An overwhelming majority (71%) of Lithuanian residents consider it important for the state’s bureaucratic apparatus to operate efficiently; however, nearly two-thirds (61%) feel this efficiency is lacking. A survey commissioned by the Investors’ Forum, an association representing the largest and most active investors in Lithuania’s economy, reveals that as many as three out of four residents encounter excessive bureaucracy at least occasionally. A similar share believe that a more efficient public sector could save at least one-tenth of government expenditure.

Representatives of the Investors’ Forum emphasize that this issue can be addressed by fundamentally reviewing the objectives of public institutions – focusing them on clear, measurable outcomes, shorter decision-making and service delivery times, and linking employee incentive systems to achieved results.

“In our discussions with international companies operating in Lithuania, we often hear that improving public sector efficiency is essential, as it is one of the key conditions for building a strong economy and an attractive investment environment. The survey shows that expectations for a more efficient state apparatus come not only from the business community but from society as a whole. This should serve as an additional impetus for consistent public sector reforms,” says Rolandas Valiūnas, Chairman of the Board at Investors’ Forum.

The survey indicates that the public expects more active government efforts to improve efficiency. Nearly three-quarters (73%) of respondents believe that the state is not making sufficient efforts to use funds allocated to the bureaucratic apparatus efficiently.

Direct experience with excessive bureaucracy

According to Investors’ Forum representatives, such public sentiment is largely based on direct experience. Survey data show that three out of four residents have encountered excessive bureaucracy. Of these, 28% report experiencing it frequently, 45% sometimes, and 20% rarely. This highlights that the complexity of administrative processes remains a significant issue for both citizens and businesses.

“Efficiency is not just a business concern – it is a societal one. The survey results show that people want real outcomes rather than bureaucratic procedures, and shorter timelines. Every unnecessary procedure or inefficient decision costs taxpayers time and money. Therefore, public institutions should review their objectives and focus on measurable results, shorter timelines, and reducing duplicated processes, rather than on the level of budget allocated to such activities. These objectives should form the basis for evaluating both institutional performance and employee results,” says Artūras Ketlerius, Head of the Efficiency Working Group at Investors’ Forum.

He also notes that residents support a results-based employee incentive system. When asked what bonuses should be based on, respondents most frequently cited work efficiency (44%), followed by overtime (38%) and length of service (10%). “This shows that what matters most to people is the value the public sector creates for society and the tangible results delivered by its processes,” Ketlerius adds.

An effective way to save public funds

Residents also believe that a more efficient public sector could help ensure more rational use of public finances. A quarter of respondents think that applying the most effective management principles could save one-third or more of the state budget. Nearly half estimate potential savings at between 11% and 30%.

“Public institutions must serve the people – this is even enshrined in the Constitution, so it simply needs to be implemented. Countries where this principle truly works are wealthier and safer. This is what we want for Lithuania – a prosperous and secure state. Our public sector, which employs one in four people, has the potential to create significantly greater value,” says Vytautas Šilinskas, Executive Director of Investors’ Forum.

Experts at Investors’ Forum stress that improving public sector efficiency requires strengthening results-based employee motivation systems, with greater emphasis on performance- and efficiency-based bonuses. This, in turn, requires a fundamental review of institutional objectives and linking them to specific, measurable indicators – such as shorter procedural and decision-making timelines, faster service for citizens and businesses, and clearly defined performance outcomes. The value created for Lithuania should become the foundation for evaluating both institutional performance and employee incentives.

It is also recommended to systematically review regulations and processes in order to reduce excessive administrative procedures and the administrative burden on both citizens and businesses. According to experts, public institutions should more widely adopt modern public governance methods, enhance operational transparency, and ensure consistent political leadership in implementing public sector reforms.

In the Investors’ Forum strategy for 2026–2028, public sector efficiency is identified as one of the three key priorities for increasing Lithuania’s competitiveness and investment attractiveness.

The representative public opinion survey was conducted in February 2026 by Spinter Research, which surveyed 1,017 Lithuanian residents aged 18 to 75.