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Spending Reviews as an Instrument for Public Finance Management in OECD Countries: Theoretical Aspect

Author

Listed:
  • Nikolai A. Begchin

    (Ministry of Finance of the Russian Federation, Moscow 109097, Russia)

  • Olga V. Bogacheva

    (Financial Research Institute, Moscow 127006, Russia; Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences, Moscow 117997, Russia)

  • Oleg V. Smorodinov

    (Financial Research Institute, Moscow 127006, Russia)

Abstract

This article is focused on the conceptual framework of spending reviews. The authors claim that after the global financial crisis (2007–2008), the role of spending reviews in OECD countries has drastically increased. Originally a technical tool for the evaluation of government programs’ efficiency and effectiveness, it has evolved into the key instrument of public finance management. Many countries have started using such reviews both for the identification of inefficient expenditures/programs and for re-allocation of public resources in line with new medium-term policy priorities. The article examines the present-day interpretation of this concept, offers classification of spending reviews, analyzes legal environment and organizational models of planning and preparation of spending reviews in various OECD countries. As a result, the authors formulate a set of necessary conditions for the successful implementation of spending reviews, including legal, organizational and institutional conditions, and data requirements. Spending reviews should be integrated into the budget preparation process, stakeholders’ roles should be determined prior to conducting spending reviews, policy priorities should be clearly determined. As Russia moves towards adopting spending reviews as the key public expenditures management instrument, putting these pre-requisites in place becomes an immediate challenge.

Suggested Citation

  • Nikolai A. Begchin & Olga V. Bogacheva & Oleg V. Smorodinov, 2018. "Spending Reviews as an Instrument for Public Finance Management in OECD Countries: Theoretical Aspect," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 3, pages 49-63, June.
    • Handle: RePEc:fru:finjrn:180304:p:49-63
    DOI: 10.31107/2075-1990-2018-3-49-63
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    References listed on IDEAS

    as
    1. Mario Marcel, 2014. "Budgeting for fiscal space and government performance beyond the great recession," OECD Journal on Budgeting, OECD Publishing, vol. 13(2), pages 9-47.
    2. Caroline Vandierendonck, 2014. "Public Spending Reviews: design, conduct, implementation," European Economy - Economic Papers 2008 - 2015 525, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    3. Ian Hawkesworth & Knut Klepsvik, 2013. "Budgeting levers, strategic agility and the use of performance budgeting in 2011/12," OECD Journal on Budgeting, OECD Publishing, vol. 13(1), pages 105-140.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Olga V. Bogacheva & Oleg V. Smorodinov, 2019. "Creation of Enabling Environment for Spending Reviews in Russia," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 1, pages 21-33, February.
    2. Xuehui Han & Yuan Cheng, 2023. "Drivers of Bilateral Climate Finance Aid: The Roles of Paris Agreement Commitments, Public Governance, and Multilateral Institutions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 85(3), pages 783-821, August.
    3. Olga V. Bogacheva & Oleg V. Smorodinov, 2019. "Major Aspects of Organization of Public R&D Funding in OECD Countries," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 2, pages 37-50, April.
    4. Andrei I. Kostin, 2020. "Organization of Program- and Target-Oriented Funding for Research in Russia," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 1, pages 27-40, February.

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    More about this item

    Keywords

    comprehensive and selective spending reviews; strategic review; fiscal measures; medium-term instrument of expenditure planning; performance based budgeting; global financial crisis;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt

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