Transcript Dia 1 - OECD

Budget Review Georgia
Second meeting of Senior Budget Officials
Ljubljana 16-17 February 2006
General government expenditures and revenues
1996-2005 (as % of GDP)
30
Revenues
Expenditures
25
20
15
2002
2003
2004
2005
2006
2007
2008
2009
General Government Deficits – 2002-2004,
forecast 2005-2009 (as % of GDP)
2002 2003 2004 2005 2006 2007 2008 2009
EU 15
1.1
1.1
2.3
1.4
2.0
2.2
n.a
n.a
Georgia
5.5
11.1
6.2
8.2
7.5
7.0
6.0
5.5
2005-2009 forecast.
Source: Eurostat; Basic Data and Directions 2006-2009 (Georgian Government 2005)
General Government Debt, 1999-2010
Per cent of GDP
80
Foreign debt
70
Domestic debt
60
Total General
Government debt
50
40
30
20
10
0
1999
2001
2003
2005
2007
2009
Recent major structural reforms:
•
•
•
•
•
•
Budget Systems Law 2004
Treasury reform
Energy sector
Privatisation and public enterprise management
Social security
Civil service reform
The Budget Time Table
1 March
Ministry of Finance begins budget preparations, begins macro
economic framework and Main Directions
15 April
Main Directions are sent to Cabinet for agreement, then sent to
Parliament
1 June
Parliament Financial Committee issues a report on Main
Directions
15 June
Ministry of Finance issues Budget circular, including budget
ceilings per spending agency
15 August
Line ministries submit detailed budgets to Ministry of Finance,
begin of negotiations
5 September
Cabinet finishes discussing spending disagreements
15 September
Ministry of Finance submits budget bill to Cabinet
1 October
Budget bill sent to Parliament for review, recommendations and
approval
1 January
Start of the budget year
Medium term expenditure framework
• allocating resources to sectors
based on: macro-economic forecasts
national priorities
sectoral priorities
resulting in: Basic Data and Directions document
• allocating resources within sectors
based on: sectoral priorities
resulting in: draft budget
Parliamentary approval
• Parliament makes recommendations, it does not make
amendments.
• Accountability to Parliament has been strengthened
by introduction of budget chapters by ministers.
• Role of Parliament can be strengthened by further
improvement of the Basic Data and Directions document
and of the reports on execution.
Budget execution
• good progress towards Treasury Single Account
• extensive preventive cash control
• cash management can further be developed
• public law entities have important role in service delivery
• decentralised service provision still relatively limited
Accounting and auditing
•
quality of accounting greatly improved
•
Chamber of Control is influential and
plays an important role in the fight against corruption
•
internal control is a high priority for the coming years