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IT in the New Reality for National Government

Government and public sector spending accounts for 30–50 percent of GDP in the vast majority ofcountries and exerts influence over many commercial industries. Governmental support and stimulus packages have been critical to communities and industries through the COVID-19 pandemic, but there is likely to be lasting impact on public debt and future spending capacity. However, it has been a complex picture, with the pandemic affecting different parts of government and the public sector in different ways leading to a mix of economic recovery paths for national governments with 32 percent in ‘surge’ mode, 22 percent in ‘modified business as usual’, 38 percent in ‘transform to re-emerge’, and 8 percent in ‘hard reset’. Essentials such as digital healthcare, human/social services, defense, economic and stimulus spending have surged; infrastructure will bounce back quickly either because of its essential nature or its role in driving economic recovery; non-essential sectors such as elective healthcare and public transport volumes will take longer to recover; while harder hit sectors such as higher education, environment, overseas development, airports, ports, and non-COVID-19 healthcare research are delayed indefinitely.

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KPMG Nederland

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For any further information, please contact Paul Dijcks or Deborah Hofland.