Armenia Public Expenditure Review
Armenia’s fiscal performance has improved during the past two decades, supported by reforms. Revenue collection has converged with income and regional peers, overall spending levels have remained prudent, and debt levels remain sustainable. Fiscal policy has been counter-cyclical and progressive but has had a limited impact on economic growth. Spending efficiency is a key area of concern. Expenditure efficiency in areas such as infrastructure, road transport, health, and education are significantly behind the global efficiency frontier. The fiscal implications associated with the policy proposals in the 2021-2026 government program are significant. How can fiscal policy support the implementation of the government’s key policy proposals while ensuring the sustainability of public finances This is the main question for this Public Expenditure Review (PER). To answer it, this PER will (i) analyze past fiscal performance; (ii) assess the medium-term fiscal impacts of selected policy proposals that are currently being considered such as increase in pensions, changes to social assistance, increased health expenditures, and increased capital expenditure; and (iii) propose options to improve spending efficiency in select areas to provide options for the government to use the available fiscal space to effectively implement these policy proposals.
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| Format: | Report biblioteca |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2023-11-02
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| Subjects: | MACRO-FISCAL POLICY, CAPITAL SPENDING, SOCIAL PROTECTION, PUBLIC HEALTH SPENDING, UNIVERSAL HEALTH INSURANCE, |
| Online Access: | http://documents.worldbank.org/curated/en/099110223123523395/P17788702be86b0dd0acf306d4a259e426a https://openknowledge.worldbank.org/handle/10986/40563 |
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| Summary: | Armenia’s fiscal performance has
improved during the past two decades, supported by reforms.
Revenue collection has converged with income and regional
peers, overall spending levels have remained prudent, and
debt levels remain sustainable. Fiscal policy has been
counter-cyclical and progressive but has had a limited
impact on economic growth. Spending efficiency is a key area
of concern. Expenditure efficiency in areas such as
infrastructure, road transport, health, and education are
significantly behind the global efficiency frontier. The
fiscal implications associated with the policy proposals in
the 2021-2026 government program are significant. How can
fiscal policy support the implementation of the government’s
key policy proposals while ensuring the sustainability of
public finances This is the main question for this Public
Expenditure Review (PER). To answer it, this PER will (i)
analyze past fiscal performance; (ii) assess the medium-term
fiscal impacts of selected policy proposals that are
currently being considered such as increase in pensions,
changes to social assistance, increased health expenditures,
and increased capital expenditure; and (iii) propose options
to improve spending efficiency in select areas to provide
options for the government to use the available fiscal space
to effectively implement these policy proposals. |
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