1. Vilnius, March 20, 2007 Niklas Frank Committee on Finance
Swedish Parliament
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2. 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
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3. 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
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4. 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
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5. Strengthened role for legislature in budgeting?
Not necessarily in the Swedish case
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6. Budget reforms shifted power
Strengthened the power of Government
Concentrated Parliamentary budget influence to the Finance Committee
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7. Two stage decision model
Finance Committee sets expenditure caps and approves taxes
Sectoral Committees approve appropriations
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8. Two stage decision model
Aggregate expenditure and tax amendments are approved by the Finance Committee
One single decision
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9. 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
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10. 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
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11. 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
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12. Entitlements enhance the role of Sectoral Committees
Not necessarily in the Swedish case
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13. Entitlements caped by expenditure ceiling
Sectoral Committees must not exceed expenditure limits
Changes in taxes of fees must be approved by Finance Committee
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