Baku, Azerbaijan, Aug.5
By Anvar Mammadov - Trend:
The World Bank Group will assist Azerbaijan in strengthening its capacity for public resource management, according to 2015-2020 Country Partnership Framework (CPF) for Azerbaijan.
For the government, fiscal consolidation is a top priority under the current circumstances given their high dependence on the State Oil Fund of Azerbaijan (SOFAZ) transfers, said the CPF.
Fiscal consolidation stresses improving efficiency of expenditures, shifting the investment leadership burden toward private sector and mobilizing more resources for the budget through an improved tax system, expansion of the tax base and stronger oversight over public expenditure, said the CPF.
The ongoing process of fiscal consolidation implies a tighter fit between the current budget spending and medium term perspectives and priorities, better prioritization of investment projects, closer monitoring and evaluation, upgraded system of external and internal controls and a stronger public procurement system, according to the document.
The government is also exploring greater participation of private sector in delivery of public services through public-private partnerships (PPPs) or similar arrangements, said the CPF.
A joint WB-EU-SECO Technical Assistance activity will support implementation of the PEFA Follow-up Action Plan.
The focus will be primarily on improving budgeting, resource allocation, internal and external controls and procurement practices.
The WBG program will support the Chamber of Accounts in strengthening external audit capacity and the Tax Administration on promoting cashless transactions through a targeted TA, including potential Trust Funded projects.
The Bank will continue to provide advice through assessment and monitoring of the macroeconomic situation and stands ready to scale up engagement in support of fiscal consolidation, said the CPF.
IFC will complement these activities through its engagement with SOFAZ, which will comprise continued asset management services and capacity-building efforts.
The World Bank Group's Board of Executive Directors endorsed the 2015-2020 Country Partnership Framework (CPF) for Azerbaijan in July 2015.
It aims at supporting Azerbaijan on its path toward sustainable, inclusive and private sector-led growth.
Under the CPF's first focus area, the World Bank Group will help the country strengthen public resource management, facilitate public service delivery and improve the quality of environmental assets.
Under the second focus area, the World Bank Group will provide support for improving selected infrastructure networks, increasing the country's financial inclusion, reducing regulatory burden on the private sector, and supporting economic activities in rural areas.
Azerbaijan joined the World Bank in 1992. The World Bank commitments to the country over the last two decades have totaled over $3 billion for 55 projects. The current World Bank investment portfolio in Azerbaijan includes 16 projects with a total commitment of $2 billion.
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