The theme of this paper is change management in the public sector, ie the impact of implementation of change management and new digital tools in public sector business. Also, the purpose of this paper is to present the broader impact of change management and digital transformation on public sector reforms in order to draw key conclusions from theoretical analysis and previous research on enhancing competitiveness and driving the economies of the countries in the region through further public sector development and adaptation of the regulatory framework for doing business in the digital age. In this period of intense economic, sociological and cultural change in the global economy, it is necessary to identify and integrate new technologies into the implementation of structural reforms in the public sector. Governments around the world have recognized the positive effects of change management and digital transformation on reforms in the public sector and the economy at large. They see this as a necessary step to make their economies more competitive, to survive in the digital age and as a key factor in driving further economic growth. Change management, ie complete transformation of business with the help of new technologies, is considered as a key aspect of strengthening the competitiveness of the economy. Based on the theoretical discussion and analysis, it can be concluded that in order to strengthen the competitiveness and further economic development of the countries in the region, it is necessary to implement change management in the public sector and adapt to new trends and technologies, ie digital transformation of the public sector. Also, it is neccessary to implement significant reforms in public sector in the wake of the new public management. The paper is thematically divided into six parts and several scientific methods were used in the preparation of the paper, such as method of description, induction and deduction, method of analysis and synthesis, method of explication, compilation, abstraction and concretization.