1. Survey of the Budget Process in Slovenia
Dirk-Jan Kraan
Budgeting and Public Expenditures Division
Public Governance and Territorial Development Directorate
OECD

2. General government expenditures and revenues as % of GDP -- 1996-2005

3. Real gross domestic growth as % of GDP in the previous year 2000-2005
2001
2002
2003
2004
2005
EU 15
3.4
1.5
1.1
0.8
2.0
2.4
Slovenia
4.1
2.7
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).

4. General Government deficits 2000-2004
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

5. General government gross financial liabilities as % of GDP -- 1996-2003

6. Special features of Slovenian budget process
1. Budgets for two consecutive years
2. Law on budget execution

7. 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
June-August
Submission of financial plans
September
Final decision making in cabinet
Submission of budget to Parliament

8. 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

9. 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

10. 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.

11. 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

12. 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
Submission of second budget proposal to Parliament
November
Parliament proposes amendments under qualified rules
Parliament votes on amendments