Integrating decision analysis into South Africa's spending review methodology

In 2016, the Government Technical Advisory Centre (GTAC) delivered training on the spending review methodology. During the training, it became evident that officials were not accustomed to analysing expenditure and performance data in the manner required for a spending review. They found it difficult to translate their analysis into findings and recommendations. In 2021, GTAC introduced the concept of decision analysis into its training curriculum. The primary reason for introducing decision analysis in the methodology was to empower officials with the tools needed to synthesise expenditure and performance data, identify diverse options and formulate evidence-based recommendations. In turn, it was hoped that these recommendations would then prompt decisions and actions by the political executive or senior managers. This research note explains how decision analysis can be used to outline the range of choices available to officials based on the analysis and findings from their spending reviews. In particular, it details the South African experience in using decision trees as part of the spending review methodology to enable government officials to think through their findings, message them appropriately and craft actionable recommendations.