Selected Issues Papers

Spending Efficiency and Reforms: France

Author/Editor:

Iulia Ruxandra Teodoru ; Ruud Vermeulen

Publication Date:

February 28, 2023

Electronic Access:

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Summary:

To rebuild fiscal buffers after large fiscal responses to successive shocks over 2020-22, France will need to reverse the trend spending increase observed over the last three decades through structural spending reforms. This paper identifies areas where scope for savings or efficiency gains exist based on an evaluation of the level and efficiency of public spending in France relative to European peers, using benchmarking analysis and stochastic frontier analysis to derive efficiency frontiers. Reforming social protection, health, education, and civil service, and rationalizing tax expenditures should preserve or improve outcomes while generating savings that would help meet medium-term adjustment needs.

Series:

Selected Issues Paper No. 2023/014

Subject:

International organization Monetary policy

Frequency:

Regular