Skip the NI Direct Bar
Skip navigation
Dedicated search page with advanced options

1.1 What is Economic Appraisal?

1.1.1

Economic Appraisal - hereafter referred to simply as "appraisal" - is about getting a good deal from public expenditure. It is a key tool for achieving value for money and satisfying public accountability requirements. It is a systematic process for examining alternative uses of resources, focusing on assessment of needs, objectives, options, costs, benefits, risks, funding, affordability and other factors relevant to decisions. Appraisal is:-

  • designed to assist in defining problems and finding solutions that offer the best value for money (VFM).
  • a way of thinking expenditure proposals through, right from the emergence of the need for a policy, programme or project, until its implementation.
  • the established vehicle for planning and approving public expenditure policies, programmes and projects.
1.1.2

The scope of appraisal is very wide. It is about assessing VFM from a broad Northern Ireland (NI) perspective. This means it should:

  • cover all the costs and benefits impacting on NI residents.
  • assess not only the costs and benefits falling to the public sector, but also those affecting other sectors in NI such as the private and voluntary sectors.
  • take account of the full range of impacts, including for example economic, social, environmental and distributional effects.
1.1.3The basic elements of appraisal are listed here and explained in Section 2. Other sections elaborate on more specific aspects.
1.1.4Good appraisal leads to better decisions and VFM. It facilitates good project management and project evaluation. Appraisal is not optional; it is an essential part of good financial management, and it is vital to decision-making and accountability. Its principles must be applied, with proportionate effort, to all spending decisions, including small expenditures.
1.1.5There is a role for narrower appraisals, for example of the commercial or financial impact upon a particular public body, but these should generally supplement an appraisal from a NI perspective, they should not generally be conducted instead of it.

Read on to When is Economic Appraisal Required?

Back to Topic Index