Governments must adapt their approaches to public spending The latest OMFIF–EY report, ‘The future of public money’, reveals the urgent need for governments to rethink fiscal frameworks in the face of growing spending pressures.
The report highlights how governments can leverage technology to make public spending more effective. India is a case in point, where its digital public infrastructure and use of digital IDs has saved the government 1.3% of gross domestic product in spending efficiency.
The report also explores how innovative technologies like blockchain and artificial intelligence, as well as performance-driven fiscal frameworks and long-term forecasting, can transform the management of public money to achieve better social and economic outcomes.
Mark MacDonald, global public finance management leader at EY, and Joachim Schwerin, principal economist, DG GROW at the European Commission, recently joined Nikhil Sanghani, managing director, Economic and Monetary Policy Institute at OMFIF for a podcast on this topic. They discussed why governments should embrace new technology to improve public finance outcomes and the importance of public-private partnerships.
