Economic Appraisal

Economic appraisal is a systematic way of assessing expenditure proposals. The appraisal process involves identifying the need for policies, programmes or projects, defining objectives, examining options and weighing up the costs, benefits, risks and uncertainties of alternative options before a decision is made. The purpose of appraisal is to ensure that spending proposals achieve value for money, i.e. that resources are used economically, efficiently and effectively. Economic appraisal is also essential in establishing accountability for public expenditure.