Nuw Public ManagementDescribe and analyse main differences between the bureaucratic model and the New Public Management paradigm drawing attention to the most significant and critical aspects of the change.
The bureaucratic model and the NPM are two different framework for managing the administrative apparatus. The first one is based on two principles: the separation of the public sector from the private one in terms of culture, ethic and general systems, and the provision of a defence from governmental corruption and personal power abuses through the development of a rigid and neutral set of rules; the second one, on the opposite is based on the necessity to remove any differences between the public and the private sector and to focus on results rather than procedures.
The bureaucratic model, theorised by Weber, emerged in the USA during the progressive era (1990-1930), in a period of high economic growth, where the main administrative aims were to provide all citizens a basic system of rights and duties, to protect them by subjective and political power biases, and to offer them a range of standardised services. To achieve such a grade of uniformity, stability and fairness, a set of objective and rational rules is defined, able to break the complexity of society into minimal operations to be followed a priori in a predetermined way. Moreover a system of neutral control of the respect of procedures is developed in order to avoid any political interference: the control is in fact guaranteed by the hierarchical structure of public administration. This model shaped the employment system, the accounting system and the control system.
The public service system is characterised by a general rigidity and slowness. The hiring procedure takes place through public exam, based on general and legal knowledge, a fixed assignment of offices is defined, without the possibility to move employees from one department to another, and there’s no evaluation of individual skills, what matteres is the blind respect of norms. Besides progresses in career are based on seniority and there’s no possibility to lay off employees in order to avoid any arbitrary dismissal.
The public accounting system is mainly based on a budget. This document is focused on preventive measurements, it provides ex ante limits and authorisations for future revenues and expenses, along a detailed list of line items. The money predisposed for one line item can’t be moved to an other one, and there’s no possibility to retain savings. This balance sheet must be kept in equilibrium, it’s a public compulsory document defined on an historical basis. Moreover it’s based on the cash principle: revenues and expenses can be recognised only when the cash receipt or payment has taken place. This principle allows governments and public administration not to take in account future obligations, such as pensions, tax deduction, subsidies and depreciation of public assets, so
The proposal to take public accounts of state-owned and privately held businesses and individuals into account must be framed in such a way that the total of this money can be recorded in the national account in such form that, according to international standards, it could be considered as the only public expenditure within the State at this time and as a result have a tax due in the first place. It must be written down within the paper by the first official and must be carried out by a national representative as defined. Thus it’s also available on such documents. This proposal does not specify a procedure to collect this funds and, in this case, it simply relies on the financial provisions of certain laws and other laws of state and private authorities which govern certain private and public industries, particularly the construction of hospitals, roads, transport, etc. Therefore, any additional government expenditure is not a question of tax evasion.
Conclusion
There is a new and necessary movement in public expenditure management, where the private sector and the central bank, or of the central planning agency is concerned, are the main representatives of those who use public expenditure management. In every sector of the economy there is an individual.
There is a new and necessary movement in public expenditure management, where the private sector has decided that it needs to take care of public capital expenditure by making provision for such capital in the form of taxation.
There is a new and necessary movement in public expenditure management, where the private sector pays off the financial shortfall that arises with the state sector with a view to achieving revenue for its public services, and if that is achieved, the financial balance sheet and capital account of the state or other government entities is prepared so as to support the public sector to achieve an appropriate deficit within the long term.
In addition, it must be considered that a change in the tax laws of states or other actors will result in the same situation of government being charged public expenditure.
The proposals may be considered as being in derogation of sections (1) and (2)(b).
Section (1) of the Budget of India 2010-2020 introduced section 17 of it stating that the government has the responsibility of taking over the national accounts and public capital account of states
(a) the responsibility of taking over the national accounts and public capital account of states within the framework of the legislation of the State Governments;
(b) the responsibility of taking over the national accounts and public capital account of states of the first category under the State Governments;
(c) the responsibility of taking over the national accounts and public capital account of states the second category under the State Governments;
(d) the responsibility of taking over local services and public facilities of the state governments.
(2) Subject to section (9), when a expenditure is made under subsection (1) of this section, only the state government and and government revenue will appear in the national account but in no case will any of the states be included in the national account.
(3) Section (9), as added to section