You are evaluating a lapsing or other program (including grants programs). You may need to complete an economic assessment as part of this evaluation.

Lapsing programs

The DTF Performance Management Framework provides specific requirements for the evaluation of lapsing programs seeking additional funding through the State Budget. There are different requirements for programs with total funding less than <$20 million, and for those equal to or greater than >$20 million.

Programs (including grants programs)

The evaluation of programs should be considered in the design phase so that an appropriate evaluation framework can be established which generates credible and meaningful performance data over the life of the program. Evaluation activities can include process evaluations, outcomes or impact evaluations, economic assessment, and realist and developmental evaluations. Different designs and methods will be required depending on the type of program and its size, complexity, and risk profile.

How should I undertake the economic assessment?

If your evaluation requires an economic assessment, guidance on undertaking economic assessment  Guidance-on-how-to-undertake-economic-assessment-internet.DOCX (DOCX 127.36 KB) has been developed for staff to assist when performing, commissioning and evaluating economic assessments. Further guidance on specific processes, variables and methods is also available.

Cost-benefit analysis is recognised as leading practice economic assessment and is the recommended approach across the Victorian Government. In practice it may not be possible to undertake a cost-benefit analysis for all proposals and other methods may be used on an exceptions basis.

All economic assessments should be guided by the principle of proportionality, such that the investment in undertaking an economic assessment should be proportional to the scale and risk of the particular issue, initiative or investment.