The Budgetary Process in the Netherlands

© OECD

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U The Budgetary Process inThe Budgetary Process inthe Netherlandsthe Netherlands

Werner DeenenEU-Twinning

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Seminar on Budget and EU FundsSkopje, 14-15 May 2007

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The national budget

1. Players2. Budget lay-out [of a line Ministry]3. Budgetary process:

• Preparation• Excecution• Reporting about execution

4. Cooperation Mof <-> line Ministry5. Central guiding questions of the budget

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1. Players

Political Prime Minister, Ministers and Minister of Finance Parliament (+ NL: Council of State, SAO) Civil service DG Budget / Inspectorate of the Budget Ministries: Financial and Economic Affairs Directorates Ministries: Policy Directorates State Audit Office

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Overview actors – Organizational chart

PM

Finance

SG

DG’s DG Budget

IB DG DG’s

PD PD

L Minister

SG

FED

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2. The budget of a line Ministry (1)

Legal Parts (includes table budget overview) Budget overview with allocation of resources within the line

ministry (pie chart) “Reading manual” [leeswijzer] Policy agenda [beleidsagenda] Articles (policy goals) of the line Ministry Agencies (when applicapable) Annexes

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The budget of a line Ministry (2)

Policy article -> XX. XXX: General goal -> Operational goal -> Budget linked with operational goal -> Indicators per operational goal -> Evaluation agenda -> research of policy effects per

goal every 5 years or less

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t-2 t-1 t t+1

MoF: Governemental budget guidlines [RBV] Okt

≈ Dec – Feb LM internal budget process

Feb – July Bilateral contacts LM - MoF

Aug. Counil of Ministers

3rd Tuesday in Sept – Budget presentation; + “General Politial Reviews” [APB]

Okt – Dec. Discussions LM -Parliament

Mai: 1st Suppl. Law; Spring memo

Monthly statements ultimo Feb/June/Sept

Nov: 2nd Supp. Law

– Autumn memo

3rd Tuesday in Sept – Budgetpresentation

Okt. – Dec. LM intenal prepare for annual report

1st week Jan Closing Accounts

Jan-Feb LM internal process; Feb – mid March MoF bilateral involved

March 15 Accountant Reports -

End March- Council of Ministers

discuss; 3rd Wed Reporting day -

May –June Discuss with Parliament Annual Reports LMs

Execution year

Annual Report 2007Preparation Budget 2007 Execution year 2007

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Budget cycle (2007)

Budget memorandum 2008(Budget Day)

September 2007

National Financial Annual Report 2006

May 2007

Fall Memorandum 2007

Before Dec 1st 2007

Spring memorandum 2007

Framework letter 2008Before June 1st 2007

Policy lettersMarch 2007

Preliminary Report 2006February 2007

Budget notification 2007November 2006

Accounting 2006Implementation 2007Preparation 2008Date

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3. Cooperation FEA and MoF / Inspectorate

Weekly meetings between the heads of the specific units of the Inspectorate (Budget Dept.) and FEA

Monthly documents with expenditures related to available budget

Regular contacts between the employees

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4. Guiding questions for the budget WWW -- HHH

What do we want to reach [policy objective] ?

What are we going to do for that ?

What are the cost ?

Have we reached/realize what we wanted to realize?

Have we done for it what we planed to do?

Has is cost what we expected it would cost?

Bud

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Ann

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Example: Spring Memorandum [within MoF]

Preparation starts early (Christmas t-1) FEA<-> policy directorates: results in policy letters Negotiations FEA <-> Inspectorate Bilateral negotiation Minister of Finance <-> ministers;

MoF <-> PM Council of Ministers All results ->Spring Memorandum -> To House of

Representatives

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IBOS