2002年-世界发展银行全球_Romania_-_Building_Institutions_for_Public_Expenditure_Management___Reforms_Efficiency_and_Equity_-_A_Public_Expenditure_and_Institutions_Review_252页_13mb

Summary of Report No. 24756-RO: Building Institutions for Public Expenditure Management in Romania

Core Content

This report, Building Institutions for Public Expenditure Management: Reforms, Efficiency and Equity, is a Public Expenditure and Institutions Review conducted by the World Bank in 2002 at the request of the Romanian authorities. It analyzes the economic reforms and public expenditure management in Romania, focusing on fiscal sustainability, institutional strengthening, and resource allocation in key sectors such as health, education, and social assistance.

Main Views and Key Information

1. Economic Context and Reform Strategy

• Economic Recovery: After three years of economic decline, Romania experienced growth in 2000, with a real GDP growth rate of 5.3% in 2001.
• Challenges: The recovery was fueled by external financing and increased government spending, leading to macroeconomic imbalances such as a rising current account deficit.
• Government Strategy: The Government outlined a reform strategy to ensure the sustainability of the recovery, focusing on:
  • Banking and enterprise privatization
  • Containing quasi-fiscal deficits, especially in the energy sector
  • Reducing central government expenditures through improved public expenditure management and fiscal decentralization

2. Quasi-Fiscal Deficits

• Definition: Quasi-fiscal deficits arise from the financial activities of state-owned enterprises (SOEs), tax arrears, and tax evasion.
• Impact: These deficits crowd out private sector investment and reduce the potential for sustained growth.
• Energy Sector: Energy tariffs are below market levels, and SOEs are not paying their bills, contributing to the deficit. This leads to:
  • Worsening balance sheets of energy companies
  • Increased government fiscal deficit
  • Deterioration of the current account deficit due to higher energy imports

3. Actions for Fiscal Sustainability

• Reduce General Government Deficit: Bring the deficit down to 3.0% of GDP in 2002 from 3.5% in 2001.
• Targeted Support to the Poor: Introduce the Minimum Income Guarantee (MIG) program, which includes:
  • Transfers to mitigate the impact of higher energy tariffs (0.4% of GDP)
  • Increase in child allowances
  • Higher replacement rate for pensions to compensate retirees

4. Strengthening Budget Management

• Budget Design and Execution: The report emphasizes the need to improve budget formulation and execution to ensure alignment with fiscal targets.
• Payment Arrears: Accumulation of arrears is a concern as it reflects a disconnect between budget approval and execution.
• Accountability: The Government needs to improve transparency and accountability in managing public funds, especially in the context of:
  • Expenditure prioritization
  • Allocation of funds to public services
  • Oversight of budget execution

5. Fiscal Decentralization

• Local Government Responsibilities: Local governments are responsible for a wide range of services, including education, health, and social assistance.
• Budget Formulation: Local governments need more transparent and needs-based funding criteria.
• Equalization Grants: These are designed to reduce disparities in funding across local governments but are currently based on current tax revenues, which may not favor poorer regions.

6. Judicial Budget Reform

• Current Structure: The judiciary is currently funded through the state budget, but there are inefficiencies in budget formulation and execution.
• Recommendations: The report suggests improving the administrative capabilities of the judiciary, ensuring more transparent and comprehensive budgeting, and aligning expenditures with actual needs.

7. Health Sector Reforms

• Funding and Utilization: The health sector faces challenges in resource allocation and service delivery.
• Key Issues:
  • High costs of pharmaceuticals
  • Hospital overruns
  • Increased debt service expenditures
• Recommendations:
  • Increase funding for primary health care
  • Improve payment methods for family doctors
  • Strengthen control over guarantees for hospitals and health care providers
  • Support health promotion and prevention through regulatory improvements

8. Social Assistance and Minimum Income Guarantee (MIG)

• Program Design: The MIG program aims to reduce poverty by providing cash transfers to the poorest segments of the population.
• Implementation Challenges:
  • The program requires significant financial support
  • There are discrepancies in financial needs estimates between the Ministry of Finance and the Integrated Household Survey (IHS)
• Regional Disparities: The program needs to be tailored to different regions to ensure equitable impact.

9. Pension System Reforms

• Structural Imbalances: The pension system is underfunded, with high contribution rates and low benefit replacement rates.
• Reforms Needed:
  • Reduce payroll tax burdens
  • Broaden the contribution base
  • Improve the institutional framework for pension policy
  • Address the aging population and increasing life expectancy

Key Recommendations

• Budget Management: Improve Treasury accounting, reduce payment arrears, and ensure that public investment is subject to full budgetary scrutiny.
• Fiscal Decentralization: Enhance transparency and needs-based allocation of funds to local governments.
• Energy Sector: Reduce losses in the energy sector by improving tariff structures and enforcing bill collections.
• Judiciary: Strengthen administrative capabilities and ensure more efficient budgeting and execution.
• Health Sector: Increase funding for primary care and prevention, and improve the efficiency of service delivery.
• Social Assistance: Implement the MIG program effectively and ensure it is tailored to regional needs.
• Pension System: Reform the system to ensure financial sustainability and equity in benefit distribution.

Conclusion

The report underscores the importance of institutional strengthening and efficient public expenditure management for Romania's long-term economic stability and poverty reduction. It highlights the need for a comprehensive reform strategy that addresses both fiscal sustainability and equitable resource allocation across all levels of government and sectors.