This report seeks to identify policy,and institutional reforms to enhance the efficiency, equity,and effectiveness of public expenditures at the federal, andprovincial levels in Argentina. These are crucial togenerate the kinds of fiscal surpluses needed for fiscalsolvency, and macroeconomic stability. Otherwise, efforts tostimulate private-sector-led growth, and generate employment- which are key for sustained poverty reduction - may notsucceed. The report analyzes both sectoral, andprocess-related issues. The sectoral analysis focuses on themajor expenditure categories within the social, andinfrastructure sectors, which accounts for over 70 percentof total expenditures. Effective provision of social, andinfrastructure services is crucial for poverty reduction,equity, and improved living standards. The process-relatedissues focus on two areas affecting expenditure efficiency,and fiscal solvency: federal-provincial governmentrelations, and public expenditure management. Thoughimportant, federal tax policy, and public administrationissues are excluded from this report in order to keep itsscope manageable. The report further highlights that onlythe private sector is able to finance Argentina'sprojected infrastructure investments. To this end, investorconfidence will need to be restored, which will in turn,require concluding the renegotiations with privateoperators, and addressing certain second-generation reforms.The alternative of a return to public ownership, and controlis not desirable, given the higher efficiency in the privatesector, the other demands on fiscal resources, and problemswith public provision of services. As outlined below, whatArgentina needs is a fair resolution of renegotiations,better regulatory arrangements, better protection for thepoor, and better financing mechanisms.
PDF
download
878987797
028-85220240
