Presentation on theme: "ORGANIC BUDGET LAW POLAND. February, 2006Ministry of Finance2 What is an Organic Budget Law? A law specifying the schedule and procedures by which the."— Presentation transcript:
ORGANIC BUDGET LAW POLAND
February, 2006Ministry of Finance2 What is an Organic Budget Law? A law specifying the schedule and procedures by which the budget should be prepared, approved, executed, accounted for, and final accounts submitted for approval.
February, 2006Ministry of Finance3 Aims of Organic Budget Law creation of legal framework regulating the budget process, adjusting budget procedures to country legal, cultural and political conditions, strengthening the transparency of budget information, clearly indicating division of responsibilities.
February, 2006Ministry of Finance4 Sources of Organic Budget Law in Poland The Constitution of the Republic of Poland Act on public finance Decrees of the Council of Ministers and Finance Minister
February, 2006Ministry of Finance5 Limitations set by the Constitution: possibility of changing the draft of the State Budget in the Parliament, ban on covering a budget deficit by way of contracting credit obligations to the State's central bank, exclusive right to introduce legislation concerning a Budget, restrictions concerning a national public debt.
February, 2006Ministry of Finance6 Limitations set by the Act on public finance expenditures set in the State Budget constitute limit for public expenditures, State Budget cannot embrace regulations changing other acts, State Budget can determine expenditure limits for multiannual programs, multiannual programs are set by the Council of Ministers.
February, 2006Ministry of Finance7 Cautions procedures connected with public debt Cautions procedures are based on the relation – public debt to GDP. They are activated, if they reaches on the following ratio: (50%,55%) (55%,60%) (60%,60%+n).
February, 2006Ministry of Finance8 I stage - preparation 1.The Council of Ministers submits the preliminary forecast of macroeconomic indexes, 2.Finance Minister submits to the Council of Ministers assumptions to the draft of the State Budget, 3.Budget disposers are responsible for preparation tasks plans, 4.Finance Minister prepares a draft of the State Budget and submits it to the Council of Ministers, 5.The Council of Ministers approves the draft of the State Budget and submits it t o the Seym no t later than the 30th of September.
February, 2006Ministry of Finance9 II stage – passing the State Budget 1.The Seym has to pass the State Budget within 4 months, 2.Senate has 20 days to amend Budget, 3.The President has to sign Budget within 7 days, 4.Possibility of reference to the Constitutional Tribunal.
February, 2006Ministry of Finance10 III stage – State Budget execution The Council of Ministers -supervise the implementation of the State Budget, -pass a resolution on the closing of the State's accounts.
February, 2006Ministry of Finance11 IV stage – State Budget control The Council of Ministers present to the Se y m a report, The Seym passes a resolution on whether to grant or refuse to grant approval of the financial accounts submitted by the Council of Ministers, The Council of Ministers is politically responsible for State Budget execution.
February, 2006Ministry of Finance12 Internal Audit independent examination of management and control systems in a unit: - conformity of activity with binding internal procedures and law, - efficiency and economy of decisions made within management and control systems, - credibility of financial statement and budget execution report, consultancy.
February, 2006Ministry of Finance13 General rules Possibility of being constitutionally accountable to the Tribunal of State, Exclusive right to submit to the Seym the draft of the State Budget, Discontinuation legislative procedures does not apply to the draft of the State Budget, Justification of the State Budget according to the defined requirements, The content of the State Budget is exactly defined, There is no veto in case of State Budget, Limitations of changing the State Budget during its execution.
February, 2006Ministry of Finance14 Thank you for your attention. We are pleased to answer all questions.