Georgia Public Expenditure Review : Diagnostics of Public Investment Management System

Generating growth and creating jobs within a sustainable fiscal framework is Georgia s biggest macroeconomic challenge. Although Georgia registered rapid growth of 5.7 percent a year during 2010-13, unemployment remains high at 15 percent. New growth companies, especially in tourism and other service sectors, did not generate enough formal or even informal employment. Fiscal policy played a crucial role in Georgia s recent growth performance with a fiscal stimulus driven post-crisis recovery which increased deficit and debt levels followed by fiscal consolidation during 2010-12 when recovery took hold. The weak execution of the budget in 2013 and policy uncertainty were largely responsible for the growth slowdown during the year. Tackling the growth and jobs agenda in Georgia will require significant investment in human and physical capital and the government has a large role to play here. Additional spending, where it is needed, should be undertaken within the fiscal consolidation agenda of the government, designed to help restore the macroeconomic buffers needed to secure stability and sustain confidence in the future. The change in government in 2012 marked a shift in fiscal policy with prioritization of recurrent social expenditures over capital spending, thereby, increasing budget rigidity. During 2012-13, the government raised the benefit levels under the targeted social assistance (TSA) and pensions and introduced universal health care (UHC). As a result, the fiscal deficit is likely to increase from 2.6 percent of gross domestic product (GDP) in 2013 to 3.7 percent in 2014. Over the medium term, an aging population and the need to improve health outcomes and coverage of the poor in social assistance programs will keep social expenditures high at more than 9 percent of GDP. The share of capital expenditures will level off, meanwhile. Such an outcome will reduce the government s flexibility in trimming current expenditures in the future.

Bibliographic Details

Main Author:	World Bank
Format:	Public Expenditure Review biblioteca
Language:	English en_US
Published:	Washington, DC 2014-06-11
Subjects:	ACCOUNTABILITY SYSTEM, ACCOUNTING, ALLOCATION, ANALYSIS OF SERVICE DELIVERY, ANALYTICAL SKILLS, ANNUAL BUDGET, ANNUAL BUDGET PREPARATION, ANNUAL BUDGETS, ANNUAL REPORT, APPROPRIATION, ARTICLE, ASSET MANAGEMENT, AUDITORS, BALANCE SHEET, BANK POLICY, BENEFICIARIES, BENEFICIARY, BID, BIDDERS, BIDS, BUDGET ALLOCATION, BUDGET ALLOCATIONS, BUDGET CLASSIFICATION, BUDGET CODE, BUDGET DECISIONS, BUDGET DEPARTMENT, BUDGET DOCUMENTATION, BUDGET ENTITY, BUDGET ESTIMATES, BUDGET LAW, BUDGET PLANNING, BUDGET PREPARATION, BUDGET PROCESS, BUDGET YEAR, BUDGETARY APPROPRIATIONS, BUDGETARY PROCESS, BUDGETARY RESOURCES, CAPITAL ASSETS, CAPITAL BUDGET, CAPITAL BUDGETING, CAPITAL COSTS, CAPITAL EXPENDITURE, CAPITAL EXPENDITURES, CAPITAL INVESTMENT, CAPITAL PROJECTS, CAPITAL SPENDING, CAPITAL TRANSFERS, CASH FLOW, CASH FLOWS, CASH INFLOW, CASH MANAGEMENT, CASH PLANNING, CENTRAL AGENCIES, CENTRAL GOVERNMENT, CHECKS, CITIES, COMPETITIVE BIDDING, COMPETITIVE PROCUREMENT, CORRECTIVE ACTION, COST ESTIMATES, COST OF SERVICES, COST-BENEFIT ANALYSIS, COST-EFFECTIVENESS, CREDIBILITY, DECISION-MAKERS, DECISION-MAKING, DECISION-MAKING PROCESS, DEGREE OF TRANSPARENCY, DISBURSEMENTS, DISCOUNT RATE, DISTRIBUTIONAL IMPACTS, DUTCH AUCTION, DWELLINGS, ECONOMIC DEVELOPMENT, EQUIPMENT, EX POST EVALUATIONS, EXPENDITURE ALLOCATIONS, EXPENDITURE IMPLICATIONS, EXPENDITURE PLANNING, EXPENDITURE POLICY, EXPENDITURE PRIORITIES, EXPENDITURE PROGRAMS, EXPENDITURES, EXTERNAL ASSESSMENT, EXTERNAL FINANCING, FINANCE MINISTRY, FINANCIAL ACCOUNTABILITY, FINANCIAL ASSETS, FINANCIAL CONTROL, FINANCIAL CRISIS, FINANCIAL INFORMATION, FINANCIAL INSTITUTIONS, FINANCIAL MANAGEMENT, FINANCIAL MANAGEMENT SYSTEMS, FINANCIAL PLANS, FINANCIAL REGULARITY, FINANCIAL RESOURCES, FOREIGN FINANCING, GOVERNMENT INTERVENTION, HOUSING, INFORMAL PROCEDURES, INFORMATION SYSTEM, INFORMATION TECHNOLOGY, INFRASTRUCTURE INVESTMENT, INFRASTRUCTURE PROJECTS, INSTITUTIONAL ARRANGEMENTS, INSTRUMENT, INTERNAL AUDIT, INTERNAL AUDIT FINDINGS, INTERNAL AUDIT FUNCTION, INTERNAL AUDITS, INTERNAL CONTROL, INTERNAL CONTROL SYSTEMS, INTERNAL CONTROLS, INTERNATIONAL FINANCIAL INSTITUTIONS, INTERNATIONAL STANDARDS, INVESTING, INVESTMENT BUDGETING, INVESTMENT BUDGETS, INVESTMENT MANAGEMENT, INVESTMENT NEEDS, INVESTMENT PLANNING, INVESTMENT PLANS, INVESTMENT PORTFOLIOS, INVESTMENT PRIORITIES, INVESTMENT PROCEDURES, INVESTMENT PROGRAM, INVESTMENT PROJECTS, INVESTMENT REQUIREMENTS, INVESTMENT STRATEGIES, LEGAL FRAMEWORK, LIABILITY, MEDIUM-TERM EXPENDITURE, MEDIUM-TERM EXPENDITURE FRAMEWORK, MINISTRY OF FINANCE, MONETARY VALUES, NATIONAL DEVELOPMENT, NATIONAL INVESTMENT, NATIONAL POLICY, NATIONAL STRATEGY, OPPORTUNITIES FOR CORRUPTION, PERFORMANCE ASSESSMENT, PERFORMANCE AUDIT, PERFORMANCE AUDITS, PERFORMANCE INDICATORS, PERFORMANCE MANAGEMENT, PERFORMANCE MANAGEMENT SYSTEM, PORTFOLIO, POSSESSION, POVERTY REDUCTION, PRIVATE SECTOR, PROCUREMENT PLANS, PROCUREMENT POLICIES, PROCUREMENT PROCESS, PROCUREMENT SYSTEMS, PROGRAM BUDGETING, PROGRAM OBJECTIVES, PUBLIC ADMINISTRATION, PUBLIC BUILDINGS, PUBLIC CAPITAL, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE REVIEW, PUBLIC FINANCES, PUBLIC FINANCIAL RESOURCES, PUBLIC INVESTMENT, PUBLIC MONEY, PUBLIC PROCUREMENT, PUBLIC SECTOR, PUBLIC SERVICES, QUALITY ASSURANCE, RECURRENT COST, RECURRENT EXPENDITURE, RECURRENT EXPENDITURES, REFORM EFFORTS, REGIONAL DEVELOPMENT, REGULATORY FRAMEWORK, RESERVE, RESERVE FUNDS, RETURNS, ROAD NETWORK, ROAD TRAFFIC, SANITATION, SECTOR EXPENDITURE, SELF-ASSESSMENT, SERVICE DELIVERY, SERVICE PROVIDERS, SOCIAL BENEFITS, STATE BUDGET, STATEMENT, STREET LIGHTING, SUB-NATIONAL GOVERNMENTS, SUPREME AUDIT INSTITUTIONS, TAX, TENDERING, TENDERS, TRANSPARENCY, TREASURY, TREASURY SYSTEM, TURNOVER, UNCERTAINTY, URBAN AREAS, VALUATION, WELFARE STATE, WRITTEN RECORDS,
Online Access:	http://documents.worldbank.org/curated/en/2014/06/19901663/georgia-public-expenditure-review-vol-2-2-background-notes http://hdl.handle.net/10986/19302
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