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Enhancing Expenditure Control with a Decentralised Public Sector in Denmark

Steen Daugaard

No 320, OECD Economics Department Working Papers from OECD Publishing

Abstract:

This paper analyses of some the key aspects of public expenditure policy in Denmark. The public expenditure to GDP ratio has abated markedly since the mid-1990s, reflecting both cyclical gains and the return on structural reforms. Nevertheless, the underlying upward pressure on government spending, notably from the demand for personal services, is generally perceived to be significant and expected to persist. The origins of such pressure, as well as means of containing it in the future, are discussed. With public consumption being very high by international standards, the paper advocates greater competition in the provision of services to individuals and more reliance on market signals such as client choice and user charges to enhance the efficiency of resource allocation. A particular feature of the Danish public sector is the fact that counties and municipalities have been assigned a wider range of responsibilities than in any other OECD country as well as extensive taxing ...

Renforcer le contrôle des dépenses dans un secteur public décentralisé au Danemark

Ce document analyse quelques-uns des aspects les plus importants de la politique des dépenses publiques au Danemark. Le rapport des dépenses publiques au PIB a diminué de façon significative depuis le milieu des années 1990, traduisant aussi bien des gains conjoncturels que des retombées positives des réformes structurelles. Néanmoins, la croissante pression sous-jacente sur les dépenses gouvernementales, en particulier du fait de la demande de services personnels, est généralement perçue comme significative et devant se maintenir. Le document aborde les origines de cette pression ainsi que les moyens pour la contenir dans l’avenir. Étant donné le niveau élevé de la consommation publique par rapport à la plupart des autres pays, il défend la nécessité d’une plus grande concurrence au niveau de la fourniture des services personnels et d’un recours plus important aux signaux du marché, tels que le choix des clients et les dépenses des utilisateurs, afin d’accroître l’efficacité de ...

Keywords: Denmark; expenditure policy; inter-governmental relations; relations intergouvernementales; Danemark; politique des dépenses publiques (search for similar items in EconPapers)
JEL-codes: E62 H11 H42 H50 H51 H52 H53 H77 (search for similar items in EconPapers)
Date: 2002-02-08
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