Accountability in the public sector: The Dutch experience

Abstract

In the Netherlands, a new system of policy budgeting and accounting (VBTB) was put into practice in 2002, linking goals, budgets, means, instruments, and performance. This paper analyzes both the early experience of the VBTB system and the more recent experience. Although the government monitors the progress in carrying out its policy program, it appears to have problems in developing performance indicators that are closely related to its policy goals. A compelling problem in the budgeting process is that too many policy goals are formulated in vague and/or abstract terms rather than measurable and concrete terms. The paper also identifies three lessons that can be learned from the Dutch experience.