Fiscal Policy For Growth And Development In Tajikistan

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues.An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished.The papers carry the names of the authors and should be cited accordingly.The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors.They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent. Policy ReseaRch WoRking PaPeR 4532Tajikistan's economy has recovered strongly after the collapse of the 1990s, but sustaining rapid economic growth over the long term and reducing poverty present major challenges for policymakers.This paper contributes to the debate over the strategic role for fiscal policy to play in meeting these challenges, utilizing the "fiscal space" approach to assess the long-term potential for expanding public provision of growth-promoting goods and services and evaluating the priorities for public spending.It also analyzes the long-term risks to fiscal sustainability, from external public debt and the quasi This paper-a product of the Poverty Reduction and Economic Management (PREM) Network of Europe and Central Asia (ECA) Region-is part of a larger effort in the department to promote policy dialogue based on analytical work.Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org.The author may be contacted at scanagarajah@worldbank.org.fiscal deficit of the electricity sector.The paper contends that institutional reforms in key areas, notably public financial management, tax administration, and the energy sector, are crucial for generating fiscal space and for ensuring that higher levels of public spending are translated into stronger economic growth and poverty reduction.The priorities for government spending should be education, health, and the maintenance of the core networks of the existing infrastructure for energy and transport, rather than new public investment projects.