Current issues of the new public management

Abstract

The powerful increasing role of the state has begun in the 20th century. The range of tasks has been expanded, which caused an intensive growth in budget expenditures. Reforms are required because deficiencies are experienced in the effectiveness of the public funds application. The economically interpretable performance measurement is missing from the current system, which does not encourage the various institutions to restructure their businesses. Business administration- and efficiency increasing steps of the business sector effected the fiscal administration as well. Strategic aims are missing from the fiscal administration. Source allocation is ineffective and not consumer oriented. These imperfections are removable with the use of different methods of business economics. The emphasis of performance and results are urged in all over Europe, which would enable the more efficient use of diminishing public resources. The goal of this paper is to present the success of business economics adoption, based on a German example. Keywords: role of the state, efficiency, reform