EXPRO Publishes Research Paper on Expenditure Efficiency and Vision 2030

The Government Expenditure and Project Efficiency Authority (EXPRO) has released a research paper titled “The Concept of Expenditure Efficiency in Saudi Arabia: Key Concepts and Lessons.” The paper explores expenditure efficiency in depth, drawing on international analyses to assess measurement methodologies, identify efficiency gaps, and highlight EXPRO’s collaborative efforts with government entities to address them.

The research paper supports EXPRO’s efforts, alongside success partners in government entities, to enhance public expenditure efficiency in the Kingdom, advancing Saudi Vision 2030’s goals of fiscal sustainability and economic growth.

The paper pointed out that the concept of expenditure efficiency means maximizing the impact in relation to expenditure. This is achieved through the optimal use of available resources and addressing various types of waste without affecting the quality of services provided.

It addressed the two types of expenditure efficiency: “technical efficiency” and “allocative efficiency.” It also reviewed the methodological approaches currently used to measure expenditure efficiency in the public sector, as well as analyses by international organizations to study and evaluate such methodologies. It also explained the concept of the “efficiency frontier” to assess public expenditure outcomes and elaborated on identifying the causes of expenditure efficiency gaps.

The paper highlighted the Expenditure Review tool developed by EXPRO in line with international best practices to support structured analysis of government expenditure outcomes and results. Expenditure reviews provide a methodology to identify areas and opportunities for achieving expenditure efficiency and enhancing the quality of government projects. They also improve the quality of expenditure and financial results. Moreover, when integrated into the budget planning process, expenditure reviews contribute to ensuring that budget decisions are based on expenditure performance and that expenditures align with the government's and population’s evolving priorities.

The research paper also explained how EXPRO supports government entities by adopting best practices in expenditure efficiency through Expenditure Efficiency Teams and the SKEP Program, which applies a common framework to assess expenditure practices across government entities based on seven main pillars: leadership and strategy, planning and preparation for expenditure, capacity building, procurement, projects, assets and facilities, and expenditure impact. This evaluation enables EXPRO to identify areas for improvement and develop tailored capacity-building programs for each entity to help improve their performance.

To view the research paper