Outcome: State Sector Performance
The Treasury provides advice to ensure the work of the State sector represents value for money in achieving the Government's aims and objectives. This includes advice on policy and regulatory settings, the public management system and the management of, and return on, the Crown's assets and liabilities.
Our focus over the longer term is on ensuring that we have a sustainable public sector that represents value for money in meeting the Government's priorities and generates the maximum possible benefit for taxpayers for a given level of expenditure.
The State sector is a significant part of the economy in its own right. Because of its size, improvements in performance, for example through increases in labour and capital productivity or through delivering services in a more cost-effective way, will have an impact on economic growth. Improved performance will also place less stress on fiscal policy, assisting in finding fiscal headroom to progress priority areas, and contributing to the Treasury's stable and sustainable macroeconomic environment outcome.
Initially, we have chosen to focus on performance in the fiscally significant areas, for example, in health, education and the benefit system, as a matter of priority. In these areas we are developing measures of performance and options to improve performance and manage longer-run fiscal pressures over time.
