This public expenditure reviewidentifies various opportunities to improve efficiency andequity in the social sectors. In terms of efficiency, commonissues across sectors include prioritizing publicinterventions on the basis of their costs and effectiveness,reducing the share of personnel expenditures through a moreefficient deployment of human resources, and reviewingfinancial mechanisms to minimize distortions and inducecost-savings (particularly in the health sector).Reallocating resources towards maintenance services, whileencouraging outsourcing practices is another cross-cuttingtheme. Regarding equity, there is a need in all sectors toimprove targeting mechanisms in the allocation of publicsubsidies. The Government still faces the challenge ofreducing gender inequalities, particularly among low-incomegroups. The message also emerges that the private sectorshould have a more prominent role both in the financing andprovision of social services. Improving institutionalcapacity, governance, and accountability is also aprecondition for higher efficiency and equity. One of themost important recommendations from the review is the needto pursue structural reforms to promote growth, whilechanging the focus of public expenditure management fromdriving growth to ensuring stabilization and an efficientsupply of public goods. The role of public expenditure inthe social sectors should be to guarantee necessaryinvestments in human capital to support growth.
PDF
download
878987797
028-85220240
