ABSTRACT
This chapter discusses outcome-based performance budgeting in German and Dutch local government. For both countries an overview of performance budgeting initiatives in local government is presented. The core of the chapter is a description and critical analysis of two best-practice cases in Germany (Mannheim) and in the Netherlands (Eindhoven). In both cases an outcome orientation of the budget is visible. Both municipalities inform about the aspired performance objectives related to a certain program or product and provide appropriate performance indicators, both with regard to intended outcomes and to outputs and also informing about past and future performance periods. The depiction of policy effects of certain services is, however, in some cases only modest, and more sophisticated ratios measuring the efficiency or effectiveness of certain services are lacking.
