ABSTRACT
Referring to the inventory of policy instruments, subsidies and grants can be characterized as affirmative economic policy instruments (incentives). This chapter focuses on Dutch subsidies and discusses three types of subsidies: program subsidies; project subsidies; and operating subsidies. It is largely based on research carried out the Dutch National Audit Office. To assessing the management of subsidies, the chapter explores an approach developed by J. T. A. Bressers and P. J. Klok. It then distinguishes three aspects of management on which the subsidy-provider should focus: goal-directedness of subsidies; implementation of subsidies; and ex-post evaluation of the effectiveness of subsidies. For each of these three aspects the National Audit Office looked at the instruments which are available to central government, if it is to remain informed as to the progress being made in the process of subsidy provision and, where necessary, to make adjustments.
