Fiscal Policy for Growth and Development in Tajikistan
Tajikistan's economy has recovered strongly after the collapse of the 1990s, but sustaining rapid economic growth over the long term and reducing poverty present major challenges for policymakers. This paper contributes to the debate over the strategic role for fiscal policy to play in meeting these challenges, utilizing the "fiscal space" approach to assess the long-term potential for expanding public provision of growth-promoting goods and services and evaluating the priorities for public spending. It also analyzes the long-term risks to fiscal sustainability, from external public debt and the quasi fiscal deficit of the electricity sector. The paper contends that institutional reforms in key areas, notably public financial management, tax administration, and the energy sector, are crucial for generating fiscal space and for ensuring that higher levels of public spending are translated into stronger economic growth and poverty reduction. The priorities for government spending should be education, health, and the maintenance of the core networks of the existing infrastructure for energy and transport, rather than new public investment projects.
| Main Authors: | , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2008-02
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| Subjects: | ECONOMIC GROWTH, EDUCATION, ELECTRICITY, ENERGY, FISCAL SPACE, FISCAL SUSTAINABILITY, HEALTH, INFRASTRUCTURE, POVERTY REDUCTION, PUBLIC FINANCIAL MANAGEMENT, PUBLIC SPENDING, TAX ADMINISTRATION, |
| Online Access: | http://documents.worldbank.org/curated/en/2008/02/9250697/fiscal-policy-growth-development-tajikistan https://hdl.handle.net/10986/6494 |
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| Summary: | Tajikistan's economy has recovered
strongly after the collapse of the 1990s, but sustaining
rapid economic growth over the long term and reducing
poverty present major challenges for policymakers. This
paper contributes to the debate over the strategic role for
fiscal policy to play in meeting these challenges, utilizing
the "fiscal space" approach to assess the
long-term potential for expanding public provision of
growth-promoting goods and services and evaluating the
priorities for public spending. It also analyzes the
long-term risks to fiscal sustainability, from external
public debt and the quasi fiscal deficit of the electricity
sector. The paper contends that institutional reforms in key
areas, notably public financial management, tax
administration, and the energy sector, are crucial for
generating fiscal space and for ensuring that higher levels
of public spending are translated into stronger economic
growth and poverty reduction. The priorities for government
spending should be education, health, and the maintenance of
the core networks of the existing infrastructure for energy
and transport, rather than new public investment projects. |
|---|