This document discusses Germany's experience with spending reviews over the past few years. It provides an overview of how spending reviews are organized in Germany, including establishing working groups comprised of various ministries. The document outlines lessons learned, such as the importance of political will and collaboration between ministries. It also gives examples of recommendations from past spending reviews, such as establishing clear goals and common reporting standards. In conclusion, the document emphasizes factors that matter most for effective spending reviews, including preparation, framework conditions, and follow-up processes.

1. c
Spending Reviews in Germany:
Lessons learnt (so far)
Rita Schutt and Ulf Rosner
14th Annual Meeting of the OECD Senior Budget Officials
Performance and Results Network
Paris, 26th-27th November 2018
MIRACLE
AHEAD

2. A look back
R. Schutt | Spending Reviews in Germany | 26.11.2018 | Seite 2
307,8
329,1
285,7
295,5
311,4
317,4
343,6
356,4
363,2
369,3
280,0
300,0
320,0
340,0
360,0
380,0
2013 2014 2015 2016 2017 2018 2019 2020 2021
billion€
Expenditure Taxes and other revenues
completed
ongoing
Spending Reviews
to be continued …
Presentation of
first experiences
at P&R-network
today
24.9.18
election
14.3.18
appointment of new government
2014/2015: learning
from OECD, DK, NL, UK
and others
1st SR
2nd SR
3rd SR
4th SR
Preparation
phase

3. Spending Reviews to be continued
Coalition Agreement 2018:
Approaches to improve the result orientation of the
budget shall be further developed and
strengthened, for instance by spending reviews.
R. Schutt | Spending Reviews in Germany | 26.11.2018 | Seite 3

4. Organisational Structure of Spending Reviews
Working group
involved line ministry,
MoF (common chair), guests
Assigns working groups &
work mission, sets rule of
procedure,
monitors progress of work
Suggests specific decisions
based on the reports of
working groups
Calls SR-Topics,
puts steering committee in
place
Reports,
recommendations
Reflects results in budget
proposal to parliamentCabinet
Chancellor, Ministers
Steering Committee
Vice-Ministers of MoF (Chair),
Chancellery, involved Line Ministries
Topics proposed by
MoF & Ministries
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5. March (following year)
cabinet decides upon
implementation
2nd steering committee
midterm report + option
to readjustment
Working group, approx. 8-12 meetings
1st steering committee
Assigns working
groups & work mission,
sets rule of procedure
3rd steering committee
final report incl.
recommentations
Process of a Spending Review cycle (normally)
Cycle (approx. 1 year) implementation
March
cabinet decides upon
topics for next SR cycle
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6. At the Heart of Spending Reviews: Working Groups
MoF - Budget
Dept., Mirror Unit
1-6 Line Ministries
Expert Unit
1-6 Line Ministries
Budget Unit
Co-Chair of Heads of
directorates from MoF and
1-6 Line Ministries (LM)
MoF,
Strategy Dept.
MoF, committee‘s
office
12 members,
8-12 meetings per SR
Guests
(Court of Auditors, others)
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7. Principles
• All contributions and ideas of working group members are wellcome.
No limits to thaught. No veto.
• Creating a common understanding about the goals of the policy field under reveiw
• Appraisal
 Use of existing knowlege and insights, i.e. evaluations, reports, experts, indicators
 if necessary: survey
• No scientification
• Develop practical proposals for action
• Keep is short and simple (Goal: final report 15-30 pages)
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8. Different kinds of Spending Reviews
completed / ongoing
MobiPro EU
(Job training scheeme for EU
foreigners)
Housing policy
Intermodal Transport Climate & Energy
Programs for municipalities
2015/2016 2016/2017 2017/2018
Public Procurement
Humanitarian Aid &
Emergency Relief
2018/2019
(ongoing)
Management of
Accounts Receivable
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9. Growing experience over time
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Initial Spending Reviews Additional Experience gained since then
MoF + one ministry MoF together with up to six ministies
Working group fix and closed Extended working groups sessions (if useful),
together with experts from implementing
agencies
Use of existing knowledge surveys, scientific study, consultants
Meetings in MoF alternating meetings in MoF and Line
ministries, use of video conferences
Berlin/Bonn
Guests in working groups:
Court of Auditors, implementing agencies
+ scientists, (foreign) experts,

10. Lessons Learnt:
Potential effects of spending reviews
Meeting goals Improving efficiencySaving/shifting money
Better processes Common Language
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Learning with/from peers

11. Lessons Learnt: Potential effects of spending reviews
Example: Recommendations of Spending Review on Climate & Energy
(Programs for municipalities,
Ministry of Finance with Ministries for Economy, Agriculture, Science, Environment, Transportation)
• Clear formulation of goals +
common reporting Standards
for all ministries
• New regular reporting as part
of the budgeting process
• KPIs for most spending
programs, for instace
Realised CO2-reduction
per Euro spent
• Evaluation after 3 years
• New coordination procedures
between ministries and with
Länder & Municipalities
• One single helpdesk for all
programms
• Common Definition of
frequently used terms
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• Joint discussion of common
goals and diverse programms,
commonalities and differences
• Overlaps reduced
Meeting goals Improving efficiencySaving/shifting money
Better processes Common LanguageLearning with/from peers

12. After 3 ½ Spending Review Cycles:
What matters most?
1. Political will
2. Working TOGETHER with line ministries
(to create trust & sense of ownership)
3. Framework conditions (budget situation, coalition government, etc.)
4. Being part of the formal budget process (with clear time frame)
5. Confidentiality of work process & publication of results
6. Well prepared follow-up process
(Assign responsibilities and recources, if necessary)
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13. Kontakt
Thank you for your attention!
More information on Spending Reviews in Germany
in english:
www.bundesfinanzministerium.de/Content/EN/Standardartikel/Topics/Public-Finances/Articles/2017-06-14-spending-reviews-
im-bundeshaushalt.html
in german:
www.bundesfinanzministerium.de/spending-reviews
Rita Schutt
Deputy Director General
DG Economic and fiscal policy strategy;
international economy and finance
rita.schutt@bmf.bund.de
Tel. +49 (0) 30 18 682 4810
R. Schutt | Spending Reviews in Germany | 26.11.2018 | Seite 13
Contact
Ulf Rosner
DG Budget
Division II B 7 – Spending Reviews
ulf.rosner@bmf.bund.de
Tel. +49 (0) 30 18 682 1443