Social Expenditure in Central America, Panama and the Dominican Republic at a Glance

Social Expenditure in Central America, Panama and the Dominican Republic at a Glance
Author :
Publisher : Inter-American Development Bank
Total Pages : 188
Release :
ISBN-10 : 9781597822510
ISBN-13 : 1597822515
Rating : 4/5 (515 Downloads)

Book Synopsis Social Expenditure in Central America, Panama and the Dominican Republic at a Glance by : Marco Solera

Download or read book Social Expenditure in Central America, Panama and the Dominican Republic at a Glance written by Marco Solera and published by Inter-American Development Bank. This book was released on 2016-03-01 with total page 188 pages. Available in PDF, EPUB and Kindle. Book excerpt: Social spending is a powerful tool to reduce poverty, achieve higher equality and better life conditions for the inhabitants of a country. In "Social Expenditure in Central America, Panama and the Dominican Republic: 2007-2013", a characterization of the different variables that have taken social expenditure to its current position is performed. During the economic crisis period, many governments of the region confront this situation with an increase in social expenditures. However, part of the increase was centered on inflexible items, particularly wages, which facilitated the increase in fiscal deficits and, consequently, on public debt. Thus, after the financial crisis, the fiscal situation has reduced governments' buffers to respond to economic shocks, which imply that we need to examine the fiscal policy given its rigidity, the scarcity of public resources and the institutional contract. The study of wage bill increases provides more information related to the causes of this dynamic, and allow us to offer recommendations to improve spending management without threatening public finances. A better use of resources could contribute to define a more efficient and equitable agenda for the countries in the region. Finally, something that was not deeply explored, as of today, is the institutional complexity and how this could facilitate, or hinder, the government's ability to express its fiscal policy, including the effectiveness in the use of public resources.


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