The article deals with problems of government effectiveness in central and eastern European countries. In 1990, eastern European countries began to transition from communism to free market capitalism. After more than twenty years of reform, central and eastern European countries are showing different results in economic development because of widely contrasting levels of government effectiveness. Recently government effectiveness was tied to e-governance services and their growth. The purpose of the article is to analyze the economic effectiveness of government in the countries of central and eastern Europe, and to determine how e-governance services impact government effectiveness. Firstly, the main ideas of government efficiency and its indicators were described. Secondly, trends of government efficiency in selected countries are analyzed. Thirdly, impact of e-governance on government effectiveness was analyzed. Fourthly, ideas to improve government effectiveness are proposed. The methodology of research includes both qualitive and empirical methods. The data used was from World Bank sources.