1. 1 Dutch performance information Hans Monnickendam Ministry of Finance The Netherlands Sydney June 2006

2. 2 Dutch ‘performance indicator’ Van Basten Hiddink BeenhakkerAdvocaat How to win the world cup

3. 3 A. Einstein  “E verything that can be counted does not necessarily count; everything that counts cannot necessarily be counted ’

4. 4 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

5. 5 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

6. 6 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

7. 7 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

8. 8 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 Pyramid of public finance

9. 9 Cash = King