Budgeting reform over the last 25-30 years has been about trying to increase both central control and flexibility. But inflexible rules, the authors note, actually endure despite the reforms. They propose applying the concept of responsive regulation to finance departments' oversight of line agencies. This is one way of thinking about how we can achieve a better balance between a degree of central control (which is necessary for accountability) and the flexibility that is valuable in improving the response to complex problems.

This is an Occasional Paper published by ANZSOG and the Victorian Public Sector Commission.