spending reviews explained

[Napodano]

Another good paper by Marc Robinson, this time on spending reviews. The topic may be well known in Aglo-Saxon countries but it is all the rage in Souther European countries and in many transition and developing countries.

' The idea that spending review should become a regular part of the budget preparation process is now widely accepted. Most budget professionals now accept that the systematic and ongoing scrutiny of “baseline” expenditure to identify savings options is an essential part of good expenditure prioritization. Without systematic spending review, finding adequate fiscal space for high priority new spending – while keeping proper control over aggregate expenditure – becomes extraordinarily difficult, if not impossible.
 
So far, so good. The problems start when decisions are made about how to design the spending review process...'

More at  http://blog.pfmresults.com/wordpress/?p=192 

[Napodano]

Example of spending review, courtesy of Gord Evans.

Program Review: The Government of Canada’s experience eliminating the deficit, 1994-99: a Canadian case study

'Tests served as the conceptual framework for the exercise. They were framed as six questions:
1. Does the programme or activity continue to serve a public interest?
2. Is there a legitimate and necessary role for government in this programme area or activity?
3. Is the current role of the federal government appropriate or is the programme a candidate for realignment with the provinces?
4. What activities or programmes should, or could, be transferred in whole or in part to the private or voluntary sector?
5. If the programme or activity continues, how could its efficiency be improved?
6. Is the resultant package of programmes and activities affordable within the fiscal restraint? If not, what programmes or activities should be abandoned?' (page 22)