Policy Analysis in Times of Austerity: A Cross-National Comparison of Spending Reviews

The sovereign debt crisis that hit the world fueled a discussion about fiscal consolidation. Across-the-board cuts and one-off measures are no longer adequate to reduce the budget deficit and public debt. A more evidence-based policy is needed for the reduction of government deficits and debt accumulation. One promising route to fiscal consolidation is the establishment of so-called spending reviews, which are aimed at the generation of smart cuts, i.e. cuts supported by evidence in order to balance the budget. The empirical data are primarily taken from two OECD countries – Canada and the Netherlands – with a long-standing tradition of spending reviews.