PUBLIC MANAGEMENT AND MODERNIZATION OF THE PUBLIC SECTOR

Abstract

The subject of research in the paper is the analysis of the current state of the public sector of the Republic of Serbia, with a special focus on its reform and modernization. Respecting the generally accepted defini- tions of the public sector of international financial institutions, the analysis method was applied in the pa- per. There is almost a consensus that rapid radical reforms of this sector are necessary. The fact that in the public sector of Serbia (especially in public companies, eg EPS) there is an excessive number of employ- ees who, regardless of the achieved results, have high salaries is often highlighted. Although the problem of the constitution and functioning of the public sector has been apostrophized for many years as one of the key problems of our economy, so far much has been done to rationalize and improve its efficiency, but further reforms and modernization of the public sector are needed, so that its users were even more sati- sfied. We have witnessed that there are still a lot of omissions, unresolved problems, both for objective and subjective reasons. Only since 2015. under the influence of the International Monetary Fund, they began more intensive activities on the rationalization of state administration, increasing efficiency, achieving savings, and restructuring companies under state control. This is an extremely complex issue and a very current problem for Serbia, considering that the too large and inefficient public sector is considered one of the main obstacles to the recovery of state finances and more dynamic economic development.