Overview

• Many countries have substantial scope to reallocate budgets toward higher‑return areas such as public investment and R&D.
• Estimated efficiency gaps persist at about 31% in advanced economies, 34% in emerging markets, and 39% in low‑income countries.
• Adopting top‑performing practices could deliver 30% to 40% more value for money.
• Stronger institutions correlate with more efficient, growth‑friendly spending, including lower corruption, stronger rule of law, and better public investment management.
• The report underscores that composition and management of spending are central reform priorities and does not cite specific government responses.