FYR of Macedonia : Public Expenditure and Institutional Review

The review was undertaken, and completed against a background of substantial political economic disruption: the Kosovo crisis of 1999 threatened to undermine the country's accomplishments in building macroeconomic, and fiscal stability; and, the security crisis of 2001, tested once again Macedonia's political, and economic integrity. Both instances were successfully surpassed, showing significant steps towards becoming a market oriented state within the European context, and, in its willingness to accept, and ratify the Peace Agreement of November 2001. But, expenditure pressures rose, leading to additional spending, while revenues declined owing to economic weakness, and decreased tax enforcement; clearly, fiscal stability stands on the balance. Not surprising, the quality of expenditures became an important issue, for although acceptable aggregate targets were being achieved, the budget's economic composition was not suited for promoting economic growth. Institutional aspects show that budget preparation, and processes provide no link between policy commitments, and available resources, aggravated by unfounded credibility on the budget, as an instrument for policy formation. Recommendations call for improved resource allocation within fiscal constraints, i.e., reducing public resources, and, laying the foundation for a budget process legal framework. In addition, reforms should be institutionalized through accountability, and capacity building.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2002-04-02
Subjects:	PUBLIC EXPENDITURES, INSTITUTIONAL CHANGE, POLITICAL FACTORS, MACROECONOMIC STABILIZATION, FISCAL PRESSURES, SECURITY MEASURES, CONFLICT RESOLUTION SKILLS, FISCAL POLICY, ECONOMIC GROWTH, EXPENDITURE ANALYSIS, PUBLIC SPENDING, TAX ENFORCEMENT, REVENUE MEASURES, BUDGET PROCESS, INSTITUTIONAL FRAMEWORK, POLICY COORDINATION, INFORMATION REQUIREMENTS, POLICY IMPLEMENTATION, FISCAL SUSTAINABILITY, CAPACITY BUILDING, LEGAL FRAMEWORK, POLICY REFORM, SOCIAL PROTECTION SYSTEMS ACCESS TO INFORMATION, ACCOUNTABILITY, ACCOUNTABILITY MECHANISMS, ACCOUNTING, ALLOCATION OF RESOURCES, ANTI-POVERTY STRATEGIES, BUDGET EXECUTION, BUDGET FORMULATION, BUDGET MANAGEMENT, BUDGET REFORM, BUDGET REFORMS, BUDGETARY FUNDS, CAPITAL EXPENDITURES, CAPITALIZATION, CENTRAL AGENCIES, CENTRAL GOVERNMENT, CITIZENS, CIVIL SERVICE, CIVIL SOCIETY, COMMUNITY PARTICIPATION, COUNTRY'S COMPETITIVENESS, CPI, CURRENCY UNIT, DECENTRALIZATION, DECISION MAKERS, DECISION-MAKING, DEFICITS, DEPOSIT INSURANCE, DEVELOPMENT GOALS, DONOR COMMUNITY, ECONOMIC MANAGEMENT, EMPLOYMENT, EXCHANGE RATE, EXECUTION, EXTERNAL DEBT, FINANCIAL CONTROL, FINANCIAL INFORMATION, FINANCIAL MANAGEMENT, FINANCIAL MARKETS, FINANCIAL PERFORMANCE, FINANCIAL SECTOR, FINANCING SOURCES, FISCAL, FISCAL COSTS, FISCAL DEFICIT, FISCAL DISCIPLINE, FISCAL PROBLEMS, FISCAL REFORM, FISCAL REFORMS, FISCAL YEAR, FOREIGN CURRENCY DEPOSITS, FOREIGN DEBT, FOREIGN DIRECT INVESTMENT, FOREIGN INVESTMENT, GOVERNMENT EXPENDITURES, GOVERNMENT OFFICIALS, GOVERNMENT PERFORMANCE, GOVERNMENT POLICY, GOVERNMENT REVENUES, HEALTH INSURANCE, HIGH UNEMPLOYMENT, HUMAN RESOURCE, HUMAN RESOURCE MANAGEMENT, HUMAN RESOURCES, IMPLEMENTATION PLAN, IMPROVED ACCESS, INFLATION, INFORMAL ECONOMY, INSTITUTIONAL ARRANGEMENTS, INSTITUTIONAL BARRIERS, INSTITUTIONAL CAPACITY, INSTITUTIONAL CONSTRAINTS, INSTITUTIONAL REFORM, INSTITUTIONAL REFORMS, INSURANCE, INTERNAL AUDIT, INTERNATIONAL ACCOUNTING STANDARDS, INVESTMENT SPENDING, LABOR MARKET, LABOR MARKETS, LAWS, LEGISLATION, LEGISLATIVE FRAMEWORK, LEGISLATIVE PROPOSALS, LEVELS OF GOVERNMENT, LOCAL LEVEL, MACROECONOMIC FRAMEWORK, MACROECONOMIC STABILITY, MINISTRY OF FINANCE, PENSION SYSTEM, PENSIONS, PERFORMANCE APPRAISAL, POLICY ANALYSIS, POLICY CHOICES, POLICY DECISIONS, POLICY FRAMEWORK, POLICY MAKING, POLICY OPTIONS, POLICY PROCESS, POLICY REVIEW, POLITICAL INSTABILITY, POLITICAL INSTITUTIONS, POVERTY LEVELS, POVERTY REDUCTION, POVERTY TARGETING, PRIMARY HEALTH CARE, PRIORITY AREAS, PRIVATE SECTOR, PRIVATIZATION, PRIVATIZATION AGENCY, PRODUCTIVITY, PUBLIC ACCOUNTABILITY, PUBLIC ADMINISTRATION, PUBLIC AGENCIES, PUBLIC BUDGET, PUBLIC DEBT, PUBLIC ENTERPRISES, PUBLIC EXPENDITURE, PUBLIC INSTITUTIONS, PUBLIC OFFICIALS, PUBLIC PARTICIPATION, PUBLIC POLICY, PUBLIC RESOURCES, PUBLIC REVENUES, PUBLIC SECTOR, PUBLIC SECTOR EMPLOYMENT, PUBLIC SERVICE, PUBLIC SERVICES, RATIONALIZATION, REGULATORY REGIME, REHABILITATION, RESOURCE ALLOCATION, RESOURCE ALLOCATIONS, RESOURCE CONSTRAINTS, RESOURCES MANAGEMENT, RETIREMENT, REVENUE SOURCES, SECTOR PROVIDERS, SECURITIES, SERVICE DELIVERY, SERVICE QUALITY, SOCIAL ASSISTANCE, SOCIAL PROGRAMS, SOCIAL PROTECTION, SOCIAL PROTECTION PROGRAMS, SOCIAL SERVICES, STRUCTURAL CHANGE, STRUCTURAL REFORMS, TAX, TAX OBLIGATIONS, TAX REVENUES, TEAM, TECHNICAL ASSISTANCE, TRADEOFFS, TRANSPARENCY, TREASURY, UNEMPLOYMENT, UNEMPLOYMENT BENEFITS, URBAN PLANNING, WAGES, WORKING,
Online Access:	http://documents.worldbank.org/curated/en/2002/04/1754761/macedonia-public-expenditure-institutional-review https://hdl.handle.net/10986/15427
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