For Official Use PUMA/SBO(2002)5 PUMA/SBO(2002)5 For Official Use Organisation de Coopération et de Développement Economiques Organisation for Economic Co-operation and Development 19-Apr-2002 English - Or. English PUBLIC MANAGEMENT SERVICE PUBLIC MANAGEMENT COMMITTEE OECD BUDGETING DATABASE - PROVISIONAL 2002 EDITION Twenty-third Annual Meeting of OECD Senior Budget Officials Washington, D.C., 3-4 June 2002 Delegates are asked to verify the accuracy of the information for their respective countries. Any corrections should reach the Secretariat before 21 May, so that they may be incorporated in an updated version to be distributed at the forthcoming meeting of the Working Party. English - Or. English For further information, please contact Jon BLONDAL Tel: (33-1) 45 24 76 59; Fax: (33-1) 45 24 17 06; E-Mail: jon.blondal@oecd.org Mike RUFFNER Tel: (33-1) 45 24 16 32; Fax: (33-1) 45 24 17 06; E-Mail: michael.ruffner@oecd.org JT00124793 Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format
THE OECD BUDGETING DATA BASE 1. Introduction 1. This document contains an overview of budgeting and accounting practices in Member countries. The document was compiled from information submitted by Member countries to the OECD Secretariat. 2. The document refers to accruals as applied in core national government institutions. Therefore, the use of accruals by state-owned enterprises and by other commercial organisations is excluded. Similarly, the use of accruals by regional and local governments is excluded. 3. Member countries are classified as Full Accrual Basis irrespective of whether certain heritage assets and military systems are recognised. Similarly, tax and other non-exchange revenue may not be on full accrual basis. 4. Member countries are classified as Full Cash Basis irrespective of whether a system of commitments or obligations is in place. 5. Note that percent totals at the bottom of each table may not add due to rounding, and in a few circumstances when multiple answers are allowed. 2
ROLE OF THE LEGISLATURE - 1 Are there any restrictions on the right of the legislature to modify the budget proposed by the government? NO The Netherlands Totals 11 16 Percent of Total 41 % 59 % 3
ROLE OF THE LEGISLATURE 2 If applicable, what form do these restrictions take? May not make any changes. Legislature can only approve or reject the budget in whole May not increase or propose new expenditures, i.e. legislature can only decrease funding levels May reallocate and increase funding levels, but only if it reduces others or approves new revenue sources, i.e. no net change in total deficit/surplus Government must approve any changes proposed by Legislature (a) (b) ( c) (d) (e) Totals 2 3 4 2 Percent of Total 18 % 27 % 36 % 18 % (a) The legislature needs the government s agreement in order to initiate any new expenditure or to increase any expenditure proposed by the government. (b) It can reallocate, create or increase expenditure as long as it has established new sources to finance them whenever such modifications would alter the balance of the budget. (c) The Finance Minister may exercise a financial veto over any proposed change to votes that would have more than a minor impact. (d) It can reallocate, create or increase expenditure as long as it has established new sources to finance them whenever such modificationswould alter the balance of the budget. (e) The legislature must observe the balanced budget amendment to the constitution which stipulates a maximum level of permitted deficit. 4
ROLE OF THE LEGISLATURE - 3 If applicable, what is the respective role of each house of the legislature in approving the budget? Upper House has no role Lower House is preeminent. It can override any vote of Upper House Both Houses enjoy similar stature (b) (c) (b) (a) The Netherlands (c) (d) Total 2 8 6 Percent of Total 13 % 50 % 38 % (a) (b) (c) (d) The Upper House must approve taxation measures; it has no direct role in approving expenditure measures. The Upper House may not introduce expenditure or taxation measures. The Upper House can only accept or reject the entire budget; it cannot make any amendments Tax legislation must originate in the Lower House, but can be amended by both Houses. 5
ROLE OF THE LEGISLATURE - 4 Notwithstanding any legal restrictions on the legislator s ability to modify the budget, is a vote on the budget considered a vote of confidence in the government, i.e. the government would resign if any changes are approved to its budget proposal? (a) Applies to Lower House only. NO (a) (a) The Netherlands (a) Total 4 22 Percent of Total 15 % 85 % 6
ROLE OF THE LEGISLATURE - 5 In practice, does the legislature generally approve the budget as presented by the government? With no changes With minor changes only With significant changes The Netherlands Total 6 17 4 Percent of Total 22 % 63 % 15 % 7
ROLE OF THE LEGISLATURE - 6 Does the legislature have any opportunity to formally debate overall budget policy prior to the introduction of the government s budget? And vote taken on budget policy But no vote taken on budget policy The Netherlands Total 5 5 17 Percent of Total 19 % 19 % 63 % NO 8
ROLE OF THE LEGISLATURE - 7 Does the legislature first vote on the total amount of revenue and expenditure in the budget before it votes on specific appropriations? NO The Netherlands Total 11 16 Percent of Total 41 % 59 % 9
ROLE OF THE LEGISLATURE - 8 In how many separate appropriation laws does the legislature approve expenditures? In one law If more than one, then how many? 2? 4 or 5 3 The Netherlands?? 13 Total 21 6 Percent of Total 78 % 22 % 10
ROLE OF THE LEGISLATURE 9 What best describes the committee structure for dealing with the budget? The Netherlands A single budget committee deals with all budget-related matters. Sectoral committees may make recommendations, but budget committee does not have to follow them. (a) (b) (a) (d) A single budget committee deals with budget aggregates. Sectoral committees deal with appropriations for each respective sector. No budget committee in place. Sectoral committees deal with appropriations for each respective sector. (c) 11
ROLE OF THE LEGISLATURE - 9 Cont d A single budget committee deals with all budget-related matters. Sectoral committees may make recommendations, but budget committee does not have to follow them. A single budget committee deals with budget aggregates. Sectoral committees deal with appropriations for each respective sector. No budget committee in place. Sectoral committees deal with appropriations for each respective sector. (e) Total 14 10 3 Percentage of Total 52 % 37 % 11 % (a) (b) (c) (d) (e) Members of the respective sectoral committees join the budget committee when appropriates relating to their sectors are being discussed. The budget bill shall first be referred to the competent standing committees which shall report the results to their examination to the speaker. The speaker shall then refer the budget bill to the special budget and settlement committee. A special budget committee is in place, but it only offers technical assistance to the sectoral committees as they discuss their respective parts of the budget. There are discussions at the level of sectoral committees (concerning expenditures of their specific areas) prior to discussions and deliberations of the budget committee. Budget committees of both Houses deal with budget aggregates. Appropriation committees, consisting of 13 sectorallybased sub-committees consider annual spending legislation. Substantive sectoral committees are responsible for legislation creating entitlement (transfer) and other mandatory programs. 12
ROLE OF THE LEGISLATURE 10 Do ministers typically appear before committees to answer questions? NO The Netherlands Total 22 5 Percent of Total 81 % 19 % 13
ROLE OF THE LEGISLATURE - 11 Do officials (civil servants) typically appear before committees to answer questions? NO The Netherlands Total 19 8 Percent of Total 70 % 30 % 14
ROLE OF THE LEGISLATURE - 12 Are representatives of interest groups (non-governmental organisations) typically invited to appear before committees? NO The Netherlands Total 9 18 Percent of Total 33 % 67 % 15
ROLE OF THE LEGISLATURE - 13 Are committee meetings generally open to the public to observe? NO The Netherlands Total 17 10 Percent of Total 63 % 37 % 16
ROLE OF THE LEGISLATURE - 14 What is the number of professional staff serving the budget committee(s)? Less than 5 staff Between 5 and 10 staff Over 10 staff The Netherlands (245) Total 9 14 4 Percent of Total 33 % 52 % 15 % 17
ROLE OF THE LEGISLATURE - 15 Is there a specialised budget research organisation attached to the legislature to conduct analyses of the budget? The Netherlands with over 5 professional staff with 25 or less professional staff Total 4 3 20 Percent of Total 15 % 11 % 74 % NO 18
ROLE OF THE LEGISLATURE - 16 What best describes the manner in which expenditure for statutory (entitlement) programs is treated? The Netherlands Parliament votes on such expenditures each year like other expenditures -other -other Permanent appropriations authority; information presented to legislature for information only -other Total 24 4 Percent of Total 86 % 14 % 19
BUDGET DOCUMENTATION 1 What best describes the budget documentation presented to the legislature? Overview and detailed estimates presented in single document Overview and detailed estimates presented in separate documents Other The Netherlands Total 10 17 1 (2) Percent of Total 36 % 61 % 3 % 20
BUDGET DOCUMENTATION - 2 Does the budget documentation contain a comparison with actual expenditure during the past year(s)? No For past year For past 2 years For past 3 years Other The Netherlands Total 2 14 6 3 3 (4) Percent of Total 7 % 50 % 21 % 11 % 11 % 21
BUDGET DOCUMENTATION - 3 Does the budget documentation contain a forward projection of expenditure beyond the next fiscal year? NO For 1 year beyond For 2 years beyond For 3 years beyond Other The Netherlands Total 10 0 5 7 6 Percent of Total 36% 0% 18% 25% 21% 22
BUDGET DOCUMENTATION - 4 Is an ex-post comparison made between projected expenditure in future years and the actual expenditure in those years? (i.e. to see the accuracy of the original projections). NO The Netherlands Total 15 13 Percent of Total 54% 46% 23
BUDGET DOCUMENTATION - 5 PERFORMANCE INFORMATION Is non-financial performance data routinely included in the budget documentation presented to the legislature? For Most Programs For Some Programs The Netherlands Total 15 6 7 Percent of Total 54 % 21 % 25 % NO 24
BUDGET DOCUMENTATION - 6 PERFORMANCE INFORMATION How is information on performance presented? In Main Budget Document In Special Performance - Whole-of- Government Each Ministry does it Other --- --- --- --- --- --- The Netherlands --- --- Total 11 6 6 4 Percent of Total 25
BUDGET DOCUMENTATION - 7 PERFORMANCE INFORMATION Does the performance data include performance targets? For Most Programs For Some Programs --- The Netherlands --- --- --- Total 9 6 9 Percent of Total 38 % 25 % 38 % NO 26
BUDGET DOCUMENTATION - 8 PERFORMANCE INFORMATION Is performance data audited? For Most Programs For Some Programs The Netherlands --- --- Total 8 5 13 Percent of Total 31% 19% 50% NO 27
BUDGET DOCUMENTATION - 9 THE INTERNET Is the budget documentation placed on the Internet? Most or All Highlights Only The Netherlands Total 16 9 3 Percent of Total 57 % 32 % 11 % NO 28
BUDGET DOCUMENTATION - 10 CITIZEN S GUIDE Is a citizen s guide to the budget published, i.e. a short, easy to understand document aimed at the general public? NO The Netherlands Total 19 9 Percent of Total 68 % 32 % 29
MEDIUM-TERM FISCAL POLICY OBJECTIVES - 1 Is a formal comparison made between the medium-term fiscal policy objectives and the government s annual budget with explanations given for any deviations? NO The Netherlands Total 16 9 Percent of Total 59 % 41 % 30
ECONOMIC ASSUMPTIONS - 1 Is there any independent review of the economic assumptions used in the budget? Independent Panel or Similar Audit Office The Netherlands Total 4 3 21 Percent of Total 14 % 11 % 75 % NO 31
ECONOMIC ASSUMPTIONS - 2 Are private sector economic forecasts discussed in the budget documentation and the government s economic assumptions compared to them? NO The Netherlands Total 5 23 Percent of Total 22 % 78 % 32
ECONOMIC ASSUMPTIONS - 3 Does the budget documentation contain a discussion of what impact variations in the key economic assumptions would have on the budget outturn? NO The Netherlands Total 15 13 Percent of Total 54 % 46 % 33
IN-YEAR REPORTING - 1 At what interval is information on the in-year budget outturn released? Monthly Quarterly Half-Yearly Other The Netherlands Total 19 9 4 5 34
IN-YEAR REPORTING - 2 How much time elapses from the end of the reporting period until the reports are issued? 4 weeks or less 5 weeks or less 6 weeks or less Other The Netherlands Total 12 2 5 9 (11) Percent of Total 43 % 7 % 18 % 32 % 35
IN-YEAR REPORTING - 3 Does this information have a clear comparison between actual and planned outturn for the period covered? NO The Netherlands Total 15 13 Percent of Total 54 % 46 % 36
IN-YEAR REPORTING - 4 At what level of detail is this information? Aggregate whole-ofgovernment level Ministry-level Agency/Program Level The Netherlands Total 26 16 12 Percent of Total (100 %) (62 %) (46 %) 37
IN-YEAR REPORTING - 5 Does the government announce the release dates for these reports in advance? NO The Netherlands Total 14 14 Percent of Total 50 % 50 % 38
OTHER REPORTS - 1 Does the government release a Pre-Budget Report ahead of the regular budget where general budget policy and/or aggregate expenditures are discussed? NO The Netherlands Total 9 18 Percent of Total 33 % 67 % 39
OTHER REPORTS - 2 Does the government produce a report on the long-term (10-40 years) outlook for the public finances as a whole on a regular basis? annually, except where noted NO Every 5 Years The Netherlands Total 5 23 Percent of Total 18 % 82 % 40
OTHER REPORTS - 3 Are special reports on the fiscal outlook released prior to elections? NO The Netherlands Total 4 24 Percent of Total 14 % 86 % 41
OTHER REPORTS - 4 Does the government report tax expenditures on a regular basis? annually, except where noted NO NOT ANN NOT ANN NOT ANN The Netherlands Total 21 (or 18 and 3 Not Ann) 6 Percent of Total 75 %( or 67% and 11%) 25 % 42
OTHER REPORTS - 5 Are regular actuarial estimates made for social security programs (only old-age pensions)? annually, except where noted NOT ANN - NOT ANN NOT ANN NOT ANN The Netherlands NOT ANN NOT ANN NOT ANN Total 22 (or 15 and 7 NOT ANN) 6 Percent of Total 79% (54 % and 25 % NOT ANN) 21 % NO 43
OTHER REPORTS - 6 Are regular actuarial estimates made for civil service pension plans? NO The Netherlands Total 21 6 Percent of Total 78% 22% 44
FINANCIAL MANAGEMENT - 1 ACCRUALS Accounting Basis Applied for Budget Approved by Legislature Full Accrual Basis Accrual Basis, Except No Capitalisation or Depreciation of Assets Cash Basis, except certain transactions on Accrual Basis Full Cash Basis (1) (2) (3) (3) Netherlands (4) (5) Total 3 4 2 21 Percent of Total 10 % 14 % 7 % 72 % (1) Interest Expenses and Employee Pensions Treated on Accrual Basis. (2) Transfer Payments Not on Accrual Basis. (3) Budget Prepared on Both Full Cash Basis and Accrual Basis, Except No Capitalisation or Depreciation of Assets. (4) Budget on Full Accrual Basis Effective Fiscal Year 2001-02. (5) Interest Expenses, Certain Employee Pension Plans, and Loan and Guarantee Programmes Treated on Accrual Basis. 45
FINANCIAL MANAGEMENT - 2 ACCRUALS Plans to Move Budget to Accrual Basis Full Accrual Basis Budgeting to be introduced Additional Accrual Basis information to be presented (1) (1) Netherlands (1) (1) Total 5 3 Percent of Total (1) Under Active Consideration. 46
FINANCIAL MANAGEMENT - 3 ACCRUALS Accounting Basis Applied for Consolidated (Whole-of Government) Financial Statements Full Accrual Basis Accrual Basis, Except No Capitalisation or Depreciation of Assets Cash Basis, except certain Transactions on Accrual Basis Full Cash Basis (1) (2) (3) (3) Netherlands (4) (5) Total 6 3 3 18 Percent of Total 21 % 10 % 10 % 62 % (1) Interest Expense and Employee Pensions Treated on Accrual Basis. (2) Interest Expense and Certain Other Transactions Treated on Accrual Basis. Full Accrual Basis to be Introduced. (3) Budget Prepared on Both Full Cash Basis and Accrual Basis, Except No Capitalisation or Depreciation of Assets. (4) Employee Pensions Treated on Accrual Basis. (5) Statements on Full Accrual Basis Effective Fiscal Year 2005-06. 47
FINANCIAL MANAGEMENT - 4 ACCRUALS Additional Use of Accruals in Departmental/Agency Level Financial Statements Netherlands Departmental/Agency Level Financial Statements on Full Accrual Basis Financial Statements on Full Cash Basis but Supplementary Accrual Information is presented Note: This refers to departments/agencies that prepare separate financial statements for their own operations and where such financial statements contain more accrual information than the consolidated (whole-of-government) financial statements. In cases where the consolidated (whole-of-government) financial statements are on full accrual basis (Table 3), departmental/agency level financial statements would also be on full accrual basis. 48
FINANCIAL MANAGEMENT - 5 ACCRUALS Determining Accounting Standards for the Public Sector Finance Ministry Determines Them Internally Finance Ministry Determines Them Following Recommendations By Formal Advisory Board Finance Ministry Appoints Independent Board To Determine Them Private Sector Accounting Standards Body Determines Them(1) Netherlands Total 19 6 2 1 Percent of Total 68 % 21 % 7 % 3 % Notes: The term finance ministry is used generically to refer to the one or more ministries or agencies responsible for budgeting and financial management. (1) Refers to the Same Body that Determines Accounting Standards for both the Public and Private Sectors. 49
FINANCIAL MANAGEMENT - 6 Is any charge imposed on individual government organizations for using capital assets in order to capture the government s financing costs associated with those assets? NO (a) The Netherlands (b) (a) Total 6 21 Percent of Total 22 % 78 % (a) (b) On land and buildings only On capital employed in agencies only 50
FINANCIAL MANAGEMENT - 7 Is there a system of interest-bearing accounts for ministries/agencies in order to foster good cash management practices? NO The Netherlands Total 5 21 Percent of Total 19 % 81 % 51
MANAGERIAL FLEIBILITY - 1 Do government organisations generally receive one appropriation for all of their operating expenditures? NO, there are 2 Salaries and other operating expenditures are separated NO, more than 2 The Netherlands Total 10 7 10 Percent of Total 37 % 26 % 37 % 52
MANAGERIAL FLEIBILITY - 2 If appropriations for operating expenditure are in more than one line, are transfers permitted between different appropriation lines, i.e. between salary and other expenditure? (a) (b) Ministry of Finance must approve them But other restrictions apply as well Up to 10% (a) (a) (b) Total 12 2 3 Percent of Total 71 % 12 % 18 % Some transfers can be made without prior approval from the Finance Ministry. Transfer authority varies from organisation to organisation. Transfers frequently require approval of congressional committee. NO 53
MANAGERIAL FLEIBILITY - 3 More generally, are transfers permitted between capital investments or transfer programs (social security pensions, etc.) and operating expenditure? NO With approval of Ministry of Finance But other restrictions apply as well The Netherlands (a) Total 18 6 3 Percent of Total 67 % 22 % 11 % (a) Transfers from operating appropriations to capital can be freely made; specific restrictions apply for others. 54
MANAGERIAL FLEIBILITY - 4 Is it possible to carry forward unused appropriations for operating costs (salaries, etc.) from one year to another? Automatically With the approval of the finance ministry on a case-by-case basis Up to 5% Up to10% Up to 5% Up to 5% (a) The Netherlands Up to 1% Up to 5% Up to 3% Up to 50% Total 15 6 6 Percent of Total 56% 22% 22% (a) Annual appropriations are, however, valid 3 months into the next year. NO 55
MANAGERIAL FLEIBILITY - 5 Is it possible to carry forward unused appropriations for investments (building construction, etc.) from one year to the next? NO Up to 5% (a) The Netherlands Up to 1% Total 24 3 Percent of Total 89 % 11 % (a) Annual appropriations are, however, valid 3 months into the next year. 56
MANAGERIAL FLEIBILITY - 6 Is it possible for government organisations to borrow against future appropriations for operating costs (salaries, etc.)? NO (a) Up to 2% (b) (c) The Netherlands Up to 1% Up to 5% (c) Up to 3% (b) Total 8 19 Percent of Total 30 % 70 % (a) The finance ministry operates a small reserve fund from which organisations may borrow for specific needs. (b) The finance ministry may approve such borrowing on a case-by-case basis. Specific restrictions apply. (c) All overspending in one year is deducted from next year s appropriation. 57
MANAGERIAL FLEIBILITY - 7 Is it possible for government organisations to borrow against future appropriations for investments (building construction, etc.)? NO (a) (b) (b) The Netherlands Up to 1% (c) Up to 10% (b) Total 7 20 Percent of Total Specific borrowing authority granted in prior legislation is excluded. (a) The finance ministry operates a small reserve fund from which organisations may borrow for specific needs. (b) The finance ministry may approve such borrowing on a case-by-case basis. Specific restrictions apply. (c) Except all overspending in one year is deducted from next year s appropriation. 58
MANAGERIAL FLEIBILITY - 8 Where is the employers contribution to the civil service pension plans charges? To the ministry or agency where the employee works To a central account in the finance ministry Other (a) The Netherlands (a) Total 12 7 7 Percent of Total 46 % 27 % 27 % (a) Some older retirees pensions may be charged to a central account in the finance ministry. 59
FISCAL RELATIONS WITH SUB-NATIONAL LEVELS OF GOVERNMENT Does the national government impose any limits on the borrowing activity of lower levels of government? No No, but there are formal, non-binding consultations Yes, lower levels not permitted to borrow Yes, there are maximum levels for borrowing Yes, but loans must be approved by national government Netherlands Brazil Chile (only registered loans) Other 60
FISCAL RELATIONS WITH SUB-NATIONAL LEVELS OF GOVERNMENT Does the national government explicitly guarantee the borrowing activities of lower levels of government? Czech Republic Netherlands Slovak Republic United Kingdom Brazil Chile No Yes, all borrowing is guaranteed Yes, borrowing in most cases is guaranteed Yes, borrowing guaranteed in only exceptional cases Other 61
FISCAL RELATIONS WITH SUB-NATIONAL LEVELS OF GOVERNMENT What role does the national government have in regard to taxes levied by lower levels of government? Most taxes imposed by lower levels of government are set by national government Lower level of government can set specific tax rate within a specified band The national government has no role in setting taxes or tax rates There are nonbinding consultations between levels of government on taxation (binding in 9/10 provinces) (property taxes only) (except allowances) (taxes approved by government) Netherlands Brazil Chile Other 62
FISCAL RELATIONS WITH SUB-NATIONAL LEVELS OF GOVERNMENT What role does the national government have in regard to expenditure by lower levels of government? Netherlands Slovak Republic United Kingdom Brazil Chile The government approves detailed expenditure plans (most budgets) National government sets spending limits for lower levels of government (indirect) National has no role in lower level government spending plans (except excessive tax rates) Formal but nonbinding discussions are held Other 63
FISCAL RELATIONS WITH SUB-NATIONAL LEVELS OF GOVERNMENT How would you characterise recent changes in the amount of fiscal transfers from the national government to lower levels of government? Netherlands Brazil Chile The national government provides more funds The national government provides less funds No significant change 64
FISCAL RELATIONS WITH SUB-NATIONAL LEVELS OF GOVERNMENT How would you characterise recent changes in the restrictions of use of fiscal transfers from the national government to lower levels of government? Netherlands Brazil Chile The national government imposes fewer restrictions The national government imposes more restrictions No significant change 65
FISCAL RELATIONS WITH SUB-NATIONAL LEVELS OF GOVERNMENT Does the national government set financial reporting requirements for lower levels of government? Netherlands Brazil Chile Yes, financial reporting requirements for lower levels of government are set by the national government No, lower levels of government set their own financial reporting requirements 66
FISCAL RELATIONS WITH SUB-NATIONAL LEVELS OF GOVERNMENT If applicable, which of the following financial reports by lower levels of government are generally collected by the national government? Budgets of lower levels of government Annual audited financial statements In year reports on budget implementation monthly, quarterly, biannually monthly quarterly biannually quarterly quarterly, biannually monthly quarterly N/A Netherlands quarterly N/A N/A monthly other Brazil monthly, quarterly Chile monthly 67
MANDATORY EPENDITURES What percentage of the total annual budget consists of such mandatory expenditures? Percentage of total spending 51.5% 73% 67% 53.1% 54% 51% 53% N/A 45% 40% 17% 75.7% 74% N/A 53.7% Netherlands N/A 44% 44.7% 14.3% 71.9% 61% 90% 50% 8.4% 66% Brazil 88.37% Chile 66% 68
MANDATORY EPENDITURES Are mandatory expenditure programmes required to be reviewed or re-authorised on a periodic basis? Netherlands Brazil Chile Yes Yes, some programmes No (except debt payments) N/A 69
MANDATORY EPENDITURES If programmes are reviewed on a periodic basis, and if review or re-authorisation does not occur, does spending for the programmes continue? Netherlands Brazil Chile Yes No 70
MANDATORY EPENDITURES Notwithstanding the mandatory nature of the programmes, does the legislature appropriate funds for the programmes each year? Netherlands Slovak Republic United Kingdom Brazil Chile Yes, but any deviations from original estimate are automatically funded N/A Yes, but up to a fixed amount, then further legislative approval is necessary Yes, but certain programmes are exempt No, appropriations for mandatory programmes do not require legislative approval (some programs) Other 71
MANDATORY EPENDITURES Which institution typically first proposes changes to mandatory spending programmes? Netherlands Brazil Chile The government (executive) The legislature Other (No) (Revision timeframes are set in statute) (Equal Powers) (Equal Powers) (Equal Powers) 72
MANDATORY EPENDITURES If the government typically proposes changes to mandatory spending programmes, does the legislature typically change the contents of the proposal? Netherlands Brazil Chile Yes, substantially Yes, to a minor degree No N/A N/A (majority sought prior to introduction) 73
MANDATORY EPENDITURES Have there been major reforms of mandatory spending programs in your country during the last three years? Netherlands Brazil Chile No N/A Yes (Pensions, benefits for children and families) (change in retirement system, labour market reforms, social pension scheme reform) (1997-98 eligibility and financing of unemployment compensation revised, 2001 national pension increased) (Childbirth leave fund, Government employee pension reform) (pension system reforms, elderly nursing system implemented, patient co-payments in medical systems) (Livelihood protection programme) (long term care insurance, public sector wage agreement, public sector pension reform) (New law of social security, fiscal co-ordination, increased funds with lower levels of government) (New family allowance for children under 2, transitional allowance for single parents raised (1998)) (Larger parenthood benefit, improved sickness benefit, increased ceiling for unemployment benefits) (Agricultural price guarantees, financing for public transportation) (Several reforms reducing and increasing funding to healthcare and social welfare programs) (Reform of social welfare system, increased health funds, poverty combat fund, personnel policy) 74
BUDGETING AND HUMAN RESOURCES Is there a maximum ceiling on the number of staff (except those on senior staff) that government organisations may employ? Netherlands Brazil Chile Yes No, the level of the budget constitutes the ceiling 75
BUDGETING AND HUMAN RESOURCES What best characterises pay negotiations with staff? A central government agency conducts all negotiations Two tier system: Each government is granted flexibility within a central agreement Each government organisation conducts its own pay negotiations (federal depts) (agencies) Netherlands (Federal) (Cantons) (for public workers only) Brazil Chile Other (legal framework) (legal framework) (legal framework) 76
BUDGETING AND HUMAN RESOURCES Following the conclusion of pay negotiations, are the budgets of government organisations fully adjusted to reflect the increased expenditure? Yes, fully adjusted Yes, mostly adjusted, organisations are expected to bear share of the increase No, they are not adjusted Other (a) Netherlands (Federal) (varies) Brazil Chile (a) In pay negotiations, a central government personnel agency negotiates on behalf of staff with the central budget authority to finalise next year s payroll. Government employees may not belong to unions. 77
RESERVE FUNDS Does the annual budget include any central reserve funds to meet unforeseen expenditures? No A small central reserve fund operated, this fund is generally fully used (% of total expenditures) A large central reserve fund operated to meet errors in economic or underlying budget assumptions (% of total expenditures) (0,5%) (25% of interest charges) (2,5% = $7 to $10bn) (0,3%) (0,2% = DKK 800mn) (0,07% = 1,25 mdsf) (0,31% excluding amortisation payments) (0,5 to 2,0%) (0,2%) (multi year budget, 0.4% of GDP year 2, 0,8% year 3) (0,17%) (1,0%) (1,9% of general accounts) (32%) Netherlands (0,5% through 2002 only) (contingency 0,5%) (Imprest Supply 5%) (1,6% for pay negotiations) (2,0% for pay and unforeseen expenditures) (0,9%) (0,15% generally not used) (0,04%) (0,7%) proposed Brazil (0,34%) Chile (2,4%) Other 78
REPORTING FOR OUTCOMES AND OUTPUTS Is a distinction between outputs and outcomes used in government organisations? Netherlands Brazil Chile Yes, in all organisations N/A Yes, in most organisations Yes, in some organisations No 79
REPORTING FOR OUTCOMES AND OUTPUTS Are output targets routinely displayed in the budget documentation presented to the legislature? Yes, in main budget documentation Yes, in a separate government wide report accompanying the budget Yes, each ministry prepares reports accompanying the budget Czech Republic (some targets) (some targets) (some targets) Netherlands Slovak Republic United Kingdom Brazil Chile No Other N/A N/A 80
REPORTING FOR OUTCOMES AND OUTPUTS Is actual performance against the output targets reported? Yes, there is a systematic annual report for some programmes Yes, there is a systematic annual report for most programmes Yes, there are occasional reports for some programmes Czech Republic Netherlands Slovak Republic United Kingdom Brazil Chile Yes, there are occasional reports for most programmes No or other 81
REPORTING FOR OUTCOMES AND OUTPUTS If performance against output targets is reported, how is it reported? Reports integrated into annual financial documents Reports are integrated into main budget documents Reports in other government-wide documents Reports in Ministry specific documents some programs some programs Czech some programs Republic some programs some programs some programs some programs some programs some programs some programs Netherlands some programs Slovak Republic some programs some programs some programs United Kingdom some programs some programs Brazil Chile No N/A 82
REPORTING FOR OUTCOMES AND OUTPUTS Are expenditures specifically linked to each output target? Netherlands Brazil Chile Yes, for all targets Yes, for some targets No N/A N/A 83
REPORTING FOR OUTCOMES AND OUTPUTS Output targets can cut across organisational boundaries. How is this dealt with? Czech Republic Netherlands Slovak Republic United Kingdom Brazil Chile All outputs are formulated independently of boundaries Only crosscutting outputs are formulated independently (joint task force) (separate outputs by separate agencies) This is a recognised but unresolved issue This is not an issue encountered Other N/A 84
REPORTING FOR OUTCOMES AND OUTPUTS Are outcome targets displayed in the budget documentation presented to the legislature? Yes, in main budget documentation Yes, in a separate governmentwide report accompanying the budget Yes, each ministry prepares reports accompanying the budget Czech Republic (some targets) (some targets) (some targets) Netherlands Slovak Republic United Kingdom Brazil Chile No Other N/A 85
REPORTING FOR OUTCOMES AND OUTPUTS Is actual performance against outcome targets reported? Yes, there is a systematic annual report for some programmes Yes, there is a systematic annual report for most programmes Yes, there are occasional reports for some programmes Czech Republic Netherlands Slovak Republic United Kingdom Brazil Chile Yes, there are occasional reports for most programmes No N/A N/A N/A 86
REPORTING FOR OUTCOMES AND OUTPUTS If performance against outcome targets is reported, how is it reported? Reports integrated into annual financial documents Reports are integrated into main budget documents Reports in other government-wide documents Reports in Ministry specific documents some programs Czech some programs Republic some programs some programs some programs some programs some programs some programs some programs some programs Netherlands some programs some programs Slovak Republic some programs some programs some programs United Kingdom some programs Brazil some programs Chile No N/A N/A 87
REPORTING FOR OUTCOMES AND OUTPUTS Are expenditures specifically linked to each outcome target? Netherlands Brazil Chile Yes, for all targets Yes, for some targets No N/A N/A 88
REPORTING FOR OUTCOMES AND OUTPUTS Outcome targets can cut across organisational boundaries. How is this dealt with? Czech Republic Netherlands Slovak Republic United Kingdom Brazil Chile All outputs are formulated independently of boundaries Only crosscutting outcomes are formulated independently (separate outputs) This is a recognised but unresolved issue This is not an issue encountered N/A Other 89
GENDER BUDGETING Does your budget include an analysis of its impact on men and women? (From OECD Survey on Gender Issues in Public Management, 2000) Netherlands Brazil Chile Yes (occasional reports) (occasional reports) (occasional reports) No (future plan) 90