This chapter first reviews the recent trends in public spending and the budget procedures which underpinned their unsustainable pattern. It then analyses the extensive set of reforms now being introduced and discusses requirements for improving their chances of success within a short time span as presently planned, in the light of other OECD countries’ experiences. It finally reviews the challenges in moving forward with reform and provides a detailed set of recommendations for specific actions to improve both the framework of fiscal policy and the operation of the public sector (Box 10)...