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

  • Frits Bos

    ()

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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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. 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.
  2. F. J. H. Don & J. P. Verbruggen, 2006. "Models and methods for economic policy: 60 years of evolution at CPB," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 60(2), pages 145-170.
  3. Alan J. Auerbach & Jagadeesh Gokhale & Laurence J. Kotlikoff, 1991. "Generational accounts: a meaningful alternative to deficit accounting," Working Paper 9103, Federal Reserve Bank of Cleveland.
  4. Wyplosz, Charles, 2002. "Fiscal Policy: Institutions versus Rules," CEPR Discussion Papers 3238, C.E.P.R. Discussion Papers.
  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. Harry ter Rele, 2005. "Measuring lifetime redistribution in Dutch collective arrangements," CPB Document 79, CPB Netherlands Bureau for Economic Policy Analysis.
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