Improving Public Sector Efficiency: Challenges and ...

ISSN 1608-7143 OECD Journal on BudgetingVolume 7 No. 1 OECD 20071 Improving Public Sector Efficiency: Challenges and OpportunitiesbyTeresa Curristine, Zsuzsanna Lonti and Isabelle Joumard*This article examines key institutional drivers that may contributeto Improving Public Sector efficiency and focuses on one of them inmore detail: performance information and its role and use in thebudget process ( performance budgeting ).* Teresa Curristine is a Policy Analyst in the Public Governance and TerritorialDevelopment Directorate of the OECD. Zsuzsanna Lonti is a visiting academic in thesame directorate. Isabelle Joumard is a Senior Economist in the EconomicsDepartment of the OECD. This article was produced for the German Presidency ofthe European Public Sector EFFICIENCY: Challenges AND OPPORTUNITIESOECD JOURNAL ON BUDGETING VOLUME 7 No. 1 ISSN 1608-7143 OECD 20072 Executive summaryGovernments of OECD countries are under pressure to improve publicsector performance and at the same time contain expenditure growth.

public sector; and the problem of isolating the effects of specific institutional reforms on efficiency from other external influences. Empirical evidence nevertheless suggests that the following three institutional factors may improve public sector performance: Decentralisation of political power and spending responsibility to sub-

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