Republic of Armenia Public Expenditure Review : Expanding the Fiscal Envelope

Armenia's small revenue and spending envelopes limit the government's ability to influence the economy, even while its influence through laws, rules, and regulations is significant. The government has an important role to play to reduce poverty and boost shared prosperity, and needs fiscal space. This public expenditure review (PER) analyzes and provides recommendations for the different dimensions of expanding the fiscal envelope. There are three ways of creating fiscal space: the first is higher tax revenue mobilization (through better administration and enforcement of existing taxes, higher tax rates, or new taxes on previously untaxed goods and services or incomes), second, lower spending on less productive programs, and third, an increase in the effectiveness of spending, that is, a higher output of the things the government wants (efficient administration, human capital, services for the population) for a given level of spending. The report highlights Armeniaapos;s limited fiscal envelope, and points out that key areas, such as education, health, and road transport, had been consistently underfunded. It suggests that revenue needs to be significantly improved, and the government will have to revisit its expenditure priorities to create the spending headroom needed to at least maintain the spending level in these areas. The structure of the report is presented as follows: section one gives executive summary. Section two focuses on quantifying fiscal activities. Section three analyzes a number of tax exemptions and loopholes. Section four analyzes ways to improve the impact out of every Armenian dram raised and spent. Section five evaluates in detail the social protection system's performance. Section six accompanies the reforms of Armenia's public service remuneration system.

Bibliographic Details

Main Author:	World Bank Group
Language:	English en_US
Published:	Washington, DC 2014-05
Subjects:	ACCOUNTING, ANALYTICAL CAPACITY, BAILIFF, BANKING SECTOR, BENEFICIARIES, BOND, BOND HOLDERS, BOND MARKET, BROKERS, BUDGET BALANCE, BUDGET CONSTRAINTS, BUDGET CYCLE, BUDGET DEFICIT, BUDGET EXPENDITURE, BUDGET PROCESS, BUDGET SURPLUS, BUDGETING, CAPITAL EXPENDITURE, CAPITAL EXPENDITURES, CAPITAL MARKET, CASH TRANSFERS, CENTRAL BANK, CENTRAL BUDGET, CIVIL SERVICE, CIVIL SERVICE PAY, COLLATERAL, COMMERCIAL BANKS, COMPOSITION OF EXPENDITURES, CONCENTRATION COEFFICIENT, CONCENTRATION COEFFICIENTS, CONTINGENT LIABILITIES, CORPORATE INCOME TAX, CORPORATE TAX RATE, CURRENCY, DEFICITS, DEPOSIT, DEPOSITORS, DIFFERENTIALS, DISABILITY PENSIONS, DISTRIBUTION OF INCOME, DOUBLE TAXATION, ECONOMIC CLASSIFICATION, EDUCATION SPENDING, EMERGING ECONOMIES, EQUIPMENT, EXPENDITURE POLICIES, EXPENDITURE PRIORITIES, EXPENDITURE PROGRAMS, EXPENDITURE REPORTING, EXPENDITURE REPORTS, EXPORTERS, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL OVERSIGHT, FINANCIAL STATEMENTS, FINANCIAL SYSTEM, FISCAL ACTIVITIES, FISCAL ADJUSTMENT, FISCAL BALANCE, FISCAL CONSOLIDATION, FISCAL ENVELOPE, FISCAL IMPACT, FISCAL POLICY, FISCAL PROJECTIONS, FISCAL SPACE, FISCAL SUSTAINABILITY, FIXED ASSETS, FOREIGN EXCHANGE, FOREIGN EXCHANGE TRANSACTIONS, GOVERNMENT BOND, GOVERNMENT BONDS, GOVERNMENT BUDGETARY FRAMEWORK, GOVERNMENT EXPENDITURE, GOVERNMENT GUARANTEES, GOVERNMENT POLICY, GOVERNMENT REVENUE, GOVERNMENT REVENUES, GOVERNMENT SECURITIES, GOVERNMENT SPENDING, GROSS DOMESTIC PRODUCT, HEALTH CARE, HEALTH OUTCOMES, HOUSEHOLD INCOME, HUMAN CAPITAL, HUMAN RESOURCE, INCOME REDISTRIBUTION, INCOME TAX, INCOME TAXES, INFLATION, INFRASTRUCTURE INVESTMENTS, INSURANCE, INSURANCE COMPANIES, INTEREST EXPENSE, INTEREST INCOME, INTEREST PAYMENTS, INTERNATIONAL STANDARDS, INVENTORY, INVESTMENT PROJECTS, JUDICIAL ENFORCEMENT, LABOR MARKET, LIVING STANDARDS, LLC, LOCAL GOVERNMENT, MAINTENANCE BUDGET, MARGINAL EFFECTS, MARKET FAILURES, MARKET TRANSACTIONS, MEDIUM-TERM EXPENDITURE, MEDIUM-TERM EXPENDITURE FRAMEWORK, MINISTRIES OF FINANCE, MINISTRY OF FINANCE, MINISTRY OF LABOR, MONETARY FUND, PENSION, PENSION REFORM, PENSION SYSTEM, PENSIONS, PERSONAL INCOME, PERSONAL INCOME TAX, POLICY ANALYSIS, POLICY DECISION, POLICY FRAMEWORK, POLICY MAKERS, POLICY PRIORITIES, POLICY RECOMMENDATIONS, POST-CRISIS PERIODS, POVERTY REDUCTION, PRIVATE INVESTORS, PUBLIC ADMINISTRATION, PUBLIC DEBT, PUBLIC DEMAND, PUBLIC EMPLOYMENT, PUBLIC ENTITIES, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE REVIEW, PUBLIC EXPENDITURES, PUBLIC FINANCES, PUBLIC FINANCIAL MANAGEMENT, PUBLIC GOODS, PUBLIC HEALTH, PUBLIC SERVICE, PUBLIC SERVICES, PUBLIC SPENDING, PUBLIC SPENDING PROGRAMS, REDISTRIBUTION, REDISTRIBUTIVE EFFECTS, RESOURCE ALLOCATION, RESOURCE MANAGEMENT, RETURN, REVENUE BASE, REVENUE COLLECTION, REVENUE INCREASES, REVENUE LOSS, REVENUE PERFORMANCE, REVENUE SOURCES, ROAD MAINTENANCE, ROAD TRANSPORT, SAFETY NET, SAFETY NETS, SECURITIES MARKETS, SMALL BUSINESSES, SOCIAL ASSISTANCE, SOCIAL CONTRIBUTIONS, SOCIAL EXPENDITURES, SOCIAL INSURANCE, SOCIAL PROTECTION, SOCIAL SAFETY NETS, STATE BUDGET, STOCKS, SUB-NATIONAL, SUB-NATIONAL ENTITIES, SUBNATIONAL, SUBNATIONAL ENTITIES, SUBNATIONAL GOVERNMENTS, TAX, TAX ADMINISTRATION, TAX ADMINISTRATION REFORMS, TAX BASE, TAX BURDENS, TAX COLLECTION, TAX COLLECTIONS, TAX CREDIT, TAX DEFERRALS, TAX EXEMPTION, TAX EXEMPTIONS, TAX EXPENDITURE, TAX EXPENDITURES, TAX LAWS, TAX OFFICIALS, TAX PAYERS, TAX POLICY, TAX PRODUCTIVITY, TAX PROVISIONS, TAX RATE, TAX RATES, TAX REFORM, TAX REFORMS, TAX RETURNS, TAX REVENUE, TAX REVENUE MOBILIZATION, TAX REVENUES, TAX STRUCTURE, TAX SYSTEM, TAXABLE INCOME, TAXATION, TAXPAYER BEHAVIOR, TAXPAYERS, TOTAL EMPLOYMENT, TOTAL EXPENDITURES, TOTAL GOVERNMENT EXPENDITURES, TRANSFER PAYMENTS, TRANSPARENCY, TRUST FUND, TRUST FUNDS, TURNOVER, UNTAXED GOODS,
Online Access:	http://documents.worldbank.org/curated/en/2014/05/23014560/armenia-public-expenditure-review-expanding-fiscal-envelope https://hdl.handle.net/10986/21063
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