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Enhancing the Effectiveness of Public Spending in Norway

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Author Info
Isabelle Joumard
Wim Suyker ()

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Abstract

Public spending is very high in Norway, partly reflecting an extensive coverage of the welfare system and ambitious regional development objectives. Moreover, several institutional features contribute to dampening the cost-effectiveness of many public-spending programmes. Abundant oil revenues have so far mitigated strains on public finance. However, coping with the depletion of oil resources and the fiscal consequences of ageing would require to increase the cost-effectiveness of many public spending programmes, while leaving some room to cut the high tax-to-GDP ratio. This paper identifies the main sources of inefficiencies and suggests policy options. These include: supplementing the existing deficit rule by an expenditure rule; increasing flexibility in public sector wages and job tenure; reforming the funding system of local governments; raising the contestability of public service provision; intensifying the use of price signals and improving incentives to reduce the ...

Améliorer l'efficacité des dépenses publiques en Norvège

Les dépenses publiques sont très élevées en Norvège, reflétant en partie une large couverture du système de protection sociale et d’ambitieux objectifs de développement régional. En outre, certaines dispositions institutionnelles ne favorisent pas l’efficacité-coût de nombreux programmes de dépenses publiques. Les abondantes recettes pétrolières ont limité jusqu'à présent les tensions sur ces dépenses. Cependant, pour faire face à l'épuisement des ressources pétrolières et aux conséquences du vieillissement de la population, il faudrait améliorer l'efficacité-coût de plusieurs programmes de dépenses, tout en laissant une certaine marge de manœuvre à la réduction du taux de prélèvement obligatoire qui est actuellement d'un niveau élevé. Ce document de travail identifie les principales sources d’inefficacité et propose des solutions pour y remédier. Il s’agit en particulier d’introduire une règle budgétaire sur les dépenses publiques pour compléter celle en vigueur sur le déficit ...

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Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 343.

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Date of creation: 03 Oct 2002
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Handle: RePEc:oec:ecoaaa:343-en

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Related research
Keywords: Norway Norvège fiscal policy politique fiscale public sector efficiency budget systems efficacité du secteur public système budgétaire public management gestion publique dépenses publiques public expenditure fiscal federalism fédéralisme fiscal

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

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