OECD countries face multiple challenges to their public finances. Following recent crises, public debt levels are at historically high levels, averaging around 110% of GDP in OECD countries. Economic growth has slowed while a multitude of spending pressures, ranging from ageing populations to national defence, exert significant pressure on public spending. Governments need to have the fiscal space to finance their priorities, long-term needs and address future crises, which implies the ability to seek savings and reallocate spending from lower to higher priorities.
Restoring Public Finances takes stock of the saving measures OECD Member and accession candidate countries, as well as one non-Member economy, are implementing to help place their public finances on a more sustainable footing. It is based on responses to the OECD 2026 Survey on Restoring Public Finances, which asked governments for details on savings measures being implemented in 2025-2026 across spending areas. Savings measures are most frequent in the areas of healthcare, government operations and pensions, which represent the majority of public spending. However, the scale of the measures being implemented is not commensurate with the challenges at hand. Further action is needed to restore public finances and enable effective government.
This report contains a set of sectoral chapters addressing savings measures on a wide range of areas in public administration, and offers a detailed stocktaking of current measures.