Certified Government Financial Manager (CGFM) Practice Exam

The aim of performance improvements in government is best described as enhancing economy, efficiency, effectiveness, and equity. This is because these four components are critical in ensuring that government operations are optimized to serve the public effectively.

Economy refers to the careful management of resources to minimize waste and ensure cost-effectiveness in government operations. Efficiency pertains to performing tasks in the best possible manner with minimal waste of resources. Effectiveness focuses on achieving desired outcomes and meeting the goals of public programs. Lastly, equity involves ensuring that services and opportunities are fairly distributed to all citizens without discrimination.

While the other options touch upon important aspects of government function, they do not encapsulate the comprehensive scope of performance improvements as directly as enhancing economy, efficiency, effectiveness, and equity. For example, increasing governmental authority might not necessarily lead to improved performance but could instead be seen as expanding control. Reducing budget deficits is a fiscal target but does not cover the broader implications of performance improvements. Similarly, obtaining taxpayer trust through transparency is essential, yet it is a means to an end rather than an overarching aim of performance improvements. Hence, the correct choice reflects the holistic view of what performance improvement in government should achieve.