Efficient Public Spending Research Articles

Fiscal Prudence and Economic Growth in Asia: the role of Efficient Public Spending

The present research is an attempt to study the role of public sector efficiencies in determining optimal fiscal size of the governments for selected Asian countries. Studying efficiency of public spending is important because efficient government spending leads to improved provision of public services like health, education, infrastructure, and welfare initiatives. Improving public sector efficiency will help to promote transparency and accountability which reduces the chances of corruption and wastage of scarce public resources. Using the panel data for 19 developing countries for years 1996-2022, efficiency augmented optimal size of government expenditures is calculated. Pooled Mean Group technique is employed to calculate the impact of efficiency on growth maximizing levels of government total spending, government consumption spending and government investment spending. Results establish strong impact of efficiency in public expenditures on optimal fiscal size. Other variables enhancing economic growth include capital stock and trade openness, while human capital has negative effects. Public sector efficiencies are found to reduce growth maximizing size of government spending. The optimal size of government total expenditure is estimated to be 25.19 %, while optimal fiscal size for government consumption expenditure and government investment expenditure are 14.04%, and 11.18 % respectively for developing Asian countries.

How to Optimize the Relationship Between Public Spending and Happiness

Happiness and efficient public spending are considered to be two desirable goals. In this paper, I consider happiness in the sense of how much one likes the life one leads (Veenhoven, 1984), and emphasize negative utilitarianism (Popper, 1952) as the best approach for promoting happiness in public policies. An ethical framework about public policies implemented to improve social conditions for happiness is suggested. I give a definition of the term optimization and propose two methods to optimize the relationship between public spending and social conditions for happiness. I briefly introduce a bookkeeping method, and I then present the bases of an econometric method in which quantile regression is described as the best tool within the negative utilitarianist approach, because quantile regression makes possible to know which independent variables influence most the degree of happiness of the least happy/ the saddest. The bookkeeping and the econometric methods presented are useful for any local, regional, national or supranational authority. These methods may also be useful for optimizing the relationship between natural resources consumption and social conditions for happiness. The paper is a conceptual paper.

Government spending and economic growth in the Middle East and North Africa region

In 2011, during the Arab Spring, citizens in some Arab countries marched in the streets, demanding decreased corruption, increased public participation in running state affairs, and provision of jobs for citizens. In response, governments in the Middle East and North Africa region initiated strategic plans to meet the people’s demands (e.g. Morocco Vision 2030, Saudi Vision 2030). One of the main parts of these plans is related to reforming the public finance sector. Recently, in response to the novel coronavirus (COVID-19) pandemic, most Middle East and North Africa countries have taken loans or withdrawn from reserves (both considered sources of funding for government expenditures) to support the economy and fund the healthcare plans to fight the disease. Thus, the efficiency and effectiveness of government spending is very important in utilizing the available resources at all times. Using data for the Middle East and North Africa region from 1990 to 2019, and utilizing a scatterplot technique and the general linear modeling procedure, this article explores the relationship between public expenditures and economic growth. The results show that the current public expenditure system is inefficient and that efficient public spending has to be combined with other factors that influence the economy (e.g. enhancing public participation in running state affairs, controlling corruption, and supporting good governance practices in the public sector). Points for practitioners Government spending is one of the most important elements in managing state affairs toward achieving advanced levels of development and providing high-quality services to beneficiaries. This research explores the relationship between government spending and economic growth; the result of this study confirms that non-financial factors, such as fighting corruption, promoting democracy and freedom, enhancing public institutions’ quality, and supporting the productivity and accountability of the public sector, are important dimensions in promoting economic growth, especially in developing countries.

Independence of the Office for Public Procurement

Summary The regulation of public procurement fulfils an essential task for the proper functioning of states. Public procurement directly influences the efficient public spending within a state. No doubt that the process shall be supervised by an independent and qualified institution. However, is this the case? In order to answer the question, the article chooses the jurisdiction of the Slovak Republic and it explores whether the supervisory body, the Office for Public Procurement, is to be seen as independent. Due to the fact that the notion of independence is unclear, the article presents the understanding of this notion and the criteria encrypted therein, following which the notion is applied to the Office for Public Procurement and to its leadership in particular. Since it is established that there is room for improvement regarding independence of this institution, the article presents concrete proposals for improvement of independence of the Office for Public Procurement.

Perubahan Sosial Masyarakat Akibat Konversi Minyak Tanah Ke LPG di Kelurahan Tanjungpinang Barat

Social changes are any changes in social institutions within a society, which affect the social system, including the values, attitudes and behavior patterns among groups in society. Pressure on the definition is the basic set of social institutions as human beings, the changes which then affect other social systems. Based on preliminary observations of this LPG conversion program apparently was sudden and unplanned comprehensively. Framework will be operationalized concept refers to the opinion Selo Soemardjan and Bertrand which state that social change affects the social system, where the elements of the social system, namely beliefs, feelings and thoughts, goals, rules / norms, status/ role and facilities. Qualitative research with a qualitative descriptive design format, which aims to describe, to tell a variety of conditions, situations and phenomena of social realities that exist in society. Sampled data were collected through interviews with informants as many as 14 people. From the research results can be concluded that the kerosene to LPG in the Village of West Tanjungpinang has given the change to more efficient public spending among others so survival is more assured, the pattern of behavior among members of the public is more awake, environmental sustainability is maintained by the reduction of air pollution so as to create of a society that is more practical, efficient and effective

Improving public works’ value for money: a new procurement strategy

PurposeThe purpose of this paper is to propose a new procurement strategy with the aim to achieve higher value for money (VFM) in public works delivery. Its main innovation lies in the possibility of optional submission of cost-efficient design variants by any interested contractor within the context of an open procedure. The final scope of works incorporates the variants approved, and all contractors are invited to submit a bid for the revised scope and budget.Design/methodology/approachThis paper is a piece of applied research presenting the development of a new, cost-effective procurement strategy for public works, geared at the European Union (EU) legal framework. The strategy’s feature compilation has been based on comprehensive literature review while numerical data from a real world project were used to demonstrate its financial advantages.FindingsThe proposed strategy enables the delivery of the best value project at the lowest cost possible. This is achieved through ensuring high competition among competent contractors, improving the cost efficiency of technical solutions, discouraging future scope changes and establishing objectivity, fairness and transparency in the process of contract award.Practical implicationsThe use of the proposed strategy results in public projects of enhanced VFM, reduced constructability issues and less scope changes during the construction stage.Originality/valueThe proposed strategy marks a new approach in procurement which enables the delivery of best VFM in public works. Therefore, it makes a valuable contribution towards the achievement of the overarching EU target for efficient public spending.

Independence of the Office for Public Procurement

The regulation of public procurement fulfills an essential task for the proper functioning of states. Public procurement directly influences the efficient public spending within a state. No doubt that the process shall be supervised by an independent and qualified institution. However, is this the case? In order to answer the question, the article chooses the jurisdiction of the Slovak Republic and it explores whether the supervisory body, the Office for Public Procurement, is to be seen as independent. Due to the fact that the notion of independence is unclear, the article presents the understanding of this notion and the criteria encrypted therein, following which the notion is applied to the Office for Public Procurement and to its leadership in particular. Since it is established that there is room for improvement regarding independence of this institution, the article presents concrete proposals for improvement of independence of the Office for Public Procurement.

The Principle of Efficient Public Spending, as Proclaimed by the Public Finance Act

This contribution deals with the issue of the principle of efficient public spending, as pervading the Polish legal system. The aim of the paper is to decode and clarify the meaning of the notion of efficiency as part of the principle proclaimed by the Public Finance Act of 27 August, 2009. There exists no legal definition of the term and since the notion is not an independent one, a tendency towards intuitive understanding of the rule may arise. However, by applying a proper legal interpretation and referring to what other academic disciplines say, this article proves that the principle of efficient public spending has a specified, concrete and clear meaning, which should be taken into account in each and every case of public expenditure being borne under the Public Finance Act.

Analysis of Construction Auctions Data in Slovak Public Procurement

The requirement for efficient public spending leads contracting authorities to use electronic reverse auctions (e‐RA), a tool that allows achieving financial savings. In this study, we aim to explore the relationships between the different acting e‐RA variables and to check for predictive models in order to infer on the savings amount in construction public procurement. Data on real construction auctions in Slovakia were statistically analysed by means of graphics tools, multiple regression analysis, test, and statistics for measuring the association between categorical variables. The results revealed that one should take the type of contract into account when considering the use of e‐RA. This research provides several implications for purchasing practitioners in the area of construction procurement, especially with regard to the level of competition in the auction and estimation of savings potential. Presented findings aid managerial decision‐making process of e‐RA adoption. At the end, recommended future research directions in the investigated area are outlined.

Water Related Health Problems in Central Asia—A Review

The present paper provides an extensive literature review on water related health issues in Central Asia. Even though the per capita amount of available freshwater is substantial in all Central Asian states the uneven distribution in time and space creates problems for water availability. Due to this, the Central Asian economies are developing under increasing water deficiency. The degradation of water supply systems and sewage treatment plants is often severe leading to potentially high water loss rates and inadequate accessibility to safe water supply. In this context, rural areas are the most affected. Low tariffs in combination with absent metering and low collection rates for water fees mean that operation and maintenance costs for basic services of water supply and sanitation are not covered. Unsafe water supply contains both microbiological and non-microbiological contaminants. Helminthiasis and intestinal protozoa infections are of considerable public health importance in Central Asia. Agricultural and industrial pollution is especially affecting downstream areas of Amu Darya and Syr Darya rivers. In large areas copper, zinc, and chromium concentrations in water exceed maximum permissible concentration. Thus, there is an urgent need to strengthen the environmental monitoring system. Small-scale water supply and sanitation systems need to be developed in line with more efficient public spending on these.

¿Cómo recaudar más sin gastar mejor? Sobre las dificultades de incrementar la carga fiscal en México

This article explores how tax revenue can be increased in Mexico, especially through more collection in higher-income sectors. An overview of the Mexican government's capacity to collect taxes is offered before analyzing the reasons why tax revenue has not increased in over more than two decades. A sketch of strategies that the recent Peña Nieto administration could have followed in order to increase tax revenue in a progressive fashion is also provided. One of the article's main arguments is that without more efficient public spending, it will be difficult to collect more taxes permanently, especially in such an open economy, with institutions that are as weak as those in Mexico. Furthermore, in a democracy, there is little public acceptance for more taxes, no matter how progressive they may be, unless the government can provide certainty about more efficient public spending. For these reasons, unless the quality and progressiveness of public spending and tax collection advances, it is even undesirable that the government increase its tax revenue.

Public‐Private Substitution in Higher Education: Has Cost‐Sharing Gone Too Far?

AbstractThis paper looks at the current challenge facing higher education by exploring the historical relationship between higher education funding and long economic cycles in the UK, USA and France. It examines the consequence of the transformation of public‐private income in higher education that followed the 1970s downturn, questioning whether the rise of private resources acted as additional or substitutive resources for public spending. The paper suggests that there is a risk that the cost‐sharing strategy could be turned into a policy of public‐private substitution of funding and provision, leading to a transfer rather than an increase of resources with strong implications on quality and equity. However, the Kondratiev cycle suggests an alternative route by designating the impact of the 1970s economic downturn on education as unique. Previous economic crises were contemporary of accelerations of public funding towards education which in fact contributed to economic recovery. The current crisis could represent an opportunity to revive counter‐cyclical policy by looking not only at efficient public spending but also at developing fairer taxation. A revival of public funding complemented by an additional rather than substitutive diversification of income would rebalance the public‐private structure of funding and drive a sustainable higher education system capable of playing a key part in these counter‐cyclical transformations.

Desempenho dos municípios paulistas: uma avaliação de eficiência da atenção básica à saúde

This research study aimed to build a performance assessment method to evaluate the technical efficiency of Sao Paulo State municipalities regarding the use of public resources for primary healthcare and to analyze the influence of non-controllable variables in the production process in this area. Technical efficiency is one of the performance assessment variables for public managers, reflecting an entity's ability to maximize outputs with the lowest consumption of inputs. Achieving this may be impaired or favored by environmental or non-controllable variables. These can give rise to biases if they are not considered in the performance assessment. Therefore, using two-stage Data Envelopment Analysis (DEA), the cities' efficiency scores were estimated and later adjusted through regression analysis. The results indicated that a considerable increase of health services for the population is possible with no added healthcare budget in most cities. Furthermore, the study found that a larger elderly population within a jurisdiction makes service delivery more expensive, while higher population density, urbanization level and scale of health establishments enhance efficient public spending. The five cities that were found to be most efficient were: Tuiuti, Nova Guataporanga, Sabino, Lins and Santos.

Methods and Instruments for the Evaluation and Monitoring of Vocational Education and Training Systems: A Basis for Evidence-Based Policy Making?

There is an increasing demand for methods and instruments that assist vocational education and training (VET) experts in taking stock of the state of VET systems. In international advisory services VET experts are asked to recommend appropriate measures to policy makers. The increased demand results from the call for more ‘evidence-based’ decision-making in policy that can be heard across all domains in which public policies intervene (see Young & Mendizabal, 2009). Under the regime of new public management and an increased attention of stakeholders to efficient public spending, the quality of policy decisions and their foundations are under permanent scrutiny (Slavin, 2002). The notion of an ‘evidence-based policy making’ has also found its way into the discourse on international cooperation and advisory services in VET. In this introduction we want to ask how far the call for more evidence in this sphere is mirrored by the existing inventory of methods and tools and how far the demand for more evidence is appropriate to the topic. At first glance existing methods and instruments can be applied in order to obtain a systems overview, to recognise strengths and weaknesses and also to identify possible areas for system development and improvement. However, up to now no overview of such instruments exists. Therefore, with the title ‘Research meets Advisory Service’ an international expert workshop was conducted in December 2009 in Konigswinter by BIBB (Federal Institute for Vocational Education and Training, Germany), bringing together experts from international and national organisations that develop or use such tools. Papers for the workshop were selected through a blind review process according to their scientific quality and their contribution to the following questions: • How do we know what is needed for the further development of a VET system? • Which measures are in place for VET system analysis? • What kinds of indicators and benchmarks are in use in controlling the ‘status quo’ or development towards certain targets? • What mechanisms are in place for peer review and peer learning? • Why is one approach chosen instead of another? • Which results are to be expected and how can we monitor them?