Economic Reviews of Public Spending: The Case of Madagascar

Abstract

Public spending allows the administration to function well to meet collective needs. From the moment that public finances are no longer neutral, the budget becomes a means of economic intervention by the State. To this end, authors argue that the State's capital investments lead to job creation, a source of income redistribution to improve the standard of living of the population, whose returns will be measured by a positive impact on the country's progress. The country, like Madagascar, must review its investment policy by targeting key development sectors. This requires the best choices of a clear economic policy and the revision of the financing system, with the support of the international financial institutions, with a reform of public spending, with the aim of increasing the country's level of competitiveness in order to achieve sustained growth