Dutch performance information
Hans Monnickendam
Ministry of Finance
The Netherlands
Sydney June 2006
1
How to win the world cup
Dutch ‘performance indicator’
Van
Basten
2
Beenhakker
Hiddink
Advocaat
A. Einstein
 “Everything that
can be counted
does not
necessarily
count;
everything that
counts cannot
necessarily be
counted’
3
What were our goals?
 More transparent budget
1. Focus on policy goals
 outcome/output
2. The way to achieve these goals
3. More measurable goals
 performance indicators
4
What are our results?
 Positive




Annual report September  May
Average 60 pages  policy agenda (15 pages)
Reduction of line items 800  140
Instruments  output
 Negative




5
Unreadable document, too much technical information
Still unclear policy objectives
Still unclear effect of government intervention
Loss of input information
Bad practice of indicators
 Invites to “meet the number” at cost of quality
 Examples
 Success introduction market for electricity
 measured by acquaintance with companies
 salaries of top management!
 Pro-active crime prevention, frivolous fining,
picking the easiest criminal charges
6
Agenda
 More readable budget documents
 Courses
 Incorporation performance budgeting in
primary policy process
 ‘Culture’
 Policy documents
 Continuation of independent policy reviews
 CPB  cost benefit analyses
 Interdepartmental policy reviews (independent chair)
 Court of Audit
 Process check on quality of non-financial information
7
Pyramid of public finance
•Accruals
•Performance
budgeting
Position MOF/cabinet
Forecasting techniques
Medium term expenditure framework
Multi-annual budgeting
Checks/balances budget process
Ex-post policy-evaluation
Relations local government
Financial and budgetary control on government liabilities and cash
spending by line-ministeries
Abolish off-budgetpractices
Control of budgetexecution
Lawful expenditures
Account in time after the budget year
A proper organic budget law
Capacity building
8
Cash = King
9