Enhancing Efficiency of Government Budget and Fiscal Policy

When one thinks of efficiency in connection with government budget and fiscal policy, the first thought is usually how to find ways to make the budget and fiscal process work more efficiently. How can the funds needed to pay for government be collected and disbursed with minimum cost? A corollary to this mindset is that taxpayers are entitled to have their public servants spend their tax dollars, yen, won or euros wisely and efficiently. There is some validity to this viewpoint, since it seems irrational to advocate less efficiency rather than more. However, there are two sides to this coin. Those who think efficiency should be the goal are thinking like a businessman. Businesses should be run efficiently and so should governments, according to this mindset. But there are other ways to view this issue. It should be kept in mind that government has no resources of its own. Whatever resources it has, it must first take from someone. That being the case, is it really a good idea to try to find ways to make it easier for government to take assets from private individuals and businesses? This article explores this question from both perspectives. It begins by looking at the methods that have been found over the years to make the budget and fiscal process work more efficiently. It then looks at the other side of the issue and discusses instances when less efficiency might be better