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Sample text

Current Expenditures: The Wage Bill 24. The Government has undertaken an unprecedented administrative reform to downsize and reorganize the Federal Government. Officials reorganized the main ministries and selected decentralized agencies. Employment in the national Page xvii administration will have fallen from roughly 670,000 in 1990 to under 285,000 by end 1992; of this reduction, 105,000 employees have left the Government and the remainder have been transferred to the provincial governments.

A. All rights reserved Manufactured in the United States of America First printing August 1993 World Bank Country Studies are among the many reports originally prepared for internal use as part of the continuing analysis by the Bank of the economic and related conditions of its developing member countries and of its dialogues with the governments. Some of the reports are published in this series with the least possible delay for the use of governments and the academic, business and financial, and development communities.

For that reason, the Government has last year obtained proportional payment for administration of taxes, an increased share of co-participated taxes for social security, transferred responsibility for secondary education and health to the provinces, and required repayment of rediscounts. Adjustment in the provincesthrough reforms of tax systems, administration, and employment practicesis the only way that provinces can begin to provide educational, health and other services more efficiently. Moreover, from a macroeconomic point of view, a slowdown in growth and revenue collection would generate considerable demands to increase transfers unless provincial administrations make headway in implementing their own reforms.

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