ARGENTINA Public Expenditure and Financial Accountability (PEFA) Performance Assessment Report
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Report No: AUS0001244 - December 2019 ARGENTINA Public Expenditure and Financial Accountability (PEFA) Performance Assessment Report . © 2019 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved This work is a product of the staff of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Attribution—Please cite the work as follows: “World Bank. 2019. Argentina Public Expenditure and Financial Accountability (PEFA) Performance Assessment Report. © World Bank.” All queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: [email protected]. ARGENTINA FISCAL YEAR January 1–December 31 EXCHANGE RATE (November 29, 2019) Currency Unit: Argentine Peso (AR$) 1 US$ = 59.91 AR$ WEIGHTS AND MEASURES Metric System Acting Regional Vice President J. Humberto Lopez Country Director Jordan Z. Schwartz Practice Manager Xiomara A. Morel Task Team Leaders Alejandro R. Solanot Antonio Blasco Standard Disclaimer This report is a product of the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this report do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this report. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Copyright Statement The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development/The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this report, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, telephone 978-750-8400, fax 978-750-4470, http://www.copyright.com/. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522-2422, e-mail: [email protected]. ARGENTINA PEFA ASSESSMENT 2019 The PEFA Secretariat confirms that this report meets the PEFA quality assurance requirements and is hereby awarded the ‘PEFA CHECK’. PEFA Secretariat December 4, 2019 Table of contents Acknowledgments ...................................................................................................................................................... i Executive summary .................................................................................................................................................... ii 1. Introduction ........................................................................................................................................................... 1 1.1 Rationale and purpose ....................................................................................................................................... 1 1.2 Assessment management and quality assurance ............................................................................................. 2 1.3 Assessment methodology .................................................................................................................................. 3 2. Country background information ........................................................................................................................... 7 2.1 Country economic situation ............................................................................................................................... 7 2.2 Fiscal and budgetary trends ............................................................................................................................... 8 2.3 Legal and regulatory arrangements for PFM ................................................................................................... 10 2.4 Institutional arrangements for PFM ................................................................................................................ 13 2.5 Other key PFM features and their operating environment ............................................................................ 19 3. Assessment of PFM performance ......................................................................................................................... 21 PILLAR ONE: Budget reliability ................................................................................................................................... 21 PI-1. Aggregate expenditure outturn ..................................................................................................................... 21 PI-2. Expenditure composition outturn .................................................................................................................. 22 PI-3. Revenue outturn ............................................................................................................................................ 24 PILLAR TWO: Transparency of public finances .......................................................................................................... 26 PI-4. Budget classification ....................................................................................................................................... 26 PI-5. Budget documentation .................................................................................................................................. 28 PI-6. Central government operations outside financial reports ............................................................................ 30 PI-7. Transfers to subnational governments .......................................................................................................... 33 PI-8. Performance information for service delivery ............................................................................................... 37 PI-9. Public access to fiscal information ................................................................................................................. 41 PILLAR THREE: Management of assets and liabilities ............................................................................................... 44 PI-10. Fiscal risk reporting ...................................................................................................................................... 44 PI-11. Public investment management .................................................................................................................. 47 PI-12. Public asset management ............................................................................................................................ 50 PI-13. Debt management ........................................................................................................................................ 55 PILLAR FOUR: Policy-based fiscal strategy and budgeting ........................................................................................ 59 PI-14. Macroeconomic and fiscal forecasting ........................................................................................................ 59 PI-15. Fiscal strategy ............................................................................................................................................... 61 PI-16. Medium-term perspective in expenditure budgeting ................................................................................. 63 PI-17. Budget preparation process ......................................................................................................................... 66 PI-18. Legislative scrutiny of budgets ..................................................................................................................... 69 PILLAR FIVE: Predictability and control in budget execution .................................................................................... 73 PI-19. Revenue administration ............................................................................................................................... 73 PI-20. Accounting for revenue ................................................................................................................................ 76 PI-21. Predictability