The Economic Impact of the Measures Taken under the Conditions of Administrative Reform And The Adaptability of Public Management

Abstract

The economic impact of administrative reform and managerial measures can be analyzed on several levels: budgetary, social and structural. The direct budgetary impact of administrative reform measures is based on public spending, by reducing the number of positions occupied in local administration and personal spending at the central level. Budgetary discipline has a managerial efficiency effect and will be materialized by introducing competency-based assessments, abolishing specific functions and transferring the competencies of central authorities to local authorities. Savings in the public sector will allow the redirection of funds to public investments and local projects, contributing to balancing the budget deficit and sustainable economic growth, increasing investors' perception of fiscal stability and the financing of strategic investments and administrative performance. The economic impact of the measures taken within the administrative reform and the adaptability of public management will be reflected in a more or less significant fiscal consolidation, an attempt to streamline public spending and dynamism the private sector, in order to establish the social effects of restructuring. The economic impact is limited in time and volume and with a modest effect on GDP, and the efficiency of public management is directly tested, by reducing bureaucracy, and efficiency will depend on the measures implemented at local level and maintaining the quality of local public services under reduced staffing conditions.