Result: State Sector Performance

What are we seeking to achieve?

The Government has signalled the importance it places on improving State sector performance as a part of its medium-term economic strategy; in particular it is one of the six drivers of economic growth. A high-performing State sector is also critical to achievement of the Government's wider social objectives: supporting high-quality health, education and labour market outcomes.

The Treasury works closely with other Central Agencies to support this priority. The Treasury's role is focused on monitoring and managing the financial affairs of the Government and managing the budget process. We provide particular insight into the efficiency and effectiveness of government agencies and their interventions. This complements leadership by the SSC on the capability of agencies, sectors and systems, and by the DPMC on ensuring that the State sector responds to the Government's priorities.

Overall, we are seeking to maximise the contribution of government interventions to the Government's economic and social priorities.

What will we do to achieve this?

We will achieve this by focusing on three intermediate results:

• Doing the right things: delivering institutions and interventions that achieve the Government’s economic and social objectives.
• Better, smarter and for less: delivering quality public services that provide value for money.
• Consistency with fiscal strategy: revenue and expenditure decisions achieve the Government’s long-term fiscal strategy.

Through these results we will work to:

• provide frameworks and advice around the economic impact of government (in particular, government size and role)
• provide advice aimed at ensuring that the Government’s spending is aligned with its priorities; and that sectoral institutional settings put incentives in the right places, so that all agencies play their part in delivering better performance overall. In particular, we will focus our efforts on those sectors with the highest levels of government spending: health, justice, education, welfare and defence
• provide advice to Ministers, and work with other agencies directly to ensure that incentives are in place to drive performance at an agency level. This includes support for better administrative and support services across the State sector, innovative service delivery models and ensuring that agency structures are effective. The Treasury will provide advice on the evolution of the public management model, monitor the performance of significant Crown entities and advise on industrial relations issues, and
• monitor and advise on spending, with a focus on those sectors with the highest levels of government spending – health, justice, education, welfare and defence – to ensure that spending is consistent with the long-term fiscal strategy.

How will we demonstrate success in achieving this?