The Budgetary Process in the Netherlands

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The Budgetary Process inthe Netherlands

• Werner DeenenEU-Twinning

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

• Players
• Budget lay-out of a line Ministry
• Budgetary process
• Preparation
• Excecution
• Reporting about execution
• Cooperation Mof lt-gt line Ministry
• 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
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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 -gt XX. XXX
• General goal -gt
• Operational goal -gt
• Budget linked with operational goal -gt
• Indicators per operational goal -gt
• Evaluation agenda -gt research of policy effects
  per goal every 5 years or less

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Execution year
t-2
t-1
t
t1
Annual Report 2007
Preparation Budget 2007
Execution year 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
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Budget cycle (2007)
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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?
Budget prepaparion
Annual Report
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Example Spring Memorandum within MoF

• Preparation starts early (Christmas t-1)
• FEAlt-gt policy directorates results in policy
  letters
• Negotiations FEA lt-gt Inspectorate
• Bilateral negotiation Minister of Finance lt-gt
  ministers MoF lt-gt PM
• Council of Ministers
• All results -gtSpring Memorandum -gt To House of
  Representatives

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