Back to top anchor

Demonstrating Value-for-Money

The need to demonstrate value for money underpins accountability to Ministers and Parliament, effective management, and the ability of New Zealanders to understand how their taxes are spent. This page provides guidance on how performance information is used to improve the value delivered by major strategies, policies and public services.

Improved State sector performance is one of the Treasury's three outcomes.  Through our work we aim to ensure that strategies, policies and services provide value for money, and that high performance across the state sector promotes economic growth, wellbeing and fiscal stability.  A common purpose of the central agencies is our shared interest in a high-performing, trusted and accessible State sector.

Transparent and accurate reporting provides assurance that State services are delivered in the most efficient and effective way, both to meet the Government’s objectives and to generate the maximum possible benefit for taxpayers for a given level of expenditure.  In common with Governments around the world, credible performance plans and retrospective reporting are key instruments in promoting the efficiency and effectiveness of state services, and demonstrating value for money.  The Public Finance Act, Crown Entity Act and State Sector Development Goals all require the measurement and reporting of core results.

Demonstrating Performance
Demonstrating Performance provides a primer for expenditure reviews.  The document lays out principles (conditions) that underpin the effective design and management of major policy programmes. A framework is provided for telling Ministers, managers and the public about the efficiency and value of baseline (and new) spending.  Real examples of measures and results are used to illustrate the approach.
Performance Management: Advice and Examples on How to Develop Effective Frameworks
Good measurement is a precursor to effective and informed decisions by ministers and managers alike.  Performance Management: Advice and Examples on How to Develop Effective Frameworks (SSC website) walks you through an iterative process for building performance measuring, monitoring and management systems.  The document is presented as a short version for senior managers, and a longer version for leaders and staff tasked with developing performance measurement frameworks for their agency or sector.  The longer version is illustrated with examples of management frameworks and monitoring approaches used by Government agencies within New Zealand. 
Last updated: 
Tuesday, 22 November 2016