Regulating Systemically Important Financial Institutions

With governments worldwide facing profound fiscal imbalances and systemic financial failures, public-finance institutions – including finance ministries, government lenders, public pension funds, tax authorities, central banks, and financial regulators – are under intense pressure to increase transparency and improve their performance. Drawing on our experience working with government agencies across the globe, and in collaboration with our internal and external network of public-finance experts, we are creating unique knowledge in two areas critical to fiscal management: budgeting and tax administration. Our work in public finance covers a wide range of topics, from examining macroeconomic trends and performing expenditure analysis to assessing and quantifying risk, redesigning IT infrastructure, and exploring new methods of revenue generation. We have discovered that overhead functions typically account for twenty to thirty percent of governments’ operating expenses. Based on benchmarks from private and public organizations, we believe government agencies have the opportunity to save five to ten percent of their operating expenditures in overhead functions alone.

Benchmarking Financial Transaction Taxes

Tax administrations in every country perform the same core functions. According to the International Monetary Fund, most countries in the Organisation for Economic Co-operation and Development (OECD) will need to reduce deficits by at least four percent of GDP by 2020 to meet their long-term targets for public debt. As they strive to simultaneously increase revenue and cut costs, government agencies can learn a great deal from one another. In line with our commitment to evidence-based public service, the Center for Government partners with agencies and experts worldwide to build a fact base that will help officials learn from their peers and understand the practices that drive excellence in public fiscal management.

Conducting Defense Audits

We take a comprehensive approach when helping MoDs and DoDs evaluate budgets and reduce spending in an era of defense austerity. In conducting audits of defense budgets or individual programs, we assess all segments of spend, from administrative and external services to personnel, procurement, maintenance and operations. We collaborate with clients to redesign key processes such as recruiting and training so they can align personnel and assets to better support defense strategies and priorities.

We are continually broadening and deepening our understanding of excellence in fiscal management by collaborating with public-sector bodies and leading experts around the world. We are committed to building a knowledge base that will empower governments everywhere to tackle their most complex fiscal challenges. Our benchmarking studies are an ongoing effort that can only benefit from the participation of more agencies and countries. An increase in the number of countries contributing their data and expertise will result in even richer insights. For further information or to discuss potential collaboration and participation in our research, please contact us.