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.
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Ministry of Finance
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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.
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Ministry of Finance
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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
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Ministry of Finance
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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.
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Ministry of Finance
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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.
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Ministry of Finance
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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).
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Ministry of Finance
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I stage - preparation
1.
2.
3.
4.
5.
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.
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Ministry of Finance
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II stage – passing the State
Budget
1. The Seym has to pass the State Budget
within 4 months,
2. Senate has 20 days to amend Budget,
3. The President has to sign Budget within 7
days,
4. Possibility of reference to the Constitutional
Tribunal.
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Ministry of Finance
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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.
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Ministry of Finance
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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.
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Ministry of Finance
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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.
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Ministry of Finance
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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.
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Ministry of Finance
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Thank you for your attention.
We are pleased to answer all questions.
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Ministry of Finance
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