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Dutch performance information

Hans MonnickendamMinistry of Finance The NetherlandsSydney June 2006

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Dutch ‘performance indicator’

Van Basten

Hiddink

Beenhakker Advocaat

How to win the world cup

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A. Einstein

“Everything that can be counted does not necessarily count; everything that counts cannot necessarily be counted’

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What were our goals?

More transparent budget1. Focus on policy goals

outcome/output2. The way to achieve these goals3. More measurable goals

performance indicators

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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 Unreadable document, too much technical information Still unclear policy objectives Still unclear effect of government intervention Loss of input information

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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

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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

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•Accruals•Performancebudgeting

Position MOF/cabinetForecasting techniquesMedium term expenditure frameworkMulti-annual budgeting Checks/balances budget processEx-post policy-evaluationRelations local government

Financial and budgetary control on government liabilities and cash spending by line-ministeries Abolish off-budgetpracticesControl of budgetexecutionLawful expendituresAccount in time after the budget yearA proper organic budget lawCapacity building

Pyramid of public finance

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Cash = King