Fiscal Monitor, October 2025: Spending Smarter: How Efficient and Well-Allocated Public Spending Can Boost Economic Growth

Chapter 1 explores how governments can improve economic growth prospects by enhancing the efficiency and composition of public spending, while keeping the overall spending envelope unchanged.
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Volume/Issue: Volume 2025 Issue 002
Publication date: October 2025
ISBN: 9798229024938
$50.00
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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Economics- Macroeconomics , Public Finance , Business and Economics - Statistics , Business and Financial , Public spending , expenditure , efficiency , rigidity , economic growth , output , long-term , efficiency gap , public spending efficiency , management reform , allocation process , expenditure category , public spending increase , Expenditure efficiency , Public investment spending , Total expenditures , Education spending , Middle East , North Africa , economy abbreviation , p LW , risk asset valuation , asset valuation pressure , Fiscal stance , Government finance statistics , Global , Caribbean , Asia and Pacific , East Africa

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Fiscal Monitor, October 2022: Helping People Bounce Back
Fiscal Monitor, April 2025: Fiscal Policy under Uncertainty
Fiscal Monitor, October 2024: Putting a Lid on Public Debt
Fiscal Monitor, April 2024: Fiscal Policy in the Great Election Year
Summary

This Fiscal Monitor explores how governments can improve economic growth prospects by enhancing the efficiency and composition of public spending. Redirecting public spending toward infrastructure, education, health, and research and development, without increasing overall spending, can deliver significant long-term gains in output. Closing gaps in efficiency can further magnify these gains, with institution-building being the most effective strategy. The analysis provides new global and time-varying datasets of public spending efficiency and rigidity.

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