public sector

Optimization and Improving Efficiency of Public Sector Expenditures in the Context of the Economic Area De-globalization

Introduction. There is an exacerbation of the struggle between the countries for the implementation of their economic interests in the global market in the context of a multipolar world formation. The de-globalization trends increase and emerging local and global economic crises form the series of new requirements to ensure the efficiency of the public sector housekeeper. The article analyzes the measures to optimize the public sector costs during the crisis. Theoretical analysis. State in the modern economy is intended to create optimal conditions for the optimization of transaction costs. In economic theory calls for limiting the activity of the state in the economic system replaced the ideas of greater state intervention and increased costs of the public sector with a parallel increase their effectiveness. State failures occur in the event that the public sector does not function efficiently. In today’s economy there is a system of mutual neutralization of failures, when the state and the market, in some cases neutralize each other’s failures. Results. A set of recommendations aimed at optimizing and reducing inef- ficient spending of the public sector of the economy. The author comes to the conclusion that the formation of public and institutional mechanisms allowing to monitor the cost effectiveness of the public sector of the economy.