Economic appraisal

Economic appraisal is a type of decision method applied to a project, programme or policy that takes into account a wide range of costs and benefits, denominated in monetary terms or for which a monetary equivalent can be estimated.

Economic appraisal is a key tool for achieving value for money and satisfying requirements for decision accountability.

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.

The principles of appraisal are applicable to all decisions, even those concerned with small expenditures.

Appraisal is an essential part of good financial management, and it is vital to decision-making and accountability.