Central government budgets provide incomplete basis for parliamentary decision-making
Lack of insight into central government objectives and risks
In the week before the General Financial Debate in the House of Representatives, the Netherlands Court of Audit traditionally writes to parliament on points of concern regarding the draft budgets published by the government on Budget Day. In these letters, the Court of Audit considers whether expenditure and revenues in the budgets are traceable, whether central government goals are clear and whether risks are clearly understood.
The information provided is designed to ensure the budget is subject to proper parliamentary scrutiny, given that a sound budget at the start of the financial year forms the basis for sound accountability.
Little attention for risks
As well as summarising the most significant changes in the draft budget for 2026 compared with the budget for 2025, the Court of Audit’s letters make reference to various financial and policy risks causing concern. Strikingly, most ministries’ budgets for 2026 devote little attention to risks in central government finances or to results to be achieved. This makes it difficult to assess whether a budget is realistic and whether an ambition is feasible and appropriate in light of the budgeted resources and the risks. Where information on monetary flows, forecast results and risks is incomplete, it is hard for parliament to conduct a well substantiated review of the budget and ensure it is properly scrutinised.
Examples of relevant risks include the forecast reduction in EU contributions and the sharp cut planned in the budget for asylum seekers from 2027. The Court of Audit also draws attention to risks to supplies of drinking water, the lack of sheltered or other appropriate housing for elderly people, financial risks involved in terminating revolving funds and compensating for losses incurred upon withdrawal of environmental permits, and to the funding of plans for new nuclear power plants.
In some cases, a minister’s draft budget for 2026 indicates that planned policy goals, such as those relating to climate intentions and spending planned on research & development, may not be feasible.
Orderly budget process
The letters expressing the Court of Audit’s concerns regarding the budget for 2026 emphasise the importance of timely and properly substantiated discussion of the budget in parliament.
The past year’s decision-making on the Ministry of Education, Culture and Science’s budget, for example, did not proceed in a timely and consistently prudent manner. As a result, parliament had to initiate an emergency procedure to ensure that educational institutes could pay teachers’ salaries promptly and correctly.
The forthcoming early elections also mean that discussion of the draft budgets will come under renewed pressure. There is a realistic possibility, therefore, that the budget may not be approved until after 1 January 2026. Starting the new calendar year with an approved budget is clearly preferable as this creates clarity for citizens, businesses, government institutions and local and regional government bodies, and thus helps promote trust in the government.
The Court of Audit also warns that the House of Representatives has only limited time available to discuss the comprehensive Tax Plan for 2026.
Cutting spending on civil servants
One concern of the Court of Audit relates to reductions in civil service administrative costs. The planned reduction in staff expenditure previously agreed by the government and parliament has been scaled back, and the amounts concerned will be found, for example, elsewhere in the civil service. According to the Budget Memorandum, the Minister of the Interior and Kingdom Relations will provide parliament with more details in due course.
Learning from evaluations of central government policy
It is important for ministers to understand whether policies and measures that have been agreed actually work in practice. Every minister should therefore regularly conduct evaluations, which will then provide useful input for the House of Representatives. The Court of Audit refers to various important evaluations of central government policy that have been published recently or are due to be published over the coming year. These should serve as guidance for the parliamentary committees, while members of parliament can also use them in their debates.