, particularly in non-teaching roles, with 17% of staff in this category.
• The education finance system is input-based, relying on Soviet-era staffing norms, which allocate teachers based on the number of classes and lessons, leading to inefficiencies.

6. Fiscal Implications

• The public wage bill has grown faster than GDP, squeezing government budgets and raising concerns about fiscal sustainability.
• The Kyrgyz Republic's wage bill is the fifth largest in ECA, and 1.3% higher than the regional average.
• The World Bank warns that continued wage growth above productivity levels could lead to external imbalances and inflation.

7. Recommendations

• Improve predictability of the wage bill and avoid ad hoc wage increases.
• Consolidate support staff in health and education.
• Conduct functional reviews in the civil service.
• Introduce per-capita financing in education to reduce inefficiencies.
• Strengthen establishment controls through better monitoring of employee numbers and payroll.
• Implement a unified civil service pay system gradually across all government levels.
• Re-evaluate Soviet-era staffing norms in both health and education sectors.
• Encourage outsourcing for support roles to reduce wage bill pressures.

Conclusion

The Kyrgyz Republic faces significant challenges in managing its public wage bill, which has grown faster than the economy and constitutes a large share of government expenditures. The focus on health and education has led to increased wage spending, but the civil service pay system remains a major issue. Systemic and policy reforms are essential to improve efficiency, ensure fiscal sustainability, and enhance the performance of the public sector.