Main challenges in the existing system

The existing system is a foundation on which to build

In its National Reform Programme, the Slovenian Government has recognised recent and ongoing changes to the functioning of its public sector. It acknowledges that the growing complexity of the public sector environment requires new ways of organising work, increasing flexibility and streamlining operations. The Slovenian Government has thus decided to introduce a new approach to public sector management (Government of Slovenia, 2011a).

The long-term goals of this programme include savings in public expenditure, an increase in the quality of public services, a modernisation of the justice system, and more transparency in public management. Among other things, the Slovenian Government intends to introduce results-oriented management, increase flexibility, and transfer powers and responsibilities to lower levels within the public management. Management is to be oriented towards achieving objectives and expected results, and budget users will be required to report on their advancements (Government of Slovenia, 2011a).

The recently introduced public sector salary system addressed a number of existing problems and represented an important first step towards a modernised public sector salary system, corresponding to the requirements of a small open economy within a larger currency area. The acute problems existing today were created less by the recent salary system reform than the unexpected fiscal crisis, and exacerbated by the government’s difficulties in reducing other public expenditure and/or increasing tax revenues.

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