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Benchmarking as a management tool is used primarily for diagnostic purposes. For businesses and public service organizations it helps to identify the areas of intervention and to prioritize development actions for better performance and increased efficiency. In public policy making benchmarking provides evidence for decision makers through scoring and ranking.

In local government finances and financial management this instrument supports governments both at national and local levels to identify the factors of (i) effective revenue raising, (ii) equitable intergovernmental fiscal relations, and (iii) efficient local financial management. The Committee of Ministers at the Council of Europe has developed recommendations on these areas for local and regional authorities. The scope of local government responsibilities and allocation of functions are important factors of fiscal decentralization, but they are not subjects to the recommendations.

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This document has been produced using funds of a Joint Project between the European Union and the Council of Europe. The views expressed herein can in no way be taken to reflect the official opinion of the European Union or the Council of Europe.

 

© Council of Europe – 2015

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