Public expenditure review

Samuelson, Paul A. 1954. The Pure Theory of Public Expenditure. Review cf Economics and Statistics 36 386-89. 

This book provides only a brief explanation of what we mean by each of the four dimensions. More information is provided in the social protection chapter of the toolkit for preparing public expenditure reviews found at www.worldbank.org/hdpers. The toolkit provides a checklist of topics for analysis (summarized in box 9-2), notes with explanations or references to methodological materials and comparators, and illustrations of some of the types of analyses suggested. 

BOX 9.2 The Public Expenditure Review Lens Analysis of Individual Programs... 

A public expenditure review should assess how well a selection of the most important programs is working and provide guidance on any necessary or contemplated reforms. Such analysis should usually cover elements within each of the following areas ... 

BOX 9.4 The Public Expenditure Review Lens Sectorwide View... 

A key requirement is for firms (at all levels in the production chain) to undertake, as a first step, a life cycle analysis of their products, and to monitor the behaviour of their suppliers and customers. This may well occur in conjunction with an internal environmental review or audit, which will prompt the firm to scrutinise closely all aspects of its operations. There are a range of complex issues concerning the identification and measurement of environmental costs and benefits, and the impact of environmental factors on the valuation of company liabilities and productive assets, which are only now being fiiUy addressed by new environmental accounting techniques. Part of the problem is that there is no legal requirement for companies to disclose environmental expenditures separately, or to report publicly on their environmental policy and performance, although this is likely to change in the future. 

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