Systematization of statistical indicators for the analysis and evaluation of the efficiency of public expenditure management

Abstract

This paper aims to identify statistical indicators that enable the evaluation of the efficiency of public expenditure. This, in turn, allows the improvement of public expenditure management and increases the accountability in the decision-making process. Within this paper, we also tackle the theoretical aspects of the efficiency indicators, which are expressed through the effect-to-effort ratio. This insight is derived from an empirical study on the relationship between public spending and economic growth in the Republic of Moldova between 2002-2019. Given the observed positive impact of public spending on the GDP, a strict implementation of performance indicators on public spending will facilitate both its efficient management, as well as increase economic growth in the Republic of Moldova. We expect the impact to be both quantitative and qualitative, leading to sustainable growth prospects in the long term. JEL: E01, B23, C53, B26