Assessment of efficiency of public expenditure and steps to optimization

Analysis of budget requests (presentation)The objectives of this research on “Assessment of efficiency of public expenditure and steps to optimization” are to identify areas in which public spending is too high and to assess measures of possible reduction through higher efficiency of spending.

Periodic assessment of public expenditure efficiency, and also optimization of outlays, in order to achieve a reduction of spending in less prioritized sectors is becoming worldwide practice. The results of previous research of the Centre for Economic Strategy on the optimum level of public expenditure demonstrated that the share of public spending in GDP is high in Ukraine while the levels of institutional capacity and confidence in state institutions are low. To achieve macroeconomic stability it is important to reduce the debt burden and budget deficit. That is why assessment of efficiency of public spending is an urgent problem for Ukraine. Higher public spending efficiency will allow to reduce the tax burden on the private sector, improve quality of public services and stimulate economic growth and rising prosperity of the citizens of Ukraine.


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