Participation in Public Expenditure Systems : Participation in Public Expenditure Systems

The mainstream public economics literature makes the case that government intervention ought to be considered in two instances, i) when market failures occur because of externalities, public good properties, incomplete information, and lack of competition, or ii) when market activities worsen distribution of income. After establishing at least one of these, the government chooses among a range of instruments to redress the resultant allocative as well as productive inefficiency. The instruments include regulation, tax or subsidy redressal, and public-funded private provisioning. In developing countries where absolute poverty, often rural and agrobased, is the biggest development challenge, provision of basic services like primary education and health, infrastructure, income generating and employment activities warrants state involvement for reasons stated. Because public spending is financed by domestic and international taxpayers (in the form of development credit), efficacy of public spending is not only important from a development effectiveness lens, but also because of accountability to the financiers of public spending which includes the poor who pay indirect taxes.

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Bibliographic Details
Main Author: World Bank
Language:English
Published: Washington, DC 2003-03
Subjects:PUBLIC EXPENDITURE, PUBLIC GOODS, INCOME DISTRIBUTION, TAX, SUBSIDY, PUBLIC FUNDS, DEVELOPING COUNTRIES, POOR COMMUNITIES, RURAL COMMUNITIES, BASIC SERVICES, PRIMARY EDUCATION, HEALTH SERVICES, INFRASTRUCTURE, EMPLOYMENT GENERATION, PUBLIC SPENDING, TAXPAYERS ABSOLUTE POVERTY, ACCOUNTABILITY, ACCOUNTING, APPROPRIATIONS, AUTHORITY, BUDGET ALLOCATIONS, BUDGET FORMULATION, BUDGET PROCESS, CASE STUDY, CITIZEN, CITIZENS, CIVIL SOCIETY, CIVIL SOCIETY INSTITUTIONS, DECENTRALIZATION, DEMOCRACY, DEVELOPMENT NETWORK, DEVELOPMENT POLICY, DISCLOSURE, DISTRICTS, ECONOMIC DEVELOPMENT, ECONOMICS, ELECTRICITY, EXTERNALITIES, FAILURES, FINANCIAL RESOURCES, FISCAL, FORMAL INSTITUTIONS, GOVERNMENT INTERVENTION, GOVERNMENT PROGRAMS, GOVERNMENT SYSTEMS, INCOME, INFORMATION, INSTITUTIONAL REFORMS, INSTITUTIONAL WEAKNESSES, INSTITUTIONALIZATION, LACK OF COMPETITION, LEGISLATURE, MARKET FAILURES, MINISTRY OF FINANCE, MOTIVATIONS, MUNICIPALITIES, NATIONAL BUDGETS, PARLIAMENT, PARTICIPATORY APPROACHES, PARTICIPATORY PROCESSES, POLICY CHOICES, POLITICAL REFORMS, POOR PEOPLE, POVERTY REDUCTION, POVERTY REDUCTION STRATEGY, PROVISIONING, PUBLIC AFFAIRS, PUBLIC AGENCIES, PUBLIC ECONOMICS, PUBLIC EXPENDITURE MANAGEMENT, PUBLIC EXPENDITURES, PUBLIC POLICY, PUBLIC SECTOR, PUBLIC SECTOR PERFORMANCE, PUBLIC SECTOR REFORM, PUBLIC SECTOR REFORM PROGRAMS, PUBLIC SERVICE, PUBLIC SERVICES, REPRESENTATIVES, ROADS, SECTOR MINISTRIES, SERVICE DELIVERY, SERVICE PROVIDERS, SOCIAL DEVELOPMENT, SOCIALLY SUSTAINABLE DEVELOPMENT, STATE APPARATUS, SUSTAINABLE DEVELOPMENT, TECHNICAL SKILLS, TRANSPARENCY,
Online Access:http://documents.worldbank.org/curated/en/2003/03/2819982/participation-public-expenditure-systems-participation-public-expenditdure-systems
https://hdl.handle.net/10986/11307
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Summary:The mainstream public economics literature makes the case that government intervention ought to be considered in two instances, i) when market failures occur because of externalities, public good properties, incomplete information, and lack of competition, or ii) when market activities worsen distribution of income. After establishing at least one of these, the government chooses among a range of instruments to redress the resultant allocative as well as productive inefficiency. The instruments include regulation, tax or subsidy redressal, and public-funded private provisioning. In developing countries where absolute poverty, often rural and agrobased, is the biggest development challenge, provision of basic services like primary education and health, infrastructure, income generating and employment activities warrants state involvement for reasons stated. Because public spending is financed by domestic and international taxpayers (in the form of development credit), efficacy of public spending is not only important from a development effectiveness lens, but also because of accountability to the financiers of public spending which includes the poor who pay indirect taxes.