## On the Design and Effectiveness of Targeted Expenditure Programs

_IMF Working Papers, November 1, 2004_

## Source details

**Canonical URL:** [On the Design and Effectiveness of Targeted Expenditure Programs](https://www.imf.org/en/publications/wp/issues/2016/12/31/on-the-design-and-effectiveness-of-targeted-expenditure-programs-17769)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/31/on-the-design-and-effectiveness-of-targeted-expenditure-programs-17769/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/31/on-the-design-and-effectiveness-of-targeted-expenditure-programs-17769/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/31/on-the-design-and-effectiveness-of-targeted-expenditure-programs-17769/bundle-manifest.json)

## Bibliographic details
- Authors: Ehtisham Ahmad, Leonardo Martinez
- Published: November 1, 2004
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451875232.001

---

### Main argument and scope
- The paper argues that both horizontal and intertemporal competition among recipient governments are needed to ensure incentives for effective utilization of targeted transfers.
- Implications for budgeting frameworks and the types of information needed that might be amenable to formal contracting between levels of government are explored.

### Authors and publication metadata
- Authors: Ehtisham Ahmad, Leonardo Martinez
- Publication date: November 1, 2004
- Series: Working Paper No. 2004/220
- Issue: 220
- Volume: 2004
- Pages: 14
- DOI: https://doi.org/10.5089/9781451875232.001
- Stock No: WPIEA2202004
- ISBN: 9781451875232
- ISSN: 1018-5941

### Key findings
- Effective utilization of targeted transfers requires:
  - Horizontal competition among recipient governments.
  - Intertemporal competition among recipient governments.
- These competitive dynamics affect incentives and performance of targeted expenditure programs.

### Implications for budgeting and governance
- Budgeting frameworks should be designed to preserve or encourage both horizontal and intertemporal competition among recipients.
- Information systems should collect data that can support formal contracting between levels of government.
- The types of information needed for contracting are an important element for program design (specific information types are discussed in the paper).

### Subject classifications and keywords
- Subject: Budget planning and preparation, Competition, Expenditure, Tax incentives
- Keywords: central government, fund, local government, program, targeted expenditure program, WP

### Access and formats
- Available formats and distribution options are noted on the IMF eLibrary and the working paper landing page (Download PDF; More Formats on IMF eLibrary; Order a Print Copy; Create Citation).

*Source: IMF Working Papers — "On the Design and Effectiveness of Targeted Expenditure Programs", Ehtisham Ahmad and Leonardo Martinez, November 1, 2004; Working Paper No. 2004/220; DOI: https://doi.org/10.5089/9781451875232.001*

---

## Content in this bundle

- **_wp04220 - References**
  - [_wp04220 - References (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2004/_wp04220.pdf.md){rel="alternate" type="text/markdown"}
  - [_wp04220 - References (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2004/_wp04220.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/on-the-design-and-effectiveness-of-targeted-expenditure-programs-17769_