Next Steps for Public Spending in New Zealand: The Pursuit of Effectiveness

This paper reviews public expenditure in New Zealand and the scope for further progress. Since the mid-1980s, New Zealand has been a world leader in public management reforms. Government agencies have been transformed by delegating managerial responsibility to them and replacing input controls with an output-based budgeting and management approach. The adoption of a medium-term top-down fiscal management framework contributed to a large reduction in public debt. But while the system is good at producing outputs cheaply and often in innovative, responsive, and customer-driven ways, it is not as good at choosing what to produce in the first place (i.e. technical versus allocative efficiency). This reflects insufficient evaluation of programmes, not enough focus on managing for outcomes, and a budget that is excessively fragmented. The quality of spending could also be improved by a greater willingness to extend the use of market-based mechanisms, including usercharges, competition ... Prochaines etapes pour les depenses publiques en Nouvelle-Zelande : A la recherche de l'efficacite Le present article examine les depenses publiques en Nouvelle-Zelande et la possibilite de les ameliorer. Depuis le milieu des annees 80, la Nouvelle-Zelande a ete un chef de file mondial en matiere de reformes de la gestion publique. Les organismes publics ont ete transformes en leur attribuant des responsabilites de gestion et en remplacant les controles des ressources par une approche de planification et de gestion des resultats. L’adoption d’un cadre de gestion budgetaire a moyen-terme de conception descendante a contribue a reduire fortement l’endettement public. Mais si le systeme est satisfaisant pour produire moins cher et souvent de facon innovante, reactive et tourne vers le client, il n’est pas aussi performant pour choisir ce qu’il faut produire d’abord (ex. efficience technique ou allocative). Cela reflete une insuffisance au niveau de l’evaluation des programmes qui n’est pas assez ciblee sur la gestion des resultats et un budget qui est trop fragmente. La qualite des ...