The Role of Budget and Financial Reform in Making Government Work Better and Cost Less

Abstract

Budgeting and Financial Management play a crucial role in organizing and disciplining the federal management culture. Consequently, addressing improvements in their practice is essential in the National Performance Review's examination of government‐wide management systems. This article briefly describes the recommendations and anticipated implementing actions relating to budgeting and financial management within the context of the National Performance Review's themes of cutting red tape, putting customers first, empowering employees to get results, and cutting back to basics. External factors, such as innovations in private sector management practices, rapid changes in information technology, and statutory reforms such as the Government Performance and Results Act, also influence needed changes in budgetary and financial management practices.

From Performance Budgeting to Performance Budget Management: Theory and Practice

“…Ultimately, infusing performance thinking into the budgetary process of government is an inevitable institutional change that is propelled and expected by many social and economic forces (Christensen ; Leonard, Cook, and McNeil ). For example, economy, efficiency, effectiveness, and customer orientation are the institutional logics of modern capitalistic societies, and these normative values are unlikely to wane in the foreseeable future (Leonard, Cook, and McNeil ). Popular demand for greater accountability and transparency in governmental spending is also a social trend that is emerging from the arrival of the taxation state (Ma ).…”

Expenditure Inflexibility in the State Budget: The Fiscal Policy Latitude of the Council of State in Finland

“…Many national economies have suffered from unemployment, a reduction in national product, problems in the balance of current accounts and public sector deficit problems. At the same time, the political leaders of these countries are expected to solve such problems, and in this the state budget is a central instrument (Leonard et al 1995).…”