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The Dutch fiscal framework; history, current practice and the role of the CPB

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  • Frits Bos

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Abstract

According to the IMF and the OECD, the Dutch fiscal framework is rather unique, and its design and implementation are highly recommendable. Major features of the Dutch fiscal framework are the trend-based fiscal framework with real net expenditure ceilings for the whole term of government, the role of independent organisations, like the CPB, Statistics Netherlands and the Netherlands Court of Audit, and the intermediary role of the national advisory group on budgetary principles. This paper discusses the current practice of the Dutch fiscal framework, including the role played by the CPB. It also provides an overview of its history. Three periods are distinguished: the balanced budget as official principle (1814-1956), Keynesian deficit norms (1957-1979) and norms for reducing deficit and debt (1980-present).

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Bibliographic Info

Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Document with number 150.

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Date of creation: Jul 2007
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Handle: RePEc:cpb:docmnt:150

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  1. Wyplosz, Charles, 2002. "Fiscal Policy: Institutions versus Rules," CEPR Discussion Papers 3238, C.E.P.R. Discussion Papers.
  2. Casper van Ewijk & Nick Draper & Harry ter Rele & Ed Westerhout, 2006. "Ageing and the sustainability of Dutch public finances," CPB Special Publication 61, CPB Netherlands Bureau for Economic Policy Analysis.
  3. Harry ter Rele, 2005. "Measuring lifetime redistribution in Dutch collective arrangements," CPB Document 79, CPB Netherlands Bureau for Economic Policy Analysis.
  4. Alan J. Auerbach & Jagadeesh Gokhale & Laurence J. Kotlikoff, 1991. "Generational Accounts - A Meaningful Alternative to Deficit Accounting," NBER Working Papers 3589, National Bureau of Economic Research, Inc.
  5. Frits Bos, 2006. "The development of the Dutch national accounts as a tool for analysis and policy," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 60(2), pages 225-258.
  6. Henk Don & Johan Verbruggen, 2006. "Models and methods for economic policy; 60 years of evolution at CPB," CPB Discussion Paper 55, CPB Netherlands Bureau for Economic Policy Analysis.
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Cited by:
  1. Thiess Buettner & Bjoern Kauder, 2010. "Revenue Forecasting Practices: Differences across Countries and Consequences for Forecasting Performance," Fiscal Studies, Institute for Fiscal Studies, vol. 31(3), pages 313-340, 09.
  2. Carmen M. Reinhart, 2010. "This Time is Different Chartbook: Country Histories on Debt, Default, and Financial Crises," NBER Working Papers 15815, National Bureau of Economic Research, Inc.
  3. Carmen M. Reinhart & Vincent R. Reinhart & Kenneth S. Rogoff, 2012. "Debt Overhangs: Past and Present," NBER Working Papers 18015, National Bureau of Economic Research, Inc.
  4. Carmen M. Reinhart & Vincent R. Reinhart & Kenneth S. Rogoff, 2012. "Public Debt Overhangs: Advanced-Economy Episodes since 1800," Journal of Economic Perspectives, American Economic Association, vol. 26(3), pages 69-86, Summer.
  5. Beetsma, Roel & Giuliodori, Massimo & Walschot, Mark & Wierts, Peter, 2010. "Fifty Years of Fiscal Planning and Implementation in the Netherlands," CEPR Discussion Papers 7969, C.E.P.R. Discussion Papers.
  6. Thiess Büttner & Björn Kauder, 2008. "Methoden der Steuerschätzung im internationalen Vergleich," ifo Forschungsberichte, Ifo Institute for Economic Research at the University of Munich, number 44, 6.

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