Abstract:
Rising debt deficits and debt service burdens combined with complex challenges in health care, social security, education, crime and infrastructure threaten economic and social breakdown as unemployment and poverty rises. Governments worldwide are forced to take a critical role in resolving the crises and more so than ever before, must discharge their functions effective and efficiently. The importance and power of government finance in responding to the crises and controlling the effects of recession worldwide now demand deeper and faster reforms, supported by managerial excellence. The article investigates how the expanded role of government in developing countries meets the demands in response to the economic crises. This article further explores how the impact of policy decisions taken on spending cuts in the developed countries such as the United States, United Kingdom and European Union influence existing tools and methods applied within the South African government. Public private partnerships are described as illusionary ways of raising money that are more expensive than direct government borrowing. The legitimacy of such statements is proven by the strength of lessons learnt and the examination of alternative ways to cope with the pressure to deliver more, faster and with fewer resources towards a comprehensive service that meet the needs of its customers. Embracing an integrated approach to whole-government transformation consequently pulls on varied improvement levers such as lean-operation techniques, information technology and performance management. It highlights the fact that government departments are people businesses that depend on the quality and capabilities of its employees. Restoring growth in public fi nance is thus attainable through effective and efficient performance management and calls for leadership skills that can entrench multi-level governance (MLG), thereby maneuvering a range of tasks well beyond the scope of traditional policy and public services. Conclusions are drawn from lessons learnt as this provides opportunities to refine, improve and change existing performance outcomes towards service excellence
