OECD Journal on Budgeting

The OECD Journal on Budgeting is published three times per year. It draws on the best of the recent work of the OECD Working Party of Senior Budget Officials (SBO), as well as special contributions from finance ministries, academics and experts in the field and makes it available to a wider community in an accessible format. The journal provides insight on leading-edge institutional arrangements, systems and instruments for the allocation and management of resources in the public sector.

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A theoretical framework for spending review policies at a time of widespread recession

The aim of this paper is to propose a first theoretical framework for medium term spending reviews that determines the main factors affecting the use of these spending reviews and their impact, at a time of widespread recession. As result, it identifies four dimensions (political, social, organisational and operational) and one dynamic element (time) that influence the performance of spending reviews and should be considered in approaching this tool. Finally this paper introduces some theoretical and policy considerations, concerning both how to effectively address the five elements that influence the spending review and how a government should design this tool.

JEL codes: H50, H61, H83

Keywords: Spending reviews, recession, performance budgeting, cutback management                                                      


JEL: H50: Public Economics / National Government Expenditures and Related Policies / National Government Expenditures and Related Policies: General; H61: Public Economics / National Budget, Deficit, and Debt / Budget; Budget Systems; H83: Public Economics / Miscellaneous Issues / Public Administration; Public Sector Accounting and Audits
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