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xi) New tools and procedures should be developed to counter the risk of rigid,
formulaic annual budgeting and execution, and to create fiscal and policy space for
emerging priorities
such as climate policy, energy policy and longer-term management of
health costs. In particular, systematic tools need to be developed for the review,
re-prioritisation and re-allocation of spending so that Ministries can manage their fixed
resources more efficiently, and plan for the achievement of medium-term objectives, in the
context of top-down budgeting. To facilitate these objectives, the following initiatives
would be beneficial:
a) Political priorities should be clearly signalled from the outset of each legislative period,
either via the “Coalition Agreement” or in a separate strategic reference document, so
that all ministries have a good understanding for how sectoral policies inter-link with
national and government-wide planning and goal-setting. 
b) Line ministries will require stronger evaluative capacities (or access to such capacities),
in particular associated with the budget divisions, and this will likely require changes in
the skills profile of staff. 
c) In parallel with this development, the Federal Ministry of Finance should reinforce its
capacity to co-ordinate and promote the use of CBA and other evaluative tools across
government – not just within the capital budgeting area, where these tools are already
well-established.
d) As part of the budgeting process, line ministries should be responsible for evaluating
and prioritising within their spending ceilings, and bringing forward evidence-based
options for re-allocating resources each year. Tax expenditures relevant to their areas
should also be encompassed within these reviews, in co-operation with the Federal
Ministry of Finance as appropriate.
e) At least once every legislative period, the Federal Ministry of Finance should co-ordinate
a government-wide review of expenditure, to allow (in principle) for evidence-based
reallocation across the main policy areas, and making clear the higher-level trade-offs
upon which the government must decide – including the overall balance between
expenditure and tax policy. This strategic review should draw upon, and supplement,
the more regular efficiency reviews conducted by the line ministries. Government-wide
reviews of this nature are only effective when aligned with political demand, so it is
essential that the Federal Ministry of Finance co-ordinate with the Federal Chancellery
in securing government buy-in for this approach.