The People and the Budget

Empowering public understanding is becoming an essential part of modern budgeting.

Public finances in OECD countries are at a critical juncture. Successive crises have pushed public debt to record levels: near 110% of GDP. Governments are grappling with mounting spending pressures, including those related to cost-of-living concerns, urgent defence needs, extreme weather events and ageing populations. Delaying action costs more. Unless meaningful reforms are introduced, debt trajectories will continue to rise, further limiting the scope for governments to address priorities and support economies through future crises.

Well-designed rules and institutions remain essential for fiscal sustainability, but they are no longer sufficient. Governments are being asked to manage long-term fiscal risks in an environment where public trust and people’s willingness to tolerate trade-offs are low. OECD analysis shows that trust weakens when citizens do not own reforms or understand why they are needed or how costs and benefits are shared. These pressures are magnified by a rapidly changing communications landscape. Fragmented media environments and polarised online debate make it harder to sustain attention on long-term fiscal challenges and to explain why difficult choices are unavoidable.

This report builds on the OECD's work on restoring public finances and the drivers of trust in government. It uses new survey data from sources such as the 2025 OECD Survey of Government Communicators, the 2025 OECD Survey on Parliamentary Budget Oversight, the 2024 OECD Trust Survey, and the 2024 OECD Fiscal Advocacy Index.

To secure fiscal sustainability, governments must empower public understanding. Early experiences show that this can be built on four pillars.

First, demystifying the budget for key decision makers. Legislators take core budget decisions and act as the main link between complex fiscal choices and citizens. Yet they often face large volumes of technical material that prioritise detail over strategic choices, obscuring the big picture. Parliamentary debate can therefore become narrowly focused, rather than centred on the long‑term pressures, trade‑offs and choices that matter for fiscal sustainability. Parliamentary budget offices and technical support staff can help by shifting their focus from explaining budget mechanics to clarifying big‑picture fiscal choices. Well‑timed inductions at the start of parliamentary terms, clear and on‑demand briefings, and case studies that connect key fiscal choices to people’s daily lives help support this shift. Supporting legislators in this way will help focus debate on core fiscal choices and equip them to convey fiscal realities more clearly and credibly to citizens.

Second, communicating clearly with the public. Technical vocabulary alienates people. Experts must use relatable comparisons and clear visuals, explaining why budget choices matter to families today and in the future. This is not about oversimplifying economics; it is about helping citizens understand the trade-offs. Leading examples, such as the Netherlands Bureau for Economic Policy Analysis and the Irish Fiscal Advisory Council demonstrate that success requires a strong communications culture be embedded within institutions. This means opening up to media, being more creative with how information is presented, and effectively leveraging both traditional broadcasting and new social media networks to reach the public.

Third, giving citizens a real voice. Traditional consultations often fail to show the true scale of fiscal challenges. Parliaments can use committees to gather evidence from both experts and citizens, building credibility. However, governments and parliaments must broaden their toolkits to include more ambitious forms of engagement. There is no single solution, but good examples range from large-scale national democratic forums, such as Sweden’s Almedalen model, to innovative methods such as quadratic voting that help tease out public preferences. OECD data show a 47‑percentage‑point trust gap between individuals who feel that ‘people like them’ have a say in government decisions and those who do not. Meaningful citizen engagement is no longer a public relations exercise. It is a core requirement for governments to secure the public ownership needed to successfully implement sound fiscal decisions.

Fourth, empowering fiscal advocates. Independent fiscal councils, parliamentary budget offices and supreme audit institutions are among the most trusted public institutions in many countries. The OECD Fiscal Advocacy Index shows that such bodies are most influential when strong independence is combined with focused analysis and a communications platform. Publishing high-quality analysis is necessary but rarely sufficient. Impact depends on the ability to communicate findings in plain language, highlight long-term risks and explain the consequences of inaction in ways that resonate beyond expert audiences.

These four pillars work together. Clear communication grounds public debate in reality. Meaningful engagement builds trust. Independent advocates keep the focus on long-term sustainability and credible policy trade-offs. By putting people at the heart of budgeting, countries can build the political support needed to restore the public finances.