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How to improve public sector finances in Honduras

Author

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  • Baran, Yalcin M.

Abstract

The objectives of a public sector management program should be to use resources more efficiently rationalize public sector operations and reduce financial disequilibrium. This report presents a comprehensive policy program to improve public finances in Honduras. It recommends that Honduran authorities prepare an action plan for improving public sector management. The plan should include the following measures: (a) increase savings; (b) introduce efficiency-saving measures; (c) improve budgeting, debt management and tax collection; (d) standardize accounting practices and properly account for debt service obligations; (e) start external management audits of enterprises; and (f) establish financial targets for, and reduce government transfers to, public enterprises. It also recommends measures to: (g) improve service delivery; (h) implement a well-defined privatization program; (i) prepare and implement a growth oriented and financially feasible public investment program; (j) improve decisionmaking and increase accountability and autonomy in public enterprises; (k) improve coordination of the sector; (l) target subsidies; and (m) improve better financial information on the public sector.

Suggested Citation

  • Baran, Yalcin M., 1989. "How to improve public sector finances in Honduras," Policy Research Working Paper Series 309, The World Bank.
    • Handle: RePEc:wbk:wbrwps:309
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