July 30, 2013Doug Hadden
FreeBalance Clients on the Road to Governance Success, Part 3
Carlos Lipari, FreeBalance Advisory Services
As indicated in the previous section, Sound Public Expenditures Management (PEM) and Government Receipts Management (GRM) are two of the major challenges that any government has to deal with. The less developed a country is, the harder it is to manage these dimensions and to have a tax base large enough to finance public expenditures.
Governmental expenditures in percentage of the GDP experienced some volatility over the last decade but there does not seem to be a strong increase trend. This means that the increase in revenues has been mainly used to balance fiscal deficits, instead of being mainly used to finance additional expenditures. According to the data available in the IMF and computing a simple average of the governmental expenditures in percentage of the GDP, we find that the average expenditures of FreeBalance clients has fluctuated at around 30% of the GDP over the last decade and is expected to remain stable in following years.
(IMF data for expenditures used do not include South Sudan)
Also important to be mentioned, is the fact that FreeBalance clients are not, on average, spending a higher percentage of the country´s GDP than the average expenditure of the regions where they operate in.
- Introduction to the Study
- Government Revenue
- Government Expenditures
- Government Gross Debt
- Country Investment
- Real Investment Growth Rates
- Government Effectiveness