Some sectoral evaluation units have been established in the last years to evaluate performance of a specific activity or programme, e.g. foreign aid and education. Considerable programme evaluation and review is carried out by a range of organisations. Reporting of performance information is closely linked to the budget process and is used in the process to inform budget decisions. Budget appropriations to universities are linked directly to performance, i.e. on the basis the number of students that pass exams and complete their studies. Various individual performance-based pay arrangements have been used, based on performance appraisals.
Agencies have considerable and increasing flexibility concerning the use of resources.
Agencies are independent in their internal operations. There is a long tradition of autonomous agencies, which enjoy considerable independence in operational decisions. Agencies are required to identify their risks and can buy insurance if the risk analysis shows that there is a major financial risk. There is a growing emphasis on benchmarking in local government, and some municipalities use benchmarking to compare themselves on a service delivery and cost spectrum. The relations between ministries and agencies are not based on formal performance contracts but on regular dialogue concerning goals and results.