scholarly journals Republic of Estonia

2019 ◽  
Vol 19 (152) ◽  
pp. 1
Author(s):  
Keyword(s):  
Capital Stock ◽  
Capital Expenditure ◽  
Public Investment ◽  
Public Capital ◽  
Medium Term ◽  
Advanced Country ◽  
General Government ◽  
Efficiency And Effectiveness ◽  
High Level ◽  
The Eu

Public investment is a priority spending area, and Estonia is seeking to strengthen the efficiency and effectiveness of its capital expenditure from an already high level. Estonia’s general government capital expenditure has been higher than that of its neighboring comparators,1 EU countries or the average advanced country, at usually well above 5 percent of GDP. It is planned to continue at that level in the medium-term despite an expected decline of external grants from the EU. Thus, the level of public capital stock has been increasing as well as closing a gap to the comparator countries.

scholarly journals Ukraine

2019 ◽  
Vol 2019 (356) ◽  
Author(s):  
Keyword(s):  
Capital Stock ◽  
Public Investment ◽  
Emerging Market ◽  
Public Capital ◽  
Allocation Of Resources ◽  
Investment Management ◽  
Emerging Market Countries ◽  
Recent Trends ◽  
High Level ◽  
Efficiency Gap

Ukraine’s public capital stock has been on a declining path over the last 20 years. Having started the period at a relatively high level (99 percent of GDP in 1996), it now ranks amongst the lowest of its comparator countries (56 percent in 2013). Evidence as to the reasons for the deterioration point to significant and persistent weaknesses in the institutional framework surrounding public investment management, inefficient allocation of resources to productive public investment and high levels of perceived corruption. Ukraine currently has an efficiency gap of around 32 percent, which ranks it below average amongst emerging market countries and other comparators. Persistent under-investment, the currently high stock of debt, and ongoing institutional weaknesses, coupled with effects of the conflict in the East could see this gap continuing to grow, absent concerted efforts to reverse recent trends.

Fiscal Rules and the Behavior of Public Investment in Latin America and the Caribbean: Towards Growth-Friendly Fiscal Policy?: The case of Argentina

2021 ◽  
Author(s):  
Daniel Artana ◽  
Cynthia Moskovits ◽  
Jorge Puig ◽  
Ivana Templado
Keyword(s):  
Capital Expenditure ◽  
Previous Analysis ◽  
Public Investment ◽  
National Level ◽  
Political Support ◽  
Fiscal Rules ◽  
Negative Effects ◽  
The Caribbean ◽  
Economic Boom ◽  
High Level

This paper analyzes the implementation of Fiscal Rules (FR) in Argentina. Several clear attempts to establish a FR at the national level are identified. The analysis suggests that the environment matters. The only FR that was binding in the period was approved in 2004 during an economic boom, with the country under a program with the IMF and with high political support. During the world financial crisis the expenditure ceilings were relaxed, however, and current primary expenditures soared. Simulations show that a countercyclical fund could have been implemented even after reducing highly distorting taxes at the federal and provincial levels, and at the same time securing a high level of capital expenditure as a share of GDP, had Argentina complied with the 2004 FR. Moreover, an econometric exploration of the link between flexible FRs and public investment finds that a flexible FR helps to mitigate the negative effects of fiscal consolidations on provincial public investment. Based on the previous analysis, guidelines for a proposal for a FR in Argentina are provided.

scholarly journals Republic of Poland

2019 ◽  
Vol 19 (287) ◽  
Author(s):  
Keyword(s):  
Financial Management ◽  
System Reform ◽  
Medium Term ◽  
Public Financial Management ◽  
General Government ◽  
Working Groups ◽  
Level Of Knowledge ◽  
Polish Government ◽  
High Level ◽  
The International Monetary Fund

This capacity development mission follows on two earlier missions conducted by the Fiscal Affairs Department (FAD) of the International Monetary Fund. These missions covered the development of a Standard Chart of Accounts (SCoA) and the Medium-Term Budget Framework (MTBF) that are part of the wider Public Financial Management reforms the Polish government is implementing. These reforms will improve consistency in reporting and provide a stronger basis for understanding the financial position of the general government. It will also help attain the medium-term objective of reducing the structural deficit to 1 percent of GDP by 2021. The mission commends the Polish Ministry of Finance (MoF), for the high level of commitment to the reforms. This commitment was evidenced in various actions and activities of government, including public pronouncements by the Minister of Finance. Also, the progress made with the implementation of the recommendations of the earlier missions was noted. Most notable was the establishment of the Budget System Reform (BSR)1 Project Governance Structures, the progress that various working groups have made with research on their respective topics, and the changes to the Budget Regulation of January 2019 to accommodate medium-term planning. This is supported by the high level of knowledge and expertise displayed by staff working on these reforms.

scholarly journals Gabon

2020 ◽  
Vol 20 (188) ◽  
Author(s):  
Keyword(s):  
Sustainable Development ◽  
Capital Stock ◽  
Public Investment ◽  
Strategic Plan ◽  
Private Investment ◽  
Public Capital ◽  
Emerging Economy ◽  
Potential Growth ◽  
Investment Expenditure

The development of infrastructure is one of the pillars of the Emerging Gabon Strategic Plan (PSGE). Implemented as of 2012, the PSGE has been establishing priority strategic guidelines to transform Gabon into an emerging economy by 2025. Its primary aims are to ensure and expedite the country’s sustainable development and growth by focusing on potential growth sectors. Public investment grew continuously from 2009 to 2013, when it peaked at 15.2 percent of GDP; it averaged 5.7 percent growth from 1990 to 2018. At the same time, private investment declined, as did growth and public capital stock. These outcomes indicate that public investment in Gabon does not drive growth and that investment expenditure does not automatically translate into actual accumulation of assets, which raises questions about the efficiency of those outlays.

scholarly journals Assessing the effect of public capital on growth: An extension of the World Bank Long-Term Growth Model

2019 ◽  
Vol 3 (1) ◽  
pp. 22
Author(s):  
Sharmila Devadas ◽  
Steven Pennings
Keyword(s):  
Growth Model ◽  
Low Income ◽  
Capital Stock ◽  
Public Investment ◽  
Public Capital ◽  
Low Income Countries ◽  
The World ◽  
A Share

To analyze the effect of an increase in the quantity or quality of public investment on growth, this paper extends the World Bank’s Long-Term Growth Model (LTGM), by separating the total capital stock into public and private portions, with the former adjusted for its quality. The paper presents the LTGM public capital extension and accompanying freely downloadable Excel-based tool. It also constructs a new infrastructure efficiency index, by combining quality indicators for power, roads, and water as a cardinal measure of the quality of public capital in each country. In the model, public investment generates a larger boost to growth if existing stocks of public capital are low, or if public capital is particularly important in the production function. Through the lens of the model and utilizing newly-collated cross-country data, the paper presents three stylized facts and some related policy implications. First, the measured public capital stock is roughly constant as a share of gross domestic product (GDP) across income groups, which implies that the returns to new public investment, and its effect on growth, are roughly constant across development levels. Second, developing countries are relatively short of private capital, which means that private investment provides the largest boost to growth in low-income countries. Third, low-income countries have the lowest quality of public capital and the lowest efficient public capital stock as a share of GDP. Although this does not affect the returns to public investment, it means that improving the efficiency of public investment has a sizable effect on growth in low-income countries. Quantitatively, a permanent 1 ppt GDP increase in public investment boosts growth by around 0.1–0.2 ppts over the following few years (depending on the parameters), with the effect declining over time.

Public Capital Budgeting and Management Process in Russia

2019 ◽  
pp. 113-133
Author(s):  
Natalia B. Ermasova ◽  
Polina Ermasova
Keyword(s):  
Capital Expenditure ◽  
Public Investment ◽  
Public Capital ◽  
Capital Budgeting ◽  
Federal State ◽  
Public Infrastructure ◽  
Management Processes ◽  
Recent Trends ◽  
State And Local ◽  
Main Components

This chapter provides a case study from Russia regarding public capital budgeting and management at the federal, state, and local levels. This chapter presents an analysis of four main components of Russian capital budgeting system including (1) long-term public capital planning, (2) annual public budgeting and financing, (3) project execution, and (4) public infrastructure evaluation. This research explains the general challenges of capital budgeting process after the several decades of financial and budget reforms. This chapter presents the structure and classification of the capital budget as well as recent trends in capital expenditure levels in Russia. The authors review the capital resource allocations across sectors based on investment needs and national priorities in Russia. The chapter explains public investment management processes and presents recommendations to improve the efficiency of public capital budgeting in Russia.

scholarly journals 2. Public Investment and Capital in France

2020 ◽  
pp. 33-48
Author(s):  
Mathieu Plane ◽  
Francesco Saraceno
Keyword(s):  
Local Governments ◽  
Capital Expenditure ◽  
Public Investment ◽  
Golden Rule ◽  
Financial Assets ◽  
The Public ◽  
French Economy ◽  
Fiscal Adjustment ◽  
General Government ◽  
The Government

In chapter 2, Mathieu Plane and Francesco Saraceno take up the case of France, where public investment has seen contrasting trends in recent decades. Although it was rather dynamic until the 2000s, a real inflection took place at the turn of 2010 when the government turned to austerity, and a large part of fiscal adjustment was achieved by reducing capital expenditure. Their chapter starts by looking at the evolution of general government net wealth from the late 1970s. While still positive, the consolidated net wealth is today at an all-time low. Indeed, after reaching a record level in 2007 (58.1% of GDP) it has lost 45 points of GDP in the space of eleven years. Plane and Saraceno then focus on the evolution of the stock of non-financial assets held by the general government. Most of this is non-produced (land), and it has fluctuated greatly because of changes in prices. The stock of fixed assets, which represents the accumulation of public productive capital, has been much more stable, and it is owned mostly by local governments. The authors then focus on flows (investment), to conclude that, with the exception of intellectual property rights, all components of public investment are today at historic lows and it is “civil engineering works” that have experienced the greatest decline. For the last three years, public net investment was negative, meaning that France does not accumulate public capital anymore. In fact, since 2009 the increase of debt has not been used to finance new investment but mostly current expenditure. Finally, the chapter analyses, by means of a multi-sector macroeconomic model, the impact on growth in different macro sectors, of a permanent increase of public investment. Based on this analysis, the chapter concludes with an assessment of the public investment needs of the French economy, and, like other chapters of the Report, pleads for the introduction of a Golden Rule of public finances aimed at preserving capital expenditure.

scholarly journals 3. Public Investment in Germany

2020 ◽  
pp. 49-62
Author(s):  
Sebastian Dullien ◽  
Ekaterina Jürgens ◽  
Sebastian Watzka
Keyword(s):  
Public Sector ◽  
Demographic Change ◽  
Capital Stock ◽  
Positive Impact ◽  
Public Investment ◽  
German Economy ◽  
Public Capital ◽  
Potential Growth ◽  
The Public ◽  
Severe Deterioration

Chapter 3, by Sebastian Dullien, Ekaterina Jürgens and Sebastian Watzka, reports on German debates about public investment. As with France, underinvestment by the public sector over the past two decades has led to a severe deterioration of the public capital stock. Moreover, demographic change, decarbonization and digitalization pose significant challenges for the German economy which imply additional public investment needs. A detailed sector-by-sector overview of investment requirements concludes that investment requirements add up to at least €450 bn over the next decade. Through a macroeconomic simulation, it is shown that a debt-financed increase of public expenditure of this magnitude would be compatible with keeping the debt-to-GDP-ratio below 60% and would have a positive impact on potential growth.

A mechanism to improve the allocation of public investment funds

2020 ◽  
Vol 26 (7) ◽  
pp. 1522-1533
Author(s):  
A.V. Larionov
Keyword(s):  
Panel Data ◽  
Random Effects ◽  
Public Investment ◽  
Allocative Efficiency ◽  
Investment Funds ◽  
The Public ◽  
Panel Data Regression ◽  
Data Regression ◽  
Efficiency And Effectiveness ◽  
Effective System

Subject. This article deals with the issue of improving the public investment allocative efficiency. Objectives. The article aims to develop an approach to improve the efficiency and effectiveness of public investment in the economy. Methods. The study is based on a panel data regression with random effects. Conclusions and Relevance. All sectors of the economy have different demand for investment resources attracted, determined by operational and technological aspects. The results of the study can be used to develop an effective system of public investment.

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