The Budgetary Process in the Netherlands

1. The Budgetary Process inthe Netherlands Werner DeenenEU-Twinning Seminar on Budget and EU FundsSkopje, 14-15 May 2007

2. The national budget • Players • Budget lay-out [of a line Ministry] • Budgetary process: • Preparation • Excecution • Reporting about execution • Cooperation Mof <-> line Ministry • Central guiding questions of the budget

3. 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

4. PM Finance L Minister SG SG FED DG’s DG Budget DG DG’s IB PD PD Overview actors – Organizational chart

6. 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

7. 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

9. Execution year t-2 t-1 t t+1 Preparation Budget 2007 Execution year 2007 Annual Report 2007 Okt. – Dec. LM intenal prepare for annual report MoF: Governemental budget guidlines [RBV] Okt Mai: 1st Suppl. Law; Spring memo 1st week Jan Closing Accounts ≈ Dec – Feb LM internal budget process Monthly statements ultimo Feb/June/Sept Jan-Feb LM internal process; Feb – mid March MoF bilateral involved Feb – July Bilateral contacts LM - MoF Nov: 2nd Supp. Law – Autumn memo Aug. Counil of Ministers March 15 Accountant Reports - 3rd Tuesday in Sept – Budget presentation; + “General Politial Reviews” [APB] 3rd Tuesday in Sept – Budgetpresentation End March- Council of Ministers discuss; 3rd Wed Reporting day - Okt – Dec. Discussions LM -Parliament May –June Discuss with Parliament Annual Reports LMs

10. Date Preparation 2008 Implementation 2007 Accounting 2006 November 2006 Budget notification 2007 February 2007 Preliminary Report 2006 March 2007 Policy letters Before June 1st 2007 Framework letter 2008 Spring memorandum 2007 May 2007 National Financial Annual Report 2006 September 2007 Budget memorandum 2008 (Budget Day) Before Dec 1st 2007 Fall Memorandum 2007 Budget cycle (2007)

11. 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

12. 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? Budget prepaparion Annual Report

13. 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

14. IBOS