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Spending Smarter: How Efficient and Well-Allocated Public Spending Can Boost Economic Growth
Global growth remains lackluster, and public debt is high and rising, with increasing defense spending, aging populations, and higher interest rates putting additional strain on public finances. Governments should take decisive action to strengthen economic growth and rationalize public spending to improve living standards and alleviate fiscal pressures. This Fiscal Monitor explores how enhancing spending efficiency and strategically reallocating resources―particularly toward infrastructure, human capital, and research and development―can improve growth prospects, without increasing overall spending. By implementing these expenditure reforms, governments can not only strengthen economic resilience but also pave the way for a more prosperous future for their citizens.
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