Open AccessASSESSMENT OF PUBLIC EXPENDITURE EFFICIENCY: A REVIEW
Author(s) -
Wong Sing Yun
Publication year - 2020
Publication title -
journal of economics and sustainability
Language(s) - English
Resource type - Journals
ISSN - 2637-1294
DOI - 10.32890/jes2020.2.2.3
Subject(s) - public economics , public expenditure , public spending , public sector , economics , government (linguistics) , government spending , budget constraint , business , public finance , microeconomics , macroeconomics , welfare , political science , market economy , linguistics , philosophy , economy , politics , law
Public spending is considered an important tool in a government’s continuous efforts toimprove the delivery of the public sector and achieve growth objectives. The increasingdemand for higher expenditures may create a tax burden and pressurised the budgetaryallocation. This leads to the rising concern to evaluate the efficiency and effectiveness ofpublic expenditure. A highly efficient public sector will likely be able to produce moreoutputs with less spending on inputs. Hence, the primary aim of this paper is to providea comprehensive review of the growing literature on public expenditure efficiency.Against this background, an extended review will be discussed on the determinants thatinfluence the efficiency of public spending. As such, the objective of this paper can besummarised to address the following key questions. Firstly, how to measure the efficiencyand effectiveness of public expenditure? Secondly, what are the determinants thatinfluence the efficiency of public spending? The answers to these questions will help solvethe recent problem of budget constraints faced by policymakers.