Transcript Conclusions executive budget process

Survey of the
Budget Process in Slovenia
Dirk-Jan Kraan
Budgeting and Public Expenditures Division
Public Governance and Territorial Development
Directorate
OECD
General government expenditures and revenues
as % of GDP -- 1996-2005
Revenues
Expenditures
45
43
41
39
37
35
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Real gross domestic growth as % of GDP
in the previous year 2000-2005
2000
2001
2002
2003
2004
2005
EU 15
3.4
1.5
1.1
0.8
2.0
2.4
Slovenia
4.1
2.7
3.4
2.3
3.6
3.7
Sources: EU 15: Economic Commission, Economic Forecasts, April 2004; Slovenia: Spring
Report 2004, Institute of Macro-economic Analysis and Development (IMAD).
General Government deficits 2000-2004
2000
2001
2002
2003
2004
EU 15
1.0
-1.0
-2.0
-2.6
-2.3
Slovenia
-3.0
-2.7
-1.9
-1.8
-1.7
Source: Bulletin of Government Finance Year V, no.6 June 2004
General government gross financial liabilities
as % of GDP -- 1996-2003
Debt RS in % of GDP
30
25
20
15
10
5
0
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Special features of
Slovenian budget process
1. Budgets for two consecutive years
2. Law on budget execution
Executive Budget Process Time Table
April
Spring economic forecast of IMAD
April-May
Preliminary discussions MoF / line ministries
May
First budget session of government
May-June
Negotiations MoF / line ministries
June
Second budget session of government
JuneAugust
Submission of financial plans
September
Final decision making in cabinet
September
Submission of budget to Parliament
Conclusions executive budget process
• Effective top-down control based on two stage
decision-making process
• Anti-cyclical stance in expenditure policy does
not provide automatic stabilisation
• Detailed account structure provides firm grip on
expenditures but requires reallocation
• Multi-year estimates only at higher levels of
aggregation
• Excellent role of forecasting institute IMAD
• No explicit prudence factor in revenu
forecasts
• Many off-budget funds
• Many long term planning documents
Conclusions legislative budget process
• Submission of executive budget in two stages
complicates the process
• Short timeframe for parliamentary scrutiny
• Introduction of pre-budget statement may
contribute to parliamentary oversight
Conclusions
Budget execution and service delivery
•
Detailed account structure necessitates reallocation
Effective system of cash management through Single
Treasury Account
•
Scope for further reform in the structure of service
delivery
•
Transparancy of procurement regulation may be
improved
•
Reform of civil service has been succesful but further
steps are important
•
Transparancy of personnel information system may be
improved.
Conclusions
Accounting and Audit Procedures
•
Substantial improvements in quality and timeliness
of accounting; a next step may be the submission of
financial statements to Parliament within six months
after conclusion of the budget year
•
Impressive evolution of the Court of Accounts towards
an Auditor-General type of Supreme Audit Institution
based on a modern legal framework and sound
procedures
•
The use of audit findings for parliamentary scrutiny
has thus far been suboptimal
Legislative Budget Process Time Table
September
Submission of draft budget to Parliament
October
Consideration in sectoral committees and
subsequently in Committee on finance
and monetary policy
October
Submission of second budget proposal to
Parliament
November
Parliament proposes amendments under
qualified rules
November
Parliament votes on amendments