The Government of Moldova's Economic Growth and Poverty Reduction Strategy Paper (EGPRSP) lays out an ambitious plan for sustaining growth and poverty reduction and reshaping the government to meet the needs of a market economy. The public expenditures envisaged under this ambitious plan, however, vastly exceed the domestic resources available to the Government. Additional foreign budgetary support may help alleviate some of that resource constraint. Recognizing that the share of tax revenues and expenditures to GDP in Moldova already greatly exceed comparable international levels, generating additional domestic tax resources risks crowding out the private sector and undermining growth prospects. This suggests that in order to finance higher order public expenditures priorities, the Government needs to create fiscal space from within the existing resource envelope. This will require inter and intra-sectoral reallocation of expenditures and an increase in the efficiency of public spending rather than increasing the relative size of government.

Public expenditures (PE), their sizes, and allocations across sectors, are some of the important instruments for the public sector to contribute toward sustainable development goals (SDGs). However, knowledge gaps remain as to how PEs have actually contributed to key SDG outcomes in the past, including the eradication of poverty and hunger, and the improvement in food and nutrition security in sustainable manners (SDGs 1 and 2). This study aims to partly fill this knowledge gap using the Statistics on Public Expenditures for Economic Development (SPEED data) and various country-level panel data. We find that PEs in different sectors have been significantly associated with key indicators under SDGs 1 and 2. Specifically, greater PEs for agriculture and health sectors have had relatively positive effects on total factor productivity growth in agriculture, reduced consumer food price indices, reduced poverty, reduced stunting, underweight or overweight among children under 5. A greater PE for agriculture has also been weakly associated with enhanced biodiversity. These relationships are observed for a broad class of countries, but somewhat stronger for countries that had been classified as low- or lower-middle-income in 2000. Greater PEs for education and social protection, which have been generally higher than PEs for agriculture and health, have had more mixed effects on these outcomes. While continued analyses are required to better understand the complex linkages between PE and these outcomes, the current study offers useful preliminary insights.

Achieving France’s medium-term fiscal targets will require significant expenditure efforts. This paper identifies areas where there is scope for increasing expenditure efficiency, with a view to achieving higher quality and more sustainable fiscal consolidation. The methodology is based on a triple benchmarking. First, the level of public expenditure in different categories is compared to other European countries. Second, the impact of spending is assessed against other European countries. Third, the input mix is analyzed to understand what components are responsible for the level of spending and for the quality of outcomes This is done for various categories of spending and policies. Based on these results, the paper then provides policy options for expenditure reform in each of these areas, drawing on successful reform episodes in other countries.

Public Expenditures, Growth, and Poverty assesses the efficacy of poverty reduction programs in Latin America, Africa, and Asia by synthesizing studies conducted by the International Food Policy Research Institute over the past ten years. Overall, the studies find that investments in agricultural research, infrastructure, and human capital are beneficial in the long term, while food aid and poverty reduction programs have little utility beyond immediately abating hunger and generating short-run income effects. The book develops a conceptual framework for analyzing public expenditures and their short- and long-run impact on poverty through various channels. It surveys spending trends and analyzes the effect of growing public investment on urban and rural poverty through case studies of India, China, Thailand, and Uganda. And it highlights the advantages of directing spending toward public works programs that engage impoverished peoples rather than using the limited aid money on food subsidies and other passive donations. Featuring discussions about the roles of various social safety net programs and a chapter devoted solely to the vexing poverty in sub-Saharan Africa, Public Expenditures, Growth, and Poverty will aid policy makers and encourage further, more analytic study of worldwide poverty reduction programs.

Public expenditure policy, together with efforts to raise revenue,is at the core of efficient and equitable adjustment. Public expenditureproductivity has critical implications for fiscal adjustment, particularly as the competition for limited public resources intensifies.By providing a framework for defining and analyzing public expenditureproductivity and unproductive expenditures, this pamphlet discusseshow economic policymakers may approach these issues.