THE BUDGET PROCESS: What happens?
When does it happen? Who does it?
Workshop on Gender Responsive Budgeting (GRB)
Dili, 23 January 2009
Cristina Pinto
Finance & Budget Adviser, Ministry of Justice
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THE BUDGET PROCESS
 Budget. General aspects.
 Budget process
 Preparation of RDTL budget proposal
 Approval
 Budget execution
 Inspection
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Budget. General aspects
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Budget. General aspects
The General State Budget is an estimation
of the public expenses and revenue for a
certain period of time (fiscal year)
fiscal year = calendar year
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Budget. General aspects
The limit of the public expenses is determined
considering factors such as:
 Strategic options of the Government
 Economic situation of the country
 Revenue expected
 The needs of the Agencies (Ministries)
 ...
The distribution of the funds among the different
Ministries is named fiscal envelopes
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Budget. General aspects
The budget is structured by:
 Source of fund*
 Organization (ministry, department, division)
 Programs (sectors, sub-programs, activities)
 Type of Expenditure (category, item, line-item)
 Geographic (location: district, sub-district, village)
* State general revenue, revenue of autonomous bodies, external aid, etc.
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Budget. General aspects
Type of Expenditure (categories):
 Salaries & wages
 Goods and services
 Minor Capital
 Capital & Development
 Transfers
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Budget process
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Budget process
Preparation
Government
- Budget Proposal should be send to
Parliament until 15 December
Approval
National Parliament
- Discussion and approval in
generality and speciality
Execution
Government
Inspection
National Parliament & Administrative,
Fiscal and Accounts Superior Court
- through each Agency
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Preparation and approval
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Preparation and approval
Preliminary
works
by MoF
- Review of macro-economic indicators
- Calculation of Sustainable Revenue
(Petroleum Fund Law)
- Strategic policies & priorities
Council of
Ministers
- CoM discuss & approve the budget process
and its calendar (timetable, deadlines)
- Approval of ‘Fiscal Envelopes’ (maximum of
expenditure by Agency)
- Definition of priorities areas
Budget
CIRCULAR
-
Guidelines for Agencies
Rules, requirements & deadlines
Templates / forms
Government priorities for the fiscal year
Fiscal envelopes
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Preparation and approval
Each Agency/Ministry prepared its own
submission.
Agencies
Budget
Submissions
Steps:
√ Identify activities & priorities (AAP)
Through a planning process that should be
participated, discussed and disseminated.
√ Fill in forms / costs calculation
√ Summary and justification
√ Final verification (complete & correct)
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Preparation and approval
The submission should:
Agencies
Budget
Submissions
√ Based on Annual Actions Plans (AAP),
which identifies the projects and
activities to be develop during fiscal year
√ Consistent with National & Sector priorities*
√ Identify resources needed to implement AAP*
√
Respect Budget Circular
√
Delivered on time
√
Respect the fiscal envelope
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Preparation and approval
Advantages of a good budget submission:
Agencies
Budget
Submissions

Save time in reviews and discussions
(between Agencies, MoF and BRC)

Facilitates the approval

Create a image of credibility and
professionalism

Facilitate future requests of additional funds
(when document is based on evidences)

Facilitate the budget execution
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Preparation and approval
Budget Office
Recommendations
BUDGET REVIEW
COMMITEE
CoM
Parliament
- Budget submission analyses
- Review of carry-overs of each agency
& budget execution reports
- Written opinion to BRC: suggestions
& recommendations (“green file”)
- Meetings with Ministries
- Discussion budget submissions
- Decisions (cuts, amendments...)
- Final review
- Budget documentation (Books 1 & 2)
- Proposal of Budget Law
- Discussion & Approval (art. 145 CRDTL)
√ Commissions
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√ Plenary sessions
Budget execution & inspection
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Budget execution & inspection
MoF
- Dissemination
- Authorization to initiate expenditure
- Power to execute budget is committed
to Government, through each agency
Government
(Execution)
- Budget execution involves:
√ expenditure approvals
√ procurement & award of contracts
√ registry of commitments & obligations
√ payments
√ transfer of sums
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Budget execution & fiscalization
Government
(Reporting)
- Government is obliged to Report to
Parliament in a quarterly basis
- Annual Reports
- Preliminary Anual Report (31 Mars)
- Final Report (audited) (30 Junho)
Audit
& inspection
- Audit by an independent auditor is compulsory
- Parliament discuss and take decisions
Parliament
Court of Accounts
- Superior Court of Accounts has the
power to check legality of public
expenditure and judge public
accounts
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Budget Execution
-
Total amount of expenses and/or revenue
needs to be review (increase/decrease)
Budget Middle Review
-
Similar process of preparation and
approval
-
Exceptional situation: additional funds
needs to be very well justify
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Legislation

Constitution Act of RDTL

UNTAET Regulation 2001/13

Budget Law (annual)

Budget Circular (annual)
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Thank You
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