The report of committe on downsizing Federal Government represent gist of lengthy discussions with the Secretaries and other officials of the Government, and brings together the experience and knowledge of everyone to a difficult and urgent task. This report benifited greatly from the participation of private sector members. The major findings of committee came as no surprise. The Federal Government is characterized by: i) Organizations that are no longer needed - the environment for which they were created no longer exists; ii)New organizations added on to an antiquated system, perhaps with the best of intentions, little realizing that root cause of problems lay not in adding but in improving the core organization to be more skill oriented and management oriented according to the needs of fast moving times. Hierarchical Divisions with vertical chains of command, monopolies with no incentives to improve, presence of public sector in areas which should have been left to the private sector and increasing centralization of functions which are best handed over to lower levels of Government.