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Mr. David Coady and Ms. Nan Geng
This paper reviews public expenditure in Lithuania to identify areas where deeper structural reforms may be warranted to improve spending efficiency and contain future spending pressures. The analysis benchmarks spending in Lithuania against other European countries focusing on spending levels, spending composition, and spending outcomes, and for both economic and functional spending classifications. While recent expenditure consolidation efforts have kept public spending among the lowest in Europe, a transition from broad-based measures to more structural measures will be required: to ensure that low spending levels remain sustainable, to address poor social outcomes such as high inequality and poor health and education outcomes, and to efficiently and equitably contain spending pressures arising from an ageing population.
Miss Candice Y Liu and Ms. Mercedes Garcia-Escribano
This manual presents the Expenditure Assessment Tool (EAT), which helps assess expenditures for any specific country. EAT uses the commonly available software program Excel and has been designed by Expenditure Policy Division at Fiscal Affairs Department at IMF. The information EAT provides can be very useful in the evaluation of government spending and in the identification of areas where there may be room to increase spending efficiency or rationalize spending. The evaluation is done through benchmarking of spending—levels, composition and outcomes—against regional and income comparators. The focus is on both the economic and functional classification of expenditures. The application of the tool to spending in Argentina is presented as an illustration.