From Expenditure Consolidation to Expenditure Efficiency: Addressing Public Expenditure Pressures in Lithuania
IMF Working Papers, December 28, 2015
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Bibliographic details
- Authors: David Coady, Nan Geng
- Published: December 28, 2015
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513590554.001
Summary and scope
- Reviews public expenditure in Lithuania to identify areas where deeper structural reforms may be warranted to improve spending efficiency and contain future spending pressures.
- Benchmarks spending in Lithuania against other European countries focusing on:
- spending levels,
- spending composition,
- spending outcomes,
- for both economic and functional spending classifications.
- Notes that recent expenditure consolidation efforts have kept public spending among the lowest in Europe.
- Argues that a transition from broad-based measures to more structural measures will be required to:
- ensure that low spending levels remain sustainable,
- address poor social outcomes such as high inequality and poor health and education outcomes,
- efficiently and equitably contain spending pressures arising from an ageing population.
Key findings (as reported)
- Lithuania’s public spending is among the lowest in Europe following recent expenditure consolidation efforts.
- Benchmarking reveals areas of concern across:
- spending levels,
- spending composition,
- spending outcomes.
- Social outcomes highlighted for improvement include:
- high inequality,
- poor health outcomes,
- poor education outcomes.
- Demographic pressures noted: an ageing population will create spending pressures that need efficient and equitable containment.
Analytical focus and methodology
- Comparative benchmarking against other European countries.
- Analysis conducted for both economic and functional classifications of spending.
- Emphasis on identifying structural reform opportunities to improve spending efficiency rather than solely relying on broad-based consolidation.
Policy implications and recommendations (high-level)
- Shift from broad-based consolidation measures toward more structural reforms to:
- sustain low spending levels,
- improve social outcomes (inequality, health, education),
- manage ageing-related spending pressures in an efficient and equitable manner.