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ORGANIC BUDGET LAW

ORGANIC BUDGET LAW. POLAND. 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. Aims of Organic Budget Law.

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ORGANIC BUDGET LAW

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  1. ORGANIC BUDGET LAW POLAND

  2. 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. Ministry of Finance

  3. 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. Ministry of Finance

  4. 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 Ministry of Finance

  5. 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. Ministry of Finance

  6. 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. Ministry of Finance

  7. 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). Ministry of Finance

  8. I stage - preparation • The Council of Ministers submits the preliminary forecast of macroeconomic indexes, • Finance Minister submits to the Council of Ministers assumptions to the draft of the State Budget, • Budget disposers are responsible for preparation tasks plans, • Finance Minister prepares a draft of the State Budget and submits it to the Council of Ministers, • The Council of Ministers approves the draft of the State Budget and submits it to the Seym not later than the 30th of September. Ministry of Finance

  9. II stage – passing the State Budget • The Seym has to pass the State Budget within 4 months, • Senate has 20 days to amend Budget, • The President has to sign Budget within 7 days, • Possibility of reference to the Constitutional Tribunal. Ministry of Finance

  10. 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. Ministry of Finance

  11. IV stage – State Budget control • The Council of Ministers present to the Seym 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. Ministry of Finance

  12. 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. Ministry of Finance

  13. 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. Ministry of Finance

  14. Thank you for your attention. We are pleased to answer all questions. Ministry of Finance

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