Value for Money explained in the context of public investment

[Napodano]

Value for Money consists of three components:
1. Economy
2. Efficiency
3. Effectiveness

For an explanaition watch the PowerPoint video at the PFM Board Video Sessions
http://www.youtube.com/user/napodano?feature=mhee#p/c/51C9BA2BAB0F6227/3/ebnDksMuVb0

Attached is also a brochure issued by the UK Government on best practice for Value for Money in complex procurements.

[STONE]

I always thought explaining the three Es was challenging!  The brochure gives this definition of VFM:

"Value for money (VfM) is defined as “the optimum combination of whole-life cost and quality (or fitness for purpose) to meet the user’s requirement”. This is rarely synonymous with lowest price."

[harnett]

Bloody economists - Value for money is if it makes you happy (or happier than if you hadn't spent it for you opportunity costers out there!).  End of (you can even ask Reg).  Om Mani Padme Hum.

[atseacliff]

ICAI reckon their are 4 Es in the context of Aid Money - the Table on page 4 explains.  The addition of Equity makes things a whole lot fuzzier doesn't it?