Municipal productivity

Photo: Adam Haglund / Gorilla.

The pressure on municipalities to increase the efficiency of their activities increases as the population ages, the competition for skilled labour intensifies and the need for social and health care services grows.

It is necessary to increase the productivity of municipalities so that the availability of services can be ensured and the increase in the expenses of municipalities can be restrained. Increasing the productivity and effectiveness of welfare services is a key issue in solving the problem of sustainability in local government finances as well as general government finances. Effectiveness of the activities means that the actions taken are economical and at the same time the needs of the clients are met effectively and with good quality.

In accordance with the Government Programme, the Ministry of Finance has begun cooperation between the different government actors, municipalities and labour market organisations in order to promote the municipal productivity and effectiveness. The goal is to support and strengthen the work to promote the productivity and effectiveness of municipalities and joint municipal authorities and to create a common basis of concepts, assessment and information for this.

Improving the productivity of municipalities requires extensive, systematic actions in the municipalities. The municipalities can learn from each other’s best practices and make their service production more effective. In fact, municipalities are encouraged to share their best practices and to implement them over municipal and sector borders. Good practices have been collected into a data bank on productivity in municipalities.