Inefficiency of public spending
Ineffectiveness of public spending
Misallocation of public spending by government
Inefficient public programmes
Governments are spending scarce resources on goods and activities that the private sector could do much more efficiently, for example producing and marketing agricultural and industrial goods or providing bus transport in cities. Governments have not set priorities and so their spending does not balance needs against the cost of raising revenue. Spending limits are not coordinated by fiscal planning, annual budgeting and regular monitoring of revenues and expenditures. This has lead into fiscal crisis in many developing countries.