Budget Rigidity and Expenditure Efficiency in Slovenia

31 Pages Posted: 25 Jun 2007

See all articles by Todd D. Mattina

Todd D. Mattina

International Monetary Fund (IMF)

Victoria Gunnarsson

International Monetary Fund (IMF) - Fiscal Affairs Department

Date Written: June 2007

Abstract

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.

Suggested Citation

Mattina, Todd D. and Gunnarsson, Victoria, Budget Rigidity and Expenditure Efficiency in Slovenia (June 2007). IMF Working Paper No. 07/131, Available at SSRN: https://ssrn.com/abstract=995631

Todd D. Mattina (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Victoria Gunnarsson

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

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