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From Expenditure Consolidation to Expenditure Efficiency: Addressing Public Expenditure Pressures in Lithuania
Author:
Mr. David Coady
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and
Ms. Nan Geng
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Series:
IMF Working Papers
Volume/Issue:
Volume 2015: Issue 278
Language:
English
Publication Date:
28 Dec 2015
DOI:
https://doi.org/10.5089/9781513590554.001
ISBN:
9781513590554
ISSN:
1018-5941
Pages:
34
Keywords:
WP; pay; spending; base wage; EU average; wage bill; public expenditure review; spending efficiency; equity; benchmarking; Lithuania; European countries; consolidation measure; employment level; bill reduction; disability benefit; Health care; Wages; Europe
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 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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2015: Issue 278