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This article discusses the reforms introduced in the Netherlands since the 1980s to improve the transparency and efficiency of government programmes: programme budgeting, policy orientation, and interdepartmental policy reviews. The impact on the budget structure and process is described. An Annex explains some typical characteristics of the Dutch budgetary process.
1. Introduction
The Netherlands introduced a more policy-oriented form of programme budgeting in 2001. The initial aim of this budget reform was to provide Parliament with a more transparent budget document. During the implementation process, the objective broadened to encompass improving the efficiency of programmes.
As a result of this reform, the new structure of the budget is clearer, with strategic objectives and links to related policy areas. Regarding efficiency, however, the results are less evident. There is still a lack of clarity about the contribution of government programmes to policy objectives. In many cases, performance indicators "hit the target but miss the point" and evaluation research does not review the effects of policy. The twofold aim of budget reform - transparency and efficiency - cannot be achieved by one instrument, the budget. The budget should be used for discussion of the main political issues, but other instruments such as policy reviews are advised for facilitating efficiency improvements.
Further work lies ahead on improving the focus and accessibility of budget documents and using policy reviews to achieve improvements in efficiency.
This country report about programme budgeting is built around four pillars (shown as A through D in Table 1). At the end of this study, an Annex explains some typical characteristics of the Dutch budgetary process.
2. Programme budgeting
In the 1980s and 1990s, two major reforms were introduced: the Accounting System Operation (Operatie Comptabel Bestel), carried out from 1985 to 1993; and the Policy Budgets and Policy Accountability operation (VBTB, Van Beleidsbegroting tot Beleidsuerantiuoording), started in 1999.
The Accounting System Operation was conducted against the 1980s background of continuous overruns of expenditures, high deficits and a heavy tax burden. The reform sought to reverse this trend through a broad package of measures: decentralisation, more weight on commitments in accounting (see Box 1) and orderly financial management. The focus was on controlling government expenditures, especially unexpected budget overruns.
In the Netherlands the new budget...