Public finances in OECD countries are under pressure. Successive shocks, including the global financial crisis, the pandemic and the recent energy shock, have left many countries with historically high debt, averaging close to 110% of GDP across the OECD. Long‑term spending pressures are also intensifying. Population ageing, rising defence needs, the need for growth-enhancing investment in infrastructure and digitalisation, risks related to extreme weather events and higher interest payments are reshaping fiscal outlooks.
While fiscal rules, medium‑term frameworks, and spending reviews remain essential to keeping public spending in check, their effectiveness increasingly depends on securing support from citizens and civil society. This report highlights a key part of modern budgeting: enhancing public understanding on fiscal realities, long‑term pressures and the trade‑offs inherent in budget choices.
Drawing on new OECD evidence and comparative analysis, the report shows how clearer communication of public finances, stronger engagement with citizens, and more accessible budget information for key decision makers and the public can strengthen trust in budget decisions. It also underlines the important role of independent fiscal institutions in explaining long‑term risks and the costs of inaction in ways that resonate beyond expert audiences, particularly in a rapidly changing communications environment.
This report is intended to support governments as they confront complex fiscal choices. By bringing insights from across the OECD on budgeting, communication, engagement and independent oversight, it offers practical guidance for strengthening decision making in an evolving policy environment. The OECD will continue to support countries in adapting these approaches to their own institutional and political contexts, so that fiscal policy can remain both sustainable over the long term and responsive to citizens’ concerns today.
Mathias Cormann
OECD Secretary-General