Kyrgyz Republic Public Expenditure Review Policy Notes : Public Wage Bill

World Bank

Kyrgyz Republic Public Expenditure Review Policy Notes : Public Wage Bill

2014

World Bank

Restraining the growing wage bill expenditures while enhancing the performance of the public sector remains one of the government's major development priorities. Wage bill levels in the Kyrgyz Republic are high compared to the majority of Europe and Central Asia (ECA) countries, constituting almost one third of government expenditures. Over the last few years, the government has undertaken important steps towards enhancing pay systems and improving competitiveness of pay in public health and education sectors accounting for almost 66 percent of the wage bill. The Kyrgyz Republic confronts the need to restrain its public wage bill as part of its mid-term fiscal strategy, as well as the need to improve the performance of the public sector. The analysis, undertaken in this policy note, suggests that the government should consider the following measures and reforms: improve predictability of the wage bill and avoid further ad hoc increase in wages; moderate and gradual consolidation of employment; any increase of the base pay elements has to be linked to modest and gradual consolidation of public sector employment, and should be limited to inflation as needed; establishment controls need to be strengthened through sound monitoring of the number of employees and payroll in all parts of the public sector; and civil service pay reform has to be undertaken with a unified pay system, gradually introduced at all levels of the government. This note discusses public sector wage management in the Kyrgyz Republic, by analyzing wage bill expenditure levels over the last decade with a closer examination of dynamics in 2008-2011.

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accountability accounting capacity building central government cities civil service devolution economic conditions economic downturn exchange rate health insurance health services hospitals housing human capital human resource management human resources income inflation labour local government occupations patient physicians poverty reduction primary education private sector public administration public education public expenditure public finance public health public sector public services quality assurance retirement savings social protection social security social services unemployment urban areas workers working conditions

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Washington, DC

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Private companies; Primary schools; Perverse incentives; Hard budget constraints; Public sector organizations; Ministry of economy; Real growth; Government employees; Employment trends; Public wage; Secondary schools; Health expenditures; Reform agenda; Education system; Budget resources; Research centers; Public sector employees; Public spending; Government priorities; Ministry of finance; Budget allocations; Total wage; Fiscal capacity; Education services; Private sector wage; Employee; Budget organizations; State treasury; Financial reporting; Public sector wage; Public employment; Fiscal projections; Labor market; Health management; Fiscal pressure; Employment levels; State budget; Expenditures; Primary school; Wage bill; Accounting system; Inflation rate; Municipal employees; Public expenditure tracking; Accountability problems; Fiscal impact; Running costs; Health sector; Civil service salaries; Quality of services; Municipality; Public investments; Public sector staff; Health education; Performance monitoring; Economic performance; Social security funds; Budget requests; Expenditure levels; Health centers; Fiscal sustainability; Pharmacists; Drivers; Government employment; Government finance; Transparency; Training programs; Government finance statistics; Central controls; Intergovernmental transfers; Financial management; Programs; Wage levels; Public health organizations; Budget data; Total expenditures; Management responsibilities; Fiscal strategy; Hard budget constraint; Public; Government expenditures; Productivity growth; Work experience; Public sector wages; Aggregate control; Wage expenditures; Reform process; Baseline scenario; External imbalances; Public organizations; Local governments; Clinics; Total public sector; Government policy; Performance culture; Government spending; Public resources; Wage growth; Production function; Fiscal implications; Employment growth; Severance payments; Total employment; Structural reforms; Civil service reform; Civil service pay; Public sector service delivery; Fiscal health; Education spending; Working condition; Decision-making; Average wage; Public sector employment; Public administration reform; Public sector pay; Budget year; Public sectors; Service delivery; Human resource; Health systems; Working experience; Average wages; Budget holders; Civil service law; Wage level; Jobs; Nurses; Fiscal constraints; Government expenditure; Higher inflation; Public sector wage bill; Employment reduction; Civil servants; Social contributions; Public expenditure policy; Macroeconomic constraints; Public expenditure review; Budget estimates; Public sector management; Program costs; Tax; Budget constraints; Health policy; Structural reform; Pension fund; High wage; Performance monitoring systems; Job security

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http://hdl.handle.net/10986/19309http://creativecommons.org/licenses/by/3.0/igo/CC BY 3.0 IGO

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Kyrgyz Republic Public Expenditure Review Policy Notes : Public Wage Bill

2014

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