September 24, 2009

The Wolf is at the Door: The Global Economic Crisis and the Public Sector

KPMG sent a survey to employees in the public sector in Australia, Canada, Germany, Netherlands, UK and the US to report on their current budget and plans for the future. Respondents reported that fiscal budgets continue to shrink, strategies are unchanged since the economic crisis will not be felt until 2011 or 2012, and resources in the public sector are being cut. The US, UK, Germany, and Canada were hit the hardest with the economic crisis and now is a desperate time of redrawing business models and meet demands without sacrificing quality.

Since the governments have borrowed more money than their debt ceiling, borrowing has ceased. This issue leaves the public sector hanging and preparing for the future alone. The greatest challenge is to create a more efficient public sector to survive the next decade of rebuilding.