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Features of Spending Reviews in Ireland: Experience for Russia

Author

Listed:
  • Olga V. Bogacheva

    (Financial Research Institute, Moscow 127006, Russia; Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences, Moscow 117997, Russia)

  • Oleg V. Smorodinov

    (Financial Research Institute, Moscow 127006, Russia)

Abstract

Since the beginning of the recent financial and economic crisis (2007Đ2008), spending reviews have played an important role in IrelandŐs efforts to increase the fiscal space available to government for new, higher priority policies. This goal has been achieved by applying a systematic process of identification of ineffective and inefficient saving programs. The authors of the article claim that experience of Ireland in organization of spending review process could be useful for implementation of this instrument in Russia. First, the case of Ireland clearly demonstrates that regular review of baseline expenditures requires more active role from the government and the Ministry of Finance in allocation of all budget resources. It is also obvious that commitment of the top political and official level is vital for the final success in implementation of this instrument in Russia. As for the Ministry of Finance, it should play a key role in designing the spending reviewsŐ format, advising the top political level on the selection of topics, scope and parameters of spending reviews, and identification of spending options. Second, success of spending reviews in Ireland is backed by strong legal and methodological framework which regulates rights and responsibilities of each participant in the review preparation process. Formation of such framework is the key prerequisites of successful implementation of spending reviews in Russia. Third, it should be noted that Ireland applies various types of spending reviews depending on a goals set. In Russia, it is advisable first to conduct a number of pilot selective reviews focused on government programs and particular ministries and agencies. After accumulating sufficient expertise, it would be appropriate to conduct a comprehensive spending review.

Suggested Citation

  • Olga V. Bogacheva & Oleg V. Smorodinov, 2018. "Features of Spending Reviews in Ireland: Experience for Russia," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 5, pages 34-45, October.
    • Handle: RePEc:fru:finjrn:180503:p:34-45
    DOI: 10.31107/2075-1990-2018-5-34-45
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    References listed on IDEAS

    as
    1. Caroline Vandierendonck, 2014. "Public Spending Reviews: design, conduct, implementation," European Economy - Economic Papers 2008 - 2015 525, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    2. Allen Schick, 2014. "The metamorphoses of performance budgeting," OECD Journal on Budgeting, OECD Publishing, vol. 13(2), pages 49-79.
    3. Fiachra Kennedy & John Howlin, 2017. "Spending reviews in Ireland – Learning from experience," OECD Journal on Budgeting, OECD Publishing, vol. 16(2), pages 93-108.
    4. Ian Hawkesworth & Knut Klepsvik, 2013. "Budgeting levers, strategic agility and the use of performance budgeting in 2011/12," OECD Journal on Budgeting, OECD Publishing, vol. 13(1), pages 105-140.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Olga V. Bogacheva & Oleg V. Smorodinov, 2019. "Creation of Enabling Environment for Spending Reviews in Russia," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 1, pages 21-33, February.
    2. Andrei I. Kostin, 2020. "Organization of Program- and Target-Oriented Funding for Research in Russia," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 1, pages 27-40, February.

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    More about this item

    Keywords

    spending reviews; federal budget; baseline budget expenditures; legal and methodological framework; saving measures;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt

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