This policy note is part of the WorldBank's Programmatic Public Expenditure Review (PER)work program for FY2012-2014. The PER consists of a seriesof fiscal policy notes, which aim at providing theGovernment of Tajikistan with recommendations to strengthenbudgetary processes and analysis. This policy note, thefirst in the series, sets the stage for the further in-depthdiscussion of the issues, identified in the note, based onthe analysis of trends and composition of public spendingduring the period 2007-2013. The note is structured asfollows. Section 2 begins with a brief review ofmacroeconomic context to provide the background for analysisof fiscal policy during the last six years and implicationsfor fiscal policy going forward. Section 3 presents theoverall fiscal picture and highlights the fiscal risks to beaddressed to sustain the recent progress in fiscalconsolidation. Sections 4 and 5 dig deeper in thecomposition and trends of expenditures and reviews,respectively. Section 6 provides the main conclusions: 1)fiscal consolidation is on track, but further building offiscal buffers may be needed; 2) risks to the fiscaladjustment are both domestic and external; 3) public financemanagement has improved, but reform is progressing slowly;4) the size of government is small, but it is skewed towardcapital outlays; 5) public spending on social sectors hasincreased, but the quality and access to public servicesmust be improved; 6) revenue collection is challenged due toweaknesses in tax evasion detection and tax policy analysis;and 7) a recently revised Tax Code became effective in 2013and is expected to enhance incentives for the private sectorto grow while reducing incentives for tax evasion.
PDF
download
878987797
028-85220240
