In regional economics the impact of regional policies on the spatial distribution welfare is a well studied subject. The impact of central government policies, like social security and tax programmes, however, is often neglected. In The Netherlands regional policy absorbs only 3 percent of the total budget of the central government. Spatial impacts of the remaining 97 percent of the budget will - most probably - be much larger. One cannot draw conclusions as to the effectiveness of regional policy, when effects of the largest part of the budget are unclear. The aim of this study is to investigate the impact oÍ the fiscal flows of the Dutch central government and Dutch social security funds (ESA 561 and 563) on interprovincial differences in welfare. . Zie: Summary