Public investment should be at the heart of fiscal narratives
By Andrea Correa / 23 June 2025 / OMFIF website
In a recent article Andrea Correa, Senior Economist, at the Economic and Monetary Policy Institute comments on the challenges facing government when it tries to shift from spending to an investment mindset.
OMFIF is an independent think tank for central banking, economic policy and public investment, providing a neutral platform for public and private sector engagement worldwide. Below are extracts from her article.
“One of the biggest barriers to meaningful public investment is institutional: fragmented frameworks, short-term budgeting and unclear mandates. While government agencies spend significant time on the administrative and technical aspects of budgeting, as the podcast points out, there is insufficient focus on whether these structures are delivering results. This calls for a cultural shift in how the public sector conceives its investment role, adopting an investor mindset that links money spent today to public value delivered tomorrow.”
“The use of tools such as participatory budgeting can help governments prioritise what matters most to communities. Citizens should not be passive recipients of public services, but active co-creators of public value. This strengthens democratic legitimacy and ensures that investment decisions reflect genuine societal needs.”
Read the full article on the OMFIF website