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Enhancing the Effectiveness of Public Spending: Experience in OECD Countries

Author

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  • Isabelle Joumard
  • Per Mathis Kongsrud
  • Young-Sook Nam
  • Robert Price
Abstract
In most OECD countries, public spending rose steadily as a share of GDP over the past decades to the mid-1990s, but this trend has since abated. The spending pressures stemming from the continued expansion of social programmes have been partly compensated by transient or one-off factors. Pressures on public spending, however, appear likely to intensify, in particular as a consequence of ageing populations. Since most OECD economies have very little scope for raising taxation or debt to finance higher spending, reforms to curb the growth in public spending while raising its cost effectiveness are now required. This paper presents a reform strategy for progress in this direction, based on detailed country reviews for over twothirds of OECD countries. Three main areas for action are identified: the budget process; management practices and the use of market mechanisms in the delivery of public services ... Améliorer le rapport coûts-résultats des dépenses publiques : Expériences dans les pays de l'OCDE La part des dépenses publiques dans le revenu national a augmenté au cours des dernières décennies dans la plupart des pays de l’OCDE. Depuis le milieu des années 90, les chiffres font apparaître une rupture de tendance. L’expansion continue des programmes sociaux, qui a favorisé la hausse des dépenses publiques, a été en partie compensée par un certain nombre de facteurs temporaires ou ponctuels. Les pressions sur les dépenses publiques risquent néanmoins de ressurgir, en particulier en raison du vieillissement des populations. Au vu des faibles marges de manoeuvre pour financer ces dépenses par une augmentation des impôts ou de la dette publique dans la plupart des pays de l’OCDE, des réformes visant à contenir la croissance des dépenses tout en améliorant leur efficacité sont désormais nécessaires. Sur la base d’études approfondies menées sur plus des deux tiers des pays de l’OCDE, ce document de travail identifie trios principaux axes de réforme : le processus budgétaire, les ...

Suggested Citation

  • Isabelle Joumard & Per Mathis Kongsrud & Young-Sook Nam & Robert Price, 2004. "Enhancing the Effectiveness of Public Spending: Experience in OECD Countries," OECD Economics Department Working Papers 380, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:380-en
    DOI: 10.1787/355505224723
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    Cited by:

    1. António Afonso & Ludger Schuknecht & Vito Tanzi, 2010. "Income distribution determinants and public spending efficiency," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(3), pages 367-389, September.
    2. Bazyli Czyżewski & Anna Hnatyszyn-Dzikowska & Jan Polcyn, 2016. "Problems of Quantifying Public Goods in the Healthcare Sector," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 105-125.
    3. Christl, Michael & Köppl-Turyna, Monika & Kucsera, Dénes, 2018. "Public sector efficiency in Europe: Long-run trends, recent developments and determinants," Working Papers 14, Agenda Austria.
    4. John Wanna, 2010. "Investigating the Reality of Reform in Modern Budgeting," Chapters, in: John Wanna & Lotte Jensen & Jouke de Vries (ed.), The Reality of Budgetary Reform in OECD Nations, chapter 1, Edward Elgar Publishing.
    5. Santiago Herrera & Gaobo Pang, 2006. "How Efficient is Public Spending in Education?," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 24(51), pages 136-201, June.
    6. Bouthevillain, C. & Paul, L. & Pavot, J., 2007. "Debt retrenchment strategies and control of public spending," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 08, pages 5-34, Summer.
    7. Antonio Afonso & Ludger Schuknecht & Vito Tanzi, 2010. "Public sector efficiency: evidence for new EU member states and emerging markets," Applied Economics, Taylor & Francis Journals, vol. 42(17), pages 2147-2164.
    8. Margit Schratzenstaller, 2008. "Gender Budgeting in Austria," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 6(2), pages 44-51, 07.
    9. Francisco de Castro Fernández & José Manuel González Mínguez, 2008. "The composition of public finances and long-term growth: a macroeconomic approach," Occasional Papers 0809, Banco de España.
    10. McQuaid, Ronald W. & Scherrer, Walter, 2009. "Changing reasons for public private partnerships," Working Papers in Economics 2009-2, University of Salzburg.
    11. Sebastian Hauptmeier & Martin Heipertz & Ludger Schuknecht, 2007. "Expenditure Reform in Industrialised Countries: A Case-Study Approach," Fiscal Studies, Institute for Fiscal Studies, vol. 28(3), pages 293-342, September.
    12. Andrews, Matthew, 2008. "Are One-Best-Way Models of Effective Government Suitable for Developing Countries?," Working Paper Series rwp08-014, Harvard University, John F. Kennedy School of Government.
    13. Herrera, Santiago & Pang, Gaobo, 2005. "Efficiency of public spending in developing countries : an efficiency frontier approach," Policy Research Working Paper Series 3645, The World Bank.
    14. Heinz Handler & Bertrand Koebel & Philipp Reiss & Margit Schratzenstaller-Altzinger, 2005. "The Size and Performance of Public Sector Activities in Europe," WIFO Working Papers 246, WIFO.
    15. Mamatzakis, E. & Tsionas, M., 2018. "Revisiting the returns of public infrastructure in Mexico: A limited information local likelihood estimation," Economic Modelling, Elsevier, vol. 75(C), pages 132-141.
    16. Maroto Sánchez, Andrés & Rubalcaba Bermejo, Luis & Gallego Martinez, Jorge, 2016. "On the role of publicly funded R&D for public sector performance," Working Papers in Economic Theory 2016/02, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    17. Matt Andrews, 2008. "The Good Governance Agenda: Beyond Indicators without Theory," Oxford Development Studies, Taylor & Francis Journals, vol. 36(4), pages 379-407.
    18. Margit Schratzenstaller-Altzinger, 2006. "Teilstudie 12: Wachstumsimpulse durch die öffentliche Hand," WIFO Studies, WIFO, number 27451, March.
    19. Vratislav Izák & Eva Dufková, 2006. "Výdaje na sociální péči - nové státy Evropské unie a Česká republika [Expenditure on social protection-new EU member states and the Czech republic]," Politická ekonomie, Prague University of Economics and Business, vol. 2006(6), pages 762-777.
    20. López-Herrera, Carmen & Cordero, José M. & Pedraja-Chaparro, Francisco & Polo, Cristina, 2023. "Fiscal rules and their influence on public sector efficiency," MPRA Paper 119018, University Library of Munich, Germany.

    More about this item

    Keywords

    budgets; dépenses publiques; efficacité du secteur public; government expenditure; public sector efficiency systems; structure and scope of government; structure et taille du secteur public; système budgétaire;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H4 - Public Economics - - Publicly Provided Goods
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H6 - Public Economics - - National Budget, Deficit, and Debt

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