Spending Smarter: How Efficient and Well-Allocated Public Spending Can Boost Economic Growth

This Fiscal Monitor explores how governments can improve economic growth prospects by enhancing the efficiency and composition of public spending. Redirecting public spending toward infrastructure, education, health, and research and development, without increasing overall spending, can deliver significant long-term gains in output. Closing gaps in efficiency can further magnify these gains, with institution-building being the most effective strategy. The analysis provides new global and time-varying datasets of public spending efficiency and rigidity.

Chapter in the Report

Chapter 1: Spending Smarter: How Efficient and Well-Allocated Public Spending Can Boost Economic Growth

Chapter 1 explores how governments can improve economic growth prospects by enhancing the efficiency and composition of public spending, while keeping the overall spending envelope unchanged.

Videos

Press Briefing: Fiscal Monitor, October 2025

Press briefing speakers:

Vitor Gaspar, Director, Fiscal Affairs Department, IMF
Era Dabla-Norris, Deputy Director, Fiscal Affairs Department, IMF
Davide Furceri, Division Chief, Fiscal Affairs Department, IMF
Moderator: Tatiana Mossot, Senior Communications Officer, IMF

Watch Also the panel discussion at the Center for Strategic and International Studies with: The Fiscal Monitor event starts @ 1:03:04 time stamp

Speakers:

Arthur Asiimwe, Deputy Chief of Mission, Embassy of Rwanda
Era Dabla-Norris, Deputy Director, Fiscal Affairs Department, IMF
Shanta Devarajan, Professor of International Development, Georgetown University
Pjer Šimunović, Ambassador of Croatia to the United States
Moderator: Philip Luck, Director, Economics Program, Center for Strategic and International Studies