Public Expenditure Review of the Palestinian Authority

World Bank

Public Expenditure Review of the Palestinian Authority

2016

World Bank

The difficulty of pursuing a conventional market-oriented development strategy in the Palestinian territories led in the early part of the 2000s to a second-best reliance on public sector employment and wage bill expansion to boost aggregate demand. The main objective of this Programmatic Public Expenditure Review (PER) is to inform policy and institution-building efforts of the Palestinian Authority (PA) and its donor partners about improving the sustainability of public expenditures and the efficacy and efficiency in the provision of essential public services.In particular, this PER aims to provide an assessment of public revenue and expenditure policies offering specific policy and institutional measures to reduce the size of the Palestinian territories fiscal deficit and make it more sustainable.The fiscal situation of the Palestinian Authority is not sustainable.The difficult fiscal situation facing the Palestinian Authority today results from a unique confluence of challenges.As this report will argue, there is considerable further scope for reforms that would raise additional tax revenues, and reduce expenditures without compromising the quality of public services or negatively impacting public welfare.However, the PER notes that there are limits to what can be achieved by PA fiscal policy alone.The PER is organized as follows: Chapter one provides an overview of recent macroeconomic and fiscal developments; it also contains a brief assessment of priority fiscal policy issues facing the PA, and serves as an introduction to the in-depth analysis of the issues that follow in subsequent chapters. Chapter two analyzes the factors driving the size of the PA’s wage bill, and shows how these can be tackled. Chapter three reviews expenditures in the public health sector. Chapter four analyzes the Palestinian public pension system, and looks into how its sustainability can be assured. Chapter five assesses the quality of intergovernmental fiscal transfers, including net lending transfers. Chapter six reviews the way in which public investment projects are planned and implemented, and identifies steps to improve investment quality. Further details on health and pensions are provided in the annexes.

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accountability aged allocation breastfeeding budget cardiovascular diseases children communicable diseases crime debt decentralization decision making deficit diabetes economic growth expenditure families feasibility studies geriatrics gross domestic product growth rate health health care health insurance health services hospitals immunization implementation knowledge measurement mental health mortality nutrition patient patients physicians private sector public expenditure public finance public health public investment public sector public services public works quality of life rabies risk factors screening services smoking stroke surveillance unemployment violence workers workshops

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Expenditure categories; Intervention; Health care professionals; Primary health care; General practitioners; Municipalities; Benchmark prices; Extended families; Health expenditures; Aggregate demand; Life expectancy; Prevention; Public pension system; Deficit reduction; Public spending; Financial management information system; Residential care; Ministry of finance; Hepatitis c; Tax revenues; Child health services; Nonprofit institutions; Cash basis; Strategy; Fiscal relations; Health management; Waste; Municipal revenues; Financial accountability; Outpatient care; Surgery; Value of exports; Resource constraints; Strategic priorities; Hepatitis a; Health outcomes; Expenditures; Public pension; Rubella; Public financial management; Medical services; Health financing; Financial management information; Physical disability; Beneficiaries; Budget law; Health sector; Medical specialists; Reform efforts; Paramedics; Public revenue; Budget department; Public investments; Service provider; Total expenditure; Fiscal deficit; Aggregate fiscal; Budget deficit; Fiscal sustainability; Reform strategy; Regulatory framework; Fiscal decentralization; Child diseases; Pharmacists; Expenditure policies; Revenue assignment; Fiscal operations; Government employment; Price index; Health spending; Organic budget law; Fiscal management; Expenditure assignments; Domestic debt; Financial management; Intergovernmental fiscal relations; Net lending; Net revenue; Budget balance; Pension reform; Wage gap; Health indicators; Government expenditures; Wage expenditures; Budget execution; Risk groups; Social policy; Procurement policy; Gross expenditures; Clinics; Pension systems; Central budget; Fiscal policy; Hepatitis b; Service provision; Internal control; Nursing; Public sector employment; Budget process; Budget expenditure; Service delivery; Public hospitals; Patient satisfaction; Influenza; Nurses; Public expenditures; Poliomyelitis; People; Risks; Budget support; Civil servants; Diphtheria; International comparisons; Health expenditure; Public expenditure review; Revenues; Health policy; Pension scheme; Capital investment; Public procurement

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http://hdl.handle.net/10986/25100

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Public Expenditure Review of the Palestinian Authority

2016

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