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Managing Public Expenditure: Some Emerging Policy Issues and A Framework for Analysis

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Author Info
Paul Atkinson
Paul van den Noord

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Abstract

This paper highlights some key policy issues regarding the performance of public expenditure and proposes an analytical framework for its assessment. The framework distinguishes three economic objectives of policies in the pursuit of better performance of public expenditure: macroeconomic sustainability, allocative efficiency (better outcomes per unit of public expenditure) and technical efficiency (less resource inputs per unit of public output). Against this backdrop, the paper discusses experiences of governments of OECD countries with various policy instruments, including fiscal rules, medium-term fiscal frames, market-based allocation mechanisms and flexible management and control. These experiences could serve as a starting point for peer reviews and international benchmarking ...


Cet article met en lumière certaines des questions essentielles que pose aux autorités l’évolution des dépenses publiques et propose un cadre d’analyse pour l’évaluer. Ce cadre distingue trois objectifs économiques pour les politiques qui visent à améliorer les « performances » des dépenses publiques : la viabilité macroéconomique, l’efficacité de la répartition des ressources (de meilleurs résultats par unité dépensée) et l’efficience technique (moins de ressources consommées par unité produite). S’appuyant sur cette toile de fond, l’article analyse l’expérience des gouvernements des pays de l’OCDE dans l’utilisation des différentes instruments de la politique économique, notamment les règles budgétaires, le cadrage budgétaire à moyen terme, les mécanismes d’affectation fondés sur le jeu du marché et l’assouplissement de la gestion et des contrôles. Ces expériences pourraient servir de point de départ à des examens similaires et à des comparaisons internationales ...

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File URL: http://dx.doi.org/10.1787/066436018532
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Paper provided by OECD, Economics Department in its series OECD Economics Department Working Papers with number 285.

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Date of creation: 08 Feb 2001
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Handle: RePEc:oec:ecoaaa:285-en

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Related research
Keywords: budget systems; fiscal policy; public sector efficiency; efficacité du secteur public; politique budgétaire; système budgétaire;

Find related papers by JEL classification:
D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
H40 - Public Economics - - Publicly Provided Goods - - - General
H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems

Cited by:
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  1. Michael Groemling, 2002. "Why does redistribution not shrink when equality is high?," Intereconomics: Review of European Economic Policy, Springer, vol. 37(4), pages 204-211, July. [Downloadable!] (restricted)
  2. Paternostro, Stefano & Rajaram, Anand & Tiongson, Erwin R., 2005. "How does the composition of public spending matter?," Policy Research Working Paper Series 3555, The World Bank. [Downloadable!]
  3. Paul Fenton & Irene Ip & Geoff Wright, 2001. "Employment Effects of Restructuring in the Public Sector in North America," Working Papers 01-19, Bank of Canada. [Downloadable!]
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