The Programmatic Public ExpenditureReview (PPER) has been designed to cover five themes whichrepresent the key challenges for fiscal policy and PublicFinancial Management System (PFM) reforms in Tajikistan. Thethemes are as follows: Theme 1: Public Expenditure, FiscalSpace and Growth; Theme 2: Policy-based Budgeting; Theme 3:Efficiency of Public Expenditure in the Social Sectors;Theme 4: Fiduciary Risks; and Theme 5: Inter-governmentalfiscal relations. Theme 1 responds to questions of fiscalpolicy design, especially related to the composition ofexpenditure and the magnitude of external borrowing, whichare becoming increasingly important in Tajikistan and whichare likely to have a profound impact on the long termdevelopment of the economy. Theme 2 responds to the decisiontaken by the Government of Tajikistan (GOT) in 2006 toreinvigorate efforts to implement the Medium-termExpenditure Framework (MTEF) and to seek financial andtechnical support from development partners for thisendeavor. Theme 3 focuses on expenditure efficiency in thesocial sectors, an issue which has not hitherto been subjectto rigorous analysis, using methodologies which includeefficiency frontier analysis and Public Expenditure TrackingSurveys (PETS). Theme 4 focuses on fiduciary issues andincludes a comprehensive evaluation of the PFM system usingthe internationally accepted best practice methodology ofthe Public Expenditure and Financial Assessment (PEFA).Theme 5 will provide advice on how the structure ofinter-governmental fiscal relations can be reformed to bestaccommodate the requirements of the MTEF, other PFM reformsand the GOT'S Public Administration Reform Strategy(PARS). This volume of the PPER focuses mainly on Themes 1and 2, with chapters on how public expenditure can bestsupport economic growth, and on fiscal space for priorityexpenditures (under Theme 1) and the introduction of theMTEF (Theme 2). It also includes a summary of the PEFA, themain report of which will be published separately.
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