OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Managing Public Expenditure

Some Emerging Policy Issues and A Framework for Analysis

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 ...


Keywords: public sector efficiency, budget systems, fiscal policy
JEL: H61: Public Economics / National Budget, Deficit, and Debt / Budget; Budget Systems; E62: Macroeconomics and Monetary Economics / Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook / Fiscal Policy; H40: Public Economics / Publicly Provided Goods / Publicly Provided Goods: General; D61: Microeconomics / Welfare Economics / Allocative Efficiency; Cost-Benefit Analysis; H11: Public Economics / Structure and Scope of Government / Structure, Scope, and Performance of Government
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