2009年-世界发展银行全球_Cape_Verde_-_Enhancing_Planning_to_Increase_Efficiency_of_Public_Spending___Background_chapters_150页_979kb

Cape Verde Enhancing Planning to Increase Efficiency of Public Spending

Core Content

This document is a Public Expenditure Review of Cape Verde, divided into two volumes. Volume II contains background chapters and provides an in-depth analysis of the country's macroeconomic developments, fiscal performance, public finance management, fiscal decentralization, and infrastructure expenditure. It is published in February 2009 by the World Bank and includes data, tables, and figures from 2000 to 2007, with projections for 2008 and 2009.

Main Viewpoints

• Economic Growth and Poverty Reduction: The government's strategy for 2004-07 was outlined in the Growth and Poverty Reduction Strategy Paper (GPRSP-1), which focused on five key pillars: good governance, competitiveness, human and capital development, social security, and infrastructure improvement. The second GPRSP (GPRSP-2) for 2008-11 maintains the same focus.

• Robust Growth and Low Inflation: Cape Verde experienced consistent GDP growth over the years, with an average of 6.3% from 2002-06 and a peak of 10.8% in 2006. Inflation remained low, with a 5.4% rate in 2006 and 4.9% in 2007, primarily driven by food prices. The country graduated to middle-income status in 2008.

• External Position: The current account deficit decreased over the years, from 14.4% of GDP in 2004 to 5% in 2006. This was due to increased tourism revenues, effective demand management, and a more diversified import base. Exports grew by 35% in 2006, while imports grew by 23.4%.

• Monetary Policy: The Central Bank of Cape Verde (BCV) maintained a fixed exchange rate peg to the Euro. The policy helped stabilize prices and maintain financial discipline. The BCV managed liquidity through short-term bills and monitored interest rate differentials to prevent capital outflows and inflation.

• Fiscal Consolidation: Fiscal policy was prudent, with the fiscal deficit averaging 3.8% of GDP from 2002-06. The 2008 budget aimed to reduce recurrent spending and increase capital expenditure. The government also eliminated oil-related subsidies and froze hiring and promotions.

• Debt Management: Net central government debt as a percentage of GDP declined from 87% in 2005 to 77% in 2006 and is projected to fall below 20% by 2008. The Policy Support Instrument (PSI) program was approved in 2006 to support fiscal stability and reduce debt.

• Fiscal Decentralization: The document discusses the status and perspectives of fiscal decentralization in Cape Verde. Municipalities have responsibilities in local development, and the government is working on a new decentralization law. The current system includes formula-based transfers and contracts-programs. The document also highlights the need for improving municipal capacity and accountability.

• Infrastructure Expenditure: Infrastructure spending is a critical area for public investment. The document outlines the current state of infrastructure delivery, the composition of infrastructure spending, and the efficiency of expenditure. It emphasizes the need for better planning and coordination, as well as the role of public investment systems (PIS) and the Public Investment Program (PIP).

• Recommendations: The report recommends continued focus on fiscal prudence, strengthening the credibility of the peg through reserve accumulation, improving the efficiency of public spending, and enhancing the capacity of municipalities through better financial management and accountability.

Key Information

Macroeconomic Developments

• GDP growth averaged 6.3% from 2002-06, with a peak of 10.8% in 2006.
• Inflation remained low, averaging 5.4% in 2006 and 4.9% in 2007, driven by food prices.
• The country graduated to middle-income status in 2008.
• Tourism is a major driver of economic growth, contributing around 19% of GDP in 2006.

Fiscal Performance

• Total revenues as a percentage of GDP averaged 31% from 2002-06.
• Revenue performance declined in 2003 and 2006 due to reduced foreign aid and slower fiscal revenue growth.
• Foreign aid accounted for an average of 25% of total revenues, with a minimum of 19% in 2006.
• Fiscal policy was prudent, with the government reducing domestic debt and eliminating subsidies.

Public Finance Management

• The budget process is managed by the General Directorate for Planning (DGP) and General Directorate for Planning, Budgeting and Management (DGPOC).
• Revenue management involves improving tax collection and administrative efficiency.
• Public expenditure execution is closely monitored, with the Public Investment Program (PIP) playing a key role.
• The Financial Management Integrated System (SIGOF) and Framework Budget Law (FBL) are important tools for financial oversight.

Fiscal Decentralization

• Municipalities have responsibilities in local development and public services.
• The new draft law on decentralization aims to enhance local governance and financial autonomy.
• Municipalities rely heavily on formula-based transfers and contracts-programs.
• There is a need for better financial management and accountability at the municipal level.

Infrastructure Expenditure

• Infrastructure spending is a key component of public investment.
• The country has made progress in infrastructure delivery, but efficiency remains a concern.
• The Public Investment System (PIS) and Public Investment Program (PIP) are central to infrastructure funding.
• The document highlights the importance of aligning infrastructure spending with the Medium-Term Expenditure Framework (MTEF) and the National Development Plan (NDP).

Conclusion

The document emphasizes the importance of enhancing planning and efficiency in public spending to support Cape Verde's development goals. It outlines the progress made in macroeconomic stability, fiscal consolidation, and debt management, while also identifying areas for improvement, particularly in public investment systems, municipal financial management, and accountability. The recommendations focus on maintaining fiscal prudence, improving the credibility of the peg, and strengthening the institutional framework for public finance management.