A model for assessing the efficiency of government expenditure

Abstract

It is challenging for governments to transfer public spending into successful public programs and projects. Additionally, good governance of the public financial system is essential for economic and human development. The author suggested a model to evaluate the efficiency of public spending using data from 71 countries during the period 1996-2017. The model addresses the ability of public allocations to reach government's objectives (e.g., controlling unemployment and enhancing economic growth) in addition to including factors related to sustainable development. Thus, econometric and statistical tests are carried out to validate the model and to measure its stability and accuracy. Building on the current model, we could therefore apply the model to individual countries to better understand each country's public spending system and to help decision makers efficiently execute their national strategic plans.

The Size of the Public Economy and Its Economic Efficiency Problem

“…Further, the expenditures of governments for regulatory activities cause inefficiency rather than efficiency in the public economy. It might be said that the expenditures in question take the place of the expenditures of government (Bassam, 2020;Berry & Lowery 1987;Shughart, 2004). Massive bureaucratic structuring in the public economy is one of the other indicators of inefficient production and the expansion of public sector when compared with the private sector.…”

Public Finance in Saudi Arabia: The Need for Reform

“…ence on the achievement of the goals of many development 36 and diversification plans the government has adopted since 1970. 37 It is clear that a good plan will not be effective unless it is accompanied by a suitable framework, including highquality institutions and good-governance practices.…”

“…47 Several reasons have been identified, including the lack of public-sector productivity and the failure to adopt good-governance practices, such as transparency and accountability. 48 Many studies have concluded that the challenges include the lack of modernization, low institutional quality, 49 and the application of market-based reforms without taking into account the country's organizational and institutional structure. 50 In addition, when we examine the management style for handling public finance and budgeting, it is understandable why the economic goals have not been achieved.…”

Technological Approach to Ensure Ethical Procurement Management

“…Wagner's law argues that economic growth leads to an increase in public expenditure. Thus, there is a correlation between public spending and a country's economic development [3]. The essence of public procurement is to achieve value for money, which manifests in enhanced human welfare and improved economic growth [4].…”