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Budget Rigidity and Expenditure Efficiency in Slovenia
Author:
Mr. Todd D. Mattina
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Ms. Victoria Gunnarsson
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Series:
IMF Working Papers
Volume/Issue:
Volume 2007: Issue 131
Language:
English
Publication Date:
01 Jun 2007
DOI:
https://doi.org/10.5089/9781451866957.001
ISBN:
9781451866957
ISSN:
1018-5941
Pages:
29
Keywords:
WP; Slovenia; wage; budget; country; efficiency score; GDP
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper assesses the relative efficiency and flexibility of public spending in Slovenia compared to the advanced and new EU member states. Spending on health care, education, and social protection is relatively high in Slovenia without achieving correspondingly better outcomes. Inefficiencies appear to stem from the financing mechanisms for social services, institutional arrangements, and the weak targeting of social benefits. In addition, the composition of spending appears to be strongly tilted towards nondiscretionary items that reduce the fiscal room for maneuver. Greater flexibility is needed to facilitate the reallocation of relatively inefficient expenditure into higher priorities. In this manner, medium-term expenditure rationalization can focus on reducing inefficient outlays rather than restraining traditionally flexible components of the budget, such as public investment.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2007: Issue 131