Measuring the impact of government spending with AI

Executive Summary

Measuring the impact of government spending is one of the central, but so far insufficiently insufficiently solved tasks of public budget management. Billions of euros are spent annually without being able to provide a reliable answer as to which Measures actually generate the greatest social benefit.

The core problem lies not in the lack of data or evaluations, but in the lack of ability to assess impact in the context of competing alternatives alternatives. This article shows why classic impact analyses are structurally structurally inadequate - and how mathematical decision optimization with StratePlan enables a new quality of impact assessment.

Measure and calculate the impact of government spending with AI now

Why impact is only incompletely measured today

Public spending is usually assessed on the basis of key figures, target achievement of individual programs or subsequent evaluations. These methods usually only answer a limited question:

"Has an individual project achieved its objectives?"

What they don't answer is crucial:

"Was this project the best use of the available funds compared Compared to all other possible alternatives?"

Impact without comparison is no impact

An isolated impact assessment of individual measures creates a deceptive Certainty. A project can be successful - and still be a bad decision Decision if other project combinations with the same budget would have would have achieved a significantly higher overall impact.

It is precisely at this point that a blind spot arises in public Budget management: impact is measured in absolute terms, not relative to the Decision space.

The role of control and audit bodies

Institutions such as the Taxpayers' Association, Audit offices and scientific evaluation bodies make an important contribution to the transparency Contribution to the transparency of government spending. Their analyses make inefficiencies visible - but mostly retrospectively.

The crucial question remains unanswered: How should the budget have been distributed in order to achieve maximum impact?

The real challenge: portfolio impact

Government spending does not develop its effect in isolation, but as a portfolio. Individual measures influence each other, compete for resources or reinforce each other or reinforce each other. The impact results from the combination, not from the individual project.

Dozens or hundreds of projects create a decision space that can no longer be fully analyzed using can no longer be fully analyzed using traditional methods. Impact is inevitably estimated - not calculated.

What "measuring impact" really means

A robust impact assessment of public spending requires:

• the simultaneous consideration of all relevant projects
• the integration of budget limits, dependencies and conflicting objectives
• the comparison of all permissible project combinations

Only when it is clear which portfolio achieves the highest overall impact can we it is possible to speak of effective use of funds.

StratePlan: Calculating the impact

StratePlan was developed to close precisely this gap. The platform uses mathematical optimization methods to not only evaluate the impact of public spending not only to evaluate the impact of public spending, but to systematically maximize it.

Taking all constraints into account, StratePlan calculates the project and budget Project and budget combination that generates the highest measurable overall benefit. Impact is therefore not interpreted, but quantified.

New transparency for politics, research and the public

A calculated impact logic creates a new standard of Accountability:

• What impact was actually maximized with the budget?
• Which alternatives were deliberately excluded?
• What is the opportunity loss of options not chosen?

This makes discussions about government spending more objective, comprehensible and verifiable.

Conclusion

Measuring the impact of government spending is not a question of additional Evaluation reports, but a question of the right decision-making logic. As long as impact is evaluated in isolation and not in the overall context, efficiency Efficiency losses remain unavoidable.

The decisive progress lies in a new perspective:

Measuring impact means calculating alternatives - not counting successes.
This is exactly where StratePlan comes in.

Measure the impact of government spending with AI now