| dc.description.abstract | Public spending is an important tool of fiscal policy. It can affect
aggregate demand levels, with consequent impacts on economic
growth, employment, national income and its distribution. Given the
scarcity of public resources, it is crucial to ensure the efficiency of their
expenditure, as well their optimal use.
This study aims to measure the efficiency of public spending in Egypt
during the period 2000/2001-2011/2012. Efficiency levels and their
changes over time are determined using a widely applied technique
with some amendments to suit the conditions of data availability in
Egypt .The analysis is extended so as to identify the factors behind the
changes in efficiency levels.
Our empirical analysis showed that the efficiency level of public
spending tended to decline throughout the period of study, though this
period witnessed considerable increases in gross public spending in
constant prices. It is, therefore, argued that the increase of public
spending doesn't necessarily lead to improved levels of efficiency, if
unaccompanied with measures aiming specifically at improving
efficiency. Hence it is necessary that changes in public spending and
measures for enhancing its efficiency should go hand in hand.
The study proposed that increasing the efficiency of public spending
should include measures for fighting corruption, tightening control
over the performance of government agencies, looking for the best
intervention mix to spend on various items and activities in each sector,
and measures for improving political stability and security levels. | |
