Medium-term Budgeting in Slovak
Republic
Alexander Cirák
Ministry of Finance
Slovak Republic
Public Finance Management Reform
Project Components

Strengthening of macro-forecasting
capacity and medium-term fiscal /
budgetary framework

Changes in the budgetary process

Changes in the budget execution (State
Treasury, Debt and Liquidity Management
Agency)
Reform Implementation and Changes
in the Budget Process

Programme Budgeting

Medium-term Budgeting

Budget Analysis

Budgetary IT System
Medium-term Budgeting
How does it work?

Medium-term fiscal framework (ESA95 based;
revenues, deficit, expenditures)

3-years expenditure limits for the line-ministries
(cash based)

Government priority reserve

Line ministries submit their budget proposal
based on the limit
Medium-term Budgeting
How does it work?

Ministry of Finance analyses the budget
proposals

Bilateral negotiations with the line ministries

Government submits the budget proposal to the
parliament

Parliament approves the 3-years public budget
including the budget law for the next year
Medium-term Budgeting
Other features

Budget IT system includes all the expenditures
for 3 years in all budget classifications divided
into programmes

Legally binding only year r+1

Each new policy document or law proposal must
include the budget assesment for actual and next
3 years
Medium-term Budgeting
Conclusions

Motivation of players = long-term planning

Detailed information on actual and planned expenditures

Changes in actual limits based on the new policies
recorded in all 3 years

Work on budget preparation simplified – only adjustments
to the limits

Budget data more accurate in each phase of the budget
preparation and less work with breakdown of the limits

Further effort is needed to strenghten the binding for limits
in years r+2 and r+3