What are expenditure reviews?
Expenditure reviews are in-depth analyses of public expenditure. Their purpose is to identify more efficient and cost-effective ways of delivering public services. The objective is not to achieve savings at the expense of the quality or accessibility of public services, but to ensure better value for money. Efficient use of public money is one of the key elements of fiscal sustainability.
Why are they important?
They assist states in planning their budgets more effectively, directing funds to where they are needed most, and enhancing the efficiency of the public sector. The majority of EU Member States already conduct expenditure reviews on a regular basis – often with strong political support and clearly defined accountability for the implementation of proposed measures.
What are the prerequisites for a successful expenditure review?
The key prerequisites are political will, clear accountability and a systematic approach. The objectives and outcomes must be clearly defined in advance and communicated publicly, even if they are not politically favourable. They should constitute a regular part of the budgetary process and be accompanied by an up-to-date overview of their planned contents.
Why does Slovenia need regular reviews of public expenditure?
Long-term pressures on public finances in Slovenia are becoming increasingly severe, ranging from population ageing and healthcare investments to the costs of the green transition and other public services. That is why it is crucial to use public funds efficiently.
Where is Slovenia falling behind?
In Slovenia, expenditure reviews are not conducted regularly, lack sufficient political support, and their findings are rarely applied in practice. Despite recommendations and guaranteed external support, the situation has not improved significantly in recent years.
What needs to be done?
Slovenia needs a systematic approach: expenditure reviews should become an integral part of the regular budgetary process, with clear and transparent objectives and results. It is vital that the findings are actually taken into account when making decisions about public spending.