Restoring Public Finances

Public finances in OECD countries are facing significant challenges such as slow economic growth, ageing populations, high debt from recent crises, and new spending pressures, including in defence. This report looks at efforts made by OECD countries as well as some accession candidate countries and one non-Member economy in 2025 and 2026 to restore their public finances. Drawing on the results of the 2026 OECD Survey on Restoring Public Finances, it provides an overview of ongoing savings initiatives across all major spending areas, as well as details of reforms and savings measures. Further reforms will be required to ensure fiscal sustainability and generate fiscal space to empower government action. Governments will also need to continue strengthening their budgeting institutions. Finally, given that lasting support for reform depends on citizens’ awareness and ownership of both the need for change and its implications, focusing on empowering public understanding of the fiscal challenges ahead will be essential in the future. A companion report entitled The People and the Budget addresses these issues.