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West Bank and Gaza - Public Expenditure Review : From Crisis to Greater Fiscal Independence, Volume 1This report examines the fiscal crisis
 facing the Palestinian Authority (PA) that could threaten
 its very existence. It looks at recent macroeconomic and
 fiscal developments and gives and analysis of key issues and
 challenges such as economic and fiscal trends. The report
 also goes in depth analysis of the public financial
 management issues, the challenges of civil service reform,
 reforming intergovernmental fiscal relations, the education
 sector, and social policy and social safety nets. The report
 is divided into two volumes with volume one giving an
 overview with conclusions and recommendations, while volume
 gives an in depth look at the topics.
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Kyrgyz Republic Public Expenditure Review Policy Notes : Public Wage BillRestraining the growing wage bill
 expenditures while enhancing the performance of the public
 sector remains one of the government's major
 development priorities. Wage bill levels in the Kyrgyz
 Republic are high compared to the majority of Europe and
 Central Asia (ECA) countries, constituting almost one third
 of government expenditures. Over the last few years, the
 government has undertaken important steps towards enhancing
 pay systems and improving competitiveness of pay in public
 health and education sectors accounting for almost 66
 percent of the wage bill. The Kyrgyz Republic confronts the
 need to restrain its public wage bill as part of its
 mid-term fiscal strategy, as well as the need to improve the
 performance of the public sector. The analysis, undertaken
 in this policy note, suggests that the government should
 consider the following measures and reforms: improve
 predictability of the wage bill and avoid further ad hoc
 increase in wages; moderate and gradual consolidation of
 employment; any increase of the base pay elements has to be
 linked to modest and gradual consolidation of public sector
 employment, and should be limited to inflation as needed;
 establishment controls need to be strengthened through sound
 monitoring of the number of employees and payroll in all
 parts of the public sector; and civil service pay reform has
 to be undertaken with a unified pay system, gradually
 introduced at all levels of the government. This note
 discusses public sector wage management in the Kyrgyz
 Republic, by analyzing wage bill expenditure levels over the
 last decade with a closer examination of dynamics in 2008-2011.
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Bangladesh - Public Expenditure and Institutional Review : Towards a Better Quality of Public Expenditure - Main ReportBangladesh has recorded many impressive
 achievements in economic and social development in the last
 decade and a half. It has achieved steady economic growth of
 over 5.5 percent annually (over 6 percent on average since
 2004), maintained relatively low inflation and stable levels
 of domestic debt. More remarkable have been its achievements
 in reducing income poverty and improving social indicators,
 such as life expectancy, fertility control, child mortality,
 literacy and enrollment rates, which, in many cases, exceed
 other countries in the region and outside. In addition to
 standard expenditure policy analysis typically associated
 with Public Expenditure Reviews (PERs), this study combines
 an assessment of key institutional elements that are likely
 to affect budget outcomes with political economy analysis of
 the budget institutions, in order to discover the underlying
 reasons behind the existing equilibrium. While the Public
 Expenditure and Institutional Review (PEIR) does not include
 a description of the technical aspects of Public Financial
 Management (PFM) institutions, it makes use of the numerous
 studies that exist in this area to illustrate their effect
 on incentives. This approach is motivated by
 Bangladesh's long journey of 14 years towards reforming
 PFM systems, which is yet to result in a fundamental break
 with past practices of input-oriented incremental budgeting
 and relatively weak expenditure controls, especially at the
 sector-specific level. This requires different thinking and
 an approach aimed at addressing the incentive structure of
 those who can influence more fundamental reforms in PFM.