At a time when governments worldwide are under increasing pressure to demonstrate measurable outcomes rather than merely justify expenditure, the Union Budget has emerged as a critical instrument for redefining how public value is created and assessed.
Questions of accountability, return on public spending, and the strategic use of technology now sit at the centre of fiscal policymaking, as administrations grapple with tighter resources, rising citizen expectations, and rapid technological change.
Dean Grandy, Partner and Global Head of Government at KPMG International, brings a global vantage point shaped by advising governments across regions on outcomes-based budgeting, digital public infrastructure, artificial intelligence, and whole-of-government transformation. His insights illuminate how national budgets are increasingly being organised around interoperable digital systems rather than traditional sectoral silos, why India’s population-scale digital platforms are being closely studied internationally, and where AI is already delivering tangible value in areas such as fraud detection, procurement, and service delivery.
The discussion, led by Anoop Verma, also explores the deeper governance challenges that accompany this shift—balancing innovation with trust and accountability, translating digital investments into improved citizen experience, and ensuring that technology augments human judgment rather than replaces it. Set against the broader global debate on fiscal discipline, productivity, and inclusive growth, the perspectives offered here underline how the future of public finance is inseparable from the design of digital governance itself.
Edited excerpts:
The Union Budget is being presented at a time when governments globally are under pressure to demonstrate outcomes rather than just expenditure. From a global perspective, how is the idea of outcomes-based budgeting evolving, and what role does technology play in making public spending more accountable and measurable?
There is now a much stronger expectation—both from society and from within governments—that outcomes from budget allocations must be clearly quantified, tracked, and transparently reported. Governments are expected not only to state where money is being spent, but to demonstrate when benefits are realised, how progress is managed, and whether outcomes align with original intent. Technology plays a critical role in this shift. Data platforms and AI-driven analytics significantly improve the ability to generate insights, measure momentum, and assess return on investment in a rigorous and timely manner. The alignment of funding with definitive, measurable outcomes is becoming non-negotiable, and AI in particular accelerates accuracy, transparency, and discipline in public financial management.
You have advised governments across multiple jurisdictions on large-scale digital transformation. How are national budgets worldwide increasingly being shaped by technology priorities such as AI, cloud, data platforms, and digital public infrastructure rather than traditional sectoral allocations?
Globally, we are seeing budgets increasingly shaped around end-to-end solutions rather than isolated sectoral programs. Governments may still allocate funding in discrete parts, but there is a growing recognition that these components must interoperate seamlessly. This requires strong design discipline, clarity of purpose, and the ability to join programs together into coherent portfolios. Security, capability alignment, and long-term value creation are now central considerations. Technology investments must be contextualised for public-sector needs and aligned to business priorities and citizen-centric design requirements in order to deliver tangible benefits and accelerate adoption. When done well, emerging and existing technologies together generate enduring value and a sustainable return on investment.India is often cited as a leader in building population-scale digital public infrastructure. From your global vantage point, what stands out about India’s approach to digital identity, payments, and shared data platforms, and why are other countries studying this model so closely?
What stands out most strongly in India is the level of trust—trust in technology and trust in government. India benefits from political stability combined with a clear growth ambition, and this creates fertile ground for digital transformation. Initiatives such as digital payments, which are now deeply embedded and trusted, demonstrate how scale and security can coexist. Programs like Bhashini, with its multilingual voice-based translation capability, show how technology can address inclusion at a population level. India’s digital public infrastructure is not only effective domestically but has enormous potential to be exported—both as insight and as capability—to other developing economies. India’s profile as a leading digital nation and collaborative global player is now clearly established.
Many governments now see AI not as an experiment but as a production tool. Based on your global engagements, where is AI already delivering tangible value in government?
One of the dominant patterns globally is what I describe as “pilotitis,” where governments run AI pilots that never transition into production due to concerns around risk and misuse. That said, where AI is delivering clear value today is in fraud detection and pattern identification, particularly in financial transactions and system access. We are also seeing tangible benefits in recruitment and onboarding, where AI accelerates processes and improves the velocity of outcome delivery. Procurement is another high-impact area, with AI improving speed, accuracy, and informed decision-making in evaluating bids and responses. These use cases succeed because they are well-defined, measurable, and supported by appropriate governance.
As AI adoption in government scales up, how are leading administrations balancing innovation with concerns around trust, explainability, and accountability, especially in high-stakes public decision-making?
This balance is one of the most difficult challenges governments face. Many administrations, particularly in countries with lower public trust, tend to over-index on regulation at the expense of innovation. The key lies in designing appropriate guardrails while also building digital literacy and AI capability within government and the broader ecosystem. Safe-to-fail environments are difficult to create in the public sector, but they are essential. Human oversight must remain central, especially in high-stakes decisions, and there must be a clearly managed pathway from pilot to proof of concept to scaled production. Without that discipline, AI remains stuck in experimentation and government and societal confidence in emerging technology use is compromised.
One recurring challenge in public finance is ensuring that technology investments actually translate into better citizen outcomes. What distinguishes governments that succeed from those that do not?
Successful governments focus relentlessly on tangible enhancement of the citizen experience in engaging with public services. A compelling example is KPMG UK’s framework for measuring enhanced citizen engagement, built around the three tenets of: “Remember me. Recognise me. Respect me”. Citizens expect to be remembered irrespective of the channel through which they are interacting with government, and that their individual circumstances are recognised enabling seamless access to relevant services, and that they will be treated empathetically. In Australia, legislation known as “Tell Us Once” sets the expectation that citizens and businesses should only have to provide their information a single time. Achieving this requires significant coordination across national, state, and local governments, as well as system, policy, and process reform. Where governments fail, it is usually because digital investments are made without a clear line of sight to the lived citizen experience.
You have worked extensively on whole-of-government transformation programs. How important is cross-departmental coordination and shared digital infrastructure in ensuring that budgetary investments do not remain siloed?
Government structures are inherently siloed, and whole-of-government initiatives are therefore extremely difficult to deliver. Many fail because of conflicting priorities, fragmented funding control, and disputes over ownership. These programs require a hub-and-spoke model, but very few agencies are willing to be spokes. Success depends on trust, transparency, and a willingness to collaborate rather than dominate. These initiatives are long-term, capital-intensive, and politically complex. Without clear governance and shared accountability, budget allocations remain trapped in silos and outcomes are diluted.
Globally, fiscal pressures are forcing governments to do more with less. How is technology—particularly automation and AI—reshaping productivity in the public sector?
Technology enables governments to operate at greater speed, accuracy, and scale, but it must augment human capability rather than replace it. Automation is most effective when it removes low-value tasks and allows public servants to focus on higher-value work. Human judgment remains essential, particularly where trust, transparency, and risk are involved. A common mistake is the creation of standalone AI or data strategies that are disconnected from core business strategy. Technology must be embedded within the operating model of government, not treated as an add-on.
Citizen expectations today are shaped by private-sector digital experiences. How are governments adapting their service design philosophies while operating within public accountability frameworks?
The promise of digital government is that interacting with the state should feel as intuitive as engaging with banks, retailers, or travel platforms. Citizens expect services to be personalised, secure, and efficient. Governments are increasingly designing services that recognise individuals, remember past interactions, and respect data privacy while using information to improve experience. The challenge is to deliver this level of service while maintaining accountability, transparency, and security. When done well, digital government does not merely replicate private-sector experiences but adapts them responsibly for the public good.
Looking ahead, what should policymakers keep in mind as they align fiscal strategy with digital transformation, particularly in emerging economies?
Inclusivity must remain central. While digital channels are becoming dominant, governments must continue to support multiple modes of engagement, including face-to-face and telephony contact centres. Budget allocations must account for this omni-channel reality. From the outset, programs should include mechanisms to measure progress, quantify benefits, and assess return on investment—not just for the government, but for citizens and businesses. When fiscal strategy and digital transformation are aligned thoughtfully, technology becomes a powerful enabler of trust, inclusion, and improved governance.
You recently launched a thought-leadership paper in Davos on liveable cities. Could you share some details about that work?
At Davos, KPMG launched a paper focused on liveable cities and liveable economies, centred on designing future cities around citizens and their lived experiences (Paper title – “Blueprint for livable economies: Unlocking livability through place-based business cases”). The work builds on our earlier research into intelligent economies and reflects a broader responsibility to ensure that technological progress does not leave communities behind. The premise is that cities must be technology-enabled, but also human-centred, supported by appropriate infrastructure, education, and governance. As AI and emerging technologies reshape economies, our obligation is to ensure that access, opportunity, and quality of life improve for all, not just a few.
