Medium-term Budgeting in Slovak Republic Alexander Cirák Ministry of Finance Slovak Republic

Public Finance Management Reform Project Components Strengthening of macro-forecasting capacity and medium-term fiscal / budgetary framework Changes in the budgetary process Changes in the budget execution (State Treasury, Debt and Liquidity Management Agency)

Reform Implementation and Changes in the Budget Process Programme Budgeting Medium-term Budgeting Budget Analysis Budgetary IT System

Medium-term Budgeting How does it work? Medium-term fiscal framework (ESA95 based; revenues, deficit, expenditures) 3-years expenditure limits for the line-ministries (cash based) Government priority reserve Line ministries submit their budget proposal based on the limit

Medium-term Budgeting How does it work? Ministry of Finance analyses the budget proposals Bilateral negotiations with the line ministries Government submits the budget proposal to the parliament Parliament approves the 3-years public budget including the budget law for the next year

Medium-term Budgeting Other features Budget IT system includes all the expenditures for 3 years in all budget classifications divided into programmes Legally binding only year r+1 Each new policy document or law proposal must include the budget assesment for actual and next 3 years

Medium-term Budgeting Conclusions Motivation of players = long-term planning Detailed information on actual and planned expenditures Changes in actual limits based on the new policies recorded in all 3 years Work on budget preparation simplified – only adjustments to the limits Budget data more accurate in each phase of the budget preparation and less work with breakdown of the limits Further effort is needed to strenghten the binding for limits in years r+2 and r+3