Abstract
The Government of the Russian Federation has been overhauling a public sector of economy since 2010. One of the transformation’s goals is a gradual reduction of public spending on the public-sector organizations, and simultaneous increase in efficiency of their economic activity and in the quality of rendered public services. After the federal law on the legal status of public (municipal) institutions improvement came into force, the operating mechanisms and internal institutional links of public sector organizations have been changed, including full participation of public sector organizations in market relations. For instance, budgetary funds are allocated on contractual basis in form of government tasks. However, the significant improvements have not been achieved. Experts have a common ground in reasons of organizational fails. Among them are poor quality of planning, goal setting, and incorrect setting of development indicators' target values.
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