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Social spending, expenditure efficiency and fiscal sustainability in the Arab States

ESCWA Publication: E/ESCWA/CL3.SEP/2025/1


Country: Arab region

Publication Type: Flagship publications

Cluster: Shared Economic Prosperity

Focus Area: Debt and fiscal policy, Financing for development, Macroeconomics

Initiatives: Debt Optimization to Enhance Fiscal Space, Climate/SDGs Debt Swap, Social Expenditure Monitor for Arab States, Public finance and inclusive fiscal policy

SDGs: Goal 8: Decent Work and Economic Growth, Goal 9: Industry, Innovation and Infrastructure, Goal 11: Sustainable Cities and Communities

Keywords: Arab countries, Climate, Development assistance, Debt management, Finance, Government spending policy, Government budgeting, Gross domestic product, Public expenditures, Public finance, Recommendations, Resources allocation, Social policy, Sustainable development, Taxation

Social spending, expenditure efficiency and fiscal sustainability in the Arab States

November 2025

Developed by the United Nations Economic and Social Commission for Western Asia (ESCWA) and the United Nations Children's Fund (UNICEF), the report entitled “Social spending, expenditure efficiency and fiscal sustainability in the Arab States” presents a comprehensive assessment of how public resources are invested in people. It introduces a whole-of-budget approach through the Social Expenditure Monitor (SEM), highlighting efficiency and equity gaps across seven dimensions of social spending.

The report defines an efficiency frontier to benchmark the effectiveness of resource use in achieving human development. It also demonstrates how countries can achieve improved outcomes through more strategic and effective spending. Aligned with the Sevilla Commitment on Financing for Development, the report outlines actionable pathways to strengthen fiscal systems using data-driven and AI-enabled tools that assess fiscal space, enhance efficiency and improve budget effectiveness, in line with national priorities for inclusive and sustainable development.

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Debt and fiscal policy, Financing for development, Macroeconomics
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