Vilnius, March 20, 2007 Niklas Frank Committee on Finance Swedish Parliament 24/04/2019

Unlimited power over the budget for Swedish Parliament Any MP have unlimited right to propose increased or decreased expenditures or taxes Parliament can make any amendment to the Budget Bill However: in practice, Parliament makes only tiny amendments 24/04/2019

Budget reform High deficit and debt triggered reforms Part of broad program of fiscal consolidation Reforms in both Parliament and Govern-ment - well timed and coordinated, but informally 24/04/2019

Main elements of budget reform Fiscal discipline - Top down orientation Medium term budgetary targets, surplus target and expenditure ceiling Structure of the budget Parliamentary budget process Legal framework 24/04/2019

Strengthened role for legislature in budgeting? Not necessarily in the Swedish case 24/04/2019

Budget reforms shifted power Strengthened the power of Government Concentrated Parliamentary budget influence to the Finance Committee 24/04/2019

Two stage decision model Finance Committee sets expenditure caps and approves taxes Sectoral Committees approve appropriations 24/04/2019

Two stage decision model Aggregate expenditure and tax amendments are approved by the Finance Committee One single decision 24/04/2019

Forces the opposition to present complete budget alternatives Two stage decision model Forces the opposition to present complete budget alternatives Improves the quality and transparency of budget discussions Strengthens a minority Government 24/04/2019

Two stage decision model To reject a minority Government´s budget, the opposition needs to agree on a complete alternative Unless the opposition can agree on everything, it cannot agree on anything 24/04/2019

Two stage decision model The former Government (minority) always assured a majority before submitting the budget to Parliament The procedural support for a minority Government has therefore never been used 24/04/2019

Entitlements enhance the role of Sectoral Committees Not necessarily in the Swedish case 24/04/2019

Entitlements caped by expenditure ceiling Sectoral Committees must not exceed expenditure limits Changes in taxes of fees must be approved by Finance Committee 24/04/2019