Center of Excellence in Finance
Learning and Regional Cooperation in South East Europe
As part of the annual budget preparation process, ministries of finance determine the macroeconomic framework, establish expenditure ceilings for the different budget users, and instruct them in submitting their requests, i.e. by assuring that estimates are made in consistence with macro-fiscal objectives, and by challenging submitted costing of existing and any new policy proposals. Budget users’ submissions are also a crucial part of preparing strategic macro-fiscal documents, as, for example, the Economic and Fiscal Program (EFP) or Pre-Accession Economic Program that is assessed by the European Commission on an annual basis. Budget submissions have often been criticized as being too optimistic or inconsistent with macro-fiscal forecasts. Such shortcomings have been linked to coordination and responsibility issues between budget users, challenges in ministries of finance’ guidance of budget users, as well as to budget users’ limited capacities in preparing their budget submissions, e.g. with respect to costing the fiscal impact of structural reforms. The Workshop aims at strengthening the quality of budget submissions of budget users (in particular budget-intensive line ministries).