States of States BudgiT 2019 Report

Abstract

Effective delivery of public services is closely associated with poverty reduction and growth, and States with strong, transparent, accountable Public Financial Management systems tend to deliver services more effectively and equitably and regulate markets more efficiently and fairly. In this sense, good PFM is a necessary condition for most development outcomes. As we will see, there is need for States to slow down on borrowing, rein in recurrent expenditure and re-work the budgeting system. Economic planners will need to lift States from a perpetual cycle of borrowing, work to improve tax collection efficiencies and realign budgeting with Statewide plans.