Efficiency Of Public Spending Research Articles

Assessment of Public Spending Efficiency of Health and Education in Nigeria

This study analysed the efficiency of Nigeria’s public spending in the health and education sectors using the non-parametric Data Envelopment analysis (DEA) approach. It further examined the environmental variables (which can be economic, institutional or demographic factors) influencing public spending efficiency in these sectors for the period 2000–2022 using censored Tobit regression and fractional logistic regression. The empirical results showed that the average public spending efficiency scores of health and education are 0.979 and 0.912, respectively, implying that Nigeria can still improve the efficiency of these two sectors even though it is relatively high. The second analyses of the regression results revealed that broad money and the size of government spending are the economic variables which have significant influence on the efficiency of both the health and education sectors. Control of corruption and government effectiveness are the government institutional variables that have a significant influence on efficiency. Both urbanization and population growth have been found to significantly influence public spending efficiency. This study strongly recommends the deliberate implementation of policies and measures that will improve the performance of government institutions and the development of secured urban centres in Nigeria, which will help ensure improvement in public spending efficiency in Nigeria.

The Role of Financial Oversight in Enhancing the Efficiency of Public Spending in the Kingdom of Saudi Arabia

This study aimed to determine the extent of the impact of financial control on the efficiency of public spending in the Kingdom of Saudi Arabia to regulate corruption, reduce waste of public funds, enhance transparency, and assess the effectiveness of current financial control legislation and agencies, and the procedures included therein, to understand their responsiveness, efficiency, and their impact on diversifying income sources, reducing unemployment rates, and their effect on economic growth through the analysis and study of international and local reports and indicators regarding financial control. Additionally, this study reviews the most distinguished international experiences in financial control and how to benefit from them to enhance the efficiency of control over the implementation of the general budget in the Kingdom. This study adopts the descriptive-analytical approach to reveal the effectiveness of current financial control over the public budget in the Kingdom of Saudi Arabia, and its impact on the efficiency of spending, relying on three important indicators that represent the growth rate, unemployment rate, and diversification of income sources, through the review and analysis of international and local reports and indicators during the period covered by the Open Budget Index in the Kingdom, starting from 2008 to 2023. The study revealed the necessity of financially and administratively independent financial control agencies, granting them the necessary powers to carry out their tasks, making all administrative levels accountable, with the need for continuous updating of financial control legislation and laws in the Kingdom, activating what has recently been introduced of systems, working on integrating control agencies, in addition to the importance of exercising preventive control before preparing the budget to avoid budget deficit crises and preserve public funds. The researcher believes, through what has been discussed, that this study provides a valuable contribution to the development of financial control policies in the Kingdom of Saudi Arabia.

Analysis of The Efficiency of Public Expenditure on Education in Elementary Education in The State of Alagoas

Objective: This article analyzes the efficiency of public spending on education in the municipal public network in elementary education, in all cities in Alagoas, using the data envelopment analysis method, DEA. Theoretical Framework: The present work used the variable return to scale (BCC) model, since we would be dealing with municipalities with varied realities. There are two basic ways for a unit that is inefficient to become efficient. The first would be to reduce resources (inputs) and keep products constant, which would be an input-oriented orientation; the second would be doing the opposite, increasing the result (products) from the same amount of inputs, an orientation focused on outputs. Method: The data envelopment analysis method - DEA is used to estimate efficiency with traditional inputs such as school infrastructure, capital, labor and municipal wealth. As output, the Portuguese and mathematics grades in the 9th grade, in the Saeb 2019 test, are considered, multiplied by the students enrolled in this year of education; as well as the inverse of per capita expenditure on elementary education. Results and Discussion: It was concluded that most of the benchmarkings are represented by municipalities with smaller inhabitants, indicating that the population increase in municipalities increases the demand for education. Research Implications: Thus, based on technical efficiency analyses, public policies can be proposed that mitigate the deficiencies presented in elementary education. Originality/Value: This study contributes to the literature by estimating the efficiency of municipalities in terms of public spending on education and the efficiency results are the grades of public school students. The research introduces a new output to measure efficiency, and points to new evidence for public educational policies.

Efficiency of local public spending in Cameroon: Does population size matter?

AbstractPromoting decentralization is currently high on the global agenda. To date, the existing literature in the African context, and more specifically in Cameroon, has not established a link between the size of local authorities and the efficiency of their infrastructure spending. This study therefore attempts to fill this gap in the literature by empirically examining the effect of population size on the efficiency of local public spending in Cameroon. Using the two‐stage Data Envelopment Analysis model on a sample of 100 communes for the period 2017–2020 to estimate composite efficiency scores and the censored Tobit model to determine the effect of population size on the efficiency of local public spending, the results show that population size and density positively and very significantly affect the efficiency of local public spending. In light of these results, we recommend that the state make population size the main allocation key for transfers and subsidies to local authorities and that communes organize themselves into inter‐municipalities to benefit from economies of scale and curb spillover effects.

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.

Seismic–Energy Retrofit as Information-Value: Axiological Programming for the Ecological Transition

The research deals with the issue of the seismic and energy retrofit of historic building fabrics having as reference a historic district of Syracuse (Italy). The prospect of the ecological transition on the one hand and the public support funding on the other claim for a valuation programming approach implying the creation of multiple scenarios, each of which is inspired by a different and complementary degree of “saliency and urgency”. These two dimensions of “being worth” by a building aggregation having an its own shape and belonging to a larger and more complex urban system need to be addressed according to some axiological reference, in this case, the concerns of the efficiency and fairness of public spending. This experience concerns the creation of a value-based programming pattern of the seismic–energy retrofit process framed in a Building Information Modelling (BIM) environment aimed at identifying the best intervention strategy among the several ones that can be generated in the logic of the parametric design. Both seismic and energy retrofit expected performances, in fact, can be scaled, complementing the extension and intensity of the interventions. This experiment takes advantage of the BIM multidimensional logic in line with the multiple scales and purposes implied by the relationships between individual/communal axiological profiles and present/future prospects. The experiment consists of the creation of an additive cost-oriented design platform based on which the different and progressive combinations of intensity and extension of the interventions can be compared and selected.

Evaluating Public Spending Efficiency and its Determinants Towards Social Outcomes: Empirical Evidence from Indian States

The topic of public expenditure efficiency has gained a key position in the spheres of public policy goals. This article tries estimating the efficiency of public spending on health and education sectors across Indian states from 1990–1991 to 2016–2017. In input–output linkage, we have computed efficiency using a slacks-based measure model of data envelopment analysis through different orientations. The study also captures the externalities of public spending efficiency with some exogenous factors. It also suggests that these exogenous factors (such as good governance, per capita income and proportion of literates in the household) have significantly improved the output efficiency score of the health as well as the education sectors across Indian states. JEL Codes: H51, H52, H21, E61

Budget Program Evaluation in Armenia as a Tool to Improve the Effectiveness of Public Spending

In the last decade, like in many countries of the world, as well as in Armenia, significant budget reforms have taken place. An important part of those reforms is the introduction of the budget program evaluation system. The paper discusses the problems of the Armenian budget system and importance of introduction of evaluation system, as well as reviews alternative models of the introduction of this system. Thus, the purpose of the article is to develop theoretical, methodological, as well as practical recommendations regarding the implementation of the budget program evaluation system in RA as a tool to improve the efficiency of public spending. By examining successful experience, the article seeks to offer actionable insights for policymakers, government officials, and stakeholders, thus the article highlight the importance of stable and transparent budget program evaluation system in ensuring accountability, resource optimization, and the delivery of tangible benefits to the Armenian population. The article also addresses challenges in the introduction of an evaluation system, such as data limitations, institutional capacity, and stakeholder engagement.

Public Education Spending Efficiency: the Effect of Economic, Institutional, and Political Factors in the MENA Region

This paper aims to determine the public spending efficiency in primary, secondary, and tertiary education and to study the effect of institutional, political, and economic factors in the MENA region for the period 1998-2018. A non-parametric Data Envelopment Analysis (DEA) approach is used to assess efficiency. The results show that MENA countries are more performers in primary education despite that they spend considerably on secondary and tertiary education. A Censored Tobit regression model is adopted to analyze the determinants of public education efficiency. Many indicators affect efficiency, but primary education efficiency is more sensitive.

Public spending and economic growth: The role of institutions in Ivory Coast

Several studies have analysed the effects of public spending, institutions and interaction between public spending and institutions on economic activity. This existing literature has ignored the effect of institutional shocks on the relationship between public spending and economic growth. To fill this gap, the current study aims to estimate the effects of public spending, institutional factors and institutional shocks on GDP per capita in Ivory Coast. It uses annual data that covers the period 1984-2019. We exploit the principal component analysis technique to construct an institutional composite index. We then estimate two Nonlinear AutoRegressive Distributed Lag models with interaction variables such as institutional index and public spending, corruption and public spending. The empirical results reveal symmetric effects of long-run institutional and corruption shocks on GDP per capita. In contrast, the effects of institutions are asymmetric in the short term. Negative institutional shocks worsen GDP per capita in the short term, as do positive corruption shocks in the long term. Similarly, public spending promotes economic growth, but neither institutions nor corruption significantly accentuate its effects. These results imply that improving the efficiency of public spending requires a prior improvement in the institutional framework and, above all, in the fight against corruption.

The role of rules and norms in conditional cash transfer programs – Latin American experience

The most important element of conditional cash transfer (CCT) programs is conditioning the social transfer on some pre-defined requirements concerning healthcare and education. The conditioning (co-responsibility) is justified by the belief that higher accumulation of human capital will allow the beneficiaries to permanently lift out of poverty. The literature on the subject is ample, focused mostly on the cost effectiveness of CCTs and their impact on poverty rates and income inequalities. Usually ignored are the rules and norms – important from the institutional perspective – that affect the behavior of participants as well as non-participants and influence their attitudes towards work, childcare, social responsibility, etc.
 The aim of the paper is twofold. First, to identify rules and norms that matter for the effects and efficiency of CCTs. Second, to define the channels through which they impact the behavior of economic agents. The research hypothesis assumes that conditionality of transfers increases the efficiency of public social spending and can be applied broadly, in many contexts. To verify the hypothesis, an extensive meta-analyses of available studies was performed. The initial conclusions suggest that CCTs could be successfully used in developed countries as well as in poorer regions.

Implementation of a Business-to-Government (B2G) Sales Analytics Tool - Hermix

The public sector sales market, i.e. Business-to-Government (B2G) market is large and relevant. It is similar, yet differs in several key aspects from other markets such as retail, consumer (B2C), or Businessto-Business (B2B). B2G is huge, at 2 trillion Euro per year in Europe, but insufficiently researched and it lacks proper tools and methods. Public contracts are difficult to access and require specialized expertise and a significant initial investment. This paper explores the implementation and evaluation of an IT platform that supports and automates public sector sales, Hermix, in a large company. This study had a qualitative longitudinal approach. It consisted of 7 workshops and 2 interviews with 8 case study participants, performed over the duration of a year. It highlights the implementation steps and results. Hermix automated a set of public sector sales processes for the host company, including: tender monitoring with email notifications, opportunity qualification, and market research, i.e. the analysis of the tactical and strategic context: buyers (public authorities), budgets, competition, partnership affinities, groups of interest, trends. It uses advanced data analytics, big-data and machine learning to provide market intelligence such as governmentgraphics, firmographics, geographics and monetary segmentation. Implementing public sector sales automation tools provides direct benefits to companies, related to: cost and time efficiency, improved proposal success rates, and strategic planning optimization. Indirect benefits for companies refer to delivery quality. Data analytics tools also support overall public procurement transparency, public spending efficiency and better public governance.

Public spending efficiencies: an analysis of brazilian scientific production from 2013 to 2022

This paper aims to analyze the profile of scientific research on the efficiency of public spending published in Brazil from 2013 to 2022. The study was carried out using a documentary approach, and the data were found from the Spell database. The methodology used was based on a documentary approach based on 49 articles. The results indicate that the main characteristics verified were: growth in the number of articles published in the studied period; most articles have between two and four authors, with a predominance of male authors; public educational institutions were responsible for most academic publications, with greater emphasis on those coming from the Federal University of Minas, followed by the University of Brasília and the Federal University of Ceará. As for the content of the research, the study revealed that most articles have, above all, as a thematic area: expenditure on health and education. Most academic work has directly addressed the issue of public spending efficiency. Finally, it was revealed that more than half of the articles analyzed did not point to a solution to the problems of public spending. The main contribution of this study is to serve as a theoretical basis for new academic works, classified as documentary studies, which aim to address the efficiency of public spending.

The efficiency of agricultural spending in Italy: A territorial analysis

This paper assesses the efficiency of public agricultural expenditure in each Italian region through the analysis of regional budgets, both as a whole and in relation to specific agricultural policy measures. The degree of integration/complementarity between regional funds and Community funds of the second pillar of the CAP is also evaluated, in order to determine whether European resources are used by the Regions as a substitute for or in addition to regional measures. In Italy, public agricultural funding comes from three sources: the EU, the State, and the regions. While the literature on the effectiveness and efficiency of public spending in agriculture focuses on EU funds, the present research also takes into consideration the agricultural spending of Regions.This original analysis of agricultural spending at the regional level has been made possible by the databank of the CREA (Council for Agricultural Research and Economics), which has been gathering information on the allocations, payments, and remaining balances of regional accounts since 1990. The expenditure items for the agricultural sector included in the regional budgets were reclassified according to an original methodology created by the INEA (National Institute of Agricultural Economics, today CREA). The results show that the overall efficiency of public expenditure has improved over the last two decades (from less than 40% in 2000 to just over 50% in 2019). This improvement is quite evident in the South and the Islands and less so in the North. Agricultural policy measures that can be defined as "short term measures" (contributions to public and private entities involved in agricultural and forestry activities for running costs, such as salaries, telephone, electricity, etc.) show a good spending capacity, while measures requiring planning, such as business investments, still present difficulties. As regards integration/complementarity between regional funds and EU Fund for Rural Development Programmes (RDPs), the regions have been classified depending or whether or not they differentiate between the RDP financing and Budget financing. In the most recent period of 2014-2020, most regions have tended to target both sources of funding to support the same types of priority activities.

The Impact of the Price Factor on Farmers' Incomes in Turbulent Conditions

Farmers face various types of risks that affect their behavioural strategies and well-being. In 2022, the main problem was the rapid and uncontrolled acceleration of inflation in the markets of raw materials, energy and food products. Farmers have faced price volatility in food, raw materials and energy. The purpose of the article was to analyse the impact of the price factor on farmers' incomes, including the total impact of prices on manufactured products and energy carriers. The regression-based analysis showed the negative nature of such an impact, which requires increased state support for farm income during the crisis period. As a result of the study, we proposed to reorient government support from simple subsidies to incentives for farmers to produce bioenergy from waste. This measure will increase farmers' energy independence, reduce income dependence on rising energy prices, and increase the efficiency of public spending.

Do programme budget mechanisms improve the efficiency of public spending? Elements of theory and empirical data from Cameroon

This paper sets out to explore the effect of programme budget mechanisms on the efficiency of public spending. To do so, we first conducted an exploratory study among eight officials involved in the preparation and execution of the State budget. This exploratory study then enabled us to construct the variables to produce an analytical model. A survey was carried out among 475 performance chain actors in the central services of 29 ministerial departments of the State of Cameroon. The results obtained using descriptive statistics and simple probit regressions suggest that the mechanisms introduced by the programme budget have a mixed effect on the efficiency of public spending. While, on the one hand, structuring the budget into programmes, actions, activities and tasks, performance measurement indicators and a priori controls on the quality of programmes may have a positive effect on the efficiency of public spending; on the other hand, allocating appropriations according to expected results and costs and a posteriori internal and external budgetary controls have a negative influence on the efficiency of public spending. The study recommends developing the external budgetary controls and introducing internal controls that focus more on performance rather than consistency.

Budget Deficit and Economic Growth in Cote d’Ivoire: A Search for Threshold

This study examines the effect of budget deficit on economic growth in Cote d’Ivoire. The study applies threshold regression model to annual data covering the period 1970-2022. The results show that fiscal policy significantly influences economic growth rate. Further, the study establishes that the threshold level of budget deficit conducive for economic growth is 4% of GDP. Beyond this threshold, budget deficit is detrimental to economic growth. As the actual budget deficit is above 4%, the study recommends measures aimed at increasing domestic revenue and enhancing efficiency of public spending to enable the country reap more economic growth associated with fiscal policy. In this regards, efforts should be deployed to reduce tax revenue losses from exemptions and evasion which represent a potential of 4.2% of GDP, i.e. more than FCFA 1800 billion. Under certain assumptions, the “true” budget deficit threshold of Cote d’Ivoire is around 2% of GDP.

Complete Accounting of Fixed Assets at Vietnam Public Hospitals When Applying VPSAS 17 and VPSAS 31

Purpose: The aim of this study is to provide a solution based on the regulations of VPSAS that have been issued to improve the accounting of fixed assets in public hospitals in Vietnam today. Theoretical framework: The study uses regulatory documents of the government and industry to understand the nature, scale of management, fixed assets used in Vietnamese public hospitals. Design/methodology/approach: The study uses survey data through google form, the research article synthesizes existing shortcomings, analyzes and evaluates from survey data, thereby offering solutions from previous research results, specific characteristics of the health sector and applying VPSAS 17 and VPSAS 31 to accounting for tangible fixed assets at Hanoi public hospitals today to help accountants and managers at Vietnamese public hospitals to participate. study and apply it well in their work. Findings: The study has provided a number of solutions to improve fixed asset accounting in Vietnamese public hospitals when using VPSAS 17 and VPSAS 31. Next, The results show The determination and recognition of fixed assets are influenced by different management mechanisms, so the treatment and recognition of assets are also different. Research, Practical & Social implications: The study shows Vietnam is in the process of integrating and perfecting the accounting system according to international regulations, including the public accounting system. One of the public sectors that manages the largest amount of government fixed assets is the public hospital sector. Originality/value: The value is that In the process of public sector financial reporting disclosure and transparency, the Ministry of Finance has recently developed and issued 11 Vietnamese public accounting standards, the first two phases in the reform process in the field of financial management. public administration at the national and local levels…the application of Vietnamese Public Accounting Standards is important in the PFM Program efforts to improve the efficiency of public spending and strengthen governance. management of public resources towards sustainable development, including accounting for fixed assets at public hospitals. Therefore, it will greatly affect and influence the financial position in the public financial statements.

Estimation of Multiflier Effect of Public Spending on Economic Growth under Multiple Regimes Regime

The paper estimates the multiplier effect of public spending (total government spending) on economic growth (RGDP) from 44 years long time-series database of macro-economic variables from 1974-75 to 2018-19 (Panchayat Regime (1975-1990), Democracy I: Ceremonial Monarch (1991-2005) and Democracy II: Federal (2006-2019)) through structure vector auto-regressive (SVAR) model with tests. The paper provides the above three political regimes based on relationships between public spending and economic growth and the multiplier of public spending on economic growth. As a result, in the three different regimes, their nature, behavior, and dynamics are stationary. Except for real regular spending (RRS) in Democracy I: Ceremonial Monarch (1991-2005) and real capital spending (RCS) in Democracy II: Federal (2006-2019), all coefficient values of SVAR estimate shows a significantly positive relationship between the government spending and economic growth. It indicates a positive multiplier effect of public spending; recurrent spending and capital spending are positive to economic growth, except for GRRE in Democracy I: Ceremonial Monarch (1991-2005) and RCS in Democracy II: Federal (2006-2019). Likewise, in the different political regimes, higher multiplier of total public spending, regular public spending and capital public spending in the Panchayat Regime (1975-1990) are better than successive democratic regimes so-called the people’s centric political regimes: Democracy I: Ceremonial Monarch (1991-2005) and Democracy II: Federal (2006-2019). Besides, except for the Panchayat Regime (1975-1990), the multiplier value of public spending; recurrent spending, and capital spending are lower in Democracy I: Ceremonial Monarch (1991-2005) and then Democracy II: Federal (2006-2019). It indicates the low efficiency of the government spending and budgetary system. Therefore, the government should improve the efficiency of public spending, the ratio of the capital spending, and private investment for improving the higher multiplier variable in long run.

Efficiency of public spending on primary health care: analysis of São Paulo’s cities

Objective: To analyze the efficiency of São Paulo’s cities with spending on the Primary Health Care sub-function in the year of 2018 and its association with geographic location, population size, wealth generated in the city (GDP – Gross Domestic Product) and budget expenditures with this public policy.
 Methodology: Exploratory descriptive and explanatory study with São Paulo’s cities in six similar cluster whit combine population and GDP. It uses the settled expense as input, the Number of FHS (Family Health Strategy) Teams, FHS’s Coverage Percentage, Number of Basic Health Units (BHU) and Percentage of Live Births of mothers who performed more than 7 doctor's appointments in the prenatal period as an output. The efficiency level of each city is shown on georeferenced maps. Pearson's correlation is used to estimate the levels of associations between quantitative variables.
 Results: 102 cities have a maximum level of efficiency, distributed between the six groups. Cities with a lower number of inhabitants and GDP tend to be more inefficient. Efficiency has a low correlation with population size, GDP or health public spending. The cities with the lowest levels of efficiency are neighbors of São Paulo (Metropolitan Region) or small cities scattered throughout the state’s territory.
 Theoretical Contributions: The research identifies that the management (formulation, implementation and evaluation) of the primary health care policy must consider different programs that focus on its location in the cities’ territory, population and wealth. There are references to the benchmarks for good practices in managing Primary Health Care policies.