Dirk-Jan Kraan
Budgeting and Public Expenditures Division
Public Governance and Territorial Development
Directorate
OECD

General government expenditures and revenues as % of GDP -- 1996-2005
Revenues Expenditures
45
43
41
39
37
35
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Real gross domestic growth as % of GDP in the previous year 2000-2005
2000 2001 2002 2003 2004 2005
EU 15 3.4
1.5
1.1
Slovenia 4.1
2.7
3.4
0.8
2.3
2.0
3.6
2.4
3.7
Sources: EU 15: Economic Commission, Economic Forecasts, April 2004; Slovenia: Spring
Report 2004, Institute of Macro-economic Analysis and Development (IMAD).

General Government deficits 2000-2004
2000 2001 2002 2003 2004
EU 15 1.0
Slovenia -3.0
-1.0
-2.7
-2.0
-1.9
-2.6
-1.8
-2.3
-1.7
Source: Bulletin of Government Finance Year V, no.6 June 2004

General government gross financial liabilities as % of GDP -- 1996-2003
Debt RS in % of GDP
30
25
20
15
10
5
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Special features of
Slovenian budget process

Executive Budget Process Time Table
April
April-May
May
May-June
June
June-
August
September
September
Spring economic forecast of IMAD
Preliminary discussions MoF / line ministries
First budget session of government
Negotiations MoF / line ministries
Second budget session of government
Submission of financial plans
Final decision making in cabinet
Submission of budget to Parliament

Conclusions executive budget process
• Effective top-down control based on two stage decision-making process
• Anti-cyclical stance in expenditure policy does not provide automatic stabilisation
• Detailed account structure provides firm grip on expenditures but requires reallocation
• Multi-year estimates only at higher levels of aggregation
• Excellent role of forecasting institute IMAD
• No explicit prudence factor in revenu forecasts
• Many off-budget funds
• Many long term planning documents

Conclusions legislative budget process
• Submission of executive budget in two stages complicates the process
• Short timeframe for parliamentary scrutiny
• Introduction of pre-budget statement may contribute to parliamentary oversight

Conclusions
Budget execution and service delivery
•
Detailed account structure necessitates reallocation
Effective system of cash management through Single
Treasury Account
• Scope for further reform in the structure of service delivery
•
Transparancy of procurement regulation may be improved
•
Reform of civil service has been succesful but further steps are important
• Transparancy of personnel information system may be improved.

Conclusions
Accounting and Audit Procedures
• Substantial improvements in quality and timeliness of accounting; a next step may be the submission of financial statements to Parliament within six months after conclusion of the budget year
• Impressive evolution of the Court of Accounts towards an Auditor-General type of Supreme Audit Institution based on a modern legal framework and sound procedures
• The use of audit findings for parliamentary scrutiny has thus far been suboptimal

Legislative Budget Process Time Table
September
Submission of draft budget to Parliament
October
October
November
November
Consideration in sectoral committees and subsequently in Committee on finance and monetary policy
Submission of second budget proposal to
Parliament
Parliament proposes amendments under qualified rules
Parliament votes on amendments