Responsible taxation
Each year, on Budget Day, the government presents its plans for the coming financial year. These include details of expenditure planned for the year and tax revenue forecasts. On the same day, the government also presents its tax plan for the year, containing details of planned changes in legislation. Both any proposed changes in legislation and the tax plan have to be agreed by parliament.
The government later accounts for the regularity of its expenditure and tax revenues. That way, parliament can check whether revenues have developed as forecast and intended, and whether tax measures adopted have proved effective. In accounting for its performance at the end of the financial year, the government has been seen to focus more on expenditure than on revenues. However, recent audits have shown greater differences between forecast and actual tax revenues than between forecast and actual expenditure. We may then question whether parliament receives sufficient information on revenue developments and the impact of tax measures. Members of parliament need this information to assess these substantial fund flows and, where necessary, initiate corrective action.
Why are we carrying out this investigation?
At the end of each financial year, ministers account to parliament by submitting annual reports. These annual reports cover not only what has been spent, but also tax and other revenues received. The 2026 Budget Memorandum shows receipt of €301.6 billion of tax revenues and €149.8 billion of social security contributions. As well as budgetary goals, many other policy goals, including those seeking to influence behaviour, are funded from taxes. Proper accounting for these substantial fund flows and the results achieved improves parliament’s ability to monitor the government’s performance and initiate any corrective action required.
What are we investigating?
Parliament has a supervisory and co-legislative role. It must therefore be able to monitor tax revenues and initiate any corrective action required. We assess information accounting for total tax revenues and also information accounting for the effects of tax measures introduced. Lastly we assess whether this information can be improved.
Do you want to take part in this audit?
The Court of Audit invites you to share any information you may have that would benefit our audit. We appreciate all contributions, knowledge and experience you may care to share with us on this topic. Simply send an email to bijdrage@rekenkamer.nl.
We read all emails carefully and treat them in confidence. However, we are not able to reply to every contribution we receive.