2012年-世界发展银行全球_Central_African_Republic_Public_Expenditure_Review___Creating_Fiscal_Space_to_Transition_Out_of_Fragility_Through_Growth_and_Poverty_Reduction_176页_44mb

Central African Republic Public Expenditure Review (PER) Summary

Core Content

This Public Expenditure Review (PER) report, prepared by the World Bank in cooperation with the government of the Central African Republic (CAR), aims to support the country's transition out of fragility through growth and poverty reduction. The report assesses the macroeconomic context, public expenditure trends, revenue mobilization strategies, and the efficiency of the public investment management system. It also highlights the importance of creating fiscal space to fund essential reforms and investments in health, education, and infrastructure.

Main Views and Key Information

1. Macroeconomic Context

• Economic Growth: Real GDP growth in CAR improved after 2004 but remained below 4% annually. Per capita GDP growth was even lower, averaging just 0.3% from 2004 to 2010.
• Fiscal Sustainability: CAR's public debt remains high, and while debt relief initiatives have improved indicators, the country is still vulnerable to external shocks such as fluctuations in fuel and food prices.
• Fiscal Space: The government needs to create fiscal space to finance reforms and productive investments. Donor support has been critical, but CAR must also increase domestic revenue and improve expenditure efficiency.

2. Public Expenditure Trends and Composition

• Budget Execution: The execution rate of the total budget has varied between 15.6% and 19.4% of GDP over the period 2004-2010.
• Expenditure Allocation: A significant portion of the budget is allocated to wages and social services. However, the allocation of resources to health and education has not been consistent with growth and poverty reduction goals.
• Public Investment: Public capital expenditures are low, averaging about 4.7% of GDP from 2004 to 2010, and are insufficient to meet the country's development needs.

3. Revenue Mobilization

• Tax Revenue: Domestic tax revenue as a share of GDP has increased from 8.3% in 2004 to 11.6% in 2010, but remains low compared to other countries in the region.
• Tax Base and Administration: The report emphasizes the need to broaden the tax base and improve tax administration to increase domestic revenue. It highlights the inefficiencies in the current tax system, including tax exemptions and low tax productivity.
• Excise Taxes: Excise taxes on tobacco and other goods are among the lowest in the region, presenting an opportunity for revenue enhancement.
• VAT Productivity: The Value Added Tax (VAT) system in CAR is underperforming, suggesting the need for reform.

4. Health, Education, and Infrastructure

• Health Sector: CAR has some progress in health outcomes, but infant and under-five mortality rates remain among the highest in Sub-Saharan Africa. The health workforce is underdeveloped, and the availability of essential medicines is limited.
• Education Sector: Net primary school enrollment is among the lowest in the region, and disparities exist by region and gender. Education spending has been insufficient to meet the needs of the population.
• Infrastructure: CAR faces significant challenges in infrastructure development, particularly in power, transport, and water supply. Infrastructure investment is critical for economic growth, but current spending levels are inadequate.

5. Public Investment Management (PIM)

• PIM System: The PIM system in CAR is underdeveloped and inefficient, with low capital expenditure and poor budget execution.
• Reforms Needed: The report calls for institutional reforms and improved coordination to enhance the efficiency of public investment management.
• Key Features of a Good PIM System: A good PIM system should ensure transparency, accountability, and efficiency in the allocation and use of public funds.

Policy Recommendations

• Broaden Tax Base: Implement tax reforms to expand the tax base and improve tax administration.
• Enhance Expenditure Efficiency: Improve the allocation and execution of public expenditures, especially in health and education.
• Increase Domestic Revenue: Utilize tax incentives more effectively and reduce tax expenditures to boost domestic revenue.
• Improve PIM System: Strengthen the institutional framework for public investment management to ensure better planning, implementation, and monitoring.
• Prioritize Infrastructure and Human Capital: Invest in infrastructure and human capital to support long-term growth and poverty reduction.
• Leverage Donor Support: Continue to use donor assistance effectively while working to increase domestic revenue and reduce dependency.

Conclusion

The PER underscores the importance of creating fiscal space through improved tax collection and efficient public spending to support CAR's development goals. The country needs to move toward a more sustainable and pro-poor growth path, which requires strategic investments in human capital and infrastructure, as well as reforms in public financial management. The report serves as a guide for policymakers to align expenditure with growth and poverty reduction objectives.