Why cost overruns and benefit shortfalls are a problem 

Cost overruns and benefit shortfalls of the frequency and size described above are a problem for the following reasons:

• They lead to an inefficient allocation of resources, i.e., waste.
• They lead to delays and further cost overruns and benefit shortfalls.
• They destabilize programme development and implementation.
• The problem is getting bigger, because programmes get bigger.

For the full argument on each point and for policy implications, click here.