The article suggests the importance of the research of the public policies dimensions which indicate in which ways, ratios and forms the public spending funds supply and usage are defined and what the position of certain subjects included in the process is, using the experience of developed countries. It underlines the complexity of public decision making and the importance of bureaucrats', that is, state officials' role comprehension in the understanding of public management logic. Also, salary costs make almost one quarter of the total state spending, and they are an inflexible and often inefficient way of meeting the needs of the economy and citizens in public services domain. The paper will analyze the state of the public sector in the Republic of Serbia, with the accent on the creation of a new strategic orientation of the public administration, where the labor costs would decline by implementing the modernization of labor, while the labor flexibility and the state effect would increase. The final segment also suggests the need of social attitudes change, that is, public debates sometimes suggest that people have unrealistic expectations and exaggerated requests towards the political system. Thus we can conclude that in the following years it will be necessary to stipulate reasonable rules and legal budgetary procedures constraints. This suggests possible new research framework in the specific context of public management in Serbia.