The 2007 Public Expenditure Review (PER) is the first for Sudan. It was prepared by a task team of World Bank staff and national experts, in close consultation with government officials. Since the Bank’s re-engagement in Sudan, this report reflects the initial phase of engagement on public expenditure issues and provides a baseline assessment of two fundamental dimensions of public finance in post-CPA Sudan's fiscal management and the alignment of resources to broad-based growth and reduced poverty and inequality. The objective is to establish a baseline understanding of key fiscal management and policy challenges, highlight reform measures for policymakers, and set the agenda for the next phase of work. It gives priority to identify and support improvements in budget planning, monitoring and institutional arrangements so as to contribute to improved resource use and outcomes. The synthesis report covers the following key areas of fiscal management in Sudan: Government of National Unity (GNU) revenue and expenditure management; identifying and monitoring pro-poor spending; intergovernmental transfers and fiscal decentralization; state case studies of fiscal management; and fiscal issues in the South. There is also a volume of more detailed background papers covering the abovementioned subjects. Also available is a background paper on the financing of basic services in North Kordofan state that focuses on the outcomes of public expenditure and sub-national service delivery. The report underscores the need to address basic elements of effective public expenditure management including comprehensive and transparent functional budget reporting, monitoring of actual spending and its outcomes to bolster accountability, costing sector and cross-cutting policies to make budget prioritization more transparent, improved budget credibility, linking development planning to the annual budget preparation process, and generally increasing the use of expenditure analysis in decision-making. Seven action areas are highlighted for the near term: - improving oil revenue volatility management, as a basis for budget credibility and better expenditure management;
- restoring fiscal prudence at all levels of government by controlling expenditures within a medium term outlook that focuses on the non-oil deficit as a key fiscal indicator;
- fulfilling the vision of fiscal decentralization in the Interim National Constitution, namely monitoring the adequacy and efficiency of state and locality expenditures, and improving the equity, predictability and transparency of the intergovernmental transfer system;
- addressing the planning and implementation deficiencies of development project support, including at the sector program and project level, and at both the federal and sub-national levels;
- strengthening accountability for the use of public funds, financial management, and the overall results culture;
- devoting sustained efforts to address the very difficult fiscal challenges facing the GOSS; and
- building capacity for more effective resource allocation and use, including in the states where responsibility for front line service delivery lies.
For more information, refer to thePER Synthesis Report PDF (1.0 MB) |
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