Title page
Fiscal Affairs Department
How to Design and Institutionalize Spending Reviews
Prepared by Laura Doherty and Amanda Sayegh
INTERNATIONAL MONETARY FUND
Copyright Page
©2022 International Monetary Fund
Cover Design: IMF Creative Solutions
Composition: The Grauel Group
HOW TO NOTE
Fiscal Affairs Department
How to Design and Institutionalize Spending Reviews
Prepared by Laura Doherty and Amanda Sayegh
Names: Doherty, Laura Nadine, author. | Sayegh, Amanda, author. | International Monetary Fund. Fiscal Affairs Department, issuing body. | International Monetary Fund, publisher.
Title: How to design and institutionalize spending reviews / Prepared by Laura Doherty and Amanda Sayegh.
Other titles: How to notes (International Monetary Fund).
Description: Washington, DC : International Monetary Fund, 2022. | September 2022. | Includes bibliographical references.
Identifiers: ISBN 9798400219276 (paper)
9798400219382 (ePub)
9798400219436 (Web PDF)
Subjects: LCSH: Expenditures, Public.
Classification: LCC HJ7461.D64.2022
Prepared by Laura Doherty and Amanda Sayegh, from the IMF’s Fiscal Affairs Department, in collaboration with Matej Kurian, from the Slovak Ministry of Finance. The authors would like to thank Richard Allen, Virginia Alonso Albarran, Ignatius de Bidegain, Theresa Curristine, Manal Fouad, Jason Harris, Arturo Navarro, Carolina Renteria, and other IMF staff members for their valuable comments, as well as former IMF staff member Marco Cangiano.
DISCLAIMER: Fiscal Affairs Department (FAD) How To Notes offer practical advice from IMF staff members to policymakers on important issues. The views expressed in FAD How To Notes are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or its management.
Publication orders may be placed online, by fax, or through the mail:
International Monetary Fund, Publication Services
PO Box 92780, Washington, DC 20090, U.S.A.
Tel.: (202) 623-7430 Fax: (202) 623-7201
Email: publications@imf.org
Contents
I. Introduction
II. Objectives and Scope of Spending Reviews
A. Spending Review Objectives
B. Scope of Spending Reviews
III. Institutional Arrangements for Spending Reviews
IV. Conducting Spending Reviews
A. Establishing the Objectives and Framework
B. Analyzing Spending and Developing Policy Options
V. Institutionalizing the Spending Review Framework
A. Integrating Spending Reviews with the Budget Process
B. Piloting Spending Reviews
VI. Supporting PFM Reform and Building Capacity for Spending Reviews
VII. Conclusion
Annex 1. International Experience with Spending Reviews
Annex 2. Examples of Tools, Techniques, and Approaches to Spending Review Analysis
References
Boxes
1. Targeted Spending Reviews: Types of Review Topics
2. South Africa Spending Review Methodology
3. Spending Review of Online Education in Denmark
4. Example of International Benchmarking for Slovenia
5. Sample Template for Costing Out Policy Proposals
6. Case Study: UK Government Property Optimization 2010
Figures
1. Spending Reviews in OECD Countries (2011–20)
2. Effectiveness of Spending Reviews: Evidence from OECD Country Survey
3. Evolution of Spending Reviews in OECD Countries
4. Example of an Organizational Structure for Spending Reviews
5. Indicative Timeline for Spending Reviews and Budget Preparation
Tables
1. Overview of Spending Review Process
2. Common Criteria for Identifying Saving Options
3. Supporting Elements of a PFM System and Capabilities