The Effectiveness of Public Expenditure in Portugal

Over the past decade, Portugal has experienced imbalances and inefficiencies in the public sector that have impeded better economic performance. Though Portugal's total spending as a proportion of GDP is somewhat below the EU average, the rapid and uncontrolled growth of its primary current spe...

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Bibliographic Details
Main Author: Bronchi, Chiara
Format: eBook
Language:English
Published: Paris OECD Publishing 2003
Series:OECD Economics Department Working Papers
Subjects:
Online Access:
Collection: OECD Books and Papers - Collection details see MPG.ReNa
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520 |a Over the past decade, Portugal has experienced imbalances and inefficiencies in the public sector that have impeded better economic performance. Though Portugal's total spending as a proportion of GDP is somewhat below the EU average, the rapid and uncontrolled growth of its primary current spending to a level now above the OECD and EU average, is worrying, because it puts at risks long-term fiscal sustainability. This paper points to major shortcomings in the budget management process and in the planning and control of public spending. The paper acknowledges recent action taken by public authorities to address some of the shortcomings and makes recommendations for moving further ahead. It suggests policy options that can make public expenditure more efficient and effective at overall levels. Administrative control, the cost-effectiveness of service provision, and incentives for efficient resource allocation all need to be improved. Ongoing efforts to develop accruals-based ..