Twenty-five Years of Budgeting Reform

The network of senior budget officials (SBO) was launched in 1980 as an ad hoc response to the budget stress that beset most developed countries in the aftermath of oil price shocks, high inflation, and economic stagnation. The long post-war expansion had come to a halt, but spending pressures did not abate, leaving national governments with large structural budget deficits. Voter sentiment and fiscal realities precluded political leaders from easing their country’s budget plight by boosting taxes. Their only recourse was to take a stricter line on spending, and they needed budget tools that could do the job for them. Meeting for the first time under OECD auspices, senior budget officials perceived that they faced similar predicaments and could learn from the experiences of member countries. When they met, budget officials brought a distinctive perspective to SBO, for they bridge the political and administrative domains of government. Every budget is a statement of policy by elected leaders and an administrative plan for the ongoing operations of public programmes and agencies. Senior budget