The National Audit Office (NAO) has highlighted a number of "stark" financial challenges facing the UK government.
In its latest report on financial management in the public sector, the organisation discovered the authorities have strengthened their grip on spending, but further fiscal consolidation could be required in the near future.
Ever since the coalition government came to power, prime minister David Cameron has emphasised the importance of bringing the UK's deficit under control and this has resulted in some serious cutbacks across various sectors. This has inevitably hindered the nation's economic growth.
Head of the NAO Amyas Morse said financial managers are now playing an increasingly vital role in the effort to deliver high standard services at much lower costs.
"Savings are being made but progress in restructuring how services are being delivered is lagging," he remarked.
According to the Telegraph, departmental spending is set to fall by £429 billion in 2009-10 to £335 billion in 2017-18, which highlights the extent of the challenges facing the government.
By Tony Aynsley