Seychelles - Public Expenditure Review

In 2008, after many years of unsustainable fiscal policy and a distorted and overvalued foreign exchange regime, the Government of Seychelles embarked upon a bold economic reform program. This program aims to put the economy on a path toward macroeconomic stability, liberalize the economy and to allow the private sector to take over from the state as the driving force in the economy. Seychelles, a small open, middle-income island state with relatively low incidence of poverty and near full employment, faced acute economic difficulties in 2008 as a result of past economic management exacerbated by the rising global oil and food prices and the downturn in the global economy. This resulted in missed debt-service payments and the subsequent downgrading of its credit rating by standard and poor's. Faced with current debt service difficulties and a historically poor credit track record, the authorities responded quickly by adopting a comprehensive reform program supported by a second year stand by arrangement with the International Monetary Fund (IMF) and commencing negotiations with Paris club and other private and official creditors for debt restructuring. The government has embarked upon a comprehensive reform strategy aimed at restoring internal and external balances with the assistance of the international financial institutions and development partners. The reform program includes: (i) the complete liberalization of the exchange rate regime and float of the currency (which was introduced in November 2008); and (ii) tightened fiscal policy, including improved targeting of the comprehensive social safety net and a privatization program to deal with the many state-owned enterprises. The focus of the public expenditure review (PER) reflects the fact that revisiting the role and functions of government lie at the heart of the economic reforms that need to take place in the next two years. This chapter provides a survey of recent developments, medium-term macroeconomic developments and their fiscal policy implications. Chapter two examines public expenditure trends and budget management issues. Chapters three, four, and five examine civil service reform, health care, and education issues respectively.

Bibliographic Details

Main Author:	World Bank
Language:	English
Published:	World Bank 2009-06-25
Subjects:	ACCOUNTABILITY, ADMINISTRATIVE COSTS, AGGREGATE FISCAL, ANNUAL REVENUE, BEST PRACTICE, BUDGET CREDIBILITY, BUDGET DEFICITS, BUDGET DEPARTMENT, BUDGET EXECUTION, BUDGET FRAMEWORK, BUDGET MANAGEMENT, BUDGET OUTCOME, BUDGET PRACTICES, BUDGET PREPARATION, BUDGET PROCESS, BUDGET SURPLUS, BUDGET TRANSFERS, BUSINESS COMMUNITY, CAPITAL EXPENDITURES, CAPITAL SPENDING, CASH BASIS, CENTRAL BUDGET, CENTRAL GOVERNMENT, CENTRAL GOVERNMENT SPENDING, CIVIL SERVICE, CIVIL SERVICE REFORM, CIVIL SERVICE REFORMS, COMMODITIES, COMMODITY PRICES, COMMUNITY DEVELOPMENT, COMPETITIVE ENVIRONMENT, CONTINGENCY, CONTINGENT LIABILITIES, COST-RECOVERY, CREDIT RATING, CREDITORS, DEBT CRISIS, DEBT INTEREST, DEBT RELIEF, DEBT SERVICE, DEBT SERVICE PAYMENTS, DEBT SERVICING, DOMESTIC DEBT, DOMESTIC INTEREST RATES, DOMESTIC REVENUE, ECONOMIC CLASSIFICATION, ECONOMIC DEVELOPMENTS, ECONOMIC DOWNTURN, ECONOMIC GROWTH, ECONOMIC MANAGEMENT, EDUCATION SERVICES, EDUCATION SPENDING, EFFICIENCY GAINS, EFFICIENCY IMPROVEMENTS, EXCHANGE RATE, EXCHANGE RESERVES, EXPENDITURE MANAGEMENT, EXTERNAL DEBT, EXTERNAL IMBALANCES, EXTERNAL SHOCKS, FINANCIAL INSTITUTIONS, FINANCIAL SECTOR, FINANCIAL SECTORS, FINANCIAL SUPPORT, FINANCIAL TRANSFERS, FISCAL ADJUSTMENT, FISCAL BALANCE, FISCAL CONSOLIDATION, FISCAL COST, FISCAL COSTS, FISCAL DISCIPLINE, FISCAL FRAMEWORK, FISCAL IMBALANCES, FISCAL IMPACT, FISCAL IMPLICATIONS, FISCAL OUTTURN, FISCAL POLICY, FISCAL REFORMS, FISCAL SAVINGS, FISCAL SCENARIOS, FISCAL SIDE, FISCAL SUSTAINABILITY, FISCAL TARGET, FISCAL TARGETS, FOREIGN CURRENCY, FOREIGN EXCHANGE, FOREIGN RESERVES, FULL EMPLOYMENT, GOVERNMENT BUDGET, GOVERNMENT CONSUMPTION, GOVERNMENT EMPLOYMENT, GOVERNMENT EXPENDITURES, GOVERNMENT FINANCE, GOVERNMENT FINANCE STATISTICS, GOVERNMENT REVENUES, HEALTH CARE, HEALTH EXPENDITURES, HEALTH INSURANCE, HEALTH INSURANCE FUNDS, HEALTH OUTCOMES, HEALTH SECTOR, HEALTH SERVICES, HEALTH SPENDING, HIGHER INFLATION, IMPORT DUTIES, INFLATION, INTEREST INCOME, INTEREST PAYMENTS, INTEREST RATE, INVESTMENT CLIMATE, INVESTMENT CLIMATE ASSESSMENT, LABOR MARKETS, LEVEL OF EDUCATION, LIQUIDITY, MACROECONOMIC ENVIRONMENT, MACROECONOMIC FORECASTS, MACROECONOMIC INDICATORS, MACROECONOMIC MODEL, MACROECONOMIC SITUATION, MACROECONOMIC STABILITY, MACROECONOMIC STABILIZATION, MEDIUM-TERM EXPENDITURE, MEDIUM-TERM OUTLOOK, MONETARY POLICY, NATIONAL DEVELOPMENT, NATIONAL INCOME, NATIONAL SAVINGS, NATIONAL STATISTICS, NET LENDING, PAYROLL TAXES, POOR CREDIT, POVERTY PROFILE, POVERTY REDUCTION, PRIMARY EDUCATION, PRIVATE ENTERPRISES, PRIVATE GOODS, PRIVATE INSURANCE, PRIVATE SECTOR, PRODUCTIVITY, PROGRAMS, PUBLIC ADMINISTRATION, PUBLIC DEBT, PUBLIC EDUCATION, PUBLIC EMPLOYMENT, PUBLIC ENTERPRISE, PUBLIC ENTERPRISE REFORM, PUBLIC ENTERPRISES, PUBLIC ENTITIES, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE REVIEW, PUBLIC EXPENDITURES, PUBLIC FINANCE, PUBLIC FINANCES, PUBLIC FINANCIAL MANAGEMENT, PUBLIC HEALTH, PUBLIC HEALTH SERVICES, PUBLIC HOSPITALS, PUBLIC PROVISION, PUBLIC SECTOR, PUBLIC SECTOR EMPLOYMENT, PUBLIC SECTOR REFORM, PUBLIC SECTOR SERVICE DELIVERY, PUBLIC SECTOR SPECIALIST, PUBLIC SERVICE, PUBLIC SPENDING, PUBLIC TRANSPORT, PUBLIC TRANSPORTATION, PUBLIC UTILITIES, RECESSION, REFORM EFFORTS, REFORM PROCESS, REFORM PROGRAM, REFORM STRATEGY, RESPONSIBILITIES, SAFETY NET, SALARIES, SALES TAX, SECONDARY SCHOOL, SECTOR BUDGET, SENIOR, SERVICE EMPLOYMENT, SERVICE PROVIDER, SERVICE PROVISION, SICK LEAVE, SOCIAL PROGRAMS, SOCIAL SECURITY, SOCIAL SECURITY BENEFITS, SOCIAL SECURITY CONTRIBUTIONS, SOCIAL SECURITY REFORM, SOCIAL SECURITY SYSTEM, SOCIAL WELFARE, STATE ENTERPRISES, STRUCTURAL REFORMS, TAX ADMINISTRATION, TAX BASE, TAX COLLECTION, TAX COLLECTIONS, TAX POLICY, TAX RATES, TAX REVENUE, TAX REVENUES, TOTAL EXPENDITURE, TRANSPARENCY, UNEMPLOYMENT, WAGE, WAGES,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20090805012241 https://hdl.handle.net/10986/3089
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