Relationship Between Financial and Economic Evaluations for Different Types of Project
Appraisal can be undertaken from different perspectives, depending on the objectives of the commissioning body. The key choices are: Business case - requires a commercial perspective; and, Appraisal for Government - usually considers both the social perspective, and the fiscal perspective. A commercial or financial appraisal focuses on the gains and losses to one organization, typically a firm or an agency of government. Social appraisal is the broadest, and can be used to show how the (narrower) appraisals for business, government and citizens aggregate up to the social level. The fiscal perspective focuses on the project's impacts on government expenditure and receipts. It can be thought of as a commercial appraisal from the perspective of Government. The items in a financial appraisal are money flows to, and from the organization concerned. In contrast to the social cost-benefit analysis, external costs and benefits are omitted. The principle of 'comprehensiveness' does not apply; it is replaced by a commercial focus on matters which concern the organization itself, and not the wider world.
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| Language: | English |
| Published: |
Washington, DC
2005-01
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| Subjects: | BUS OPERATORS, BUS SERVICES, COST BENEFIT ANALYSIS, FARES, FRAMEWORK, FREIGHT TRAFFIC, FUEL, FUEL TAX, MAINTENANCE COSTS, METRO LINE, MINIBUS, MINIBUS SERVICES, ROAD INFRASTRUCTURE, TAXATION, TOLLS, TRAFFIC, TRANSPORT, TRANSPORT ECONOMICS, TRANSPORT INVESTMENT, TRANSPORT OPERATORS, TRANSPORT PROJECTS, TRANSPORT SECTOR, URBAN DEVELOPMENT, URBAN RAIL, URBAN ROAD, URBAN ROAD INFRASTRUCTURE, |
| Online Access: | http://documents.worldbank.org/curated/en/2005/01/6376881/relationship-between-financial-economic-evaluations-different-types-project https://hdl.handle.net/10986/11798 |
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| Summary: | Appraisal can be undertaken from
different perspectives, depending on the objectives of the
commissioning body. The key choices are: Business case -
requires a commercial perspective; and, Appraisal for
Government - usually considers both the social perspective,
and the fiscal perspective. A commercial or financial
appraisal focuses on the gains and losses to one
organization, typically a firm or an agency of government.
Social appraisal is the broadest, and can be used to show
how the (narrower) appraisals for business, government and
citizens aggregate up to the social level. The fiscal
perspective focuses on the project's impacts on
government expenditure and receipts. It can be thought of as
a commercial appraisal from the perspective of Government.
The items in a financial appraisal are money flows to, and
from the organization concerned. In contrast to the social
cost-benefit analysis, external costs and benefits are
omitted. The principle of 'comprehensiveness' does
not apply; it is replaced by a commercial focus on matters
which concern the organization itself, and not the wider world. |
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