The General Guidance for Cost-Benefit Analysis (2013) provides a methodological framework for assessing the economic viability of public policies, programs, and investment projects. The guidance explains how to identify, quantify, and compare the full range of social costs and benefits associated with a proposed intervention. It emphasizes the use of a structured appraisal process that includes defining project objectives, establishing a baseline scenario, identifying alternatives, and estimating impacts over the project life cycle. Key analytical steps include monetizing costs and benefits where possible, applying discount rates to calculate present values, and evaluating indicators such as net present value and benefit-cost ratios. The guidance also highlights the importance of sensitivity analysis and risk assessment to address uncertainty. Overall, it supports transparent, evidence-based decision-making in public investment and policy evaluation.
