Performance Budgeting in the Netherlands: Beyond Arithmetic

Performance-based budgeting seems to be a promising tool for improving the management and accountability of public finances. However, its application causes many difficulties. This article briefly reviews international experience with performance-based budgeting and explores its application in the Netherlands since the late 1990s, including a case study of the Safety Programme. The focus is on transparency and the quality of the performance information. Compared to the former input budget, performance-based budgeting constitutes a major step forward. Given the many difficulties in implementing performance budgeting, it is recommendable, though, to critically revise its scope and shape.