2009年-世界发展银行全球_Liberia_-_2008_Public_Expenditure_Management_and_Financial_Accountability_Review_186页_25mb

Liberia 2008 Public Expenditure Management and Financial Accountability Review Summary

Core Content

This report, titled Report No. 43282-LR, is the 2008 Public Expenditure Management and Financial Accountability Review (PEMFAR) for Liberia. It was conducted in collaboration with the Government of Liberia and several international development partners, including the World Bank, IMF, AfDB, UNDP, and SNAO. The review provides a comprehensive analysis of public financial management (PFM) systems and public expenditure trends in Liberia, with a focus on the health and education sectors.

Main Points

1. Context and Purpose

• The review was initiated in 2007 and finalized in late 2008, covering developments up to the end of the 2007/08 fiscal year.
• It serves as a diagnostic tool to improve understanding of public expenditure management and to provide a basis for future reform and donor support.
• The report aims to support the phase-out of the Governance and Economic Management Assistance Program (GEMAP) and guide the government in its PFM reform planning.

2. Economic and Fiscal Background

• Liberia's economy was severely impacted by a 14-year civil war (1989-2003), which led to a dramatic decline in real output and public services.
• The country has since started to recover, with real GDP growth reaching 9.5% in 2007.
• The HIPC decision point was reached in March 2008, indicating that Liberia is among the most heavily indebted countries relative to GDP.

3. Public Financial Management (PFM) System

• The PFM system has improved significantly since 2006, with the government implementing reforms to enhance fiscal discipline and financial controls.
• The system is still in transition, with many structures designed for reconstruction and central control.
• The review highlights the need for sustainable and long-term solutions, not just transitional ones, to rebuild a weak and outdated PFM system.

4. Public Expenditure Trends

• Public expenditure has shown some improvement in allocative efficiency, with more resources directed toward key social services like health and education.
• However, budget resources still fall short of spending requirements, necessitating improvements in both allocative and technical efficiency.
• Donor funding is significant but often not fully integrated into the national budget, which limits the government's ability to manage public resources effectively.

5. Sectoral Expenditure Analysis

• Health and Education are identified as priority sectors in the Poverty Reduction Strategy Paper (PRSP).
• Health expenditure has been increasing, but it remains low relative to GDP and heavily reliant on donor funding.
• Education expenditure is also growing, but disparities exist in access and quality between regions and income groups.
• The review emphasizes the need to increase investment in rural and poor areas, shift resources to primary and secondary education, and improve gender equity in education.

Key Information

6. Recommendations and Action Plan

• The government should maintain budget discipline and avoid domestic financing of the budget.
• Donors should increase their assistance through the national budget to help the government take on more responsibility for public services.
• There is a need to consolidate and deepen ongoing PFM reforms, enhance absorption capacity, and improve efficiency in public spending.
• The action plan includes measures to strengthen data collection, institutional capacity, and system integration.

7. Challenges and Opportunities

• Data limitations remain a major constraint, particularly regarding donor resources.
• Institutional weaknesses continue to pose challenges to effective PFM.
• The global economic crisis could affect investment and transfers, potentially slowing economic recovery.
• Despite risks, Liberia's growth rate is expected to remain high due to the resumption of mining and forestry activities.

8. Fiscal Space and Revenue Mobilization

• Sustainable economic growth is essential to create fiscal space for priority expenditures.
• Revenue growth has been supported by improved customs enforcement, strengthened Large Taxpayer Unit, and reduced tax incentives.
• The government should focus on increasing domestic revenue and improving resource mobilization to reduce reliance on external financing.

Structure and Scope

• The report includes tables and figures that provide detailed data on economic indicators, fiscal performance, and sectoral expenditure trends.
• Annexes provide additional insights into PFM performance, budget preparation, and procurement processes.
• The review is part of the PEFA (Public Expenditure and Financial Accountability) framework, which offers a standardized assessment of PFM systems.

Conclusion

The PEMFAR is a joint effort between the World Bank and the Liberian government, with support from multiple international partners. It offers a comprehensive assessment of public financial management and expenditure trends, highlighting both progress and remaining challenges. The report emphasizes the need for continued reform efforts, improved efficiency and equity, and greater integration of donor resources into the national budget to ensure the sustainability of public services and economic recovery.