Reports on public debt rises and national bankruptcies dominate the politics news these days. Greece and Hungary are close to insolvency, Portugal just applied for Europe’s bailout policies. More European countries are heavily indebted and are likely to face similar threats of illiquidity in the near future. The consolidation of public households has become more relevant than ever since the crisis started back in 2007. Germany’s communes have to cope with an ongoing pressure to improve their fiscal discipline. Impaired by major changes due to the current demographic development and the thereby aggravated social and economic situation, all federal levels of government see themselves forced to cost savings. Governments are seeking ways to reduce state expenditure and increase public revenues in order to consolidate their budgets. Besides tax increases, a focus is also placed on simplifying bureaucratic processes and downsizing the administrative body, with the aim of making its work more efficient and constraining public spending.
KeywordsPublic Spending Public Management Performance Budget German Literature Public Revenue
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