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Performance and Accountability: Budget Reform in New Zealand
Author(s) -
Goldman Frances,
Brashares Edith
Publication year - 1991
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/1540-5850.00921
Subject(s) - accountability , accrual , public sector , government (linguistics) , cash , accounting , new public management , performance measurement , business , government budget , performance management , economics , public economics , public administration , finance , public finance , political science , macroeconomics , marketing , linguistics , philosophy , economy , earnings , law
Since 1984, New Zealand has made major changes in public sector management. This article describes the perceived problems with the previous New Zealand system and discusses the reforms designed to address these problems. The changes attempt to increase efficiency by: (1) separating commercial functions from other government operations; (2) strengthening lines of ministerial and executive accountability; and (3) designing budget and financial management systems to improve measurement of public sector performance. This last reform includes shifting from an input to an output‐based system, changing from cash to accrual accounting, and creating different forms of appropriations for different types of government activities. While it is too early to assess whether the reforms are successful, we note potential problems.