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.