Open Budget Survey 2019...Country Questionnaire: Bulgaria PBS-1. What is the fiscal year of the PBS...

OpenBudgetSurvey2019Questionnaire

BulgariaApril2020

CountryQuestionnaire:Bulgaria

PBS-1.WhatisthefiscalyearofthePBSevaluatedinthisOpenBudgetSurveyquestionnaire?

Pleaseenterthefiscalyearinthefollowingformat:“FYYYYY”or“FYYYYY-YY.”

Answer:FY2019

Source:Decision264oftheCouncilofMinistersforapprovaloftheMid-termBudgetForecastfor2019-2021http://www.minfin.bg/upload/37143/RMS+264+2018.pdfhttp://pris.government.bg/prin/document_view.aspx?DocumentID=vnSroldA0zOjTTZLff92Pg==

Comment:

PeerReviewerOpinion:Agree

GovernmentReviewerOpinion:Agree

PBS-2.WhenisthePBSmadeavailabletothepublic?

PubliclyavailablebudgetdocumentsaredefinedasthosedocumentsthatarepublishedonthewebsiteofthepublicauthorityissuingthedocumentwithinthetimeframespecifiedintheOBSmethodologyandthatallcitizensareabletoobtainfreeofcharge.(SeetheOpenBudgetSurveyGuidelinesonPublicAvailabilityofBudgetDocuments.)ThisisachangefrompreviousroundsoftheOpenBudgetSurvey:nowatminimumdocumentsmustbemadeavailableontheInternetandfreeofchargetobeconsideredpubliclyavailable.

TheOBSmethodologyrequiresthatforaPBStobeconsideredpubliclyavailable,itmustbemadeavailabletothepubliconemonthbeforetheExecutive’sBudgetProposalissubmittedtothelegislatureforconsideration.IfthePBSisnotreleasedtothepublicatleastonemonthbeforetheExecutive’sBudgetProposalissubmittedtothelegislatureforconsideration,option“d”applies.Option“d”shouldalsobechosenfordocumentsthatareproducedforinternalpurposesonly(thatis,producedbutneverreleasedtothepublic)orarenotproducedatall.Somegovernmentsmaypublishbudgetdocumentsfurtherinadvancethanthelatestpossibledatesoutlinedabove.Intheseinstances,researchersshouldchooseoptions“a”or“b,”dependingonthedateofpublicationidentifiedforthePBS.

Answer:a.Atleastfourmonthsinadvanceofthebudgetyear,andatleastonemonthbeforetheExecutive’sBudgetProposalisintroducedinthelegislature

Source:Decision264oftheCouncilofMinistersforapprovaloftheMid-termBudgetForecastfor2019-2021http://www.minfin.bg/upload/37143/RMS+264+2018.pdfhttp://pris.government.bg/prin/document_view.aspx?DocumentID=vnSroldA0zOjTTZLff92Pg==

Comment:ThedocumentwaspublishedinthesystemforlegalinformationontheBulgariangovernmentwebsiteat20.04.201811:27:13

PeerReviewerOpinion:DisagreeSuggestedAnswer:b.Atleasttwomonths,butlessthanfourmonths,inadvanceofthebudgetyear,andatleastonemonthbeforetheExecutive’sBudgetProposalisintroducedinthelegislatureComments:TechnicallythePBSispublishedinApril,wellaheadoftheEBS,whichispublishedinOctober,however,therearedifferencesbetweenthetwo.TheAprilPBSshows"thespirit"ofthenewbudgetprocedure,whiletheOctoberEBSgivesthe"substance".ThebudgetdiscussionsbegininOctober-aroundthetimewhentheMinistryofFinancepublishesit'sbudgetproposaltotheCounselofMinisters(includingaStateBudgetandanUpdatedMedium-termBudgetForecast,whichisquitedifferentfromtheonepublishedinApril)anditpicksuppaceaftertheNationalSocialSecurityInstituteandtheNationalHealthcareFundpublishtheirEBS.


ResearcherResponseWedisagreewiththereviewer-theanswershouldremain"a"astheMid-termbudgetforecastpublishedinAprilfitsentirelyintothedefinitionofPBSintheGuide.Also,accordingtotheGuidetoTransparencyinGovernmentBudgetReports:"ThePre-BudgetStatementisusuallyissuedinthefourthorfifthmonthofthecurrentbudgetyear,servingasthestartingpointforthebudgetprocessforthenextyear."

PBS-3a.IfthePBSispublished,whatisthedateofpublicationofthePBS?

Notethatthedateofpublicationisnotnecessarilythesamedatethatisprintedonthedocument.

ResearchersshouldrespondtothisquestionifthedocumentispublishedeitherwithinthetimeframeacceptedbytheOBSmethodologyortoolate.

Pleaseenterthedateinthefollowingformat:“DD/MM/YYYY.”Forexample,5September2018shouldbeenteredas05/09/2018.Ifthedocumentisnotpublishedornotproduced,leavethisquestionblank.

Answer:20/4/2018

Source:http://pris.government.bg/prin/document_view.aspx?DocumentID=vnSroldA0zOjTTZLff92Pg==

Comment:ThedocumentwaspublishedinthesystemforlegalinformationontheBulgariangovernmentwebsiteat20.04.201811:27:13



PBS-3b.Intheboxbelow,pleaseexplainhowyoudeterminedthedateofpublicationofthePBS.

Ifthedocumentisnotpublishedatall,researchersshouldmarkthisquestion“n/a.”

Answer:ThedocumentwaspublishedinthesystemforlegalinformationontheBulgariangovernmentwebsiteat20.04.201811:27:13

Source:http://pris.government.bg/prin/document_view.aspx?DocumentID=vnSroldA0zOjTTZLff92Pg==

Comment:Thesystemdateseachpublicationwithdateandtimeofupload



PBS-4.IfthePBSispublished,whatistheURLorweblinkofthePBS?

ResearchersshouldrespondtothisquestionifthedocumentispublishedeitherwithinthetimeframeacceptedbytheOBSmethodologyortoolate.Ifthedocumentisnotpublishedatall,researchersshouldleavethisquestionblank.

Answer:http://pris.government.bg/prin/document_view.aspx?DocumentID=vnSroldA0zOjTTZLff92Pg==

Source:SystemforlegalinformationontheBulgariangovernmentwebsite:http://pris.government.bg/prin/document_view.aspx?DocumentID=vnSroldA0zOjTTZLff92Pg==WebsiteofMinistryofFinance:http://www.minfin.bg/upload/37143/RMS+264+2018.pdf

Comment:



PBS-5.IfthePBSispublished,arethenumericaldatacontainedinthePBSavailableinamachinereadableformat?

Material(dataorcontent)ismachinereadableifitisinaformatthatcanbeeasilyprocessedbyacomputer,suchas.csv,.xls/.xlsx,and.json.NumericaldatafoundinPDFsandWord(.doc/.docx)filesdonotqualifyasmachinereadable.Seemoreat:http://opendatahandbook.org/glossary/en/terms/machine-readable/

Option“d”appliesifthePBSisnotpublishedornotproduced,thereforeitsmachinereadabilitycannotbeassessed.

Answer:a.Yes,allofthenumericaldataareavailableinamachinereadableformat

Source:http://www.minfin.bg/upload/37144/pms_2+chasti.rar

Comment:DataavailableinMSExcelformat.



PBS-6a.IfthePBSisnotpubliclyavailable,isitstillproduced?

IfthePBSisnotconsideredpubliclyavailableundertheOBSmethodology(andthustheanswertoQuestionPBS-2was“d”),agovernmentmaynonethelessproducethedocument.

Option“a”appliesifthedocumentisproducedandmadeavailabletothepubliconlinebutnotwithinthetimeframespecifiedintheOBSmethodology(seeQuestionPBS-2)Option“b”appliesifthedocumentisproducedandmadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologybutonlyinhardcopy(andisnotavailableonline).Option“b”alsoappliesifthedocumentismadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologyinsoftelectroniccopybutisnotavailableonline.

http://opendatahandbook.org/glossary/en/terms/machine-readable/

Option“c”appliesifthedocumentisproducedforinternalpurposesonlyandsoisnotmadeavailabletothepublic.Option“d”appliesifthedocumentisnotproducedatall.Option“e”appliesifthedocumentispubliclyavailable.Ifadocumentisnotreleasedtothepublic,researchersmayneedtowritetoorvisittherelevantgovernmentofficeinordertodeterminewhetheranswer“c”or“d”applies.

Answer:e.Notapplicable(thedocumentispubliclyavailable)

Source:

Comment:PBSispubliclyavailable.



PBS-6b.Ifyouselectedoption“c”or“d”inquestionPBS-6a,pleasespecifyhowyoudeterminedwhetherthePBSwasproducedforinternaluseonly,versusnotproducedatall.

Ifoption“a,”“b,”or“e”wasselectedinquestionPBS-6a,researchersshouldmarkthisquestion“n/a.”

Answer:

Source:

Comment:

PeerReviewerOpinion:

GovernmentReviewerOpinion:

PBS-7.IfthePBSisproduced,pleasewritethefulltitleofthePBS.

Forexample,atitleforthePre-BudgetStatementcouldbe“Proposed2019StateBudget”or“GuidelinesforthePreparationofAnnualPlanandBudgetfor2018/19.”

Ifthedocumentisnotproducedatall,researchersshouldmarkthisquestion“n/a.”

Answer:Mediumtermbudgetforecast2019-2021/Средносрочнабюджетнапрогнозазапериода2019-2021г

Source:http://www.minfin.bg/upload/37143/RMS+264+2018.pdfhttp://pris.government.bg/prin/document_view.aspx?DocumentID=vnSroldA0zOjTTZLff92Pg==

Comment:



PBS-8.Istherea“citizensversion”ofthePBS?

WhiletheCitizensBudgetwasinitiallyconceivedasasimplifiedversionoftheExecutive’sBudgetProposalortheEnactedBudget,goodpracticeisnowevolvingandsuggeststhata“citizens”versionofkeybudgetdocumentsshouldbeproducedduringeachofthefourphasesofthebudgetcycle.Thiswouldservetoinformcitizensofthestateofpublicfinancialmanagementthroughouttheentirebudgetcycle.Whileitisrecognizedthatitmaybeunreasonabletoexpectthatacitizensversionisproducedforeachandeveryoneofthosekeydocuments,itseemsacceptabletoexpectthataccordingtogoodpractice,theexecutivereleasesacitizensversionofkeybudgetdocumentsforeachofthefourstagesofthebudgetprocesstoallowcitizenstobeawareofwhatishappening,intermsofpublicfinancialmanagement,throughouttheentirebudgetcycle.FormoreinformationonCitizensBudgetsee:http://www.internationalbudget.org/opening-budgets/citizens-budgets/.

Answer:b.No

Source:

Comment:


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.YesComments:https://www.minfin.bg/bg/1154ThedocumentiscalledИнформационенбюлетин„Средносрочнабюджетнапрогнозазапериода2018–2020г.:макроикономическиибюджетниперспективи“.

IBPCommentThedocumentlinkedtobythegovernmentreviewerappearstohavebeenreleasednearlyayear(June2017)priortothepublicationofthe2019PBS.

EBP-1a.WhatisthefiscalyearoftheEBPevaluatedinthisOpenBudgetSurveyquestionnaire?


Answer:FY2019

Source:Decision768oftheCoMforapprovalofdraftstatebudgetofRepublicofBulgariafor2019http://pris.government.bg/prin/document_view.aspx?DocumentID=ITyByUCzF/RP4/FbPgpQGw==

Comment:Alsopublishedontheparliamentwebsite:https://www.parliament.bg/bg/bills/ID/78264/


GovernmentReviewer

http://www.internationalbudget.org/opening-budgets/citizens-budgets/

Opinion:Agree

EBP-1b.WhenistheEBPsubmittedtothelegislatureforconsideration?


Answer:29/10/2018

Source:Websiteofparliamenthttps://www.parliament.bg/bg/bills/ID/78264/

Comment:Draftstatebudgetfolderoftheparliamentwebsite



EBP-2.WhenistheEBPmadeavailabletothepublic?


TheOBSmethodologyrequiresthatforanEBPtobeconsideredpubliclyavailable,itmustbemadeavailabletothepublicwhilethelegislatureisstillconsideringitandbeforethelegislatureapproves(enacts)it.IftheEBPisnotreleasedtothepublicbeforethelegislatureapprovesit,option“d”applies.Option“d”shouldalsobechosenfordocumentsthatareproducedforinternalpurposesonly(thatis,producedbutneverreleasedtothepublic)orarenotproducedatall.Somegovernmentsmaypublishbudgetdocumentsfurtherinadvancethanthelatestpossibledatesoutlinedabove.Intheseinstances,researchersshouldchooseoptions“a”or“b,”dependingonthedateofpublicationidentifiedfortheEBP.

TheOBSdefinitionofanExecutive’sBudgetProposalisadocument(s)that(i)theexecutivesubmitstothelegislatureasaformalpartofthebudgetapprovalprocessand(ii)thelegislatureeitherapprovesoronwhichitapprovesproposedamendments.

TheOBSwilltreattheExecutive’sBudgetProposalas“NotProduced,”inthefollowingcases:

Theexecutivedoesnotsubmitthedraftbudgettothelegislature;orThelegislaturereceivesthedraftbudgetbutdoesnotapproveitordoesnotapproverecommendationsonthedraftbudget;Thelegislaturerejectsthedraftbudgetsubmittedbytheexecutive,buttheexecutiveimplementsitwithoutlegislativeapproval;orThereisnolegislature,orthelegislaturehasbeendissolved.

Answer:b.Atleasttwomonths,butlessthanthreemonths,inadvanceofthebudgetyear,andinadvanceofthebudgetbeingapprovedbythelegislature

Source:Publishedonparliamentwebsiteon29.10.2018https://www.parliament.bg/bg/bills/ID/78264/

Comment:PublishedforpublicconsultationontheMinistryofFinancewebsiteon22October2018:http://www.minfin.bg/bg/legislation7/197



EBP-3a.IftheEBPispublished,whatisthedateofpublicationoftheEBP?




Inthecommentboxesbelow,researchersshouldalsolistanysupportingdocumentstotheEBPandtheirdateofpublication.

Answer:29/10/2018

Source:https://www.parliament.bg/bg/bills/ID/78264/http://pris.government.bg/prin/document_view.aspx?DocumentID=ITyByUCzF/RP4/FbPgpQGw==

Comment:TheEBPwasofficiallyapprovedbythegovernmentandsenttotheparliament-andpublishedon29October2019.However,adraftwaspublishedforpublicconsultationonMoFwebsiteaweekerlier,on22October2018.



EBP-3b.Intheboxbelow,pleaseexplainhowyoudeterminedthedateofpublicationoftheEBP.


Answer:Thefolderontheparliamentwebsiteforthedraftbudgethasatimerecordofthedateofupdate.

Source:https://www.parliament.bg/bg/bills/ID/78264/

Comment:



EBP-4.IftheEBPispublished,whatistheURLorweblinkoftheEBP?


Inthecommentboxesbelow,researchersshouldalsolistanysupportingdocumentstotheEBPandtheirURLorweblink.

Answer:https://www.parliament.bg/bg/bills/ID/78264/

Source:Websiteofparliament:https://www.parliament.bg/bg/bills/ID/78264/SystemforlegalinformationontheBulgariangovernmentwebsite:http://pris.government.bg/prin/document_view.aspx?DocumentID=ITyByUCzF/RP4/FbPgpQGw==

Comment:



EBP-5.IftheEBPispublished,arethenumericaldatacontainedintheEBPoritssupportingdocumentsavailableinamachinereadableformat?

Material(dataorcontent)ismachinereadableifitisinaformatthatcanbeeasilyprocessedbyacomputer,suchas.csv,.xls/.xlsx,and.json.NumericaldatafoundinPDFsandWord(.doc/.docx)filesdonotqualifyasmachinereadable.Seemoreat:http://opendatahandbook.org/glossary/en/terms/machine-readable/.

Option“d”appliesiftheEBPisnotpublishedornotproduced,thereforeitsmachinereadabilitycannotbeassessed.

Answer:c.No

Source:https://www.parliament.bg/bg/bills/ID/78264/

Comment:WordandPdffiles.Thelinkedparliament.bgpagegivestheoptiontoexportinan.xml,Excel,or.csvformatatthetopofthepage-butitonlyexportsthepage,notthebudgetdocuments.



EBP-6a.IftheEBPisnotpubliclyavailable,isitstillproduced?

IftheEBPisnotconsideredpubliclyavailableundertheOBSmethodology(andthustheanswertoQuestionEBP-2was“d”),agovernmentmaynonethelessproducethedocument.

Option“a”appliesifthedocumentisproducedandmadeavailabletothepubliconlinebutnotwithinthetimeframespecifiedintheOBSmethodology(seeQuestionEBP-2).

Option“b”appliesifthedocumentisproducedandmadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologybutonlyinhardcopy(andisnotavailableonline).Option“b”alsoappliesifthedocumentismadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologyin


softelectroniccopybutisnotavailableonline.

Option“c”appliesifthedocumentisproducedforinternalpurposesonlyandsoisnotmadeavailabletothepublic.

Option“d”appliesifthedocumentisnotproducedatall.

Option“e”appliesifthedocumentispubliclyavailable.

Ifadocumentisnotreleasedtothepublic,researchersmayneedtowritetoorvisittherelevantgovernmentofficeinordertodeterminewhetheranswer“c”or“d”applies.


Source:

Comment:Thedocumentispubliclyavailable



EBP-6b.Ifyouselectedoption“c”or“d”inquestionEBP-6a,pleasespecifyhowyoudeterminedwhethertheEBPwasproducedforinternaluseonly,versusnotproducedatall.

Ifoption“a,”“b,”or“e”wasselectedinquestionEBP-6a,researchersshouldmarkthisquestion“n/a.”

Answer:

Source:

Comment:



EBP-7.IftheEBPisproduced,pleasewritethefulltitleoftheEBP.

Forexample,atitlefortheExecutive’sBudgetProposalcouldbe“DraftEstimatesofRevenueandExpenditureforBY2018-19,producedbytheMinistryofFinance,PlanningandEconomicDevelopment.”

IfthereareanysupportingdocumentstotheEBP,pleaseentertheirfulltitlesinthecommentboxbelow.


Answer:DraftLawontheStateBudgetoftheRepublicofBulgariafor2019/ЗаконопроектзадържавниябюджетнаРепубликаБългарияза2019г.

Source:https://www.parliament.bg/bg/bills/ID/78264

Comment:



EBP-8.Istherea“citizensversion”oftheEBP?

WhiletheCitizensBudgetwasinitiallyconceivedasasimplifiedversionoftheExecutive’sBudgetProposalortheEnactedBudget,goodpracticeisnowevolvingandsuggeststhata“citizens”versionofkeybudgetdocumentsshouldbeproducedduringeachofthefourphasesofthebudgetcycle.Thiswouldservetoinformcitizensofthestateofpublicfinancialmanagementthroughouttheentirebudgetcycle.Whileitisrecognizedthatitmaybeunreasonabletoexpectthatacitizensversionisproducedforeachandeveryoneofthosekeydocuments,itseemsacceptabletoexpectthataccordingtogoodpractice,theexecutivereleasesacitizensversionofkeybudgetdocumentsforeachofthefourstagesofthebudgetprocesstoallowcitizenstobeawareofwhatishappening,intermsofpublicfinancialmanagement,throughouttheentirebudgetcycle.FormoreinformationonCitizensBudgetsee:http://www.internationalbudget.org/opening-budgets/citizens-budgets.

Answer:a.Yes

Source:http://www.minfin.bg/upload/38808/Budget+za+grajdanite_draft.pdfhttp://www.minfin.bg/upload/38788/Infographics+_Budget2019+sbp.pdfhttp://www.minfin.bg/upload/38789/Infographics+_Budget2019+prioriteti.pdfhttp://www.minfin.bg/upload/38790/Infographics+_Budget2019-Obshtini.pdf

Comment:A16-pagebulletin"Budget-in-brief",plus3infographs,wereproduced.Thedocumentsummarizesmajormacroeconomicassumptions,keyprioritiesofthefiscalpolicy,andhighlightskeyparametersintheEBP.



EB-1a.WhatisthefiscalyearoftheEBevaluatedinthisOpenBudgetSurveyquestionnaire?


Answer:FY2019

Source:https://www.parliament.bg/bg/laws/ID/78264

Comment:


http://www.internationalbudget.org/opening-budgets/citizens-budgets


EB-1b.WhenwastheEBapproved(enacted)bythelegislature?


Answer:29/11/2018


Comment:Theparliamentapprovedthebudgeton29November2018https://www.parliament.bg/bg/laws/ID/78264



EB-2.WhenistheEBmadeavailabletothepublic?


TheOBSmethodologyrequiresthatforanEBtobeconsideredpubliclyavailable,itmustbemadeavailabletothepublic threemonthsafterthebudgetisapprovedbythelegislature.IftheEBisnotreleasedtothepublicatleastthreemonthsafterthebudgetisapprovedbythelegislature,option“d”applies.Option“d”shouldalsobechosenfordocumentsthatareproducedforinternalpurposesonly(thatis,producedbutneverreleasedtothepublic)orarenotproducedatall.Somegovernmentsmaypublishbudgetdocumentsfurtherinadvancethanthelatestpossibledatesoutlinedabove.Intheseinstances,researchersshouldchooseoptions“a”or“b,”dependingonthedateofpublicationidentifiedfortheEB.

Answer:a.Twoweeksorlessafterthebudgethasbeenenacted

Source:Publishedon13Dec2018inStateGazetteNo103

Comment:



EB-3a.IftheEBispublished,whatisthedateofpublicationoftheEB?

Notethatthedateofpublicationisnotnecessarilythesamedatethatisprintedonthedocument.ResearchersshouldrespondtothisquestionifthedocumentispublishedeitherwithinthetimeframeacceptedbytheOBSmethodologyortoolate.


Answer:13/12/2018

Source:Stategazettte103issued13Dec2018:http://dv.parliament.bg/DVWeb/broeveList.faces;jsessionid=BFD9816C51BF21658724AFF8B4985885#

Comment:



EB-3b.Intheboxbelow,pleaseexplainhowyoudeterminedthedateofpublicationoftheEB.


Answer:StateGazetteNo103dated13December2018isavailableonlineStateGazetteNo103issued13December2018availableonline

Source:StateGazette103:http://dv.parliament.bg/DVWeb/broeveList.faces;jsessionid=BFD9816C51BF21658724AFF8B4985885#

Comment:



EB-4.IftheEBispublished,whatistheURLorweblinkoftheEB?


Answer:https://www.parliament.bg/bg/laws/ID/78264https://www.parliament.bg/bg/laws/ID/78264

Source:Websiteofparliament:https://www.parliament.bg/bg/laws/ID/78264WebsiteofStateGazette:http://dv.parliament.bg/DVWeb/broeveList.faces;jsessionid=BFD9816C51BF21658724AFF8B4985885#WebsiteofMinistryofFinance:http://www.minfin.bg/upload/39412/ZDBRB+2019.pdf

Comment:



EB-5.IftheEBispublished,arethenumericaldatacontainedintheEBavailableinamachinereadableformat?


Option“d”appliesiftheEBisnotpublishedornotproduced,thereforeitsmachinereadabilitycannotbeassessed.


Source:Websiteofparliment:https://www.parliament.bg/export.php/bg/xml/bills/78264

Comment:Dataavailableforexportinxmlformathttps://www.parliament.bg/export.php/bg/xml/bills/78264



EB-6a.IftheEBisnotpubliclyavailable,isitstillproduced?

IftheEBisnotconsideredpubliclyavailableundertheOBSmethodology(andthustheanswertoQuestionEB-2was“d”),agovernmentmaynonethelessproducethedocument.

Option“a”appliesifthedocumentisproducedandmadeavailabletothepubliconlinebutnotwithinthetimeframespecifiedintheOBSmethodology(seeQuestionEB-2)Option“b”appliesifthedocumentisproducedandmadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologybutonlyinhardcopy(andisnotavailableonline).Option“b”alsoappliesifthedocumentismadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologyinsoftelectroniccopybutisnotavailableonline.Option“c”appliesifthedocumentisproducedforinternalpurposesonlyandsoisnotmadeavailabletothepublic.Option“d”appliesifthedocumentisnotproducedatall.Option“e”appliesifthedocumentispubliclyavailable.



Source:

Comment:Thedocumentispubliclyavailable

PeerReviewer


Opinion:Agree


EB-6b.Ifyouselectedoption“c”or“d”inquestionEB-6a,pleasespecifyhowyoudeterminedwhethertheEBwasproducedforinternaluseonly,versusnotproducedatall.

Ifoption“a,”“b,”or“e”wasselectedinquestionEB-6a,researchersshouldmarkthisquestion“n/a.”

Answer:

Source:

Comment:



EB-7.IftheEBisproduced,pleasewritethefulltitleoftheEB.

Forexample,atitlefortheEnactedBudgetcouldbe“AppropriationActn.10of2018.”


Answer:ЗаконзадържавниябюджетнаРепубликаБългарияза2019г./LawonthestatebudgetoftheRepublicofBulgariafor2019


Comment:



EB-8.Istherea“citizensversion”oftheEB?



Answer:a.Yes

Source:http://www.minfin.bg/upload/39907/Budget%202019%20infograph.pdf

Comment:onlinealongwithaleafletinoneofthedailynewspaperson31December2018



CB-1.WhatisthefiscalyearoftheCBevaluatedinthisOpenBudgetSurveyquestionnaire?


IfmorethanoneCitizensBudgetisproduced,foreachCBpleaseindicatethedocumenttheCBsimplifies/refersto,andthefiscalyear.

Answer:FY2019

Source:CBforEBP2019:http://www.minfin.bg/upload/38808/Budget+za+grajdanite_draft.pdf

Comment:WechosetouseCBforEBP2019.

AdditionalCBspublished:CBforEB2018:http://www.minfin.bg/upload/36684/Budget+nakratko_2018.pdfCBforYER2017:http://www.minfin.bg/upload/38993/Otchet_za_izpylnenieto_na_Budget_2017_nakratko.pdf



CB-2a.ForthefiscalyearindicatedinCB-1,whatisthepublicavailabilitystatusoftheCB?

IfmorethanoneCitizensBudgetisproduced,pleasecompletethisquestionforoneofthem,specifyinginthecommentboxbelowwhichdocument(Executive’sBudgetProposalorEnactedBudget)youarereferringto,and–inthesamecommentbox–whichotherCitizensBudgetisproducedanditspublicavailabilitystatus.

RememberthatpubliclyavailablebudgetdocumentsaredefinedasthosedocumentsthatarepublishedonthewebsiteofthepublicauthorityissuingthedocumentwithinthetimeframespecifiedbytheOBSmethodologyandthatallcitizensareabletoobtainfreeofcharge.ThisisachangefrompreviousroundsoftheOpenBudgetSurvey:nowatminimumdocumentsmustbemadeavailableontheInternetandfreeofchargetobeconsideredpubliclyavailable.

Option“a”appliesifthedocumentisproducedandmadeavailabletothepubliconlinebutnotwithinthetimeframespecifiedintheOBSmethodologyOption“b”appliesifthedocumentisproducedandmadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologybutonlyinhardcopy(andisnotavailableonline).Option“b”alsoappliesifthedocumentismadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologyinsoftelectroniccopybutisnotavailableonline.Option“c”appliesifthedocumentisproducedforinternalpurposesonlyandsoisnotmadeavailabletothepublic.Option“d”appliesifthedocumentisnotproducedatall.

Option“e”appliesifthedocumentispubliclyavailable.


Source:

Comment:



CB-2b.Ifyouselectedoption“c”or“d”inquestionCB-2a,pleasespecifyhowyoudeterminedwhethertheCBwasproducedforinternaluseonly,versusnotproducedatall.

Ifoption“a,”“b,”or“e”wasselectedinquestionCB-2a,researchersshouldmarkthisquestion“n/a.”

Answer:

Source:

Comment:



CB-3a.IftheCBispublished,whatisthedateofpublicationoftheCB?


Pleaseenterthedateinthefollowingformat:“DD/MM/YYYY.”Forexample,5September2018shouldbeenteredas05/09/2018.Ifthedocumentisnotpublishedornotproduced,leavethisquestionblank.IfmorethanoneCitizensBudgetispublished,pleasecompletethisquestionforoneofthem,specifyinginthecommentboxbelowwhichdocumentyouarereferringto,and–inthesamecommentbox–whichotherCitizensBudgetisproducedanditsdatesofpublication.

Answer:22/10/2018

Source:http://www.minfin.bg/upload/38808/Budget%20za%20grajdanite_draft.pdf

Comment:

PeerReviewer

Opinion:Agree


CB-3b.Intheboxbelow,pleaseexplainhowyoudeterminedthedateofpublicationoftheCB.


Answer:TheFinanceMinistrypublishedapressreleaseonthepublicationofthe2019draftbudgetandmentionedthataCBisalsopublished.

Source:http://www.minfin.bg/bg/news/2018-10-22/10474

Comment:



CB-4.IftheCBispublished,whatistheURLorweblinkoftheCB?


IfmorethanoneCitizensBudgetispublished,pleasecompletethisquestionforoneofthem,specifyinginthecommentboxbelowwhichdocumentyouarereferringto,and–inthesamecommentbox–whichotherCitizensBudgetisproducedanditsURLorweblink.

Answer:http://www.minfin.bg/upload/38808/Budget+za+grajdanite_draft.pdf

Source:http://www.minfin.bg/upload/38808/Budget+za+grajdanite_draft.pdf

Comment:CBforEBP2019



CB-5.IftheCBisproduced,pleasewritethefulltitleoftheCB.

Forexample,atitlefortheCitizensBudgetcouldbe“Budget2018People’sGuide”or“2019ProposedBudgetinBrief:APeople’sBudgetPublication.”


IfmorethanoneCitizensBudgetisproduced,fortheotherCB,indicatethedocumenttheCBreferstoand,nexttoit,itsfulltitle.

Answer:BudgetinBrief–Budget2019andmedium-termperspectivesfor2019-2021БЮДЖЕТЪТНАКРАТКО-БЮДЖЕТ2019ИСРЕДНОСРОЧНИПЕРСПЕКТИВИЗАПЕРИОДА2019-2021Г.

Source:CBforEBP2019http://www.minfin.bg/upload/38808/Budget+za+grajdanite_draft.pdf

Comment:



CB-6.IftheCBisproduced,pleaseindicatewhichbudgetdocumentitcorrespondsto.

IfmorethanoneCitizensBudgetisproduced,pleasecompletethisquestionforoneofthem,specifyinginthecommentboxbelowwhichdocumentyouarereferringto,and–inthesamecommentbox–whichotherCitizensBudgetisproducedandwhichbudgetdocumentitsimplifies.

Answer:CBcorrespondstotheEBP.

Source:CBisproducedalsofortheEBandYER.

Comment:



IYRs-1.WhatisthefiscalyearoftheIYRsevaluatedinthisOpenBudgetSurveyquestionnaire?


Answer:FY2018

Source:Monthlyreportsontheexecutionofthebudget:http://www.minfin.bg/bg/statistics/12Monthlybulletinonstatedebt:http://www.minfin.bg/bg/statistics/20Monthlydataonconsolidatedbudget:http://www.minfin.bg/bg/statistics/5Quarterlydataonconsolidatedbudget:http://www.minfin.bg/bg/statistics/6

Comment:



IYRs-2.WhenaretheIYRsmadeavailabletothepublic?


TheOBSmethodologyrequiresthatforIYRstobeconsideredpubliclyavailable,IYRsmustbemadeavailabletothepublicnolaterthanthreemonthsafterthereportingperiodends.Ifatleastsevenofthelast12monthlyIYRs,oratleastthreeofthelastfourquarterlyIYRsarenotreleasedtothepublicatleastthreemonthsafterthereportingperiodends,option“d”applies.Option“d”shouldalsobechosenfordocumentsthatareproducedforinternalpurposesonly(thatis,producedbutneverreleasedtothepublic)orarenotproducedatall.Somegovernmentsmaypublishbudgetdocumentsfurtherinadvancethanthelatestpossibledatesoutlinedabove.Intheseinstances,researchersshouldchooseoptions“a”or“b,”dependingonthedateofpublicationidentifiedfortheIYRs.

Answer:a.Atleasteverymonth,andwithinonemonthoftheperiodcovered

Source:November2018bulletinpublished31December2018:http://www.minfin.bg/upload/39561/BULETIN_November+_2018.pdfOctober2018bulletinpublished30November2018http://www.minfin.bg/upload/39291/BULETIN_October%20_2018.pdfSeptember2018bulletinpublished31October2018http://www.minfin.bg/upload/38938/BULETIN_September%20_2018.pdfAugust2018bulletinpublished28September2018http://www.minfin.bg/upload/38606/BULETIN_August%20_2018.pdfJuly2018bulletinpublished31August2018http://www.minfin.bg/upload/38368/BULETIN_July_2018.pdfJune2018bulletinpublished31July2018http://www.minfin.bg/upload/38047/BULETIN_June%20_2018.pdfMay2018bulletinpublished29June2018http://www.minfin.bg/upload/37775/BULETIN_May_2018.pdf

Comment:Dataandbulletinarepublishedattheendofthemonthfollowingthereportingmonth



IYRs-3a.IftheIYRsarepublished,whatarethedatesofpublicationoftheIYRs?

Specifically:ifquarterlyIn-YearReportsarepublished,indicatethedatesofpublicationofatleastthreeofthelastfourIYRsthatwerepubliclyavailable.IfmonthlyIYRsarepublished,indicatethedatesofpublicationofatleastsevenofthelast12IYRsthatwerepubliclyavailable.


Pleaseenterthedateinthefollowingformat:“DDMonthYYYY.”Forexample,5September2018shouldbeenteredas05September2018.Ifthedocumentisnotpublishedornotproduced,pleasemarkthisquestion“n/a.”

Answer:

31December3018(IYRNovember2018);30November2018(October2018);31October2018(September2018);28September(August2018);August31(July2018);July31(June2018);June29(May2018)

Source:Pressreleasesoneachpublication:http://www.minfin.bg/bg/news/2018-06/10404http://www.minfin.bg/bg/news/2018-07/10431http://www.minfin.bg/bg/news/2018-08/10443http://www.minfin.bg/bg/news/2018-09/10457http://www.minfin.bg/bg/news/2018-10-31/10485http://www.minfin.bg/bg/news/2018-11-30/10516http://www.minfin.bg/bg/news/2018-12-31/10536

Comment:



IYRs-3b.Intheboxbelow,pleaseexplainhowyoudeterminedthedateofpublicationoftheIYRs.


Answer:WhenreportsareuploadedontheMoFwebpage,theMinistrypublishedannouncementinthenewssectionofitswebsite(includingthedateofpublication).

Source:Pressreleasesoneachpublication:http://www.minfin.bg/bg/news/2018-06/10404http://www.minfin.bg/bg/news/2018-07/10431http://www.minfin.bg/bg/news/2018-08/10443http://www.minfin.bg/bg/news/2018-09/10457http://www.minfin.bg/bg/news/2018-10-31/10485http://www.minfin.bg/bg/news/2018-11-30/10516http://www.minfin.bg/bg/news/2018-12-31/10536

Comment:



IYRs-4.IftheIYRsarepublished,whatistheURLorweblinkoftheIYRs?


ResearchersshouldprovidetheweblinktothemostrecentIn-YearReportinthespacebelow,and–inthecommentboxunderneath–theweblinkstoolderIYRs.

Ifthedocumentisnotpublishedatall,researchersshouldleavethisquestionblank.

Answer:http://www.minfin.bg/bg/statistics/12

Source:MonthlybulletinontheexecutionofthebudgetNovember2018:http://www.minfin.bg/upload/39561/BULETIN_November+_2018.pdfMonthlybulletinonthestatedebtNovember2018:http://www.minfin.bg/upload/39551/CGD-bulletin_debt_bg+11.2018.pdfMonthlydataNovember2018:http://www.minfin.bg/upload/39555/2018-EU+funds_1118_BG_WEB.xls

Comment:Linksfor2018budgetexecutionreportsJan-Octhere:http://www.minfin.bg/bg/statistics/12Linksfor2018debtreports:http://www.minfin.bg/bg/statistics/20Linksfor2018datafiles:http://www.minfin.bg/bg/statistics/5



IYRs-5.IftheIYRsarepublished,arethenumericaldatacontainedintheIYRsavailableinamachinereadableformat?


Option“d”appliesiftheIYRsarenotpublishedornotproduced,thereforetheirmachinereadabilitycannotbeassessed.


Source:Dataonconsolidatedprogram:http://www.minfin.bg/bg/statistics/5Dataonstatebudget:http://www.minfin.bg/bg/statistics/18

Comment:Dataavailableinexcelfiles



IYRs-6a.IftheIYRsarenotpubliclyavailable,aretheystillproduced?

IftheIYRsarenotconsideredpubliclyavailableundertheOBSmethodology(andthustheanswertoQuestionIYRs-2was“d”),agovernmentmaynonethelessproducethedocument.

Option“a”appliesifthedocumentisproducedandmadeavailabletothepubliconlinebutnotwithinthetimeframespecifiedintheOBSmethodology(seeQuestionIYRs-2).Option“b”appliesifthedocumentisproducedandmadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologybutonlyinhardcopy(andisnotavailableonline).Option“b”alsoappliesifthedocumentismadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologyinsoftelectroniccopybutisnotavailableonline.Option“c”appliesifthedocumentisproducedforinternalpurposesonlyandsoisnotmadeavailabletothepublic.Option“d”appliesifthedocumentisnotproducedatall.Option“e”appliesifthedocumentispubliclyavailable.




Source:n/a

Comment:Publiclyavailable



IYRs-6b.Ifyouselectedoption“c”or“d”inquestionIYRs-6a,pleasespecifyhowyoudeterminedwhethertheIYRswereproducedforinternaluseonly,versusnotproducedatall.

Ifoption“a,”“b,”or“e”wasselectedinquestionIYRs-6a,researchersshouldmarkthisquestion“n/a.”

Answer:

Source:

Comment:



IYRs-7.IftheIYRsareproduced,pleasewritethefulltitleoftheIYRs.

Forexample,atitlefortheIn-YearReportcouldbe“BudgetMonitoringReport,Quarter1”or“BudgetExecutionReportJanuary-March2018.”

IfIn-YearReportsarenotproducedatall,researchersshouldmarkthisquestion“n/a.”

ResearchersshouldprovidethefulltitleofthemostrecentIn-YearReportinthespacebelow,and–inthecommentboxunderneath–thefulltitlesofolderIYRs.

Answer:Monthlybulletinonthebudgetexecution-МесеченбюлетинзаизпълнениетонабюджетаMonthlybulletinonstatedebt-Месеченбюлетин"Дългигаранциинаподсектор„Централноуправление“Dataonthestatebudget/ДанниподържавниябюджетDataontheconsolidatedfiscalprogram(monthly)/Даннипоконсолидиранатафискалнапрограма(месечни)

Source:http://www.minfin.bg/bg/statistics/12

Comment:



IYRs-8.Istherea“citizensversion”oftheIYRs?


Answer:b.No

Source:Pressreleasewithsummaryofreportandkeydata:http://www.minfin.bg/bg/news/2018-12-31/10536

Comment:TheMinistryofFinancepublishesannouncementwiththemaininformationonitswebsiteseee.g.pressreleaseonNovember2018report:http://www.minfin.bg/bg/news/2018-12-31/10536.



MYR-1.WhatisthefiscalyearoftheMYRevaluatedinthisOpenBudgetSurveyquestionnaire?


Answer:FY2018

Source:onMoFwebsite:http://www.minfin.bg/upload/38994/Doklad_za_polugodieto_2018.pdfInformationsystemforlegalinformationoftheGovernmentofBulgaria:http://pris.government.bg/prin/document_view.aspx?DocumentID=8DKqnC05QStPbfreOUtV4g==

Comment:Inadditiontothedetailedmid-yearreview,thereisanother(moreconcise)reportonthebudgetexecutioninthefirsthalfoftheyear.Itispublishedamonthearlier.http://gov.bg/bg/administratsia/byudzhet/kasovo-izpalnenie-na-darzhavniya-byudzhet/informatsiya-za-kasovoto-izpalnenie-na-darzhavniya-byudzhet-i-na-osnovnite-pokazateli-na-konsolidiranata-fiskalna-programa-za-parvoto-polugodie-na-2018-godina




MYR-2.WhenistheMYRmadeavailabletothepublic?


TheOBSmethodologyrequiresthatforanMYRtobeconsideredpubliclyavailable,itmustbemadeavailabletothepublic nolaterthanthreemonthsafterthereportingperiodends(i.e.,threemonthsafterthemidpointofthefiscalyear).IftheMYRisnotreleasedtothepublicatleastthreemonthsafterthereportingperiodends,option“d”applies.Option“d”shouldalsobechosenfordocumentsthatareproducedforinternalpurposesonly(thatis,producedbutneverreleasedtothepublic)orarenotproducedatall.Somegovernmentsmaypublishbudgetdocumentsfurtherinadvancethanthelatestpossibledatesoutlinedabove.Intheseinstances,researchersshouldchooseoptions“a”or“b,”dependingonthedateofpublicationidentifiedfortheMYR.

Answer:c.Morethannineweeks,butlessthanthreemonths,afterthemidpoint

Source:onMoFwebsite:http://www.minfin.bg/upload/38994/Doklad_za_polugodieto_2018.pdfInformationsystemforlegalinformationoftheGovernmentofBulgaria:http://pris.government.bg/prin/document_view.aspx?DocumentID=8DKqnC05QStPbfreOUtV4g==

Comment:Legalprovisionintheart136para1ofthePublicFinancesAct,whichstipulatesthatmidyearreportshoudbeapprovedbytheCoMwithadecisionby15thSeptemberoftheyear:http://www.minfin.bg/upload/37911/Public_Finance_Act.pdf

Itshouldbenotedthatinadditiontothedetailedmid-yearreview,thereisanother(moreconcise)reportonthebudgetexecutioninthefirsthalfoftheyear.Itispublishedamonthearlier-on17August2018.Ifthatreportisused,thentheanswershouldbe"b".http://gov.bg/bg/administratsia/byudzhet/kasovo-izpalnenie-na-darzhavniya-byudzhet/informatsiya-za-kasovoto-izpalnenie-na-darzhavniya-byudzhet-i-na-osnovnite-pokazateli-na-konsolidiranata-fiskalna-programa-za-parvoto-polugodie-na-2018-godina

http://pris.government.bg/prin/document_view.aspx?DocumentID=Lcv4V0vi5OHWZ5ZNk3ckrg==



IBPCommentThepeerreviewer'saddedcontextiswellreceived.

MYR-3a.IftheMYRispublished,whatisthedateofpublicationoftheMYR?




Answer:14/9/2018

Source:http://pris.government.bg/prin/document_view.aspx?DocumentID=8DKqnC05QStPbfreOUtV4g==

Comment:



MYR-3b.Intheboxbelow,pleaseexplainhowyoudeterminedthedateofpublicationoftheMYR.


Answer:PublicationontheInformationsystemforlegalinformationoftheGovernmentofBulgariahasatimestamp:14.09.201816:09:35

Source:InformationsystemforlegalinformationoftheGovernmentofBulgaria:http://pris.government.bg/prin/document_view.aspx?DocumentID=8DKqnC05QStPbfreOUtV4g==

Comment:



MYR-4.IftheMYRispublished,whatistheURLorweblinkoftheMYR?


Answer:http://pris.government.bg/prin/document_view.aspx?DocumentID=8DKqnC05QStPbfreOUtV4g==


Comment:



MYR-5.IftheMYRispublished,arethenumericaldatacontainedintheMYRavailableinamachinereadableformat?

Material(dataorcontent)ismachinereadableifitisinaformatthatcanbeeasilyprocessedbyacomputer,suchas.csv,.xls/.xlsx,and.json.NumericaldatafoundinPDFsandWord(.doc/.docx)filesdonotqualifyasmachinereadable.Seemoreat:http://opendatahandbook.org/glossary/en/terms/machine-readable/.

Option“d”appliesiftheMYRisnotpublishedornotproduced,thereforeitsmachinereadabilitycannotbeassessed.

Answer:c.No


Comment:ReportinMSWord



MYR-6a.IftheMYRisnotpubliclyavailable,isitstillproduced?

IftheMYRisnotconsideredpubliclyavailableundertheOBSmethodology(andthustheanswertoQuestionMYR-2was“d”),agovernmentmaynonethelessproducethedocument.

Option“a”appliesifthedocumentisproducedandmadeavailabletothepubliconlinebutnotwithinthetimeframespecifiedintheOBSmethodology(seeQuestionMYR-2).Option“b”appliesifthedocumentisproducedandmadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologybutonlyinhardcopy(andisnotavailableonline).Option“b”alsoappliesifthedocumentismadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologyinsoftelectroniccopybutisnotavailableonline.Option“c”appliesifthedocumentisproducedforinternalpurposesonlyandsoisnotmadeavailabletothepublic.Option“d”appliesifthedocumentisnotproducedatall.Option“e”appliesifthedocumentispubliclyavailable.



Source:

Comment:Documentispubliclyavailable



MYR-6b.Ifyouselectedoption“c”or“d”inquestionMYR-6a,pleasespecifyhowyoudeterminedwhethertheMYRwasproducedforinternaluseonly,versusnotproducedatall.


Ifoption“a,”“b,”or“e”wasselectedinquestionMYR-6a,researchersshouldmarkthisquestion“n/a.”

Answer:

Source:

Comment:



MYR-7.IftheMYRisproduced,pleasewritethefulltitleoftheMYR.

Forexample,atitlefortheMid-YearReviewcouldbe“Semi-annualBudgetPerformanceReport,FY2017/18”or“Mid-YearReportonthe2018NationalBudget.”


Answer:Reportonthecashexecutionoftheconsolidatedfiscalprogramforthefirsthalfof2018/ДОКЛАДЗАКАСОВОТОИЗПЪЛНЕНИЕНАКОНСОЛИДИРАНАТАФИСКАЛНАПРОГРАМАЗАПЪРВОТОПОЛУГОДИЕНА2018

Source:http://pris.government.bg/prin/document_view.aspx?DocumentID=8DKqnC05QStPbfreOUtV4g==

Comment:



MYR-8.Istherea“citizensversion”oftheMYR?


Answer:b.No

Source:n/a

Comment:n/a




YER-1.WhatisthefiscalyearoftheYERevaluatedinthisOpenBudgetSurveyquestionnaire?


Answer:FY2017

Source:InformationsystemforlegalinformationoftheGovernmentofBulgariahttp://pris.government.bg/prin/document_view.aspx?DocumentID=BmM%2bAkhbSR6kQ43TcKJ8YA==MoFwebsite:http://www.minfin.bg/upload/38991/Doklad_po_otcheta_na_DB-na_RB_2017.pdf

Comment:alsoannexesanddataavailable



YER-2.WhenistheYERmadeavailabletothepublic?


TheOBSmethodologyrequiresthatforanYERtobeconsideredpubliclyavailable,itmustbemadeavailabletothepublicnolaterthanoneyearafterthefiscalyeartowhichitcorresponds.IftheYERisnotreleasedtothepublicwithinoneyearaftertheendofthefiscalyeartowhichitcorresponds,option“d”applies.Option“d”shouldalsobechosenfordocumentsthatareproducedforinternalpurposesonly(thatis,producedbutneverreleasedtothepublic)orarenotproducedatall.Somegovernmentsmaypublishbudgetdocumentsfurtherinadvancethanthelatestpossibledatesoutlinedabove.Intheseinstances,researchersshouldchooseoptions“a”or“b,”dependingonthedateofpublicationidentifiedfortheYER.

Answer:c.Morethanninemonths,butwithin12months,aftertheendofthebudgetyear

Source:http://pris.government.bg/prin/document_view.aspx?DocumentID=BmM%2bAkhbSR6kQ43TcKJ8YA==

Comment:TheLawonpublicfinances,Art138para3stipulatesthattheMinistryofFinanceshouldsubmittheYERforapprovalbytheCouncilofMnistersby30September,astheydidinrecentyears.Thisyear(2018),thefirstCoMmeetingwason3October,sothatiswhythe9-monththresholdwasnotmetby3days.



YER-3a.IftheYERispublished,whatisthedateofpublicationoftheYER?



Answer:5/10/2018

Source:http://pris.government.bg/prin/document_view.aspx?DocumentID=BmM%2bAkhbSR6kQ43TcKJ8YA==

Comment:



YER-3b.Intheboxbelow,pleaseexplainhowyoudeterminedthedateofpublicationoftheYER.


Answer:DateandtimeofpublicationisvisibleontheInformationsystemforlegalinformationoftheGovernmentofBulgaria,05.10.201811:07:36

Source:InformationsystemforlegalinformationoftheGovernmentofBulgaria:http://pris.government.bg/prin/document_view.aspx?DocumentID=BmM%2bAkhbSR6kQ43TcKJ8YA==

Comment:



YER-4.IftheYERispublished,whatistheURLorweblinkoftheYER?


Answer:http://pris.government.bg/prin/document_view.aspx?DocumentID=BmM%2bAkhbSR6kQ43TcKJ8YA==

Source:InformationsystemforlegalinformationoftheGovernmentofBulgaria:http://pris.government.bg/prin/document_view.aspx?DocumentID=BmM%2bAkhbSR6kQ43TcKJ8YA==MoFwebsite:http://www.minfin.bg/upload/38991/Doklad_po_otcheta_na_DB-na_RB_2017.pdf

Comment:



YER-5.IftheYERispublished,arethenumericaldatacontainedintheYERavailableinamachinereadableformat?


Option“d”appliesiftheYERisnotpublishedornotproduced,thereforeitsmachinereadabilitycannotbeassessed.


Source:http://pris.government.bg/prin/document_view.aspx?DocumentID=BmM%2bAkhbSR6kQ43TcKJ8YA==SeparatedatafilesinexcelpublishedMoFwebsite-annexesincludingexceldatafile(zipped):http://www.minfin.bg/upload/38992/Prilojeniq_kym_Doklada-po-otcheta-na-RB_2017.zip

Comment:



YER-6a.IftheYERisnotpubliclyavailable,isitstillproduced?

IftheYERisnotconsideredpubliclyavailableundertheOBSmethodology(andthustheanswertoQuestionYER-2was“d”),agovernmentmaynonethelessproducethedocument.

Option“a”appliesifthedocumentisproducedandmadeavailabletothepubliconlinebutnotwithinthetimeframespecifiedintheOBSmethodology(seeQuestionYER-2)Option“b”appliesifthedocumentisproducedandmadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologybutonlyinhardcopy(andisnotavailableonline).Option“b”alsoappliesifthedocumentismadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologyinsoftelectroniccopybutisnotavailableonline.Option“c”appliesifthedocumentisproducedforinternalpurposesonlyandsoisnotmadeavailabletothepublic.Option“d”appliesifthedocumentisnotproducedatall.Option“e”appliesifthedocumentispubliclyavailable.




Source:n/a

Comment:publiclyavailable



YER-6b.Ifyouselectedoption“c”or“d”inquestionYER-6a,pleasespecifyhowyoudeterminedwhethertheYERwasproducedforinternaluseonly,versusnotproducedatall.

Ifoption“a,”“b,”or“e”wasselectedinquestionYER-6a,researchersshouldmarkthisquestion“n/a.”

Answer:

Source:

Comment:



YER-7.IftheYERisproduced,pleasewritethefulltitleoftheYER.

Forexample,atitlefortheYear-EndReportcouldbe“ConsolidatedFinancialStatementfortheYearEnded31March2018”or“AnnualReport2017PublishedbytheMinistryofFinanceandPlanning.”Ifthedocumentisnotproducedatall,researchersshouldmarkthisquestion“n/a.”

Answer:ReportontheexecutionofthestatebudgetofRepublicofBulgariafor2017ДокладпоотчетазаизпълнениетонадържавниябюджетнаРепубликаБългарияза2017година

Source:http://pris.government.bg/prin/document_view.aspx?DocumentID=BmM%2bAkhbSR6kQ43TcKJ8YA==http://www.minfin.bg/upload/38991/Doklad_po_otcheta_na_DB-na_RB_2017.pdf

Comment:



YER-8.Istherea“citizensversion”oftheYER?


Answer:a.Yes

Source:CBforYER2017:http://www.minfin.bg/upload/38993/Otchet_za_izpylnenieto_na_Budget_2017_nakratko.pdf

Comment:



AR-1.WhatisthefiscalyearoftheARevaluatedinthisOpenBudgetSurveyquestionnaire?


Answer:FY2017

Source:http://www.bulnao.government.bg/bg/search/download/12205/od-db-2017-081019.doc

Comment:Thisisthelatestavailableauditoftheyear-endbudgetreportonthewebsiteoftheNationalAuditOffice.However,thisisnottheonlyauditreportpublishedbytheNAO.

TheNationalAuditOffice(NAO)ispublishingextensiveinformationonline.In2017theNAOpublished292reportsfromfinancialaudits(ministries,first-levelspendingunitsandminicipalities),47auditreports(complianceandperformanceaudits),43reportsforimplementationofNAOrecommendations.ThreeannualreportsarepublishedbyNAO-1)Reportonthefinancialaudits;2)Auditoftheyear-endbudgetreport;3)NAO'sannualreport.Thesethreereportsaresenttotheparliament,alongwithsomeothers.

Webelievethatboththe1)Reportonthefinancialaudits(summaryofallfinancialauditsofstateinstitutions)and2)Auditoftheyear-endbudgetreportcouldbeusedas"AuditReport"intheOpenBudgetIndex.WedecidedtousetheannualAuditoftheyear-endbudgetreport.




AR-2.WhenistheARmadeavailabletothepublic?


TheOBSmethodologyrequiresthatforanARtobeconsideredpubliclyavailable,itmustbemadeavailabletothepublicnolaterthan18monthsaftertheendofthefiscalyeartowhichitcorresponds.IftheARisnotreleasedtothepublicatleast18monthsaftertheendofthefiscalyeartowhichitcorresponds,option“d”applies.Option“d”shouldalsobechosenfordocumentsthatareproducedforinternalpurposesonly(thatis,producedbutneverreleasedtothepublic)orarenotproducedatall.Somegovernmentsmaypublishbudgetdocumentsfurtherinadvancethanthelatestpossibledatesoutlinedabove.Intheseinstances,researchersshouldchooseoptions“a”or“b,”dependingonthedateofpublicationidentifiedfortheAR.

Answer:b.12monthsorless,butmorethansixmonths,aftertheendofthebudgetyear


Comment:Publishedon8October2018.



AR-3a.IftheARispublished,whatisthedateofpublicationoftheAR?



Answer:8/10/2018

Source:http://www.bulnao.government.bg/bg/search?q=%D0%B1%D1%8E%D0%B4%D0%B6%D0%B5%D1%82&article_id=127&file_category_id=&file_type_id=&date_from=2018-10-08&date_to=2018-10-08

Comment:ThefilingsystemoftheBulgarianNationalAuditOffice'swebsiteisorganizedbasedondateofpublicationofdocument.Usingthesearchfunctionweuncoveredthatthefilewasuploadedon08October2018althoughitwasdated02October2018(thedateitwasapproved).



AR-3b.Intheboxbelow,pleaseexplainhowyoudeterminedthedateofpublicationoftheAR.


Answer:ThefilingsystemoftheBulgarianNationalAuditOffice'swebsiteisorganizedbasedondateofpublicationofdocument.Usingthesearchfunctionweuncoveredthatthefilewasuploadedon08October2018althoughitwasdated02October2018(thedateitwasapproved).

Source:http://www.bulnao.government.bg/bg/search?q=%D0%B1%D1%8E%D0%B4%D0%B6%D0%B5%D1%82&article_id=127&file_category_id=&file_type_id=&date_from=2018-10-08&date_to=2018-10-08

Comment:



AR-4.IftheARispublished,whatistheURLorweblinkoftheAR?


Answer:http://www.bulnao.government.bg/bg/search/download/12205/od-db-2017-081019.doc


Comment:



AR-5.IftheARispublished,arethenumericaldatacontainedintheARavailableinamachinereadableformat?


Option“d”appliesiftheARisnotpublishedornotproduced,thereforeitsmachinereadabilitycannotbeassessed.

Answer:c.No


Comment:ThedocumentispublishedinMSWORDformat(unlikeAR2017whichwasinPDF)




AR-6a.IftheARisnotpubliclyavailable,isitstillproduced?

IftheARisnotconsideredpubliclyavailableundertheOBSmethodology(andthustheanswertoQuestionAR-2was“d”),agovernmentmaynonethelessproducethedocument.

Option“a”appliesifthedocumentisproducedandmadeavailabletothepubliconlinebutnotwithinthetimeframespecifiedintheOBSmethodology(seeQuestionAR-2).Option“b”appliesifthedocumentisproducedandmadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologybutonlyinhardcopy(andisnotavailableonline).Option“b”alsoappliesifthedocumentismadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologyinsoftelectroniccopybutisnotavailableonline.Option“c”appliesifthedocumentisproducedforinternalpurposesonlyandsoisnotmadeavailabletothepublic.Option“d”appliesifthedocumentisnotproducedatall.Option“e”appliesifthedocumentispubliclyavailable.




Comment:Thedocumentispubliclyavailable.



AR-6b.Ifyouselectedoption“c”or“d”inquestionAR-6a,pleasespecifyhowyoudeterminedwhethertheARwasproducedforinternaluseonly,versusnotproducedatall.

Ifoption“a,”“b,”or“e”wasselectedinquestionAR-6a,researchersshouldmarkthisquestion“n/a.”

Answer:

Source:

Comment:



AR-7.IftheARisproduced,pleasewritethefulltitleoftheAR.

Forexample,atitlefortheAuditReportcouldbe“AnnualGeneralReportsoftheControllerandAuditorGeneral.”Ifthedocumentisnotproducedatall,researchersshouldmarkthisquestion“n/a.”

Answer:AuditreportonthereportontheexecutionofthestatebudgetoftheRepublicofBulgariafortheperiodfrom01.01.2017till31.12.2017-ОдитендокладзаизвършенодитнаотчетазаизпълнениетонадържавниябюджетнаРепубликаБългариязапериодаот01.01.2017г.до31.12.2017г.


Comment:



AR-8.Istherea“citizensversion”oftheAR?


Answer:b.No

Source:http://www.bulnao.government.bg

Comment:Notproduced.



GQ-1a.Arethereoneormorewebsitesorwebportalsfordisseminatinggovernmentfiscalinformation?Ifyes,pleaseprovidethenecessarylinksinthecomment/citation.

GQ-1aaskstheresearchertolistanygovernmentwebsitesorportalswherefiscalinformationcanbefound.Forexample,inNewZealandtheTreasury


website(http://www.treasury.govt.nz/)hostsimportantbudget-relatedinformation,includingthePre-BudgetStatement,theExecutive’sBudgetProposal,theCitizensBudget,In-YearReports,theMid-YearReview,andtheYear-EndReport.Inaddition,NewZealand’sParliamentaryCounselOffice(http://www.legislation.govt.nz/)poststheEnactedBudgetwhiletheControllerandAuditor-Generalwebsite(http://www.oag.govt.nz/)publishestheannualAuditReport.TheNewZealandresearcherwouldprovidethelinkstoeachofthesesites.Othercountrieshavedevelopedportalsthatincludefiscalinformation,thoughnotinthe“documents”format.Forexample,theseportalshavebeencreatedbyMexico(https://www.transparenciapresupuestaria.gob.mx/)andBrazil(http://www.portaltransparencia.gov.br/).Somecountrieshavebothawebsiteandaportal.TheBraziliangovernment,forexample,apartfromtheTransparencyPortal,hasadedicatedwebsiteforthefederalbudget,whereallkeydocumentsandotherinformationcanbefound(www.orcamentofederal.gov.br).Researchersshouldincludedetailsaboutalloftherelevantwebsitesand/orportalsthattheycanbeusedtoaccessbudgetinformation.

Answer:a.Yes

Source:ThеwebsiteoftheMinistryofFinance(www.minfin.bg)poststhePre-budgetStatement,theExecutiveBudgetProposal,theEnactedBudget,theCitizensBudget,In-YearReports,theMid-YearReview,theYear-EndReport,theEnactedBudget,thestatisticsonstatedebt,fiscalreservesandarrears.ThewebsiteoftheinformationsystemforlegalinformationoftheGovernmentofBulgaria(pris.government.bg)poststhePre-BudgetStatement,theExecutiveBudgetProposal,theMid-YearReviewandtheYear-EndReport.ThewebsiteoftheSAI(www.bulnao.government.bg)poststheAuditReportandanumberofotherauditdocuments.Thewebsiteoftheparliament(www.parliament.bg)poststheExecutiveBudgetProposalandtheSupportingDocumentsaswellastheenactedbudget.ThewebsiteoftheFiscalCouncil(www.fiscalcouncil.bg)–assessmentoftheExecutiveBudgetProposal,Medium-termBudgetFramework,theYear-End-Reportetc.

Comment:



GQ-1b.Onthesewebsites/portals,canrevenueand/orexpendituredataforthecurrentfiscalyearbedownloadedasaconsolidatedfile(orsetoffiles)?Ifyes,pleaseprovidethenecessarylinksinthecomment/citation.

GQ-1b,GQ-1c,andGQ-1daskaboutwhethergovernmentspublishspecifictypesofcontentontheirwebsites/portals:(a)consolidatedfilesthatcontainrevenueand/orexpenditureinformationforthecurrentfiscalyear;(b)consolidatedfilesthatcontainrevenueand/orexpenditureinformationformultipleyearsinconsistentformats;and(c)infographics/visualizationsorothersimilartoolsusedtosimplifydataaccessandanalysis.Researchersshouldprovidethelinkstorelevantwebpagesandsomeexplanationsofwhattheycontain.

Answer:a.Yes,bothrevenueandexpendituredatacanbedownloadedasaconsolidatedfile

Source:Dataonrevenue/expenditureispresentedinMSexcelfilesonamonthlybasis.Monhltybudgetdataispublishedhere-http://www.minfin.bg/bg/statistics/5ThesamedataisalsopublishedintheOpenDataPortalincsvformathttps://opendata.government.bg/dataset/konsolidirana-fiskalna-programa-i-nacionalni-budgeti

Comment:Themonthlybudgetdataisinfactyear-to-dateexecutiondata-forexample,AugustbudgetdatacontainstatisticsforJanuary-August.



GQ-1c.Onthesewebsites/portals,canconsolidatedrevenueand/orexpendituredatabedownloadedformultipleyearsinconsistentformats?Ifyes,please

http://www.treasury.govt.nz/

http://www.legislation.govt.nz/

http://www.oag.govt.nz/

https://www.transparenciapresupuestaria.gob.mx/

http://www.portaltransparencia.gov.br/

http://www.orcamentofederal.gov.br

providethenecessarylinksanddetailsinthecomment/citation.

Answer:a.Yes,bothrevenueandexpendituredatacanbedownloadedformultipleyearsinconsistentformats

Source:Annualdataontheconsolidatedfiscalprogramme(1998-2017)http://www.minfin.bg/bg/statistics/13

Monthlyandquarterlydataontheconsolidatedfiscalprogramhttp://www.minfin.bg/bg/statistics/5

Comment:Intheexpenditurebyfunctionsfiledataisorganizedbyfunctions(9functions,accordingtoCOFOG).IntheConsolidatedfiscalprogramfile:dataisorganizedbytypeoftax(e.g.income,corporate,VAT,excise,socialsecurity)andbyeconomicelements.Dataisalsoavailablenotonlyinnationalmethodology,butalsoinIMF'sGFSMframework-GFSM2001,GFSM86,GFSM2014.DataisavailableinBulgarianandinEnglish.



GQ-1d.Onthesewebsites/portals,areinfographics/visualizationsorothersimilartoolsusedtosimplifydataaccessandanalysis?Ifyes,pleaseprovidethenecessarylinksanddetailsinthecomment/citation.

Answer:b.No

Source:

Comment:Infographics/visualizationsorothersimilartoolsarenotgenerallyavailable,exceptintheCitizen'sBudgets.



GQ-2.Aretherelawsinplaceguidingpublicfinancialmanagementand/orauditing?Ifyes,pleaseprovidethenecessarydetailsandlinksinthecomment/citation,andspecifywhetherandwherethelaw(s)containsspecificprovisionsforbudgettransparencyand/orparticipation.

GQ-2asksabouttheexistenceofanynationallawsgoverningpublicfinancialmanagementandauditing.Thesemayincludeapublicfinanceact,asectionoftheconstitution,oranorganicbudgetlaw.Insomecountries,fiscalresponsibilitylegislationmayalsoberelevant.Forexample,theKenyaresearchermayincludethelinktoitsPublicFinanceManagementAct,2012(http://www.kenyalaw.org/lex//actview.xql?actid=No.%2018%20of%202012),andtheMacedonianresearchermayincludealinktoitsStateAuditLaw(https://www.finance.gov.mk/files/u11/Audit%20law.pdf).Researchersshouldprovidelinkstowebsiteswheresuchlawsarepublished,ifpossible,oranelectroniccopyofthelawitself.Theyshouldalsoindicateifandwhere(e.g.whicharticle)theselawsincludespecificprovisionsforbudgettransparencyandcitizenparticipationinbudgetprocesses.

Answer:a.Yes

http://www.kenyalaw.org/lex//actview.xql?actid=No.%2018%20of%202012

https://www.finance.gov.mk/files/u11/Audit%20law.pdf

Source:Lawonpublicfinances(https://www.lex.bg/laws/ldoc/2135837967)-article20liststheprinciplesforpublicfinancemanagement,principle7is"transparency"-"7.transparency:enablingpublicawarenessbyprovidingpublicaccesstoinformationonmacroeconomicandbudgetaryforecasts,dataonthecurrentimplementationoftheconsolidatedfiscalprogramme,andinformationaboutthemethodology/assumptionsunderlyingthepreparationoftheaforementioned."Thelawsetsfinesforofficialsthatdonotpublishtherequiredinformation,article173-175.Thelawrequirestheministiestopublishonlineanumberofdocuments-includingtaxexpenditures(art.16),debtdata(art.36),macroeconomicforecasts(art.68),budgetforecast(art.72),programbudgets(art.79),approvedbudgetsbyadministrativeunits(art.93),municipalbudgets(art.97),in-yearreports(art.135),mid-yearreview(art.136),annualreports(art.170).

Decreefortheimplementationofthestatebudgetfor2019http://www.minfin.bg/upload/39540/PMS-izpalnenie-2019.pdfThedecreerequirespublicationofinformationbudgetreportsofministriesandadministrativeunits(art.34).

NationalAuditOfficeAct-thelawrequiresallauditreportstobepublishedonthewebsiteoftheNationalAuditOfficehttp://www.lex.bg/bg/laws/ldoc/2136436517

Comment:



GQ-3.Arethereadditionallawsregulating:(1)accesstoinformation;(2)governmenttransparency;or(3)citizensparticipation?Ifyes,pleaseprovidethenecessarydetailsandlinksinthecomment/citation,andspecifywhetherandwheretheselawscontainspecificprovisionsforbudgettransparencyand/orparticipation.

Thethirdandlastquestionasksresearcherstolistanyadditionallawsregulatingaccesstoinformation,transparency,orcitizens’participationthatarerelevantforthepromotionofbudgettransparencyandcitizenparticipationinbudgetprocesses.Thesemightincludelegislationrelatedtoaccesstoinformation,toplanningprocesses,ortopublicadministrationmoregenerally.India’sRighttoInformationActof2005(https://www.ncess.gov.in/facilities/central-public-information-officer/rti-act-details.html)isanexampleofthistypeoflaw.Moreinformationonaccesstoinformationlegislation(constitutionalprovisions,laws,andregulations),includingexamplesofmodellaws,canbefoundhere:http://www.right2info.org/laws/constitutional-provisions-laws-and-regulations#section-1.

Answer:a.Yes

Source:AccesstoPublicInformationActhttps://lex.bg/laws/ldoc/2134929408Definitionofpublicinformation"publicinformationshallbeanyinformationrelatingtothesociallifeintheRepublicofBulgaria,andgivingopportunitytothecitizenstoformtheirownopinionontheactivitiesofthepersonshavingobligationsunderthisact"(art2).Scopeofobligedbodies-art3.Chapter2exlusivelydealswithproceduresofaccesstopublicinformation.Specifically:Art15(1)item7statesthat"Inordertoachievetransparencyoftheadministration'sactivities,andforthepurposeofmaximumfacilitationofaccesstopublicinformation,everyheadofanadministrativestructurewithinthesystemoftheexecutivepowershallpublishonaregularbasisup-to-dateinformationcontaining...informationonthebudgetandthefinancialreportsoftherespectiveadministration,whichshouldbepublishedunderthePublicFinanceAct;Art15aexplicitlyrequiresthatpublicinformationispublishedontheinternet,art15bexplicitlyrequireswheneverpossibledatabepublishedinopenformat;art15cpromulgatestheestablishmentofapublicinformationplatform;art15destablishesportalforopendata.

OrdinanceoftheMinistryofFinance1472/29.11.2011(onthechargesforaccesstopublicinformation)http://www.minfin.bg/document/10478:2Itisatariffofcostrelatedtoaccesstoinformation,e.g.priceofaA4printcopy,priceofCD,etc.

Lawonnormativeacts-requirespublicconsultationsforalllaws,ordinances,regulationsetc.http://www.lex.bg/laws/ldoc/2127837184

Decision103oftheCouncilofMinistersfrom2015-approvingalistofdatasetstobepublishedinopenformat-severalotherdecisionssignificantlyexpandthelisthttps://www.e-gov.bg/upload/4387/Reshenie_Minsiterski_Savet_17_Fevruari_2015.pdf

Webportalforpublicconsultations-alldraftacts,ordinances,regulationsarepublishedhereforpublicconsultationhttp://www.strategy.bg/

Opendataportal:https://opendata.government.bg

Comment:

https://www.ncess.gov.in/facilities/central-public-information-officer/rti-act-details.html

http://www.right2info.org/laws/constitutional-provisions-laws-and-regulations#section-1



1.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentexpendituresforthebudgetyearthatareclassifiedbyadministrativeunit(thatis,byministry,department,oragency)?

GUIDELINES:

Question1addressesthepresentationofexpenditurebyadministrativeunit.Thisinformationindicateswhichgovernmententity(ministry,department,oragency,orMDAs)willberesponsibleforspendingthefundsand,ultimately,heldaccountablefortheiruse.

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpendituresforalladministrativeunits,accountingforallexpenditures,inthebudgetyear.Toanswer“b,”theadministrativeunitsshownindividually,intheExecutive’sBudgetProposaloritssupportingdocumentation,mustaccountforatleasttwo-thirdsofallexpendituresinthebudgetyear.Inotherwords,thesumoftheexpendituresassignedtotheindividualMDAs(education,health,infrastructure,interior,defense,etc.)mustaccountforatleasttwo-thirdsofthetotalexpenditurebudgetedforthatparticularyear.A“c”answerappliesiftheExecutive’sBudgetProposaloritssupportingdocumentationpresentsadministrativeunitsthataccountforlessthantwo-thirdsofexpenditures.Answer“d”appliesifexpendituresarenotpresentedbyadministrativeunit.

Answer:b.Yes,administrativeunitsaccountingforatleasttwo-thirdsof,butnotall,expendituresarepresented.

Source:DraftStateBudgetLawfor2019https://www.parliament.bg/bg/bills/ID/78264/

Comment:AroundLv3.1bnarenotexplicitlyclassifiedbyadministrativeunitoutofLv26bnstatebudget-thatis12%.Thisfundingisintheso-called"centralbudget".Accordingtothelawonpublicfinancethecentralbudgetincludeseverythingwhichisnotincludedintheotherbudgets.Forexample,interestexpendituresonthestatedebtareincludedthecentralbudget.Mostcapitalspendingisalsointhecentralbudget.Thecentralbudgetisnotanadministrativeunit,butbylaw,thecentralbudgetismanagedbytheministeroffinance,whichisanadministrativeunit.

Theamountanddistributionofthecentralbudgetisnotexplicitlystated,butcanbederived-itisthedifferencebetweenthetotalstatebudgetandthesumoftheexpendituresassignedtotheindividualadministrativeunits.



2.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentexpendituresforthebudgetyearbyfunctionalclassification?

GUIDELINES:

Question2addressesthepresentationofexpenditurebyfunctionalclassification.Thisclassificationindicatestheprogrammaticpurpose,sector,orobjectiveforwhichthefundswillbeused,suchashealth,education,ordefense.Administrativeunitsarenotnecessarilyalignedwithfunctionalclassifications.Forinstance,inonecountryallfunctionsconnectedwithwatersupply(whichfallintothe“Housing”function)maybeundertakenbyasinglegovernmentagency,whileinanothercountrytheymaybedistributedacrosstheMinistriesofEnvironment,Housing,andIndustrialDevelopment.Inthelattercase,threeministrieshaveprogramsaddressingwatersupply,sothreeministriescontributetoonefunction.Similarly,someadministrativeunitsmayconductactivitiesthatcutacrossmorethanonefunction.Forinstance,intheexampleabove,someprogramsoftheMinistryofEnvironmentwouldalsobeclassifiedinthe“environmentalprotection”function.

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpendituresforthebudgetyearorganizedbyfunctionalclassification.

Answer:a.Yes,expendituresarepresentedbyfunctionalclassification.

Source:UpdatedMediumTermBudgetForecastfor2019-2021,http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691,TableIII-1p63,pp63-140

Comment:Narrativediscussionpp.63-140



3.IftheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentsexpendituresforthebudgetyearbyfunctionalclassification,isthefunctionalclassificationcompatiblewithinternationalstandards?

GUIDELINES:

Question3askswhetheracountry’sfunctionalclassificationmeetsinternationalstandards.Toanswer“a,”acountry’sfunctionalclassificationmustbealignedwiththeOECDandtheUN’sClassificationoftheFunctionsofGovernment(COFOG),orprovideacross-walkbetweenthenationalfunctionalpresentationandCOFOG.

TheOECDBestPracticesforBudgetTransparencycanbeviewedathttp://www.oecd.org/gov/budgeting/Best%20Practices%20Budget%20Transparency%20-%20complete%20with%20cover%20page.pdf

COFOGcanbeviewedathttps://unstats.un.org/unsd/publication/SeriesM/SeriesM_84E.pdforathttp://www.imf.org/external/pubs/ft/gfs/manual/pdf/ch6ann.pdf.

Answer:a.Yes,thefunctionalclassificationiscompatiblewithinternationalstandards.

Source:UpdatedMediumTermBudgetForecastfor2019-2021,http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691,TableIII-1p63,pp63-140

Comment:TheBulgarianclassificationissimilarto,butnotexactlythesameas,theinternationalclassification(COFOG).Mostfirstlevelcategoriesarethesame,butseveralarecombinedintheBulgarianclassification,whileinCOFOGtheyareindependent(forexample,environmentandhousingarecombinedinonecategory).

However,thereisasignificantimprovementsincethepreviousOBS-inthe2019EBPthereisdetaileddatafortheexpendituresbyfunctionalclassification.Forexample,thereisdatanotonlyfor"environmentandhousing"categorycombined,butalsoseparatelyfor"environment"andfor"housing".Inthisway,theclasificationcouldbeacceptedascompatiblewithinternationalstandards.



4.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentexpendituresforthebudgetyearbyeconomicclassification?

http://www.oecd.org/gov/budgeting/Best%20Practices%20Budget%20Transparency%20-%20complete%20with%20cover%20page.pdf

https://unstats.un.org/unsd/publication/SeriesM/SeriesM_84E.pdf

http://www.imf.org/external/pubs/ft/gfs/manual/pdf/ch6ann.pdf

GUIDELINES:

Question4askswhethertheExecutive’sBudgetProposaloritssupportingdocumentationpresentsexpendituresforthebudgetyearorganizedbyeconomicclassification.Economicclassificationprovidesinformationonthenatureoftheexpenditure,suchaswhetherfundsarebeingusedtopayforwagesandsalaries,capitalprojects,orsocialassistancebenefits.

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpendituresforthebudgetyearorganizedbyeconomicclassification.

Answer:a.Yes,expendituresarepresentedbyeconomicclassification.

Source:UpdatedMediumTermBudgetForecastfor2019-2021,Appendix3,pp.208-209http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691

Comment:Expendituresbreakdownasfollows:I.Non-interestexpenditures1.Current1.1.Compensationofemployees-wages-other-socialinsurance1.2.Useofgoodsandservices1.3.Scholarships1.4.Subsidiesandcurrenttransfers-Subsidiesandcurrenttransfers-Subsidiesandcurrenttransfersforhospitals1.5.Socialbenefits-Pensions-Currenttransfers,benefitsandsocialassistance-Healthcarepayments2.Providedcurrentandcapitaltransfersabroad3.Statereservesnetincreaseandpurchaseofagriculturalproducts4.Capitalexpenditures5.Contingencyfunds5.1.Inbudgetorganizations-NationalHealthcareFund-NationalAssembly-Judiciary5.2.Emergency&disastersII.Interestexpenditure1.Externaldebt2.DomesticdebtIII.ContributiontotheEUbudget



5.IftheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentsexpendituresforthebudgetyearbyeconomicclassification,istheeconomicclassificationcompatiblewithinternationalstandards?

GUIDELINES:

Question5askswhetheracountry’seconomicclassificationmeetsinternationalstandards.Toanswer“a,”acountry’seconomicclassificationmustbeconsistentwiththeInternationalMonetaryFund’s(IMF)2001GovernmentFinanceStatistics(GFS).TheGFSeconomicclassificationispresentedhere:http://www.imf.org/external/pubs/ft/gfs/manual/pdf/app4.pdf.TolearnmoreaboutGovernmentFinanceStatisticsalsorefertotheentireIMF2001GFSmanual(http://www.imf.org/external/pubs/ft/gfs/manual/pdf/all.pdf).

Answer:

http://www.imf.org/external/pubs/ft/gfs/manual/pdf/app4.pdf

http://www.imf.org/external/pubs/ft/gfs/manual/pdf/all.pdf

b.No,theeconomicclassificationisnotcompatiblewithinternationalstandards,orexpendituresarenotpresentedbyeconomicclassification.

Source:UpdatedMediumTermBudgetForecastfor2019-2021,Appendix3,page209http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691

Comment:EBPusesthenationalpresentationoftheeconomicclassification.AccordingtotheIMFitis"notaccordingtoGFSstandards"-seepage57inthisMarch2019reporthttps://www.imf.org/~/media/Files/Publications/CR/2019/1BGREA2019001.ashx

Thegovernmentpublishesmonthly,quarterlyandannualdataonbudgetexecutionusingbothnationalpresentationandGFSpresentation.ButEBPusesonlynationalpresentation.



6.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentexpendituresforindividualprogramsforthebudgetyear?

GUIDELINES:

Question6askswhetherexpendituresarepresentedbyprogram.Thereisnostandarddefinitionfortheterm“program,”andthemeaningcanvaryfromcountrytocountry.However,forthepurposesofansweringthequestionnaire,researchersshouldtreattheterm“program”asmeaninganylevelofdetailbelowanadministrativeunit—thatis,anyprogrammaticgroupingthatisbelowtheministry,department,oragencylevel.Forexample,theMinistryofHealth’sbudgetcouldbebrokendownintoseveralsubgroups,suchas“primaryhealthcare,”“hospitals,”or“administration.”Thesesubgroupsshouldbeconsideredprogramseveniftheycouldbe,butarenot,brokendownintosmaller,moredetailedunits.

Anoteforfrancophonecountries:“Program”leveldetailissometimesreferredtoas leplancomptableorleplancomptabledetaille.(Thesedataaretypicallycodedinthefinancialmanagementdatabase,followingthechartofbudgetaryaccounts,sothattheycanbeorganizedbyadministrativeandfunctionalclassification.)

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpendituresforallindividualprograms,accountingforallexpenditures,inthebudgetyear.Toanswer“b,”theprogramsshownindividuallyintheExecutive’sBudgetProposaloritssupportingdocumentationmustaccountforatleasttwo-thirdsofallexpendituresinthebudgetyear.A“c”answerappliesiftheExecutive’sBudgetProposaloritssupportingdocumentationpresentsprogramsthataccountforlessthantwo-thirdsofexpenditures.Answer“d”appliesifexpendituresarenotpresentedbyprogram.

Budgetdecisionsfortheupcomingyearcanalsoaffecttheparametersoffuturebudgets.Itisthereforeusefultoestimaterevenuesandexpendituresformulti-yearperiods,understandingthattheseestimatesmightberevisedascircumstanceschange.SometimesreferredtoasaMediumTermExpenditureFramework(MTEF),athree-yearperiod—thatis,thebudgetyearplustwomoreyears—isgenerallyconsideredanappropriatehorizonforbudgetingandplanning.

Answer:b.Yes,programsaccountingforatleasttwo-thirdsof,butnotall,expendituresarepresented.

Source:EBPfor2019https://www.parliament.bg/bg/bills/ID/78264/

IntheUpdatedMidTermBudgetForecast2019-2021thereisextensivenarrativediscussiononexpendituresfordifferentpolicies(pp.63-140),whichisanextensivesummaryoftheindividualprogram-orientedbudgetsforeachadministrativeunit.Program-levelbudgetsforeachadministrativeunitareseparatefiles,whicharepartoftheEBPpackagesenttothelegislature(seezippedfolderinthelink).

Comment:26draftprogrambudgetswerepresentedaspartofthe2019EBP-allministriesandstateagencies,aswellastheparliamentandthecourtsystempresentedsuchprogrambudgets.Thesearethebiggestinstitutionsresponsibleforthebulkofthebudget(i.e.,muchmorethan2/3ofthebudget).However,morethan20smalleradministrativeunitsdidnotpresentdraftprogrambudgets-mostlyindependentinstitutionssuchastheOmbudsman,theFinancialSupervision,theElectionCommission,theCompetitionCommission,theCommunicationsRegulatoretc.

Thisissettochange-theEBPfor2020willincludeprogrambudgetsforalladministrativeunits.



7.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentexpenditureestimatesforamulti-yearperiod(atleasttwo-yearsbeyondthebudgetyear)byanyofthethreeexpenditureclassifications(byadministrative,economic,orfunctionalclassification)?

GUIDELINES:

Question7asksifmulti-yearexpenditureestimatesarepresentedbyanyoneofthethreeexpenditureclassifications—byadministrative,economic,andfunctionalclassifications—whichwereaddressedinQuestions1-5above.Eachoftheclassificationsanswersadifferentquestion:administrativeunitindicateswhospendsthemoney;functionalclassificationshowsforwhatpurposeisthemoneyspent;andeconomicclassificationdisplayswhatthemoneyisspenton.

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpenditureestimatesbyallthreeoftheexpenditureclassificationsforatleasttwoyearsbeyondthebudgetyear.Toanswer“b,”multi-yearexpenditureestimatesmustbepresentedbytwoofthesethreeclassifications.A“c”answerappliesifmulti-yearexpenditureestimatesarepresentedbyoneofthethreeclassifications.Answer“d”appliesifmulti-yearexpenditureestimatesarenotpresentedbyanyofthethreeclassifications.

Answer:a.Yes,multi-yearexpenditureestimatesarepresentedbyallthreeexpenditureclassifications(byadministrative,economic,andfunctionalclassification).

Source:UpdatedMediumTermBudgetForecastfor2019-2021,Appendix3,page209http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691(economicclassification),Appendix4,p.212(byadministrativeunit),pageTableIII-1p.63(byfunctions)

Comment:



7b.BasedontheresponsetoQuestion7,checkthebox(es)toidentifywhichexpenditureclassificationshaveestimatesforamulti-yearperiodintheExecutive'sBudgetProposal?

Answer:AdministrativeclassificationEconomicclassificationFunctionalclassification

Source:UpdatedMediumTermBudgetForecastfor2019-2021,Appendix3,page209http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691(economicclassification),Appendix4,p.212(byadministrativeunit),pageTableIII-1p.63(byfunctions)

Comment:



8.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentexpenditureestimatesforamulti-yearperiod(atleasttwo-yearsbeyondthebudgetyear)byprogram?

GUIDELINES:Question8asksifmulti-yearexpenditureestimatesarepresentedbyprogram.Thereisnostandarddefinitionfortheterm“program,”andthemeaningcanvaryfromcountrytocountry.However,forthepurposesofansweringthequestionnaire,researchersshouldunderstandtheterm“program”tomeananylevelofdetailbelowanadministrativeunit,suchasaministryordepartment.Forexample,theMinistryofHealth’sbudgetcouldbebrokendownintoseveralsubgroups,suchas“primaryhealthcare,”“hospitals,”or“administration.”Thesesubgroupsshouldbeconsideredprogramseveniftheycouldbe,butarenot,brokendownintosmaller,moredetailedunits.


Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpendituresforallindividualprograms,accountingforallexpenditures,foratleasttwoyearsbeyondthebudgetyear.Toanswer“b,”theprogramsshownindividuallyintheExecutive’sBudgetProposaloritssupportingdocumentationmustaccountforatleasttwo-thirdsofallexpendituresoverthemulti-yearperiod.A“c”answerappliesiftheExecutive’sBudgetProposaloritssupportingdocumentationpresentsmulti-yearestimatesforprogramsthataccountforlessthantwo-thirdsofexpenditures.Answer“d”appliesifmulti-yearestimatesarenotpresentedbyprogram.

Revenuesgenerallyareseparatedintotwomajorcategories:“tax”and“non-tax”revenues.Taxesarecompulsorytransfersthatresultfromgovernmentexercisingitssovereignpower.Thelargestsourcesoftaxrevenueinsomecountriesaretaxesonpersonalandbusinessincomeandtaxesongoodsandservices,suchassalesorvalue-addedtaxes.Thecategoryofnon-taxrevenuesismorediverse,rangingfromgrantsfrominternationalinstitutionsandforeigngovernmentstofundsraisedthroughthesaleofgovernment-providedgoodsandservices.Notethatsomeformsofrevenue,suchascontributionstosocialsecurityfunds,canbeconsideredeitherataxornon-taxrevenuedependingonthenatureoftheapproachtothesecontributions.Particularlybecausedifferentrevenueshavedifferentcharacteristics,includingwhobearstheburdenofpayingthetaxandhowcollectionsareaffectedbyeconomicconditions,itishelpfulwhenestimatesforrevenuesaredisaggregatedanddisplayedbasedontheirsources.

Formoreinformation,pleaserefertothe2001GFSmanual,inparticularAppendix4(http://www.imf.org/external/pubs/ft/gfs/manual/pdf/app4.pdf).

Answer:b.Yes,multi-yearestimatesforprogramsaccountingforatleasttwo-thirdsof,butnotall,expendituresarepresented.

Source:http://parliament.bg/bills/44/802-01-49.zip

Comment:Allprogram-budgetscontainexpenditureestimatefor2019-2021(zipfileinsource)



9.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresenttheindividualsourcesoftaxrevenue(suchasincometaxorVAT)forthebudgetyear?

GUIDELINES:Question9assessesthedegreetowhichtheindividualsourcesof“tax”revenuearedisaggregatedinthebudget.Thelargestsourcesoftaxrevenueinsomecountriesaretaxesonpersonalandbusinessincomeandtaxesongoodsandservices,suchassalesorvalue-addedtaxes.

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentallindividualsourcesoftaxrevenueforthebudgetyear,and“other”or“miscellaneous”revenuemustaccountforthreepercentorlessofalltaxrevenue.Toanswer“b,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentindividualsourcesoftaxrevenuethatwhencombinedaccountforatleasttwo-thirdsofalltaxrevenue,butnotallrevenue.A“c”answerappliesiftheExecutive’sBudgetProposaloritssupportingdocumentationpresentsindividualsourcesoftaxrevenuethataccountforlessthantwo-thirdsoftaxrevenues.Answer“d”appliesifindividualsourcesoftaxrevenuearenotpresented.

Answer:a.Yes,individualsourcesoftaxrevenueaccountingforalltaxrevenuearepresented.

http://www.imf.org/external/pubs/ft/gfs/manual/pdf/app4.pdf

Source:SeeAppendix3p.208oftheUpdatedMediumTermBudgetForecast2019-2021http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691SeeArt.1oftheDraftStateBudgetAct2019:http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94690

Comment:SeealsonarrativediscussiononrevenuesintheUpdatedMediumTermBudgetForecast2019-2021p57-62



10.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresenttheindividualsourcesofnon-taxrevenue(suchasgrants,propertyincome,andsalesofgovernment-producedgoodsandservices)forthebudgetyear?

GUIDELINES:Question10assessesthedegreetowhichtheindividualsourcesof“non-tax”revenuearedisaggregatedinthebudget.Thecategoryofnon-taxrevenuesisdiverse,andcanincluderevenuerangingfromgrantsfrominternationalinstitutionsandforeigngovernmentstofundsraisedthroughthesaleofgovernment-providedgoodsandservices.

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentallindividualsourcesofnon-taxrevenueforthebudgetyear,and“other”or“miscellaneous”revenuemustaccountforthreepercentorlessofallnon-taxrevenue.Toanswer“b,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentindividualsourcesofnon-taxrevenuethatwhencombinedaccountforatleasttwo-thirdsofallnon-taxrevenue,butnotallrevenue.A“c”answerappliesiftheExecutive’sBudgetProposaloritssupportingdocumentationpresentsindividualsourcesofnon-taxrevenuethataccountforlessthantwo-thirdsofnon-taxrevenues.Answer“d”appliesifindividualsourcesofnon-taxrevenuearenotpresented.

Answer:a.Yes,individualsourcesofnon-taxrevenueaccountingforallnon-taxrevenuearepresented.

Source:UpdatedMediumTermBudgetForecast2019-2021Appendix3p.208,http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691Dataonrevenuescollectedbyindividualadministrativeunitsintheirprogrambudgets:http://parliament.bg/bills/44/802-01-49.zip

Comment:Thebiggestnon-taxrevenuesarethegrantsfromtheEuropeanUnionfunds.Othernon-taxrevenuesarestatefees,courtfees,incomefromproperty,dividends,"interestandfines",concessions,andsales.Datafortheserevenuesisavailableinthedraftprogram-orientedbudgetsofministries



11.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentrevenueestimatesbycategory(suchastaxandnon-tax)foramulti-yearperiod(atleasttwo-yearsbeyondthebudgetyear)?

GUIDELINES:Question11evaluateswhetherrevenueestimatesarepresentedforamulti-yearperiod(atleasttwoyearsbeyondthebudgetyear)by“category;”thatis,whethertaxandnon-taxsourcesofrevenueareshownseparately.

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentmulti-yearestimatesofrevenuesclassifiedbycategoryforatleasttwoyearsfollowingthebudgetyearinquestion.

Answer:

a.Yes,multi-yearestimatesofrevenuearepresentedbycategory.

Source:UpdatedMediumTermBudgetForecast2019-2021Appendix3p.208,http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691

Comment:I.Taxrevenues1.Directtaxes1.1.Corporatetaxes-Non-financialenterprises-Financialenterprises1.2.Personalincometaxes2.Socialsecurityrevenues2.1.Pensionandothersocialcontributions2.2.Healthinsurancecontributions3.Indirecttaxes3.1.VAT3.2.Excises3.3.Taxesoninsurancepremiums3.4.Tariffs4.Taxesonsugarandglucose5.Othertaxes5.1.Propertytaxes5.2.TaxesaccordingtoCorporateIncomeTaxLaw5.3.OtherII.Non-taxrevenues1.NetrevenuesoftheBulgarianNationalBank2.Other-Fees-Property-Penaltiesandsanctions-Saleofnon-financialassets-Concessions-OtherIII.Grants1.Fromabroad2.Domestic



12.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentestimatesforindividualsourcesofrevenuepresentedforamulti-yearperiod(atleasttwo-yearsbeyondthebudgetyear)?

GUIDELINES:Question12evaluateswhetherrevenueestimatesforindividualsourcesofrevenuearepresentedforamulti-yearperiod(atleasttwoyearsbeyondthebudgetyear).Thequestionappliestobothtaxandnon-taxrevenue.

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentmulti-yearestimatesofallsourcesofrevenueindividually,accountingforallrevenue,and“other”or“miscellaneous”revenuemustaccountforthreepercentorlessofallrevenue.Toanswer“b,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentmulti-yearestimatesofindividualsourcesofrevenuethatwhencombinedaccountforatleasttwo-thirdsofallrevenue,butnotallrevenue.A“c”answerappliesiftheExecutive’sBudgetProposaloritssupportingdocumentationpresentsmulti-yearestimatesofindividualrevenuesourcesthataccountforlessthantwo-thirdsofrevenue.Answer“d”appliesifindividualsourcesofrevenuearenotpresentedforamulti-yearperiod.

Answer:b.Yes,multi-yearestimatesforindividualsourcesofrevenueaccountingforatleasttwo-thirdsof,butnotall,revenuearepresented.

Source:UpdatedMediumTermBudgetForecast2019-2021Appendix3p.208,http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691

Comment:Thetableshowsforecastsfor2019-2021forrevenues-includingtotalrevenues,taxrevenues(incl.direct,indirectandsocialsecuritytaxes-and

majorindividualtaxes,suchasincometax,corporatetax,VAT,exciseduties,etc.),non-taxrevenues(includingmajorsources-fees,rent,finesetc.),grants(incl.localandinternational).

ThereisasignificantimprovementfromthepreviousOBI-the"othertaxes"categoryisnowsplitinthreesubcategories,thus"othertaxes"becamenegligible.

"Othernon-taxrevenues"increasedsharplyin2019,drivenmostlybychangesintheenergylaw,asexplainedinthetext(page29,page61,page97,andappendix8onpage217).The"othernon-taxrevenues"for2019-2021accountfor3.1%oftotalrevenues,decliningtoaround3%attheendoftheperiod.



IBPCommentBecausethecategories"Другиприходи/Otherincomes"and"Другиданъци/Othertaxes"togetheraccountforslightlymorethan3%ofoverallrevenuesinboth2020and2021,theresponseisrevisedfrom"a"to"b."

13.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentthreeestimatesrelatedtogovernmentborrowinganddebt:theamountofnetnewborrowingrequiredduringthebudgetyear;thetotaldebtoutstandingattheendofthebudgetyear;andinterestpaymentsonthedebtforthebudgetyear?

GUIDELINES:Question13asksaboutthreekeyestimatesrelatedtoborrowinganddebtthatthebudgetshouldinclude:

·theamountofnetnewborrowingrequiredduringthebudgetyear;

·thecentralgovernment’stotaldebtburdenattheendofthebudgetyear;and

·theinterestpaymentsontheoutstandingdebtforthebudgetyear.

Debtistheaccumulatedamountofmoneythatthegovernmentborrows.Thegovernmentcanborrowfromitscitizensandbanksandbusinesseswithinthecountry(domesticdebt)orfromcreditorsoutsidethecountry(externaldebt).Externaldebtistypicallyowedtoprivatecommercialbanks,othergovernments,orinternationalfinancialinstitutionssuchastheWorldBankandtheIMF.

Netnewborrowingistheadditionalamountofnewborrowingthatisrequiredforthebudgetyeartofinanceexpendituresinthebudgetthatexceedavailablerevenues.Netnewborrowingaddstotheaccumulateddebt.Itisdistinctfromgrossborrowing,whichalsoincludesborrowingneededtorepayexistingdebtthatmaturedduringthebudgetyear;debtthatisreplaced(orrolledover)doesnotaddtothetotalofaccumulateddebt.

Interestpaymentsonthedebt(ordebtservicecosts)aretypicallymadeatregularintervals,andthesepaymentsmustbemadeonatimelybasisinordertoavoiddefaultingonthedebtobligation.Interestpaymentsareseparatefromtherepaymentofprincipal,whichoccursonlywhentheloanhasmaturedandmustbepaidbackinfull.

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentallthreeestimatesofborrowinganddebt.Fora“b”answer,theExecutive’sBudgetProposaloritssupportingdocumentationmustpresenttwoofthosethreeestimates.Fora“c”answer,theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentoneofthethreeestimates.Answer“d”appliesnoinformationonborrowinganddebtispresentedforthebudgetyear.

Answer:a.Yes,allthreeestimatesrelatedtogovernmentborrowinganddebtarepresented.

Source:UpdatedMediumTermBudgetForecast2019-2021Appendix3p.209-interestpaymentshttp://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691

DraftBudgetAct2019,art67and68-ceilingsforthedebtoutstandingatend-2019andnewdebtissuefor2019http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94690

Comment:AdditionalestimatesondebtlevelsandissueinthenarrativediscussiononthepublicdebtintheUpdatedMediumTermBudgetForecast2019-2021p.161-163

Page161-debtlevelatend2018(22.2bn)page162-debtlevelatend2019(22.2bn)

Thus,zeronetnewborrowingisplannedfor2019.



13b.BasedontheresponsetoQuestion13,checkthebox(es)belowtoidentifywhichestimatesofgovernmentborrowinganddebtarepresentedintheExecutive’sBudgetProposal:

Answer:TheamountofnetnewborrowingrequiredduringthebudgetyearThecentralgovernment’stotaldebtburdenattheendofthebudgetyearTheinterestpaymentsonoutstandingdebtforthebudgetyear

Source:UpdatedMediumTermBudgetForecast2019-2021Appendix3p.209-interestpaymentshttp://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691DraftBudgetAct2019,art67and68-ceilingsforthedebtoutstandingatend-2019andnewdebtissuefor2019http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94690

Comment:



14."DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationrelatedtothecompositionofthetotaldebtoutstandingattheendofthebudgetyear?

(Thecoreinformationmustincludeinterestratesonthedebtinstruments;maturityprofileofthedebt;andwhetheritisdomesticorexternaldebt.)"

GUIDELINES:

Question14focusesonthecompositionofgovernmentdebtattheendofthebudgetyear,askingwhether“core”informationrelatedtoitscompositionispresented.Thesecorecomponentsinclude:

interestratesonthedebt;maturityprofileofthedebt;andwhetherthedebtisdomesticorexternal.

Theinterestratesaffecttheamountofinterestthatmustbepaidtocreditors.Thematurityprofileindicatesthefinalpaymentdateoftheloan,atwhichpointtheprincipal(andallremaininginterest)isduetobepaid;governmentborrowingtypicallyincludesamixofshort-termandlong-termdebt.AsdiscussedinQuestion13,domesticdebtisheldbyacountry’scitizens,banks,andbusinesses,whileexternaldebtisheldbyforeigners.Thesefactorsrelatedtothecompositionofthedebtgiveanindicationofthepotentialvulnerabilityofthecountry’sdebtposition,andultimatelywhetherthecostofservicingtheaccumulateddebtisaffordable.

Beyondthesecoreelements,agovernmentmayalsoprovideadditionalinformationrelatedtothecompositionofitsdebt,includingforinstance:whetherinterestratesarefixedorvariable;whetherdebtiscallable;thecurrencyofthedebt;aprofileofthecreditors(bilateralinstitutions,multilateralinstitutions,commercialbanks,CentralBank,etc.);ananalysisoftheriskassociatedwiththedebt;andwhereappropriate,whatthedebtisbeingusedtofinance.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecoreinformationrelatedtothecompositionofgovernmentdebtattheendofthebudgetyearaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtothecompositionof

governmentdebtispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationispresentedonthecompositionofthedebtoutstandingattheendofthebudgetyear.

Answer:c.Yes,informationispresented,butitexcludessomecoreelements.

Source:UpdatedMediumTermBudgetForecast2019-2021,Part4p.161http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691

Comment:InterestpaymentsforBY(2019)andbeyondarepresentedinAnnex3onp208,alsobrokendownto"domestic"and"external"

Discussiononp162-163providesfurtherdetail.First,itisclearthattherewillbenonetborrowingin2019.Maturingdomestictreasurieswillberefinancedbyissuingnewtreasuriesonthedomesticmarket(seetopofp.163)-sonochangeinstructure"external/domestic",alsolocalcurrencydebttobereplacedbylocalcurrencydebt-sonochangeincurrencystructure.

Also,theamountofrefinancingisrelativelylow(lessthan4%ofdebtoutstandingin2018),soitwillnotchangeinanymeaningfulwaythecompositionofdebt-whichisshownonp.162startingwithexternal/domesticdebtoutstanding(firstparagraphontopofp162,whichbythewas,asexplainedpreviously,willnotchangeeventheslightest),thenmaturitystructure,thenbyinstruments,thenbyinterest(fixed/variable)andcurrency.

Itshouldalsobenoted,that99.4%ofthedebtisdenominatedinEURorBGN,andsincetheBGNispeggedtotheEURthroughacurrencyboardarrangement,thereisnoexchangeratevolatility.Also,96.1%ofthedebtiswithfixedinterestrate.Additionally,onp.163secondparagraphthereisadditionalinformationonfinancingthroughalreadynegotiatedinternationalagreements,suchaswiththeEuropeanInvestmentBankandtheCouncilofEuropeDevelopmentBank.

DetailedinformationisavailableintheDebtManagementStrategy2019-2021,thoughitisnotconsideredpartoftheEBP:http://www.minfin.bg/bg/1336http://pris.government.bg/prin/document_view.aspx?DocumentID=5pqVDsOJQbHDTUYy8NghKg==

PeerReviewerOpinion:DisagreeSuggestedAnswer:a.Yes,informationbeyondthecoreelementsispresentedforthecompositionofthetotaldebtoutstanding.Comments:GiventheResearcher'sanswerinQuestion14b,theReviewerbelievestheanswerhereshouldbe'a',astheEBPpresentsinformationbeyondthecoreelements,namelyfixedorvariableinterestrates;thecurrencyofthedebt;ananalysisoftheriskassociatedwiththedebt.OutstandingpublicdebtinterestratesarenotexplicitlyincludedintheEBP(itincludesinterestratepayments),however,theyarereadilyavailablethroughtheMinistryofFinance'smonthlybulletinCentralGovernmentDebtandDebtGuarantees.

GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Yes,informationbeyondthecoreelementsispresentedforthecompositionofthetotaldebtoutstanding.Comments:Informationbeyondthecoreelements(pleasespecify)-additionalinformationrelatedtothecompositionofinterestrates,thecurrencyofthedebt,adebtprofilebyinstruments,analysisofthemarketriskassociatedwiththedebtTheDebtManagementStrategyispartofthebudgetprocedureandthepoliciesareinlinewiththeotherdocumentsfromthebudgetprocedure.

IBPCommentThereviewers'commentsarewell-received.AstheDebtManagementStrategy2019-2021isnotconsideredaspartoftheEBP,itcannotbeevaluatedforQ14.Inaddition,pertheresearcher'scomment,asmostofthecoreelementsarenotexplicitlypresentedfortheperiod2019andbeyond,butrathermustbeinferred,theresponseisrevisedfrom"b"to"c."

14b.BasedontheresponsetoQuestion14,checkthebox(es)toidentifywhichelementsofthecompositionofthetotaldebtoutstandingarearepresentedintheExecutive’sBudgetProposal:

Answer:MaturityprofileofthedebtWhetherthedebtisdomesticorexternalInformationbeyondthecoreelements(pleasespecify)

Source:fixedorvariableinterestrates;thecurrencyofthedebt;ananalysisoftheriskassociatedwiththedebt;

Comment:Informationbeyondthecoreelements-fixedorvariableinterestrates;thecurrencyofthedebt;ananalysisoftheriskassociatedwiththedebt.

PeerReviewerOpinion:DisagreeSuggestedAnswer:InterestratesonthedebtMaturityprofileofthedebtWhetherthedebtisdomesticorexternalInformationbeyondthecoreelements(pleasespecify)Comments:GiventheResearcher'sanswertoQuestion14,theReviewerbelievesthatthe'Interestratesonthedebtbox'shouldalsobechecked,astheEBPprovidesinformationoninterestrates-96.1%ofthedebtiswithfixedinterestrate,andaprojectionofinterestrateexpenditureforthebudgetyearbytotal,domestic,andexternaloutstandingpublicdebt.AspreviouslymentionedinterestratesonoutstandingpublicdebtarereadilyavailablethroughtheMinistryofFinance'smonthlybulletinCentralGovernmentDebtandDebtGuarantees.


IBPCommentPleaseseetheIBPcommentforQ14.Thepeerreviewer'scommentiswell-received.Specificinterestrates(ratherthantheproportionofdebtwithfixed/variablerates)arenotpresentedintheEBP,andCentralGovernmentDebtandDebtGuaranteesbulletinsarenotconsideredaspartoftheEBP.Thecurrentresponseismaintained.

15."DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationonthemacroeconomicforecastuponwhichthebudgetprojectionsarebased?

(ThecoreinformationmustincludeadiscussionoftheeconomicoutlookwithestimatesofnominalGDPlevel,inflationrate,realGDPgrowth,andinterestrates.)"

GUIDELINES:Question15focusesonthemacroeconomicforecastthatunderliesthebudget’srevenueandexpenditureestimates,askingwhether“core”informationrelatedtotheeconomicassumptionsispresented.Thesecorecomponentsincludeadiscussionoftheeconomicoutlookaswellasestimatesofthefollowing:

nominalGDPlevel;inflationrate;realGDPgrowth;andinterestrates.

WhilethecoremacroeconomicinformationshouldbeastandardfeatureoftheExecutive’sBudgetProposal,theimportanceofsometypesofmacroeconomicassumptionsmayvaryfromcountrytocountry.Forexample,thebudgetestimatesofsomecountriesareparticularlyaffectedbychangesinthepriceofoilandothercommodities.

Beyondthesecoreelements,somegovernmentsalsoprovideadditionalinformationrelatedtotheeconomicoutlook,includingforinstance:shortandlong-terminterestrates;rateofemploymentandunemployment;GDPdeflator;priceofoilandothercommodities;currentaccount;exchangerate;andcompositionofGDPgrowth.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecoreinformationrelatedtothemacroeconomicforecastaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtothemacroeconomicforecastispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationonthemacroeconomicforecastispresented.

Answer:b.Yes,thecoreinformationispresentedforthemacroeconomicforecast.

Source:UpdatedMediumTermBudgetForecast2019-2021pp.13-24-comprehensiveeconomicanalysisandpresentationofmacroeconomicforecast;TheforecastincludesnominalGDP,realGDPgrowth,inflation,exports,employment,unemployment,currentaccount,FDI,creditgrowth,internationalenvironmente.g.worldandEuroareaGDPgrowth,oilprices,exchangerateetc.ThereisadiscussiononthepotentialgrowthandacomparisonbetweenthebudgetforecastandtheEuropeanCommission'sforecastforBulgaria.http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691

Comment:Theonlycorecomponentmissingistheinterestrate-butitshouldbenotedthatinBulgariaunderthecurrencyboardsystemthecentralbankdoesnotcontrolinterestrates;itonlycontrolstheexchangeratethatisfixedtotheEuro.ForsmallandveryopeneconomiessuchasBulgaria,theexchangerateismuchmoreimportantmacroeconomicindicatorthantheinterestrate.

PeerReviewerOpinion:DisagreeSuggestedAnswer:a.Yes,informationbeyondthecoreelementsispresentedforthemacroeconomicforecast.Comments:GiventheResearcher'sanswertoQuestion15b,theReviewerbelievestheanswerhereshouldbe'a',astheEBPincludesinformationbeyondthecoreelements(withtheexceptionofinterestrates,whichistheresultofthecurrencyboardarrangement).

GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Yes,informationbeyondthecoreelementsispresentedforthemacroeconomicforecast.Comments:WewouldliketohighlightthatkeyexternalassumptionsfortheMinistryofFinance(MoF)Macroeconomicforecastincludeassumptionsfortheinterestrate.TheycomefromIMFconsensusforecastfor6-monthLIBORonUSDdenominateddepositsand6-monthLIBORonEURdenominateddeposits.MoFalsoprovidesamid-termforecastforthelongterminterestrateforconvergencepurposes.DataispublishedwiththeassumptionsonkeymacroeconomicindicatorsinBulgariaConvergenceProgramme(https://www.minfin.bg/en/868)inChapter1Table1andTable8ofAnnexA.Inaddition,itisnotclearwhatbroughttheassessmentfrom“a”to“b”,asnochangesweremadetotheapproachoftheMoFMacroeconomicforecast

ResearcherResponseWeagreewiththepeerreviewerandthegovernmentreviewer.Theresponseshouldberevisedto"a".

IBPCommentDespitethecurrencyboardarrangement,interestratesremainacoreelementbeyondthequestionofthecentralbank'scontrolofthem,astheyarerelevantduetotheirimpactondebtrepayments.Tomaintainconsistencyacrosssurveycountries,theexistingresponseof"b"ismaintained.

15b.BasedontheresponsetoQuestion15,checkthebox(es)toidentifywhichelementsofthemacroeconomicforecastareincludedintheExecutive’sBudgetProposal:

Answer:NominalGDPlevelInflationrateRealGDPgrowthInformationbeyondthecoreelements(pleasespecify)

Source:UpdatedMediumTermBudgetForecast2019-2021pp.13-24http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691

Comment:TheforecastincludenominalGDP,realGDPgrowth,inflation,exports,employment,unemployment,currentaccount,FDI,creditgrowth,internationalenvironmente.g.worldandeuroareaGDPgrowth,oilprices,exchangerateetc.Theonlycorecomponentmissingistheinterestrate-butitshouldbenotedthatinBulgariaunderthecurrencyboardsystemthecentralbankdoesnothavecontroloverinterestrates;itonlycontrolstheexchangeratethatisfixedtotheEuro.Thus,interestrateisoflowerimportancecomparedtotheexchangerate,currentaccountandotherindicators.



16."DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationshowtheimpactofdifferentmacroeconomicassumptions(i.e.,sensitivityanalysis)onthebudget?

(Thecoreinformationmustincludeestimatesoftheimpactonexpenditures,revenue,anddebtofdifferentassumptionsfortheinflationrate,realGDPgrowth,andinterestrates.)"

GUIDELINES:

Question16focusesontheissueofwhethertheExecutive’sBudgetProposalshowshowdifferentmacroeconomicassumptionsaffectthebudgetestimates(knownasa“sensitivityanalysis”).Itaskswhether“core”informationrelatedtoasensitivityanalysisispresented,estimatingtheimpactonexpenditures,revenue,anddebtofdifferentassumptionsfor:

·inflationrate;

·realGDPgrowth;and

·interestrates.

Asensitivityanalysisshowstheeffectonthebudgetofpossiblechangesinsomemacroeconomicassumptions,andisimportantforunderstandingtheimpactoftheeconomyonthebudget;forinstance,whatwouldhappentorevenuecollectionsifGDPgrowthwereslowerthanwhatisassumedinthebudgetproposal?Orwhatwouldhappentoexpenditureifinflationwerehigherthanestimated?Orhowwillrevenuebeaffectedbyadecreaseinthepriceofoil?

AsnotedforQuestion15,changesincertainmacroeconomicassumptions,suchasthepriceofoilandothercommodities,canhaveasignificantimpactonthebudgetestimates.Asaresult,somesensitivityanalysesmayalsoexaminetheimpactonthebudgetestimatesofchangesinassumptionssuchasthepriceofoilthatarebeyondthecoreelementsoftheinflationrate,realGDPgrowth,andinterestrates.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecoreinformationrelatedtoa“sensitivityanalysis”aswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtoa“sensitivityanalysis”ispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationon“sensitivityanalysis”ispresented.

Answer:b.Yes,thecoreinformationispresentedtoshowtheimpactofdifferentmacroeconomicassumptionsonthebudget.

Source:UpdatedMediumTermBudgetForecast2019-2021"SensitivityAnalysis"p.170http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691

Comment:ThechapterdiscussesandalternativescenarioandanalternativeforecastwithdifferentlevelsofGDPgrowth,employment,inflationrate,consumptionandinvestment,employment,exportsandimports.

ItshouldbenotedthatinBulgariathelegislature(Parliament)approvesexpenditureceilings,i.e.theexecutivecannotspendmorethanwhathasbeenvotedintheEnactedBudget.Thesameholdstrueforthelevelofdebtattheendofyearandnewdebtissue-thegovernmentcannotissuemorethathasbeenapprovedintheEnactedBudget.Also,thebudgetbalanceisalsoexplicitlysetasceilingintheEnactedBudget,andthePublicFinanceLawstipulatesthatthegovernmentisrequiredtotakecompensatorymeasures(i.e.cutspending)ifduringtheyeartherearesignsthatthedeficitmightbehigherthanexpected.

Thatbeingsaid,itisimportanttotakeintoaccountthatinBulgariaexpenditurescannotexceedthosesetintheEnactedBudget(unlesstheParliamentapprovesanewBudgetActduringtheBY),also,thebudgetbalancecannotbeworsethansetintheEB,andthedebtcannotexceedtheceilingfortheBYsetintheEB.Inpractice,theexecutivecan(andinfact,does)manageexpenditurelevels-e.g.topostponespending-incaserevenuesfallshortofexpectationstomeetthe"budgetbalancetarget".Therefore,themacroeconomicassumptionsdonotdirectly"affect"expendituresanddebt-infact,thegovernmenthasanobligationtomanageandcontrolexpenditures,deficitanddebtissuanceandbalancenomatterwhatchangesintheexternalenvironmentoccurduringtheyear.

Inthiscontext,onp.170(lastparabeforenewchapteronsensitivity),thedocumentstatesthattheforecastisconservativewithsignificantbufferswhichwillabsorbanyshocksthatmightarisefromunexpectedrisks.TheparagraphbeforethatdiscussesthehowapotentialslowingdownofEUgrowthandworldtrademightimpactBulgariantrade,andthereforerevenuesfromimports.Afterthat,thedocumentstatesthatinsuchcasethegovernmentwillhavetocutcapitalexpenditures,orelsethebudgetbalancemightbehigherthaninEB.

ThededicatedchapteronSensitivityAnalysisstartingonp.170includesmeasuringtheimpactsofanalternativescenario.Theassumptionisthesuchascenariowillaffecttheoverallperformanceoftheeconomy.Theanalysisinthechaptershowhowkeymacroeconomicindicators-e.g.GDP,employment,etc.-willdifferfromthedefaultforecastandconsequentlythebudgetparameters.Theoutcome-asdescribedonp.173ishigherrevenuesfromindirecttaxesandlowerrevenuesfromdirecttaxes.Asexplainedabove,sincethegovernmentcontrolsandmanagesexpenditures,theanalysisassumesthatexpenditurelevelswillbekeptasapprovedbyparliamentinEB,sotheoverallimpactofthescenariowillbeanimprovedbudgetbalance,hencenoincreaseindebtoutstanding.

AnothersensitivityanalysisisincludedintheConvergenceProgram2018-2021(p.50)http://www.minfin.bg/upload/37082/Convergence%20Programme%20of%20Bulgaria%202018-2021.pdf-thisisanofficialdocumentapprovedeachyearaspartoftheobligationsoftheBulgariangovernmenttowardsadoptingtheEuro.



17.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationforatleastthebudgetyearthatshowshownewpolicyproposals,asdistinctfromexistingpolicies,affectexpenditures?

GUIDELINES:Questions17and18askaboutnewpolicyproposalsinthebudget.Inanygivenyear,mostoftheexpendituresandrevenuesinthebudgetreflectthecontinuationofexistingpolicies.However,muchoftheattentionduringthebudgetdebateisfocusedonnewproposals—whethertheycallforeliminatinganexistingprogram,introducinganewone,orchanginganexistingprogramatthemargins.Typically,thesenewproposalsareaccompaniedbyanincrease,adecrease,orashiftinexpendituresorrevenues.Becausethesechangesmayhavedifferentimpactsonpeople’slives,thebudgetproposalshouldpresentsufficientdetailaboutnewpoliciesandtheirbudgetaryimpact.

Question17asksaboutnewexpenditurepolicies,andQuestion18asksaboutnewrevenuepolicies.Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentbothestimatesofhowallnewpolicyproposalsaffectexpenditures(forQuestion17)orrevenues(forQuestion18)andanarrativediscussionoftheimpactofthesenewpolicies.Toanswer“b”foreitherquestion,theExecutive’sBudgetProposalorsupportingdocumentationmustpresentestimatesthatshowtheimpactofallnewpolicyproposals,butnonarrativediscussionisincluded.A“c”responseappliesifthepresentationincludesonlyanarrativediscussion,orifitincludesestimatesthatshowtheimpactofonlysome,butnotall,policyproposals(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“d”appliesifnoinformationispresentedontheimpactofnewpolicyproposals.

Answer:a.Yes,estimatesthatshowhowallnewpolicyproposalsaffectexpendituresarepresented,alongwithanarrativediscussion.

Source:UpdatedMediumTermBudgetForecast2019-2021,"ExpenditurePolicies"pp62-139,"DiscretionaryMeasures"p.39http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691

Comment:Extensivenarrativediscussiononnewpoliciesandimpactonspending.Thesectionon"ExpenditurePolicies(p62-139)includesspecificmentionsofnewpolicies(whenthereareany)andtheadditionalfundingtheyrequire-seee.g.onp.79discussionon20percentincreaseinteachers'salariesestimatedtoaddBG330million(topofpage),alsoonp80(thirdparafrombottom)-estimateofnewmeasurestopreventearlyschoolleavingatBGN90million.

Thereisadedicatedsectionon"Discretionarymeasures"startingonp.39.TableII-10onp.42presentsalistofdiscretionaryspendingmeasuresfor2019-2021-includingwageincreaseofpublicservants,teachers'wagesincrease,pensionceilingincrease,newmilitaryequipmentinvestment,newsocialbenefits(includingnewrulesfordisabilitybenefits),introductionofnewroadtollssystem.



18.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationforatleastthebudgetyearthatshowshownewpolicyproposals,asdistinctfromexistingpolicies,affectrevenues?

GUIDELINES:Questions17and18askaboutnewpolicyproposalsinthebudget.Inanygivenyear,mostoftheexpendituresandrevenuesinthebudgetreflectthecontinuationofexistingpolicies.However,muchoftheattentionduringthebudgetdebateisfocusedonnewproposals—whethertheycallforeliminatinganexistingprogram,introducinganewone,orchanginganexistingprogramatthemargins.Typically,thesenewproposalsareaccompaniedbyanincrease,adecrease,orashiftinexpendituresorrevenues.Becausethesechangesmayhavedifferentimpactsonpeople’slives,thebudgetproposalshouldpresentsufficientdetailaboutnewpoliciesandtheirbudgetaryimpact.

Question17asksaboutnewexpenditurepolicies,andQuestion18asksaboutnewrevenuepolicies.Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentbothestimatesofhowallnewpolicyproposalsaffectexpenditures(forQuestion17)orrevenues(forQuestion18)andanarrativediscussionoftheimpactofthesenewpolicies.Toanswer“b”foreitherquestion,theExecutive’sBudgetProposalorsupportingdocumentationmustpresentestimatesthatshowtheimpactofallnewpolicyproposals,butnonarrativediscussionisincluded.A“c”responseappliesifthepresentationincludesonlyanarrativediscussion,orifitincludesestimatesthatshowtheimpactofonlysome,butnotall,policyproposals(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“d”appliesifnoinformationispresentedontheimpactofnewpolicyproposals.

Prior-yearinformationconstitutesanimportantbenchmarkforassessingtheproposalsfortheupcomingbudgetyear.Estimatesofprioryearsshouldbepresentedinthesameformats(intermsofclassification)asthebudgetyeartoensurethatyear-to-yearcomparisonsaremeaningful.Forexample,ifthebudgetproposesshiftingresponsibilityforaparticularprogramfromoneadministrativeunittoanother—suchasshiftingresponsibilityforthetrainingof

nursesfromthehealthdepartmenttotheeducationdepartment—theprior-yearfiguresmustbeadjustedbeforeyear-to-yearcomparisonsofadministrativebudgetscanbemade.

Typically,whenthebudgetproposalissubmitted,theyearpriortothebudgetyear(BY-1),alsoknownasthecurrentyear,hasnotended,sotheexecutivewillprovideestimatesoftheanticipatedoutcomeforBY-1.Thesoundnessoftheseestimatesisdirectlyrelatedtothedegreetowhichtheyhavebeenupdatedtoreflectactualexpenditurestodate,legislativechangesthathaveoccurred,andanticipatedchangesinmacroeconomic,caseload,andotherrelevantfactorsfortheremainderoftheyear.

Thefirstyearthatcanreflectactualoutcomes,therefore,isgenerallytwoyearsbeforethebudgetyear(BY-2).ThustheOECDrecommendsthatdatacoveringatleasttwoyearsbeforethebudgetyear(alongwithtwoyearsofprojectionsbeyondthebudgetyear)areprovidedinordertoassessfullythetrendsinthebudget.

Answer:a.Yes,estimatesthatshowhowallnewpolicyproposalsaffectrevenuesarepresented,alongwithanarrativediscussion.

Source:UpdatedMediumTermBudgetForecast2019-2021,"RevenuePolicies"pp48-62,"DiscretionaryMeasures"p.39http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691

Comment:Extensivenarrativediscussiononchangesintaxpolicies.



19.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentexpendituresfortheyearprecedingthebudgetyear(BY-1)byanyofthethreeexpenditureclassifications(byadministrative,economic,orfunctionalclassification)?

GUIDELINES:Question19asksifexpenditureestimatesfortheyearpriortothebudgetyear(BY-1)arepresentedbyoneofthethreeexpenditureclassifications—byadministrative,economic,andfunctionalclassifications.Eachoftheclassificationsanswersadifferentquestion:administrativeunitindicateswhospendsthemoney;functionalclassificationshowsforwhatpurposeisthemoneyspent;andeconomicclassificationdisplayswhatthemoneyisspenton.(SeeQuestions1-5above.)

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpenditureestimatesforBY-1byallthreeoftheexpenditureclassifications.Toanswer“b,”expenditureestimatesforBY-1mustbepresentedbytwoofthesethreeclassifications.A“c”answerappliesifexpenditureestimatesforBY-1arepresentedbyoneofthethreeclassifications.Answer“d”appliesifexpenditureestimatesforBY-1arenotpresentedbyanyofthethreeclassifications.

Answer:a.Yes,expenditureestimatesforBY-1arepresentedbyallthreeexpenditureclassifications(byadministrative,economic,andfunctionalclassification).

Source:UpdatedMediumTermBudgetForecast2019-2021,Expendituresbyfunctionp63,expendituresbyeconomicclassificationp.209ExpendituresbyadministrativeunitarenotpresentedinAppendix4oftheUpdatedMediumTermBudgetForecast2019-2021,butisavailableinprogrambudgetsofthefirst-levelspendingunits.http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691

Comment:AllthreeexpenditureclassificationsareavailableforBY-1



20.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentexpendituresforindividualprogramsfortheyearprecedingthebudgetyear(BY-1)?

GUIDELINES:Question20asksifexpenditureestimatesfortheyearbeforethebudgetyear(BY-1)arepresentedbyprogram.Thereisnostandarddefinitionfortheterm“program,”andthemeaningcanvaryfromcountrytocountry.However,forthepurposesofansweringthequestionnaire,researchersshouldunderstandtheterm“program”tomeananylevelofdetailbelowanadministrativeunit,suchasaministryordepartment.Forexample,theMinistryofHealth’sbudgetcouldbebrokendownintoseveralsubgroups,suchas“primaryhealthcare,”“hospitals,”or“administration.”Thesesubgroupsshouldbeconsideredprogramseveniftheycouldbe,butarenot,brokendownintosmaller,moredetailedunits.


Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpendituresforallindividualprograms,accountingforallexpenditures,forBY-1.Toanswer“b,”theprogramsshownindividuallyintheExecutive’sBudgetProposaloritssupportingdocumentationmustaccountforatleasttwo-thirdsofallexpendituresforBY-1.A“c”answerappliesiftheExecutive’sBudgetProposaloritssupportingdocumentationpresentsprogramsthataccountforonlylessthantwo-thirdsofexpenditures.Answer“d”appliesifexpendituresarenotpresentedbyprogram.

Answer:b.Yes,programsaccountingforatleasttwo-thirdsof,butnotall,expendituresarepresentedforBY-1.

Source:Draftprogrambudgetsforindividualadministrativeunitsfor2019-2021http://parliament.bg/bills/44/802-01-49.zip

Comment:Draftbudgetspresentexpendituresbyprogramasimplementedfor2016and2017,andfor2018(BY-1)-asenactedbytheBudgetAct2018.



21.IntheExecutive’sBudgetProposaloranysupportingbudgetdocumentation,haveexpenditureestimatesoftheyearpriortothebudgetyear(BY-1)beenupdatedfromtheoriginalenactedlevelstoreflectactualexpenditures?

GUIDELINES:Question21askswhethertheexpenditureestimatesfortheyearbeforethebudgetyear(BY-1)havebeenupdatedfromtheoriginalenactedlevels.Updatescanreflectactualexperiencetodate;revisedestimatesduetoshiftingoffundsbytheexecutive,aspermittedunderthelaw;enactmentofsupplementalbudgets;andrevisedassumptionsregardingmacroeconomicconditions,caseload,andotherrelevantfactorsfortheremainderoftheyear.

Answer"a"appliesiftheestimateshavebeenupdated;answer“b”appliesiftheoriginalestimatesarestillbeingused.

Answer:a.Yes,expenditureestimatesforBY-1havebeenupdatedfromtheoriginalenactedlevels.

Source:UpdatedMediumTermBudgetForecast2019-2021,tableonp.209http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691

Comment:Seecolumn"ExpectedExecution"for2018inthetable



22.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentestimatesofexpenditureformorethanoneyearpriortothebudgetyear(thatis,BY-2andprioryears)byanyofthethreeexpenditureclassifications(byadministrative,economic,orfunctionalclassification)?

GUIDELINES:Question22asksifexpenditureestimatesformorethanoneyearpriortothebudgetyear(BY-2andprioryears)arepresentedbyanyofthethreeexpenditureclassifications—byadministrative,economic,andfunctionalclassifications.Eachoftheclassificationsanswersadifferentquestion:administrativeunitindicateswhospendsthemoney;functionalclassificationshowsforwhatpurposeisthemoneyspent;andeconomicclassificationdisplayswhatthemoneyisspenton.(SeeQuestions1-5above.)

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpenditureestimatesforBY-2andprioryearsbyallthreeoftheexpenditureclassifications.Toanswer“b,”expenditureestimatesforBY-2andprioryearsmustbepresentedbytwoofthesethreeclassifications.A“c”answerappliesifexpenditureestimatesforBY-2andprioryearsarepresentedbyoneofthethreeclassifications.Answer“d”appliesifexpenditureestimatesforBY-2andprioryearsarenotpresentedbyanyofthethreeclassifications

Answer:b.Yes,expenditureestimatesforBY-2andprioryearsarepresentedbytwoofthethreeexpenditureclassifications.

Source:UpdatedMediumTermBudgetForecast2019-2021,byeconomicclassificationtableonp.209http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691

Byadministrativeunit:individualdraftprogrambudgetsofministriesfor2019-2021:http://parliament.bg/bills/44/802-01-49.zip

Comment:Draftbudgetspresentexpendituresbyprogramasimplementedfor2016and2017(BY-3andBY-2),andfor2018(BY-1)-asenactedbytheBudgetAct2018



22b.BasedontheresponsetoQuestion22,checkthebox(es)toidentifywhichexpenditureclassificationshaveestimatesformorethanoneyearpriortothebudgetyearintheExecutiveBudgetProposal:

Answer:AdministrativeclassificationEconomicclassification

Source:UpdatedMediumTermBudgetForecast2019-2021,byeconomicclassificationtableonp.209http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691Byadministrativeunit:individualdraftprogrambudgetsofministriesfor2019-2021:http://parliament.bg/bills/44/802-01-49.zip

Comment:



23.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentexpendituresforindividualprogramsformorethanoneyearprecedingthebudgetyear(thatis,BY-2andprioryears)?

GUIDELINES:Question23asksifexpenditureestimatesformorethanoneyearbeforethebudgetyear(BY-2andprioryears)arepresentedbyprogram.Thereisnostandarddefinitionfortheterm“program,”andthemeaningcanvaryfromcountrytocountry.However,forthepurposesofansweringthequestionnaire,researchersshouldunderstandtheterm“program”tomeananylevelofdetailbelowanadministrativeunit,suchasaministryordepartment.Forexample,theMinistryofHealth’sbudgetcouldbebrokendownintoseveralsubgroups,suchas“primaryhealthcare,”“hospitals,”or“administration.”Thesesubgroupsshouldbeconsideredprogramseveniftheycouldbe,butarenot,brokendownintosmaller,moredetailedunits.


Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpendituresforallindividualprograms,accountingforallexpenditures,forBY-2andprioryears.Toanswer“b,”theprogramsshownindividuallyintheExecutive’sBudgetProposaloritssupportingdocumentationmustaccountforatleasttwo-thirdsofallexpendituresforBY-2andprioryears.A“c”answerappliesiftheExecutive’sBudgetProposaloritssupportingdocumentationpresentsprogramsthataccountforonlylessthantwo-thirdsofexpenditures.Answer“d”appliesifexpendituresarenotpresentedbyprogram.

Answer:b.Yes,programsaccountingforatleasttwo-thirdsof,butnotall,expendituresarepresentedforBY-2andprioryears.

Source:Individualdraftprogrambudgetsofministriesfor2019-2021:http://parliament.bg/bills/44/802-01-49.zip

Comment:Draftbudgetsinpresentexpendituresbyadministrativeunitbyindividualprogramasimplementedfor2016and2017,andfor2018(BY-1)-asenactedbytheBudgetAct2018.



24.IntheExecutive’sBudgetProposaloranysupportingbudgetdocumentation,whatisthemostrecentyearpresentedforwhichallexpendituresreflectactualoutcomes?

GUIDELINES:Question24asksforwhichyeartheactualoutcomesforexpendituresareshown.Inmostcases,themostrecentyearforwhichbudgetdataonactualoutcomesareavailablewillbeBY-2,asBY-1isgenerallynotyetfinishedwhenthebudgetproposalisdrafted.SoagovernmentthathasupdatedallitsexpendituredataforBY-2toreflectwhatactuallyoccurred,asopposedtoestimatingtheoutcomeforthatyear,showsgoodpublicfinancialmanagementpractice.

Foran“a”answer,acountrymustmeetthegoodpracticeofhavingthefiguresforBY-2reflectactualoutcomes.

Answer:a.Twoyearspriortothebudgetyear(BY-2).


Comment:Actualoutcomefor2016and2017(BY-3andBY-2)



25.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentrevenuebycategory(suchastaxandnon-tax)fortheyearprecedingthebudgetyear(BY-1)?

GUIDELINES:Questions25through30coverthesametopicsaboutprior-yearinformationastheprevioussixquestions,onlytheyaskaboutinformationprovidedforrevenuesratherthanexpenditures.

Answer:a.Yes,revenueestimatesforBY-1arepresentedbycategory.


Comment:Estimatesfor2018,actualfor2016and2017



26.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentindividualsourcesofrevenuefortheyearprecedingthebudgetyear(BY-1)?


Answer:a.Yes,individualsourcesofrevenueaccountingforallrevenuearepresentedforBY-1.


Comment:ThedataforBY-1isstructuredinthesamewayandinthesametableasdataforBYandbeyond.Theamountofrevenuesclassifiedas"other"forBY-1(2018)islessthan3%(about1.8%)oftotalrevenues.



ResearcherResponseThereisasignificantimprovementfromthepreviousroundofthesurvey-the"othertaxes"categoryisnowsplitinthreesubcategorieswithindividualsourcesofrevenues.

27.IntheExecutive’sBudgetProposaloranysupportingbudgetdocumentation,havetheoriginalestimatesofrevenuefortheyearpriortothebudgetyear(BY-1)beenupdatedtoreflectactualrevenuecollections?


Answer:a.Yes,revenueestimatesforBY-1havebeenupdatedfromtheoriginalenactedlevels.

Source:UpdatedMediumTermBudgetForecast2019-2021,"Appendix3"-byrevenue,tableonp.208-datafor"expectedexecution2018"http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691

Comment:Also,seeinAppendix1-estimateforbudgetexecution2018,narrativediscussionplusactualoutcometill30.09.2018(thirdquarterofBY-1).pp.189-199



28.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentrevenueestimatesbycategory(suchastaxandnon-tax)formorethanoneyearpriortothebudgetyear(thatis,BY-2andprioryears)?


Answer:a.Yes,revenueestimatesforBY-2andprioryearsarepresentedbycategory.

Source:UpdatedMediumTermBudgetForecast2019-2021,byrevenuesourcetableonp.208http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691

Comment:Dataforactualrevenues2016and2017(BY-3,BY-2),insamecategoriesasbreak-downfor2019-2021



29.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentindividualsourcesofrevenueformorethanoneyearpriortothe

budgetyear(thatis,BY-2andprioryears)?


Answer:a.Yes,individualsourcesofrevenueaccountingforallrevenuearepresentedforBY-2andprioryears.


Comment:Actualsbyindividualsourceofrevenuefor2016and2017,category"otherrevenue"lowerthan1%totalrevenues,thereforeanswera/



ResearcherResponseThereisasignificantimprovementfromthepreviousroundofthesurvey-the"othertaxes"categoryisnowsplitinthreesubcategorieswithindividualsourcesofrevenues.

30.IntheExecutive’sBudgetProposaloranysupportingbudgetdocumentation,whatisthemostrecentyearpresentedforwhichallrevenuesreflectactualoutcomes?




Comment:Actualoutcomedatafor2016and2017



31."DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationongovernmentborrowinganddebt,includingitscomposition,fortheyearprecedingthebudgetyear(BY-1)?

(ThecoreinformationmustincludethetotaldebtoutstandingattheendofBY-1;theamountofnetnewborrowingrequiredduringBY-1;interestpaymentsonthedebt;interestratesonthedebtinstruments;maturityprofileofthedebt;andwhetheritisdomesticorexternaldebt.)"

GUIDELINES:

Question31focusesonprior-yeardebtinformation,ratherthanonprior-yearexpendituresorrevenues,askingwhether“core”informationisprovidedongovernmentborrowinganddebt,includingitscomposition,fortheyearprecedingthebudgetyear(BY-1).

The“core”informationincludes:

totaldebtoutstandingattheendofBY-1;amountofnetnewborrowingrequiredduringBY-1;interestpaymentsonthedebt;interestratesonthedebtinstruments;maturityprofileofthedebt;andwhetheritisdomesticorexternaldebt.

ThiscoreinformationforBY-1isconsistentwiththebudgetyearinformationforborrowinganddebt,whichisexaminedinQuestions13and14.

Inaddition,somegovernmentsprovideinformationbeyondthecoreelements,suchasgrossnewborrowingrequiredduringBY-1;currencyofthedebt;whetherthedebtcarriesafixedorvariableinterestrate;whetheritiscallable;aprofileofthecreditors(bilateralinstitutions,multilateralinstitutions,commercialbanks,CentralBank,etc.);whereappropriate,whatthedebtisbeingusedtofinance.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecoreinformationrelatedtogovernmentborrowinganddebt,includingitscomposition,forBY-1aswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtogovernmentborrowinganddebt,includingitscomposition,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationispresentedongovernmentborrowinganddebtforBY-1.

Answer:b.Yes,thecoreinformationispresentedforgovernmentdebt.

Source:UpdatedMediumTermBudgetForecast2019-2021,Part4p.161(UMTBF)http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691

DebtManagementStrategy2019-2021(DMS)http://pris.government.bg/prin/document_view.aspx?DocumentID=5pqVDsOJQbHDTUYy8NghKg==

Comment:Apartfromthat:

TotaldebtoutstandingattheendofBY-1-page161ofUMTBF,BGN23.5billionAmountofnetnewborrowingrequiredduringBY-1-negativenetnewborrowingasbudgetwithsurplus,debtoutstandingkepttofallin2018nonewissuancein2018Interestpaymentsonthedebt-page193,paragraphbeforechart,alsoinAnnex3onp.208

maturityprofileofthedebt-page162secondpara;whetheritisdomesticorexternaldebt-page162firstparacurrencyofthedebt-page162fourthparagraphwhetherthedebtcarriesafixedorvariableinterestrate-page162fourthparagraphgrossnewborrowingrequiredduringBY-1-nonewissuanceofgovernmentsecurities,amountsoffinancingthroughaleardyagreedloans-fifthparagraph;debtstructurebyinstruments-p.161thirdparagraph;

Thedocumentsnote,thatthestatedebtisdecliningasthebudgetisrunningasurpluswhilefiscalreservesarehigh.Therefore,thereisnoneedformajornewissuesofdebtandtherewasn'tnewissuesofdebtinBY-1.

PeerReviewerOpinion:DisagreeSuggestedAnswer:a.Yes,informationbeyondthecoreelementsispresentedforgovernmentdebt.Comments:Theinformationongovernmentborrowinganddebt,includingitscomposition,fortheyearprecedingthebudgetyear(BY-1)closelyresemblestheinformationregardingthebudgetyear(Question14).WithregardtotheReviewer'scommentsonQuestion14andtheResearcher'scommentonquestion31,theReviewersbelievestheanswertothecurrentquestionshouldbe'a',asEBPprovidesinformationbeyondthecoreelements.


IBPCommentThepeerreviewer'scommentiswell-received.SpecificinterestratesarenotpresentedintheEBP,andtheDebtManagementStrategy2019-2021isnotconsideredaspartoftheEBP.Thecurrentresponseismaintained.

32.IntheExecutive’sBudgetProposaloranysupportingbudgetdocumentation,whatisthemostrecentyearpresentedforwhichthedebtfiguresreflectactualoutcomes?

GUIDELINES:Question32asksforwhichyeartheactualoutcomefordebtisshown.Inmostcases,themostrecentyearforwhichbudgetdataonactualoutcomesareavailablewillbeBY-2,asBY-1isgenerallynotyetfinishedwhenthebudgetproposalisdrafted.SoagovernmentthathasupdateditsdebtdataforBY-2toreflectwhatactuallyoccurred,asopposedtoestimatingtheoutcomeforthatyear,showsgoodpublicfinancialmanagementpractice.

Foran“a”answer,acountrymustmeetthegoodpracticeofhavingthefiguresforBY-2reflectactualoutcomes.

Itisessentialthatallgovernmentactivitiesthatmayhaveanimpactonthebudget—inthecurrentbudgetyearorinfuturebudgetyears—befullydisclosedtothelegislatureandthepublicinbudgetdocuments.Insomecountries,forinstance,entitiesoutsidecentralgovernment(suchaspubliccorporations)undertakefiscalactivitiesthatcouldaffectcurrentandfuturebudgets.Similarly,activitiesthatcanhaveasignificantimpactonthebudget,suchaspaymentarrearsandcontingentliabilities,sometimesarenotproperlycapturedbytheregularpresentationsofexpenditure,revenue,anddebt.


Source:UpdatedMediumTermBudgetForecastfor2019-2021:DataforBY-2(2017)onpage161-162

Comment:Seecommentwithdetailsonq.31-thereiscomparisonbetweenendof2017andH12018.Also,asexplained,nonewGSweissuedinthefirstsixmonthsof2018,infactthedebtslightlydecreasedassomeGSmatured.However,thechangesinthefirstsixmonthsof2018areminimal.

Inaddition,UpdatedMediumTermBudgetForecastfor2019-2021presentssummarydataasof30June2018.Dataincluded-totaldebt,foreigndebt,domesticdebt,maturitystructure,shareoffixedinterestrates,shareofEuroandBulgarianlevdebt.

Also,up-to-datedetailedandcomprehensiveinformationonthegovernmentdebtispublishedintheMonthlyBulletinsonstatedebtat:http://www.minfin.bg/bg/statistics/20(seeIYR-4)



33."DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationonextra-budgetaryfundsforatleastthebudgetyear?

(Thecoreinformationmustincludeastatementofpurposeorpolicyrationalefortheextra-budgetaryfund;andcompleteincome,expenditure,andfinancingdataonagrossbasis.)"

GUIDELINES:

Question33focusesonextra-budgetaryfunds,askingwhether“core”informationrelatedtothesefunds,whichexistoutsidethebudget,arepresented.Thesecorecomponentsinclude:

astatementofpurposeorpolicyrationalefortheextra-budgetaryfund(i.e.,whywasaparticularfundsetup?whatisitusedfor?);andestimatesofitsincome,expenditure,andfinancing.(Theseestimatesshouldbepresentedonagrossbasissothatitispossibletotellhowmuchmoneyflowsthrougheachextra-budgetaryfund.)

Inmostcountries,governmentsengageincertainbudgetaryactivitiesthatarenotincludedinthecentralgovernment’sbudget.Knownasextra-budgetaryfunds,theycanrangeinsizeandscope.Forexample,countriesfrequentlysetuppensionandsocialsecurityprogramsasextra-budgetaryfunds,wheretherevenuescollectedandthebenefitspaidarerecordedinaseparatefundoutsidethebudget.Anotherexampleofanextra-budgetaryfundcanbefoundincountriesdependentonhydrocarbon/mineralresources,whererevenuesfromproducingandsellingthoseresourcesarechanneledthroughsystemsoutsidetheannualbudget.

Insomecases,theseparationengenderedbyanextra-budgetaryfundservesalegitimatepoliticalpurpose,andthefinancesandactivitiesofthesefundsare

welldocumented.Inothercases,however,thisstructureisusedforobfuscation,andlittleornothingisknownaboutafund’sfinancesandactivities.

Theavailabilityofinformationrelatedtoextra-budgetaryfundsisessentialforacomprehensiveunderstandingofthegovernment’struefiscalposition.Inadditiontothecoreinformation,otherinformationaboutextra-budgetaryfundsisalsodesirable.Suchinformationincludesadiscussionoftherisksassociatedwiththeextra-budgetaryfund;expendituresclassifiedbyeconomic,functional,oradministrativeunit;andtherulesandproceduresthatgoverntheoperationsandmanagementoftheextra-budgetaryfund.

Formoreinformationaboutextra-budgetaryfunds,seetheGuidetoTransparencyinPublicFinances:LookingBeyondtheCoreBudget(http://internationalbudget.org/wp-content/uploads/Looking-Beyond-the-Budget.pdf)andPrinciple2.1.1oftheIMF’sFiscalTransparencyHandbook(2018)(https://www.elibrary.imf.org/view/IMF069/24788-9781484331859/24788-9781484331859/24788-9781484331859.xml).

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecoreinformationrelatedtoextra-budgetaryfundsaswellassomeadditionalinformationbeyondthecoreelements.A“b”answerappliesiftheExecutive’sBudgetProposalorsupportingdocumentationpresentsallofthecoreinformation.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtoextra-budgetaryfundsispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationispresentedonextra-budgetaryfunds.

Answer:a.Yes,informationbeyondthecoreelementsispresentedforallextra-budgetaryfunds.

Source:http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691

UpdatedMediumTermBudgetForecastfor2019-2021

Comment:ThePublicFinanceLaw(passedin2013)closedallextrabudgetaryaccounts.Instead,newaccountsforEUfundingwerecreated-theEUfundingaccountoftheNationalFund,theEUfundingaccountoftheAgricultureFundandotherEUfunding.Threestatecompaniesarealsoincludedintheconsolidatedfiscalprogrammeastheyperformfiscalfunctions(collectrevenuesandspend)-theEnvironmentManagementCompany(PUDOOS),theElectricitySecurityFund(FundSES)andtheScience-productionCenter.Foralltheseentitiesthereisinformationontheirincome,expenditure,andtransfers(Appendix7and8oftheUpdatedMediumTermBudgetForecastfor2019-2021).FortheEUfundingthereisextensivediscussion(page145-158),includingassessmentoftheirmacroeconomiceffects.NarrativediscussionontheElectricitySecurityFundisalsopresented(page61,97).AdditionalinformationispresentedintheprogrambudgetoftheAgricultureFundandtheprogrambudgetoftheEnvironmentMinistry(aboutPUDOOSanditswork).



34.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentcentralgovernmentfinances(bothbudgetaryandextra-budgetary)onaconsolidatedbasisforatleastthebudgetyear?

GUIDELINES:Question34askswhethertheExecutive’sBudgetProposalorsupportingdocumentspresentthefinancesofthecentralgovernmentonaconsolidatedbasis,showingbothitsbudgetaryandextra-budgetaryactivities.VirtuallyallofthequestionsintheOBSquestionnairefocusonbudgetarycentralgovernment—theactivitiesoftheministries,departments,oragenciesofcentralgovernment.Inaddition,Question33asksaboutextra-budgetaryfunds,suchassocialsecurityfundsthatarenotincludedinthebudget.

Coverageisanimportantaspectoffiscalreporting.Budgetdocumentsshouldcoverthefullscopeofgovernment’sfinancialactivity.Inmanycountries,extra-budgetaryactivitiesaresubstantial,andcanrepresentasizableshareofthecentralgovernment’sactivities.Togetafullpictureofthecentralgovernment’sfinances,therefore,itisnecessarytoexaminebothactivitiesthatareincludedinthebudgetandthosethatareextra-budgetary.Thisquestionaskswhethersuchaconsolidatedpresentationofcentralgovernmentfinancesisprovided.

Thecentralgovernmentisonlyonecomponentoftheoverallpublicsector.Thepublicsectoralsoincludesotherlevelsofgovernment,suchasstateandlocalgovernment,andpubliccorporations.(SeeBox2.1underPrinciple1.1.1oftheIMF’sFiscalTransparencyHandbook(2018):https://www.elibrary.imf.org/view/IMF069/24788-9781484331859/24788-9781484331859/24788-9781484331859.xml.Forthepurposeofansweringthisquestion,pleaseconsideronlythecentralgovernmentlevel.

Inordertoanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentcentralgovernmentfinances(bothbudgetaryandextra-budgetary)onaconsolidatedbasisforatleastthebudgetyear.

Answer:

http://internationalbudget.org/wp-content/uploads/Looking-Beyond-the-Budget.pdf

https://www.elibrary.imf.org/view/IMF069/24788-9781484331859/24788-9781484331859/24788-9781484331859.xml


a.Yes,centralgovernmentfinancesarepresentedonaconsolidatedbasis.

Source:http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691

UpdatedMediumTermBudgetForecastfor2019-2021-Appendix3p.208

Comment:



35.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentestimatesofintergovernmentaltransfersforatleastthebudgetyear?

GUIDELINES:Question35asksaboutintergovernmentaltransfers.Inmanycases,thecentralgovernmentsupportstheprovisionofagoodorservicebyalowerlevelofgovernmentthroughanintergovernmentaltransferoffunds.Thisisnecessarybecause,independentfromthelevelofadministrativedecentralizationthatexistsinagivencountry,thecapacityforrevenuecollectionofalocalgovernmentisunlikelytobesufficienttopayforallitsexpenses.However,becausetheactivityisnotbeingundertakenbyanadministrativeunitofthecentralgovernment,itisunlikelytoreceivethesamelevelofreviewinthebudget.Thusitisimportanttoincludeinthebudgetproposalastatementthatexplicitlyindicatestheamountandpurposesofthesetransfers.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentforatleastthebudgetyearbothestimatescoveringallintergovernmentaltransfersandanarrativediscussingthesetransfers.Ifanarrativediscussionisnotincluded,butestimatesforallintergovernmentaltransfersarepresented,thena“b”answerisappropriate.A“c”responseappliesifthepresentationincludesestimatescoveringonlysome,butnotall,intergovernmentaltransfers(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“d”appliesifnoestimatesofintergovernmentaltransfersarepresented.

Answer:a.Yes,estimatesofallintergovernmentaltransfersarepresented,alongwithanarrativediscussion.

Source:ThemechanismfordefiningtransferstothelocalauthoritiesispartoftheDraftStateBudgetLawfor2019(http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94690)inannextoart50;transferstoallmunicipalitieslistedinart50(pp.72-88).

UpdatedMediumTermBudgetForecastfor2019-2021(http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691)-pages141-145,providesnarrativediscussiononlocalfinancingandfiscaldecentralization.

Comment:AnnextoArt.50oftheDraftStateBudgetLawfor2019-onpp127-131



36.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentalternativedisplaysofexpenditures(suchasbygender,byage,byincome,orbyregion)toillustratethefinancialimpactofpoliciesondifferentgroupsofcitizens,foratleastthebudgetyear?

GUIDELINES:Question36asksabout“alternativedisplays”ofexpendituresthathighlightthefinancialimpactofpoliciesondifferentgroupsofcitizens.Asdiscussedabove,expendituresaretypicallypresentedbyatleastoneofthreeclassifications—administrative,functional,andeconomicclassifications(seeQuestions1-5)—andbyindividualprogram(Question6).Inaddition,governmentscanprovidealternativedisplaystoemphasizedifferentaspectsofexpenditurepoliciesandtoshowwhobenefitsfromtheseexpenditures.

Forthepurposeofansweringthisquestion,thealternativepresentationmustdifferfromthepresentations(suchasadministrative,functional,oreconomicclassificationsorpresentationbyprogram)usedtoanswerotherquestions.Thealternativedisplaycancoverallexpendituresoronlyaportionofexpenditures.Forinstance,itcanshowhowallexpendituresaredistributedaccordingtogeographicregionoritcanshowhowselectedexpenditures(suchasthehealthbudgetortheagriculturebudget)aredistributedtodifferentregions.Butsuchageographicdisplaymustbesomethingdifferentthanthepresentationofintergovernmentaltransfersusedtoanswerquestion35.Oneexceptioniswhenacountryincludesaspecialpresentationofallpoliciesintendedtobenefitthemostimpoverishedpopulations(andisusedtoanswerQuestion52)thenthatcanbeconsideredanalternativedisplayforpurposesofansweringthisquestionaswell.Finally,brieffactsheetsshowinghowproposalsinthebudgetbenefitparticulargroupswouldbeinsufficient;onlymoredetailedpresentationswouldbeconsidered.

TheIBPBudgetBrief,“HowTransparentareGovernmentsWhenitComestoTheirBudget’sImpactonPovertyandInequality?”(https://www.internationalbudget.org/wp-content/uploads/government-transparency-of-budgets-impact-on-poverty-inequality-ibp-2019.pdf)includesadiscussionoftheimportanceofalternativedisplaysofbudgetinformationandprovidesanumberofexamples.Forinstance,

Bangladeshinits2017-18BudgetincludedadetailedsupplementaryGenderBudgetingReport,whichpresentsthespendingdedicatedtoadvancingwomenacrossvariousdepartments.(https://mof.portal.gov.bd/site/page/3bb14732-b5b1-44df-9921-efedf1496295 ).TheUK’s2017budgetincludedasupplementaryanalysisthatprovidedadistributionalanalysisofthebudgetbyhouseholdsindifferentincomegroups(seehttps://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/661465/distributional_analysis_autumn_budget_2017.pdf)SouthAfrica’s2017BudgetReviewgoesbeyondthestandardpresentationofintergovernmentaltransfers,discussingtheredistributionthatresultsfromnationalrevenueflowingtotheprovincesandmunicipalitiesandpresentingtheallocationsonapercapitabasis(seechapter6,http://www.treasury.gov.za/documents/national%20budget/2017/review/FullBR.pdf).

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustincludeatleastthreedifferentpresentationsthatillustratethefinancialimpactofpoliciesondifferentgroupsofcitizensforatleastthebudgetyear.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustincludeatleasttwodifferentalternativedisplaysofexpenditures.A“c”appliesisonlyonetypeofalternativedisplayofexpenditureispresented.Answer“d”appliesifnoalternativedisplayofexpenditureispresented.

Answer:c.Yes,onealternativedisplayofexpendituresispresentedtoillustratethefinancialimpactofpoliciesondifferentgroupsofcitizens.

Source:DraftProgramBudgetoftheMinistryofLabourandSocialPolicy(partofEBP):http://parliament.bg/bills/44/802-01-49.zipfilename:1500Министерствонатрудаисоциалнатаполитика.pdf

DraftBudgetActfor2019http://parliament.bg/bills/44/802-01-49.zipfilename:802-01-49.doc

Comment:TheprogramDraftBudgetoftheMinistryofLabourandSocialPolicyincludesmanyprograms,forexample:-supportforfamilieswithchildren(seep.83)-integrationofpeoplewithdisabilities(seep73)-socialbenefits,supportforlowincomepeople(seep.59onbasicsocialassistance,p65onenergybenefits)

TheDraftBudgetActfor2019(art50and51,pages72-103)includesalistofallfiscaltransfersfromthecentralbudgettoeverymunicipalityinthestate.Thesetransfersaredividedbyfunctions.Forexample,article51liststhespendingoneducationbymunicipality(thatis,primaryandsecondaryeducation).



IBPCommentTheresearcher'scommentiswell-noted.BasedontheQ36guidelines,theMinistryofLabourandSocialPolicy'sdraftbudgetcannotbeusedtorespondtothisquestion,as"thealternativepresentationmustdifferfromthepresentations(suchasadministrative,functional,oreconomicclassificationsorpresentationbyprogram)usedtoanswerotherquestions."Theresponseisthereforerevisedfrom"b"to"c."

36b.BasedontheresponsetoQuestion36,selectthebox(es)belowtoidentifywhichtypesofalternativedisplaysareincludedintheExecutive’sBudgetProposal:

GUIDELINES:%20Question%2036%20asks%20about%20“alternative%20displays”%20of%20expenditures%20that%20highlight%20the%20financial%20impact%20of%20policies%20on%20different%20groups%20of%20citizens.%20As%20discussed%20above,%20expenditures%20are%20typically%20presented%20by%20at%20least%20one%20of%20three%20classifications%20—%20administrative,%20functional,%20and%20economic%20classifications%20(see%20Questions%201-5)%20—%20and%20by%20individual%20program.%20In%20addition,%20governments%20can%20provide%20alternative%20displays%20to%20emphasize%20different%20aspects%20of%20expenditure%20policies%20and%20to%20show%20who%20benefits%20from%20these%20expenditures.%20%20The%20United%20Nations%20supports%20gender-responsive%20budgeting,%20which%20can%20include%20a%20gender%20budget%20presentation,%20to%20promote%20gender%20equity%20and%20women’s%20rights.%20See:%20http://gender-financing.unwomen.org/en.%20Other%20alternative%20displays%20can%20show%20how%20expenditures%20flow%20to%20different%20regions%20of%20a%20country,%20or%20how%20expenditures%20benefit%20different%20income%20groups. %20%20For%20example,%20in%20India,%20the%20annual%20budget%20includes%20funds%20for%20the%20Scheduled%20Caste%20Sub-Plan%20(SCSP),%20a%20program%20designed%20to%20assist%20traditionally%20marginalized%20classes%20(or%20castes).%20See%20PDF%202,%20page%204,%20of%20India’s%202011%20Executive’s%20Budget%20Proposal%20(Annual%20Financial%20Statements)%20(https://docs.google.com/folderview?pli=1&id=0ByA9wmvBrAnZeVdkbjlfUDROaFU&tid=0ByA9wmvBrAnZN3ZrdzNzcS1JZzg).%20For%20an%20example%20in%20Spanish,%20see%20the%20page%20of%20Mexico’s%202014%20Executive’s%20Budget%20Proposal%20where%20funds%20specifically%20allocated%20to%20indigenous%20populations%20are%20shown%20(http://www.diputados.gob.mx/PEF2014/temas/anexos/metodologia/metodologia_indigenas.pdf).%20 %20%20For%20the%20purpose%20of%20answering%20this%20question,%20the%20alternative%20display%20can%20cover%20all%20expenditures%20or%20only%20a%20portion%20of%20expenditures.%20For%20instance,%20it%20can%20show%20how%20all%20program%20expenditures%20are%20distributed%20according%20to%20geographic%20region%20or%20it%20can%20show%20how%20selected%20expenditures%20(such%20as%20the%20health%20budget%20or%20the%20agriculture%20budget)%20are%20distributed%20to%20different%20regions. %20Similarly,%20if%20a%20country%20presents%20estimates%20of%20policies%20intended%20to%20benefit%20the%20most%20impoverished%20populations%20(see%20Question%2052)%20then%20that%20should%20be%20considered%20an%20alternative%20display%20for%20purposes%20of%20answering%20this%20question. %20%20To%20answer%20“a,”%20the%20Executive’s%20Budget%20Proposal%20or%20supporting%20documentation%20must%20include%20 at%20least%20three%20different%20presentations%20that%20illustrate%20the%20financial%20impact%20of%20policies%20on%20different%20groups%20of%20citizens%20for%20at%20least%20the%20budget%20year.%20To%20answer%20“b,”%20the%20Executive’s%20Budget%20Proposal%20or%20supporting%20documentation%20must%20include%20at%20least%20two%20different%20alternative%20displays%20of%20expenditures. %20A%20“c”%20applies%20is%20only%20one%20type%20of%20alternative%20display%20of%20expenditure%20is%20presented.%20Answer%20“d”%20applies%20if%20no%20alternative%20display%20of%20expenditure%20is%20presented

https://mof.portal.gov.bd/site/page/3bb14732-b5b1-44df-9921-efedf1496295

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/661465/distributional_analysis_autumn_budget_2017.pdf

http://www.treasury.gov.za/documents/national%20budget/2017/review/FullBR.pdf

Answer:Distributionofeducationexpendituresbygeographicregion

Source:DraftProgramBudgetoftheMLSP:http://parliament.bg/bills/44/802-01-49.zip

Comment:TheDraftBudgetActfor2019(art50)includesalistofallfiscaltransfersfromthecentralbudgettoeverymunicipalityinthestate.Thetransferscovermostlyspendingoneducation.

PeerReviewerOpinion:DisagreeSuggestedAnswer:PolicyimpactsbasedonincomeDistributionofeducationexpendituresbygeographicregionComments:Althoughthereisalistofallfiscaltransfersfromthecentralbudgettothemunicipalities,thereisnoexplicitbreakdownforeducationexpenditure.Thebreakdownincludes:TotalBudgetRelationship;GeneralSubsidyfortheDelegatedfromtheGovernmentActivities;TransfersforLocalActivities(ofwhichTotalEqualizingSubsidyandWinterMaintenanceandSnowClearingofMunicipalRoads),andTargetSubsidyforCapitalExpenditure.Inorderforonetodeterminethatthemajorityofgovernmenttransferscovermunicipalexpenditureoneducation,onewouldneedpriorknowledgeregardingthebudgetprocess,thatisnotreadilyavailableintheEBPoritssupportingdocuments.


ResearcherResponseWedisagreewiththepeerreviewer.Heisrightaboutart.50.However,aswepointedoutinq.36,article51oftheDraftBudgetActfor2019liststhespendingoneducationbymunicipality.

IBPCommentPleaseseetheIBPstaffcommentforQ36.Theresponseoptions"Policyimpactsbasedonincome"and"Otherdisplaysofexpenditure(pleasespecify)"havebeende-selected.

37.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentestimatesoftransferstopubliccorporationsforatleastthebudgetyear?

GUIDELINES:Question37asksabouttransferstopubliccorporations.Itisoftenthecasethatgovernmentshaveastakeinenterprisesthatmanageresourcesthatareparticularlyrelevantforthepublicgood(suchaselectricity,water,andoil).Whilethesepubliccorporationscanoperateindependently,insomecasesthegovernmentwillprovidedirectsupportbymakingtransferstothesecorporations,includingtosubsidizecapitalinvestmentandoperatingexpenses.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentforatleastthebudgetyearbothestimatescoveringalltransferstopubliccorporationsandanarrativediscussingthepurposesofthesetransfers.Ifanarrativediscussionisnotincluded,butestimatesforalltransferstopubliccorporationsarepresented,thena“b”answerisappropriate.A“c”responseappliesifthepresentationincludesestimatescoveringonlysome,butnotall,transferstopubliccorporations(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“c”alsoappliesifestimatesoftransferstopubliccorporationsarepresentedasasinglelineitem.Answer“d”appliesifnoestimatesoftransferstopubliccorporationsarepresented.

Answer:a.Yes,estimatesofalltransferstopubliccorporationsarepresented,alongwithanarrativediscussion.

Source:DraftStateBudgetLaw2019(http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94690)Article1containsdatafortotalsubsidiesforallnon-financialcorporations.SeparatelinesforbudgettransferstothenationalTV,nationalradio,theBulgarianNewsAgency(art.48p69),stateuniversities(art16.p31)andtheEnvironmentManagementCompanyPUDOOS,postservice,staterailways(art24,p44),transportandportcompanies(art49p71)areavailable.

TheUpdatedMediumTermBudgetForecastfor2019-2021(http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691)containsdataandnarrativediscussionforrailway,transportandpostalsubsidies(page113-118).

Comment:Additionaldataandinformationisfoundinthedraftprogrambudgets,includingnarrativediscussion(forexample,inthetransportministrybudgetabouttherailwaysandpostservices).



38.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationonquasi-fiscalactivitiesforatleastthebudgetyear?

(Thecoreinformationmustincludeastatementofpurposeorpolicyrationaleforthequasi-fiscalactivityandtheintendedbeneficiaries.)

GUIDELINES:Question38focusesonquasi-fiscalactivities,askingwhether“core”informationrelatedtosuchactivitiesispresented.Thesecorecomponentsinclude:

Astatementofpurposeorpolicyrationaleforthequasi-fiscalactivity(i.e.,whatisthereasonforengaginginthisactivity?);Theidentificationofintendedbeneficiariesofthequasi-fiscalactivity.

Theterm“quasi-fiscalactivities”referstoabroadrangeofactivitiesthatarefiscalincharacterandcouldbecarriedoutthroughtheregularbudgetprocessbutarenot.Forexample,aquasi-fiscalactivitycouldtakeplaceif,insteadofprovidingadirectsubsidythroughthebudgetforaparticularactivity,apublicfinancialinstitutionprovidesanindirectsubsidybyofferingloansatbelow-marketratesforthatactivity.Similarly,itisaquasi-fiscalactivitywhenanenterpriseprovidesgoodsorservicesatpricesbelowcommercialratestocertainindividualsorgroupstosupportthegovernment’spolicygoals.

Theaboveexamplesarepolicychoicesthatmaybeapprovedbythegovernmentandlegislature.However,quasi-fiscalactivitiescanalsoinvolveactivitiesthatviolateorcircumventacountry’sbudgetprocesslawsorarenotsubjecttotheregularlegislativeapprovalprocessforexpenditures.Forexample,theexecutivemayissueaninformalordertoagovernmententity,suchasapubliccommercialenterprise,toprovidetheexecutivewithgoodsandservicesthatnormallywouldhavetobepurchasedwithfundingauthorizedbythelegislature.Allquasi-fiscalactivitiesshouldbedisclosedtothepublicandsubjecttopublicscrutiny.

Beyondthecoreinformation,somegovernmentsmayalsoprovideotherinformationaboutquasi-fiscalactivities,includingforexample:theanticipateddurationofthequasi-fiscalactivity;aquantificationoftheactivityandtheassumptionsthatsupporttheseestimates;andadiscussionofthefiscalsignificanceandpotentialrisksassociatedwiththeactivity,includingtheimpactontheentitycarryingouttheactivity.Principle3.3.2oftheIMF’sFiscalTransparencyHandbook(2018)(https://www.elibrary.imf.org/view/IMF069/24788-9781484331859/24788-9781484331859/24788-9781484331859.xml)providesexamplesofquasi-fiscalactivitiesthatcanbeconsultedasneeded.Andmoredetailsonquasi-fiscalactivitiescanbefoundintheGuidetoTransparencyinPublicFinances:LookingBeyondtheCoreBudget(http://internationalbudget.org/wp-content/uploads/Looking-Beyond-the-Budget.pdf).

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecoreinformationrelatedtoallquasi-fiscalactivitiesforatleastthebudgetyearaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtoquasi-fiscalactivitiesispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationispresentedonquasi-fiscalactivities.

Ifquasi-fiscalactivitiesdonotrepresentasignificantprobleminyourcountry,pleasemark“e.”.”However,pleaseexercisecautioninansweringthisquestion.

Answer:c.Yes,informationispresented,butitexcludessomecoreelementsorsomequasi-fiscalactivities.

Source:UpdatedMediumTermBudgetForecastfor2019-2021

Comment:Thereisanarrativediscussionanddatafor2019-2021ontheExportInsuranceAgency(p.165),withsomerudimentaryexplanationofpolicyrationale.TheprogrambudgetoftheMinistryofEconomypresentsinformationonpublicsupportforentrepreneursandaccesstofinance-includingventurefunds,accelerationfundsetc.

State-ownedrailways,publictransportandenergycompaniessellbelowmarketprices,buttheyreceivesubsidiesandpaymentsfromthestatebudget,thusthesearenotquasi-fiscalactivities,butpurefiscalactivity.Waterchargesbythestate-ownedwatercompanieswerebelowmarketratesuntilrecently,buttheywereincreasedsubstantiallysothequasi-fiscalactivitywasmostlyeliminated.





39.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationonfinancialassetsheldbythegovernmentforatleastthebudgetyear?

(Thecoreinformationmustincludealistingoftheassets,andanestimateoftheirvalue.)

GUIDELINES:Question39focusesonfinancialassetsheldbythegovernment,askingwhether“core”informationrelatedtotheseassetsispresented.Thesecorecomponentsinclude:

Alistingofthefinancialassets;andAnestimateoftheirvalue.

Governmentsownfinancialassetssuchascash,bonds,orequities.Unlikeprivatesectorbusinesses,however,fewgovernmentsmaintainbalancesheetsthatshowthevalueoftheirassetsandliabilities.

Beyondthecoreinformation,somegovernmentsmayalsoprovideotherinformationaboutfinancialassets,includingforexample:adiscussionoftheirpurpose;historicalinformationondefaults;differencesbetweenreportedvaluesandmarketvalues;andasummaryoffinancialassetsaspartofthegovernment’sbalancesheet.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentforatleastthebudgetyearallofthecoreinformationrelatedtoallfinancialassetsheldbythegovernmentaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtofinancialassetsispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationispresentedonfinancialassetsheldbythegovernment.

Answer:c.Yes,informationispresented,butitexcludessomecoreelementsorsomefinancialassets.

Source:UpdatedMediumTermBudgetForecast2019-2021(http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691)-p.165chapteronthefiscalreserve

DraftBudgetAct2019(http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94690)-setsminimumthresholdforfiscalreservefor2019-art.66

Comment:Onlydataonthefiscalreserve-ofthegovernment(liquidfinancialassetsheldinthecentralbankandcommercialbanks)ispresented.Theminimumthresholdofthefiscalreservefor2019issetbythe2019DraftStateBudgetAct.



40.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationonnonfinancialassetsheldbythegovernmentforatleastthebudgetyear?

(Thecoreinformationmustincludealistingoftheassetsbycategory.)

GUIDELINES:Question40focusesonnonfinancialassetsheldbythegovernment,askingwhether“core”informationrelatedtotheseassetsispresented.Thecoreinformationisalistingofnonfinancialassets,groupedbythetype(orcategory)ofasset.

Nonfinancialassetsarethingsofvaluethatthegovernmentownsorcontrols(excludingfinancialassets)suchasland,buildings,andmachinery.Thevaluationofpublicnonfinancialassetscanbeproblematic,particularlyincaseswheretheassetisnottypicallyavailableontheopenmarket(suchasagovernmentmonument).Inthesecases,itisconsideredacceptabletoprovidesummaryinformationinbudgetdocumentsfromacountry’sregisterofassets.But,insomecases,governmentsareabletovaluetheirnonfinancialassets;somepresentasummaryofnonfinancialassetsaspartoftheirbalancesheets.ForanexampleofhownonfinancialassetsarepresentedinoneofthemanysupportingdocumentstotheNewZealandExecutive’sBudgetProposal,seetheForecastFinancialStatement2011,NotestotheFinancialStatements(Continued),Note14,accessiblehere:https://treasury.govt.nz/sites/default/files/2011-05/befu11-pt6of8.pdf.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentforatleastthebudgetyearalistingbycategoryofallnonfinancialassetsheldbythegovernmentaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupporting

https://treasury.govt.nz/sites/default/files/2011-05/befu11-pt6of8.pdf

documentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtononfinancialassetsispresented,butsomenonfinancialassetsarenotincluded.Answer“d”appliesifnoinformationispresentedonnonfinancialassetsheldbythegovernment.

Answer:d.No,informationrelatedtononfinancialassetsisnotpresented.

Source:

Comment:



41.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentestimatesofexpenditurearrearsforatleastthebudgetyear?

GUIDELINES:Question41asksaboutestimatesofexpenditurearrears,whicharisewhengovernmenthasenteredintoacommitmenttospendfundsbuthasnotmadethepaymentwhenitisdue.(Formoreinformationseesections3.49-3.50oftheIMF’sGFSManual2001,http://www.imf.org/external/pubs/ft/gfs/manual/pdf/all.pdf(page29)).Thoughequivalenttoborrowing,thisliabilityisoftennotrecordedinthebudget,makingitdifficulttoassessfullyagovernment’sfinancialposition.Moreover,theobligationtorepaythisdebtaffectsthegovernment’sabilitytopayforotheractivities.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentforatleastthebudgetyearbothestimatescoveringallexpenditurearrearsandanarrativediscussingthearrears.Ifanarrativediscussionisnotincluded,butestimatesforallexpenditurearrearsarepresented,thena“b”answerisappropriate.A“c”responseappliesifthepresentationincludesestimatescoveringonlysome,butnotall,expenditurearrears(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“d”appliesifnoestimatesofexpenditurearrearsarepresented.

Ifexpenditurearrearsdonotrepresentasignificantprobleminyourcountry,pleasemark“e.”However,pleaseexercisecautioninansweringthisquestion.Publicexpendituremanagementlawsandregulationsoftenwillallowforreasonabledelays,perhaps30or60days,intheroutinepaymentofinvoicesdue.Expenditurearrearsimpactingasmallpercentageofexpenditurethatareduetocontractualdisputesshouldnotbeconsideredasignificantproblemforthepurposeofansweringthisquestion.

Answer:e.Notapplicable/other(pleasecomment).

Source:UpdatedMediumTermBudgetForecast2019-2021(http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691)

Comment:InDecember2018theconsolidatedcentralgovernmentarrearsamountedtojustLv43million-muchlowercomparedtoLv630million8yearsago.Thisisnotaasignificantproblem.Asexplainedinquestion001,thestatebudgetspendingisLv26billion,soarrearsamounttolessthan0.2%oftheannualbudget.

PeerReviewerOpinion:DisagreeSuggestedAnswer:d.No,estimatesofexpenditurearrearsarenotpresented.Comments:Regardlessofthenegligibleamountofthearrears,comparedtotheStateBudget,thereisnoinformationofexpectedarrearsandonecanonlyfindinformationaboutpastperiod,andwithconsiderabledelay.Itshouldbealsonotedthataccordingtoart.303aoftheTradeLawthemaximumperiodforpaymentforPublicContractingAuthoritiesis30days,andcanbeextendedtoamaximumof60days.However,thereisnoaccountabilityinthisregardandthetotalamountofarrearscouldbehigher.Forexample,itisanestablishedpracticetoback-loadpublicexpenditure,mostlycapitalexpenditure,whichcouldleadtotheaccrualofarears,e.g.goodsandservicesdeliveredinMarch,paymentduenolaterthanMay(60days),invoiceissuedinOctober,paymentdueinDecember.


ResearcherResponse

http://www.imf.org/external/pubs/ft/gfs/manual/pdf/all.pdf

Wedisagreewiththepeerreviewer.Theaccountingrulesarecrystalclearandarrearsarereportedbyallspendingunits(accountinggroup992Statisticsonarrears),thenfinancialreportsareauditedannuallybytheSupremeAuditInstitution.WemaintainthatarrearsarenegligibleandthusnotasignificantprobleminBulgaria,thereforetheanswer'e'aspertheGuide:"Ifexpenditurearrearsdonotrepresentasignificantprobleminyourcountry,pleasemark“e.”Thepeerrevieweralsoacknowledgedthatarrearsarenegligible.SeeUniformChartofAccountsforBudgetaryEntitiesandalsotheManualhttps://www.minfin.bg/bg/1038

IBPCommentPertheresearcher's"ResponsetoReview,"theexistingresponseof"e"ismaintained.

42.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationoncontingentliabilities,suchasgovernmentloanguaranteesorinsuranceprograms,foratleastthebudgetyear?

(Thecoreinformationmustincludeastatementofpurposeorpolicyrationaleforeachcontingentliability;thenewguaranteesorinsurancecommitmentsproposedforthebudgetyear;andthetotalamountofoutstandingguaranteesorinsurancecommitments(thegrossexposure)attheendofthebudgetyear.)

GUIDELINES:

Question42focusesoncontingentliabilities,askingwhether“core”informationrelatedtotheseliabilitiesispresented.Thesecorecomponentsinclude:

astatementofpurposeorpolicyrationaleforeachcontingentliability;thenewcontingentliabilitiesforthebudgetyear,suchasnewguaranteesorinsurancecommitmentsproposedforthebudgetyear;andthetotalamountofoutstandingguaranteesorinsurancecommitmentsattheendofthebudgetyear.Thisreflectsthegrossexposureofthegovernmentinthecasethatallguaranteesorcommitmentscomedue(eventhoughthatmaybeunlikelytooccur).

Contingentliabilitiesarerecognizedunderacashaccountingmethodonlywhenthecontingenteventoccursandthepaymentismade.Anexampleofsuchliabilitiesisthecaseofloansguaranteedbythecentralgovernment,whichcanincludeloanstostate-ownedbanksandotherstate-ownedcommercialenterprises,subnationalgovernments,orprivateenterprises.Undersuchguarantees,governmentwillonlymakeapaymentiftheborrowerdefaults.Thusakeyissueformakingquantitativeestimatesoftheseliabilitiesisassessingthelikelihoodofthecontingencyoccurring.

Inthebudget,accordingtotheOECD,“[w]herefeasible,thetotalamountofcontingentliabilitiesshouldbedisclosedandclassifiedbymajorcategoryreflectingtheirnature;historicalinformationondefaultsforeachcategoryshouldbedisclosedwhereavailable.Incaseswherecontingentliabilitiescannotbequantified,theyshouldbelistedanddescribed.”

Beyondthecoreinformation,somegovernmentsmayalsoprovideotherinformationaboutcontingentliabilities,includingforexample:historicaldefaultratesforeachprogram,andlikelydefaultratesinthefuture;themaximumguaranteethatisauthorizedbylaw;anyspecialfinancingassociatedwiththeguarantee(e.g.,whetherfeesarecharged,whetherareservefundexistsforthepurposeofpayingoffguarantees,etc.);thedurationofeachguarantee;andanestimateofthefiscalsignificanceandpotentialrisksassociatedwiththeguarantees.

Formoredetailsoncontingentliabilities,seeGuidetoTransparencyinPublicFinances:LookingBeyondtheCoreBudget(http://internationalbudget.org/wp-content/uploads/Looking-Beyond-the-Budget.pdf)andpage59(Box11)andPrinciple3.2.3oftheIMF’sFiscalTransparencyHandbook(2018)(https://www.elibrary.imf.org/view/IMF069/24788-9781484331859/24788-9781484331859/24788-9781484331859.xml).

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentforatleastthebudgetyearallofthecoreinformationrelatedtocontingentliabilitiesaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtocontingentliabilitiesispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationispresentedoncontingentliabilities.

Answer:b.Yes,thecoreinformationispresentedforallcontingentliabilities.

Source:UpdatedMediumTermBudgetForecast2019-2021(http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691)-pages45-47oncontingentliabilitiesandpages163-165onstateguarantees,includingnarrativediscussion.

DraftStateBudgetAct2019(http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94690),-art.70-73establishannuallimitsfornewstateguarantees.

Comment:TheUpdatedMediumTermBudgetForecastincludesinformationonthetotalamountofthecontingentliabilitiesasashareofGDP,aspertheEurostatdefinitiononcontingentliabilities-includingpublic-privatepartnerships,non-performingloanstothestatesector,governmentguaranteesandliabilitiesofgovernmentcontrolledentities.Additionalinformationispresented-onthestructureoftheliabilities,onthelevelofgovernment,ontheamountofstateguaranteesandstructurebyeconomicsectors,onexportinsurance,aswellasaforecastforcontingentliabilitiesby2021.

Mostliabilitiesareimplicitliabilities-i.e.thereisnolegalobligationofthegovernmentandthereisnodecisionofthegovernmenttoassumethoseliabilities(andtherefore,thereisnopolicypurpose).Nevertheless,theyareincludedintheanalysisasEurostatdecidedthesearetherelevantindicatorsfortheEUcountries.



Asarule,Bulgariaavoidsexplicitcontingentliabilities-therearenoprivate-publicpartnershipsrecordedoff-balancesheetofgovernment,nofinancialleasingisallowedin2019,andtheamountofstateguaranteesisnegligible(0.26%ofGDP-oneofthelowestintheEuropeanUnion,accordingtoEurostat).Nevertheless,thereisastatementofpurposesomestateguarantees,suchastheexportinsurance(p.165ofUMTBF)andstudentguarantees(p.82ofUMTBF).Thepracticeinothercountriesistoincludestatementofpurposeonlyforcontingentliabilitiesexpectedtohavematerialimpactonthebudget-seeNewZealand,forexamplehttps://www.internationalbudget.org/wp-content/uploads/new-zealand-open-budget-survey-2017-responses.pdf



43.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentprojectionsthatassessthegovernment’sfutureliabilitiesandthesustainabilityofitsfinancesoverthelongerterm?

(Thecoreinformationmustcoveraperiodofatleast10yearsandincludethemacroeconomicanddemographicassumptionsusedandadiscussionofthefiscalimplicationsandriskshighlightedbytheprojections.)

GUIDELINES:

Question43focusesongovernment’sfutureliabilitiesandthesustainabilityofitsfinancesoverthelonger-term,askingwhether“core”informationrelatedtotheseissuesispresented.Thesecorecomponentsmustinclude:

Projectionsthatcoveraperiodofatleast10years.Themacroeconomicanddemographicassumptionsusedinmakingtheprojections.Adiscussionofthefiscalimplicationsandriskshighlightedbytheprojections.Goodpublicfinancialmanagementcallsforbudgetstoincludefiscalsustainabilityanalyses.

TheIMF’sFiscalTransparencyHandbook(2018)(https://www.elibrary.imf.org/view/IMF069/24788-9781484331859/24788-9781484331859/24788-9781484331859.xml)recommendsthatgovernmentsregularlypublishtheprojectedevolutionofthepublicfinancesoverthelongerterm(seePrinciple3.1.3.).Futureliabilitiesareaparticularlyimportantelementwhenassessingthesustainabilityofpublicfinancesoverthelongterm.Futureliabilitiesaretheresultofgovernmentcommitmentsthat,unlikecontingentliabilities,arevirtuallycertaintooccuratsomefuturepointandresultinanexpenditure.Atypicalexampleconsistsofgovernmentobligationstopaypensionbenefitsorcoverhealthcarecostsoffutureretirees.Underacashaccountingsystem,onlycurrentpaymentsassociatedwithsuchobligationsarerecognizedinthebudget.Tocapturethefutureimpactonthebudgetoftheseliabilities,aseparatestatementisrequired.

Beyondthecoreinformation,somegovernmentsmayalsoprovideotherinformationaboutthesustainabilityoftheirfinances,includingforexample:projectionsthatcover20or30years;multiplescenarioswithdifferentsetsofassumptions;assumptionsaboutotherfactors(suchasthedepletionofnaturalresources)thatgobeyondjustthecoremacroeconomicanddemographicdata;andadetailedpresentationofparticularprogramsthathavelongtimehorizons,suchascivilservicepensions.

Formoredetailsonfutureliabilities,seeGuidetoTransparencyinPublicFinances:LookingBeyondtheCoreBudget(http://internationalbudget.org/wp-content/uploads/Looking-Beyond-the-Budget.pdf).

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecoreinformationrelatedtofutureliabilitiesandthesustainabilityofgovernmentfinancesoverthelongertermaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtofutureliabilitiesispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationispresentedonfutureliabilitiesandthesustainabilityofgovernment’sfinances

Answer:b.Yes,thecoreinformationispresentedtoassessthegovernment’sfutureliabilitiesandthesustainabilityofitsfinancesoverthelongerterm.

Source:UpdatedMediumTermBudgetForecast2019-2021(http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691)-pp.167-169,sectionon"Sustainabilityofpublicfinances"

Comment:Thesection"Sustainabilityofpublicfinances"usestheEU'smethodology.TheEUframeworkforfiscalsustainabilityuses2indicators-theindicatorS1coversmediumterm(uptoyear2032)whileindicatorS2coverslongterm(infinitehorizon).Bothindicatorsincludeacostofagingcomponent.Thefiscalimplicationsandrisksarediscussed,butthemacroeconomicanddemographicassumptionswerenotpresented.



MoredetailedanalysisandnarrativediscussionareavailableintheConvergenceProgram2018-2021(officialannualprogramapprovedbythegovernmentaspartoftheobligationsofthecountrytoadopttheEuro)-http://www.minfin.bg/upload/37082/Convergence%20Programme%20of%20Bulgaria%202018-2021.pdf



44.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentestimatesofthesourcesofdonorassistance,bothfinancialandin-kind,foratleastthebudgetyear?

GUIDELINES:Question44asksaboutestimatesofdonorassistance,bothfinancialandin-kindassistance.Suchassistanceisconsiderednon-taxrevenue,andthesourcesofthisassistanceshouldbeexplicitlyidentified.Intermsofin-kindassistance,theconcernisprimarilywiththeprovisionofgoods(particularlythoseforwhichthereisamarketthatwouldallowgoodsreceivedasin-kindaidtobesold,therebyconvertingthemintocash)ratherthanwithin-kindaidlikeadvisorsfromadonorcountryprovidingtechnicalassistance.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentforatleastthebudgetyearbothestimatescoveringalldonorassistanceandanarrativediscussingtheassistance.Ifanarrativediscussionisnotincluded,butestimatesforalldonorassistancearepresented,thena“b”answerisappropriate.A“c”responseappliesifthepresentationincludesestimatescoveringonlysome,butnotall,donorassistance(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“c”alsoappliesifthesourcesofdonorassistancearenotpresented,butthetotalamountofdonorassistanceispresentedasasinglelineitem.Answer“d”appliesifnoestimatesofdonorassistancearepresented.Selectanswer“e”ifyourcountrydoesnotreceivedonorassistance.

Answer:a.Yes,estimatesofallsourcesofdonorassistancearepresented,alongwithanarrativediscussion.

Source:UpdatedMediumTermBudgetForecast2019-2021http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691-dataandnarrativediscussionp.147-160

Comment:MostdonorfundsarefromtheEUandthereisdedicatedchapterintheUpdatedMediumTermBudgetForecast2019-2021.AlsoinDraftProgramBudgetsforeachindividualministry.



45.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationontaxexpendituresforatleastthebudgetyear?

(Thecoreinformationmustincludeastatementofpurposeorpolicyrationaleforeachtaxexpenditure,theintendedbeneficiaries,andanestimateoftherevenueforegone.)

GUIDELINES:Question45focusesontaxexpenditures,askingwhether“core”informationrelatedtothesetaxpreferencesispresented.Thesecorecomponentsmustincludeforbothnewandexistingtaxexpenditures:

astatementofpurposeorpolicyrationale;alistingoftheintendedbeneficiaries;andanestimateoftherevenueforegone.

Taxexpendituresariseasaresultofexceptionsorotherpreferencesinthetaxcodeprovidedforspecifiedentities,individuals,oractivities.Taxexpendituresoftenhavethesameimpactonpublicpolicyandbudgetsasprovidingdirectsubsidies,benefits,orgoodsandservices.Forexample,encouragingacompanytoengageinmoreresearchthroughaspecialtaxbreakcanhavethesameeffectassubsidizingitdirectlythroughtheexpendituresideofthebudget,asitstill

constitutesacostintermsofforegonerevenues.However,expenditureitemsthatrequireannualauthorizationarelikelytoreceivemorescrutinythantaxbreaksthatareapermanentfeatureofthetaxcode.

Beyondthecoreinformation,somegovernmentsmayalsoprovideotherinformationabouttaxexpenditures,includingforexample:theintendedbeneficiariesbysectorandincomeclass(distributionalimpact);astatementoftheestimatingassumptions,includingthedefinitionofthebenchmarkagainstwhichtheforegonerevenueismeasured;andadiscussionoftaxexpendituresaspartofageneraldiscussionofexpendituresforthoseprogramareasthatreceivebothtypesofgovernmentsupport(inordertobetterinformpolicychoices).Formoredetailsontaxexpenditures,seeGuidetoTransparencyinPublicFinances:LookingBeyondtheCoreBudget(http://internationalbudget.org/wp-content/uploads/Looking-Beyond-the-Budget.pdf)andPrinciple1.1.4oftheIMF’sFiscalTransparencyHandbook(2018)(https://www.elibrary.imf.org/view/IMF069/24788-9781484331859/24788-9781484331859/24788-9781484331859.xml).

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresent,foratleastthebudgetyear,allofthecoreinformationrelatedtotaxexpendituresaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtotaxexpendituresispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationispresentedontaxexpenditures.

Answer:c.Yes,informationispresented,butitexcludessomecoreelementsorsometaxexpenditures.

Source:UpdatedMediumTermBudgetForecast2019-2021http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691-Appendix10"Estimateoftaxexpenditures",pg.219

Comment:Dataonactualtaxexpendituresfor2017(BY-2)andestimatefor2019(BY)bytax(e.g.VAT,corporate)



46.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentestimatesofearmarkedrevenuesforatleastthebudgetyear?

GUIDELINES:Question46asksaboutestimatesofearmarkedrevenues,whicharerevenuesthatmayonlybeusedforaspecificpurpose(forexample,revenuesfromataxonfuelthatcanonlybeusedforbuildingroads).Thisinformationisimportantindeterminingwhichrevenuesareavailabletofundthegovernment’sgeneralexpenses,andwhichrevenuesarereservedforparticularpurposes.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentforatleastthebudgetyearbothestimatescoveringallearmarkedrevenuesandanarrativediscussingtheearmarks.Ifanarrativediscussionisnotincluded,butestimatesforallearmarkedrevenuesarepresented,thena“b”answerisappropriate.A“c”responseappliesifthepresentationincludesestimatescoveringonlysome,butnotall,earmarkedrevenues(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“d”appliesifnoestimatesofearmarkedrevenuesarepresented.An“e”responseappliesifrevenueisnotearmarkedorthepracticeisdisallowedbylaworregulation.

Answer:e.Notapplicable/other(pleasecomment).

Source:PublicFinanceLawhttps://www.lex.bg/laws/ldoc/2135837967

Comment:AccordingtoArticle17,para1ofthePublicFinanceLaw:"Proceedsshallnotbeassignedandshallbeusedtocoverpayments."

However,therearesomeexceptionstothisprinciple.Forexample,theTrafficLawestablishedaFundforroadsafetythatreceivestherevenuesfromsomefinesfortrafficviolations-thefundingisusedforroadsafetymeasures.Yet,theexceptionsareratherlimitedinscope.RoadSafetyFundhadtotalrevenuesofBGN12,97million(aroundEUR6.5million)in2016,or0.038%oftotalpublicrevenuesin2016.

PeerReviewerOpinion:DisagreeSuggestedAnswer:



d.No,estimatesofearmarkedrevenuesarenotpresented.Comments:AlthoughthePublicFinanceActprohibitsrevenueearmarking,theResearcher'scommentshowsthatthereareexceptions,andthatrelatedinformationisnotpartoftheEBP.Furthermore,in2017surveytheResearcher'sanswerwas'd'-http://survey.internationalbudget.org/#profile/BG


IBPCommentThepeerreviewer'scommentiswell-received.Toensureconsistencyacrosssurveycountries,response"e"hasbeenmaintained.

47.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationonhowtheproposedbudget(bothnewproposalsandexistingpolicies)islinkedtogovernment’spolicygoalsforthebudgetyear?

GUIDELINES:Questions47and48askaboutinformationthatshowshowthebudget(bothnewproposalsandexistingpolicies)islinkedtothegovernment’spolicygoals.Thebudgetistheexecutive’smainpolicydocument,theculminationoftheexecutive’splanningandbudgetingprocesses.Therefore,itshouldincludeacleardescriptionofthelinkbetweenpolicygoalsandthebudget—thatis,anexplicitexplanationofhowthegovernment’spolicygoalsarereflectedinitsbudgetchoices.Foranexampleofadiscussionofagovernment’spolicygoalsinthebudget,seepages13-18ofNewZealand’s2011StatementofIntent(http://www.treasury.govt.nz/publications/abouttreasury/soi/2011-16),oneofthemanydocumentssupportingitsbudget.

Insomecountriesthegovernmentpreparesstrategic/developmentplans.Theseplansincludeallthepoliciesthegovernmentisplanningtoimplementforthebudgetyearandveryoftencoveramulti-yearperspective.Insomecases,theseplansdonotmatchthebudgetdocumentation,anditispossiblethattheyarecompletelydisconnectedfromtheExecutive’sBudgetProposal.Sothequestionisexaminingwhethergovernmentpolicyplansare“translated”intorevenueandexpenditurefiguresintheactualbudgetdocuments.

Question47asksabouttheinformationcoveringthebudgetyear,andQuestion48asksabouttheperiodatleasttwoyearsbeyondthebudgetyear.Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentbothestimatesofhowthebudgetislinkedtogovernment’spolicygoalsforthebudgetyear(forQuestion47)orforamulti-yearperiodbeyondthebudgetyear(forQuestion48)andanarrativediscussionofhowthesepolicygoalsarereflectedinthebudget.Toanswer“b”foreitherquestion,theExecutive’sBudgetProposalorsupportingdocumentationmustpresentestimatesthatshowhowthebudgetislinkedtogovernment’spolicygoals,butnonarrativediscussionisincluded.A“c”responseappliesifthepresentationincludesonlyanarrativediscussion,orifitincludesestimatesthatshowhowthebudgetislinkedtosome,butnotall,ofthegovernment’spolicygoals(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“d”appliesifnoinformationispresentedonhowthebudgetislinkedtogovernment’spolicygoals.

Answer:a.Yes,estimatesthatshowhowtheproposedbudgetislinkedtoallthegovernment’spolicygoalsforthebudgetyeararepresented,alongwithanarrativediscussion.

Source:UpdatedMediumTermBudgetForecast2019-2021http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691-pp.9-12-Introduction,settinginbriefallmajorpolicyprioritiesforthe2019-2021,detailednarrativediscussiononlinkbetweengoalsandproposedbudgetprioritiesinSection2:FiscalPolicyandMajorParametersfor2019-2021,pp27-47,Section3:PolicyPrioritiesandKeyAssumptions2019-2021,pp48-139,Section8:MotivesforChangesinOtherLegislationaspartofBudgetAct2019andlinktopolicypriorities

Comment:Moredetailedinformationonpolicyprioritiesandhowtheyaretargetedwithindividualspendingprograms-indraftprogrambudgetsofministries(http://parliament.bg/bills/44/802-01-49.zip)



48.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationonhowtheproposedbudget(bothnewproposalsandexistingpolicies)islinkedtogovernment’spolicygoalsforamulti-yearperiod(foratleasttwoyearsbeyondthebudgetyear)?

GUIDELINES:Questions47and48askaboutinformationthatshowshowthebudget(bothnewproposalsandexistingpolicies)islinkedtothegovernment’spolicygoals.Thebudgetistheexecutive’smainpolicydocument,theculminationoftheexecutive’splanningandbudgetingprocesses.Therefore,itshouldincludeacleardescriptionofthelinkbetweenpolicygoalsandthebudget—thatis,anexplicitexplanationofhowthegovernment’spolicygoalsarereflectedinitsbudget

http://www.treasury.govt.nz/publications/abouttreasury/soi/2011-16

choices.Foranexampleofadiscussionofagovernment’spolicygoalsinthebudget,seepages13-18ofNewZealand’s2011StatementofIntent(http://www.treasury.govt.nz/publications/abouttreasury/soi/2011-16),oneofthemanydocumentssupportingitsbudget.

Insomecountriesthegovernmentpreparesstrategic/developmentplans.Theseplansincludeallthepoliciesthegovernmentisplanningtoimplementforthebudgetyearandveryoftencoveramulti-yearperspective.Insomecases,theseplansdonotmatchthebudgetdocumentation,anditispossiblethattheyarecompletelydisconnectedfromtheExecutive’sBudgetProposal.Sothequestionisexaminingwhethergovernmentpolicyplansare“translated”intorevenueandexpenditurefiguresintheactualbudgetdocuments.

Question47asksabouttheinformationcoveringthebudgetyear,andQuestion48asksabouttheperiodatleasttwoyearsbeyondthebudgetyear.Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentbothestimatesofhowthebudgetislinkedtogovernment’spolicygoalsforthebudgetyear(forQuestion47)orforamulti-yearperiodbeyondthebudgetyear(forQuestion48)andanarrativediscussionofhowthesepolicygoalsarereflectedinthebudget.Toanswer“b”foreitherquestion,theExecutive’sBudgetProposalorsupportingdocumentationmustpresentestimatesthatshowhowthebudgetislinkedtogovernment’spolicygoals,butnonarrativediscussionisincluded.A“c”responseappliesifthepresentationincludesonlyanarrativediscussion,orifitincludesestimatesthatshowhowthebudgetislinkedtosome,butnotall,ofthegovernment’spolicygoals(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“d”appliesifnoinformationispresentedonhowthebudgetislinkedtogovernment’spolicygoals.

Answer:b.Yes,estimatesthatshowhowtheproposedbudgetislinkedtoallthegovernment’spolicygoalsforamulti-yearperiodarepresented,butanarrativediscussionisnotincluded.

Source:UpdatedMediumTermBudgetForecast2019-2021http://pris.government.bg/prin/file_view.aspx?did=86004&pid=94691-pp.9-12-Introduction,settinginbriefallmajorpolicyprioritiesforthe2019-2021,detailednarrativediscussiononlinkbetweengoalsandproposedbudgetprioritiesinSection2:FiscalPolicyandMajorParametersfor2019-2021,pp27-47,Section3:PolicyPrioritiesandKeyAssumptions2019-2021,pp48-139

Comment:Moreinfoalsoindraftprogrambudgets.However,onsomeprioritiesandspendingprogramthenarrativediscussioncoversonly2019(not2020-2021).



49.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentnonfinancialdataoninputstobeacquiredforatleastthebudgetyear?

GUIDELINES:Question49asksabouttheavailabilityofnonfinancialdataoninputsforthebudgetyear.(NonfinancialdataonoutputsandoutcomesareaddressedinQuestion50.)

Thebudgetshoulddisclosenotonlytheamountofmoneythatisbeingallocatedonaprogrambutalsoanyinformationneededtoanalyzethatexpenditure.Nonfinancialdataandperformancetargetsassociatedwithbudgetproposalsareusedtoassessthesuccessofagivenpolicy.Forexample,evenwhenallocatedfundsarespentaccordingtoplan,thereremainsthequestionofwhetherthepolicydeliveredtheresultsthatitaimedtoachieve.

Nonfinancialdatacanincludeinformationon:

Inputs-Thesearetheresourcesassignedtoachieveresults.Forexample,inregardstoeducation,nonfinancialdataoninputscouldincludethenumberofbookstobeprovidedtoeachschoolorthematerialstobeusedtobuildorrefurbishaschool.Outputs-Theseareproductsandservicesdeliveredasaresultofinputs.Forexample,thenumberofpupilstaughteveryyear;thenumberofchildrenthatreceivedvaccines;orthenumberofbeneficiariesofasocialsecurityprogram.Outcomes-Thesearetheintendedimpactorpolicygoalsachieved.Forexample,anincreaseinliteracyratesamongchildrenunder10,orareductioninratesofmaternalmortality.

Inaddition,governmentsthatsetperformancetargetsmustusenonfinancialdataforoutputsandoutcomestodetermineifthesetargetshavebeenmet.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresent,foratleastthebudgetyear,nonfinancialdataoninputsforeachindividualprogramwithinalladministrativeunits(ministries,departments,andagencies).Itisalsoacceptableifnonfinancialdataoninputsforeachindividualprogramisorganizedbyfunctions.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentnonfinancialdataoninputsforalladministrativeunitsorallfunctions,butnotforeachindividualprogram(orevenforanyprograms)withinthoseadministrativeunitsorfunctions.A“c”responseappliesifnonfinancialdataoninputsarepresentedonlyforsomeprogramsand/orsomeadministrativeunitsorsomefunctions.Answer“d”appliesifnononfinancialdataoninputsispresented.

http://www.treasury.govt.nz/publications/abouttreasury/soi/2011-16

Answer:c.Yes,nonfinancialdataoninputsarepresentedforsomeprogramsand/orsomeadministrativeunits(orfunctions).

Source:DraftProgramBudgetsofministries(http://parliament.bg/bills/44/802-01-49.zip)

Comment:Someinformationonnon-financialinputs,suchashumanresourcesbyindividualprograms,ispresentedinprogrambudgetsofindividualadministrativeunits.



50.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentnonfinancialdataonresults(intermsofoutputsoroutcomes)foratleastthebudgetyear?

GUIDELINES:Question50asksabouttheavailabilityofnonfinancialdataonresultsforthebudgetyear.Nonfinancialdataonresultscanincludedataonbothoutputsandoutcomes,butnotoninputs(whichareaddressedinQuestion49).Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresent,foratleastthebudgetyear,nonfinancialdataonresultsforeachindividualprogramwithinalladministrativeunits(ministries,departments,andagencies).Itisalsoacceptableifnonfinancialdataonresultsforeachindividualprogramisorganizedbyfunctionalclassification.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentnonfinancialdataonresultsforalladministrativeunitsorallfunctionalclassifications,butnotforeachindividualprogram(orevenforanyprograms)withinthoseadministrativeunitsorfunctions.A“c”responseappliesifnonfinancialdataonresultsarepresentedonlyforsomeprogramsand/orsomeadministrativeunitsorsomefunctions.Answer“d”appliesifnononfinancialdataonresultsispresented.

Answer:a.Yes,nonfinancialdataonresultsareprovidedforeachprogramwithinalladministrativeunits(orfunctions).


Comment:Programbudgetspresentbreak-downbyindividualspendingprograms,andforeachprogramthereisalistof"outputindicators"togetherwith"targetvalues"forthe3-yearperiod(2019-2021).AlldraftbudgetsarepreparedaccordingtotheguidelinesissuedbytheMinistryofFinance(https://www.minfin.bg/upload/36543/BU1%20Ukazania%20prognoza%202019-2021.pdf,p.24)whichspecificallysetstherequirementsforpresentingoutputandoutcomeindicatorsbyindividualadministrativeunits.

See:MinistryofLaborandSocialPolicy-(file1500Министерствонатрудаисоциалнатаполитика.pdf)tableonp21-breakdownonoutputandoutcomeindicatorsforprogram"Socialprotectionandequalopportunities.,tableonp.24-breakdownoutputandoutcomeindicatorsforprogram"Integrationofpeoplewithdisabilities",etc.,MinistryofRegionalDevelopmentandPublicWorks(file2100Министерствонарегионалноторазвитиеиблагоустройство.pdf),tableonp32breakdownoutputandoutcomeindicatorsforprogram"Rehabilitationofroadinfrastructure".



51.AreperformancetargetsassignedtononfinancialdataonresultsintheExecutive’sBudgetProposaloranysupportingbudgetdocumentation?

GUIDELINES:Question51asksaboutperformancetargetsassignedtononfinancialdataonresultsforthebudgetyear.Thequestionappliestothosenonfinancialresultsshowninthebudget,andthatwereidentifiedforpurposesofQuestion50.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustassignperformancetargetstoallnonfinancialdataonresultsshowninthebudgetforatleastthebudgetyear.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustassignperformancetargetstoamajority(butnotall)ofthenonfinancialdataonresultsshowninthebudget.A“c”responseappliesperformancetargetsareassignedonlytolessthanhalfofthenonfinancialdataonresults.Answer“d”appliesifnoperformancetargetsareassignedtononfinancialdataonresultsshowninthebudget,orthebudgetdoesnotpresentnonfinancialresults.

Answer:b.Yes,performancetargetsareassignedtomostnonfinancialdataonresults.


Comment:Apartfrom"outputindicators"forprogramandprojectactivitiesandbeneficiaries(seeq50),mostprogramsalsohaveperformancetargetsrelatedtospecificpolicygoals.Forexample,intheprogrambudgetoftheMinistryofInteriorsetsspecifictargetforreductionofnumberofcrimes(file1300Министерствонавътрешнитеработи.pdf,p.4,line1inthetable),theMinistryofTransportandCommunicationssetsspecifictargetfortheaveragespeedofrailroadtravelorimprovementofBulgarianrankingininternationalITrankings(file2300Транспортаинф.технологииисъобщенията.pdf,p.13table,alsop.22table),MinistryofLaborandSocialPolicysetstargetforunemploymentrate,occupationalaccidentsetc.(file1500Министерствонатрудаисоциалнатаполитика.pdf,tableonp.14,tableon18).



52.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentestimatesofpolicies(bothnewproposalsandexistingpolicies)thatareintendedtobenefitdirectlythecountry’smostimpoverishedpopulationsinatleastthebudgetyear?

GUIDELINES:Question52askswhetherthebudgethighlightpolicies,bothnewandexisting,thatbenefitthepoorestsegmentsofsociety.Thisquestionisintendedtoassessonlythoseprogramsthatdirectlyaddresstheimmediateneedsofthepoor,suchasthroughcashassistanceprogramsortheprovisionofhousing,ratherthanindirectly,suchasthroughastrongernationaldefense.Thisinformationisofparticularinteresttothoseseekingtobolstergovernment’scommitmenttoanti-povertyefforts.Forpurposesofansweringthisquestion,adepartmentalbudget(suchfortheDepartmentofSocialWelfare)wouldnotbeconsideredacceptable.Ingeneral,thisquestionisaskingwhethertheEBPincludesaspecialpresentationthatpullstogetherestimatesofalltherelevantpoliciesinoneplace.However,ifthecountryuses“programbudgeting,”whereprogramsarepresentedasexpenditurecategorieswithspecificandidentifiedobjectives,anditidentifiesanti-povertyprogramswithineachadministrativeunit,thenthatisalsoacceptableforthisquestion.

TheIBPBudgetBrief,“HowTransparentareGovernmentsWhenitComestoTheirBudget’sImpactonPovertyandInequality?”(https://www.internationalbudget.org/wp-content/uploads/government-transparency-of-budgets-impact-on-poverty-inequality-ibp-2019.pdf)includesadiscussionofcountriesthathaveprovidedinformationonhowitspoliciesaffectthepoor.

Forinstance,Pakistanprovidesadetailedbreakdownofpro-poorexpenditureaspartofits2017-18budgetproposal.Inonedocument,thegovernmentsetsoutpolicypriorities,expectedoutputs,andestimatesofpastandfuturespendingforseveralprogramsaimedatpovertyalleviation.Anothersupportingdocumentprovidesacomprehensiveoverviewofongoingpolicies,includingachapteronsocialsafetynets,coveringbothfinancialandperformanceinformationofpovertyalleviationschemesoveraperiodofeightyears.(http://www.finance.gov.pk/budget/mtbf_2018_21.pdfandhttp://www.finance.gov.pk/survey_1718.html).

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustforatleastthebudgetyearbothpresentestimatescoveringallpoliciesthatareintendedtobenefitthemostimpoverishedpopulationsandincludeanarrativediscussionthatspecificallyaddressesthesepolicies.(Forcountriesusingprogrambudgetingthatbreaksoutindividualanti-povertyprograms,thereshouldbeaseparatenarrativeassociatedwitheachsuchprogram.)Answer“b”ifanarrativediscussionisnotincluded,butestimatesforallpoliciesthatareintendedtobenefitthemostimpoverishedpopulationsarepresented.Answer“c”ifthepresentationincludesestimatescoveringonlysome,butnotall,policiesthatareintendedtobenefitthemostimpoverishedpopulations(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“d”ifnoestimatesofpoliciesthatareintendedtobenefitthemostimpoverishedpopulationsarepresented.

Answer:a.Yes,estimatesofallpoliciesthatareintendedtobenefitdirectlythecountry’smostimpoverishedpopulationsarepresented,alongwithanarrativediscussion.

https://www.internationalbudget.org/wp-content/uploads/government-transparency-of-budgets-impact-on-poverty-inequality-ibp-2019.pdf

http://www.finance.gov.pk/budget/mtbf_2018_21.pdf

http://www.finance.gov.pk/survey_1718.html

Source:DraftProgramBudget2019,MinistryofLabourandSocialPolicyhttp://parliament.bg/bills/44/802-01-49.zip(pdffile1500Министерствонатрудаисоциалнатаполитикаinthezippedfolder)

Comment:Thereiscomprehensivedataandnarrativediscussiononallsocialprogramsinthe112-pagedocument.



53.DoestheexecutivereleasetothepublicitstimetableforformulatingtheExecutive’sBudgetProposal(thatis,adocumentsettingdeadlinesforsubmissionsfromothergovernmententities,suchaslineministriesorsubnationalgovernment,totheMinistryofFinanceorwhatevercentralgovernmentagencyisinchargeofcoordinatingthebudget’sformulation)?

GUIDELINES:Question53asksaboutthebudgettimetable.Aninternaltimetableisparticularlyimportantfortheexecutive’smanagementofthebudgetpreparationprocess,inordertoensurethattheexecutiveaccountsfortheviewsofthedifferentdepartmentsandagenciesintheproposedbudget.Thetimetablewould,forinstance,setdeadlinesforsubmissionsfromothergovernmententities,suchaslineministriesorsubnationalgovernment,totheMinistryofFinanceorwhatevercentralgovernmentagencyisinchargeofcoordinatingthebudget’sformulation.Sothatcivilsocietyisawareofthevariousstepsinthebudgetformulationprocess,andwhenopportunitiesmayexisttoengagetheexecutive,itisessentialthatthistimetablebemadeavailabletothepublic.

Toanswer“a,”theexecutivemustprepareadetailedbudgettimetableandreleaseittothepublic.A“b”answerappliesifthetimetableismadepublic,butsomedetailsarenotincluded.A“c”responseappliesifthetimetableismadepublic,butmanyimportantdetailsareexcluded,reducingitsvalueforthoseoutsidegovernment.Answer“d”appliesifnotimetableismadeavailabletothepublic.AslongasatimetableforformulatingtheExecutive’sBudgetProposalisreleased,answer“a,”“b,”or“c”maybeselected,eveniftheExecutive’sBudgetProposalisnotmadepubliclyavailable.

Answer:a.Yes,adetailedtimetableisreleasedtothepublic.

Source:Allthedeadlinesaresetinaspecialdecisionbythegovernment,approvedinthebeginningofeveryyear:CoMDecision51ontheBudgetProcedurefor2019(http://www.minfin.bg/upload/36443/RMS-51.pdf),alsoinMSWORD:http://pris.government.bg/prin/file_view.aspx?did=85253&pid=91156

Comment:



54.DoesthePre-BudgetStatementpresentinformationonthemacroeconomicforecastuponwhichthebudgetprojectionsarebased?

(ThecoreinformationmustincludeadiscussionoftheeconomicoutlookwithestimatesofnominalGDPlevel,inflationrate,realGDPgrowth,andinterestrates.)

GUIDELINES:

Question54focusesonthemacroeconomicforecastthatunderliesthePre-BudgetStatement,askingwhether“core”informationrelatedtotheeconomicassumptionsispresented.Thesecorecomponentsincludeadiscussionoftheeconomicoutlookaswellasestimatesofthefollowing:

nominalGDPlevel;inflationrate;realGDPgrowth;and

interestrates.

Beyondthesecoreelements,somegovernmentsalsoprovideadditionalinformationrelatedtotheeconomicoutlook,includingforinstance:short-andlong-terminterestrates;therateofemploymentandunemployment;GDPdeflator;priceofoilandothercommodities;currentaccount;exchangerate;andcompositionofGDPgrowth.

Toanswer“a,”thePre-BudgetStatementmustpresentallofthecoreinformationrelatedtothemacroeconomicforecastaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”thePre-BudgetStatementmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtothemacroeconomicforecastispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationonthemacroeconomicforecastispresented.

Answer:b.Yes,thecoreinformationispresentedforthemacroeconomicforecast.

Source:MediumTermBudgetForecast2019-2021Part1EconomicProspectsfor2018-2021http://www.minfin.bg/upload/37143/RMS%20264%202018.pdf

Comment:Atableonpage19includesanumberofindicators,including:nominalGDPlevel;inflationrate;realGDPgrowth;employmentgrowth;unemploymentrate;growthofthecompensationofemployeesGDPdeflator;currentaccount;tradebalance;foreigndirectinvestment;compositionofGDPgrowth.

Also,thereisannarrativediscussion(pages19-22)ontheeconomicgrowth,labormarket,inflation,balanceofpayments,monetaryandcreditgrowth.Also,estimatesofthepotentialgrowtharepresented(page23)andthegovernmentforecastiscomparedtotheforecastoftheEuropeanCommissiononBulgaria.ThereisalsodiscussionoftheEuropeanandtheworldeconomy(page13-14),includingforecastsontheworldeconomicgrowth,Europeaneconomicgrowth,exchangeratesEUR/USD,oilprices,non-energycommodities.

Theonlycorecomponentmissingistheinterestrate-butitshouldbenotedthatinBulgariaunderthecurrencyboardsystemthecentralbankdoesnothavecontroloverinterestrates;itonlycontrolstheexchangeratethatisfixedtotheEuro.Thus,interestrateisoflowerimportancecomparedtotheexchangerate,currentaccountandotherindicators(seealsoquestion15and15b).



IBPCommentAsinterestratesarenotpresented,theresponseisrevisedfrom"a"to"b"tomaintainconsistencyacrosssurveycountries.

55.DoesthePre-BudgetStatementpresentinformationonthegovernment’sexpenditurepoliciesandprioritiesthatwillguidethedevelopmentofdetailedestimatesfortheupcomingbudget?

(Thecoreinformationmustincludeadiscussionofexpenditurepoliciesandprioritiesandanestimateoftotalexpenditures.)

GUIDELINES:

Question55focusesonthegovernment’sexpenditurepoliciesandprioritiesinthePre-BudgetStatement,askingwhether“core”informationrelatedtothesepoliciesispresented.Thesecorecomponentsinclude:

adiscussionofexpenditurepoliciesandpriorities;andanestimateoftotalexpenditures.

AlthoughaPre-BudgetStatementisunlikelytoincludedetailedprogrammaticproposals(suchdetailedinformationistypicallyonlypresentedinthebudgetitself),itshouldincludeadiscussionofbroadpolicyprioritiesandaprojectionofatleasttotalexpendituresassociatedwiththesepoliciesforthebudgetyear.ThePre-BudgetStatementcanincludesomedetail,forinstance,estimatesprovidedbyanyofthethreeexpenditureclassifications—byadministrative,economic,andfunctionalclassifications.

Toanswer“a,”thePre-BudgetStatementmustpresentfortheupcomingbudgetyearallofthecoreinformationrelatedtothegovernment’sexpenditurepoliciesandprioritiesaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”thePre-BudgetStatementmustpresentallofthecorecomponentsnotedabovefortheupcomingbudgetyear.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtothegovernment’sexpenditurepoliciesandprioritiesispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationonthegovernment’sexpenditurepoliciesandprioritiesispresented.

Answer:a.Yes,informationbeyondthecoreelementsispresentedforthegovernment’sexpenditurepoliciesandpriorities.

Source:MediumTermBudgetForecast2019-2021(http://www.minfin.bg/upload/37143/RMS%20264%202018.pdf)Part2FiscalPolicyandMajorParameters2019-2021,p27andPart3PolicyPrioritiesandKeyAssumptions2019-2021p47

Comment:Detailednarrativediscussiononexpendituresstartingp62.Impactofdiscretionarymeasures(bothrevenueandexpenditure)onp38.Summarytablewithtotalexpendituresp.148(thePre-BudgetStatementdocumentissimilartotheEBPinstructureandcontents-theyarebothmediumtermbudgetforecast,theonefortheEBPbeingupdated)



56.DoesthePre-BudgetStatementpresentinformationonthegovernment’srevenuepoliciesandprioritiesthatwillguidethedevelopmentofdetailedestimatesfortheupcomingbudget?

(Thecoreinformationmustincludeadiscussionofrevenuepoliciesandprioritiesandanestimateoftotalrevenues.)

GUIDELINES:Question56focusesonthegovernment’srevenuepoliciesandprioritiesinthePre-BudgetStatement,askingwhether“core”informationrelatedtothesepoliciesispresented.Thesecorecomponentsinclude:

adiscussionofrevenuepoliciesandpriorities;andanestimateoftotalrevenue.

AlthoughaPre-BudgetStatementisunlikelytoincludedetailedrevenueproposals,itshouldincludeadiscussionofbroadpolicyprioritiesandaprojectionofatleastthetotalrevenueassociatedwiththesepoliciesforthebudgetyear.ThePre-BudgetStatementcanalsoincludemoredetail,forinstance,withestimatesprovidedbyrevenuecategory—taxandnon-tax—orsomeofthemajorindividualsourcesofrevenue,suchastheValueAddedTaxortheincometax.

Toanswer“a,”thePre-BudgetStatementmustpresentfortheupcomingbudgetyearallofthecoreinformationrelatedtothegovernment’srevenuepoliciesandprioritiesaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”thePre-BudgetStatementmustpresentallofthecorecomponentsnotedabovefortheupcomingbudgetyear.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtothegovernment’srevenuepoliciesandprioritiesispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationonthegovernment’srevenuepoliciesandprioritiesispresented.

Answer:a.Yes,informationbeyondthecoreelementsispresentedforthegovernment’srevenuepoliciesandpriorities.

Source:MediumTermBudgetForecast2019-2021(http://www.minfin.bg/upload/37143/RMS%20264%202018.pdf)Part2FiscalPolicyandMajorParameters2019-2021,p27andPart3PolicyPrioritiesandKeyAssumptions2019-2021p.47

Comment:Impactofdiscretionarymeasurespresentedp.38.Detailednarrativediscussiononrevenuepoliciesstartsafterp.48.Summarytablewithtotalrevenuesp.147



57.DoesPre-BudgetStatementpresentthreeestimatesrelatedtogovernmentborrowinganddebt:theamountofnetnewborrowingrequiredduringthebudgetyear;thetotaldebtoutstandingattheendofthebudgetyear;andinterestpaymentsonthedebtforthebudgetyear?

GUIDELINES:

Question57askswhetherthePre-BudgetStatementincludesthreekeyestimatesrelatedtoborrowinganddebt:

·theamountofnetnewborrowingneededintheupcomingbudgetyear;

·thecentralgovernment’stotaldebtburdenattheendoftheupcomingbudgetyear;and

·theinterestpaymentsontheoutstandingdebtfortheupcomingbudgetyear.

Debtistheaccumulatedamountofmoneythatthegovernmentborrows.Thegovernmentcanborrowfromitscitizens,banks,andbusinesseswithinthecountry(domesticdebt)orfromcreditorsoutsidethecountry(externaldebt).Externaldebtistypicallyowedtoprivatecommercialbanks,othergovernments,orinternationalfinancialinstitutionssuchastheWorldBankandtheInternationalMonetaryFund.



Toanswer“a,”thePre-BudgetStatementmustpresentallthreeestimatesofborrowinganddebtforatleasttheupcomingbudgetyear.Fora“b”answer,thePre-BudgetStatementmustpresenttwoofthosethreeestimates.Fora“c”answer,thePBSmustpresentoneofthethreeestimates.Answer“d”appliesifnoinformationonborrowinganddebtispresentedinthePBS.

Answer:b.Yes,twoofthethreeestimatesrelatedtogovernmentborrowinganddebtarepresented.

Source:MediumTermBudgetForecast2019-2021(http://www.minfin.bg/upload/37143/RMS%20264%202018.pdf)Part2FiscalPolicyandMajorParameters2019-2021,p43(sectionongovernmentdebt),p.148-interestpaymentsintable

Comment:Interestpaymentsareseparatelineinthetablepresentingallexpendituresbyeconomicclassification.Theforecastforlevelofdebtisingraphonp44.Asthebudgetforecastenvisagesbudgetsurplusesfor2019and2020,thereisnonewnetborrowingrequired.

PeerReviewerOpinion:DisagreeSuggestedAnswer:c.Yes,oneofthethreeestimatesrelatedtogovernmentborrowinganddebtarepresented.Comments:ThePBSforecastsabudgetdeficitof0.5%(p.152-http://www.minfin.bg/upload/37143/RMS%20264%202018.pdf),therefore,thereshouldhavebeenadiscussionregardingeithernetnewborrowing,orinternalsourcesoffinancingofthedeficit,e.g.theFiscalReserve,whichisnotincludedinthePBS.Furthermore,theCentralGovernment'stotaldebtburdenispresentedonlyingraphformat,inverybadquality,whichmakesonlyforanestimation,butdiscerningtheexactamountisimpossible.Thediscussionprecedingthegraphgivesanotherestimation,statingthatfortheperiod2018-2021thedebtburdenwillbeintherangeofBGN24.4-24.2bnor23.3%-19.4%ofGDP.Inlightofthis-missingtwoestimates,theReviewerbelievestheanswershouldbe'c'.


ResearcherResponseWepartiallyagreewiththepeerreviewer.Indeedthedebtburdenispresentedonlyingraphformat-soshouldnotbeacceptedasanestimateforthisquestion.Wealsoagreethatadeficitisforecastedfor2019.However,webelievethatnewnewborrowingisinfactexplicitlypresentedinnominalterms(andasashareofGDP)-thefinalrowofAnnex3onpp.147-148,called'Financing'.Theresponseshouldbedowngradedto"b".

IBPCommentIBPisinagreementwiththeresearcher's"ResponsetoReview."Theresponseisrevisedfrom"a"to"b."

58.DoesthePre-BudgetStatementpresentestimatesoftotalexpendituresforamulti-yearperiod(atleasttwo-yearsbeyondthebudgetyear)?

GUIDELINES:

Question58asksaboutmulti-yearexpenditureestimatesinthePre-BudgetStatement.

Toanswer“a,”expenditureestimatesforatleasttwoyearsbeyondtheupcomingbudgetyearmustbepresented.Theestimatesmustbeforatleasttotalexpenditures,butcouldincludemoredetailthanjusttheaggregatetotal.

Answer:a.Yes,multi-yearexpenditureestimatesarepresented.

Source:MediumTermBudgetForecast2019-2021(http://www.minfin.bg/upload/37143/RMS%20264%202018.pdf)Part3Policyprioritiesandkeyassumptions2019-2021,p62(expenditurepolicies),Appendix3p.148-expenditurebyeconomicclassification,Appendix4-expenditurebyadministrativeunit

Comment:Expendituresestimatesareavailableforthe3-yearperiodtill2021(similarstructureandcontentsastheEBP)



59.DoestheEnactedBudgetpresentexpenditureestimatesbyanyofthethreeexpenditureclassifications(byadministrative,economic,orfunctionalclassification)?

GUIDELINES:Question59asksifexpenditureestimatesintheEnactedBudgetarepresentedbyanyoneofthethreeexpenditureclassifications—byadministrative,economic,andfunctionalclassifications—whichwereaddressedinQuestions1-5above.Eachoftheclassificationsanswersadifferentquestion:administrativeunitindicateswhospendsthemoney;functionalclassificationshowsforwhatpurposeisthemoneyspent;andeconomicclassificationdisplayswhatthemoneyisspenton.Unlikeclassificationbyadministrativeunit,whichtendstobeuniquetoeachcountry,functionalandeconomicclassificationsforgovernmentbudgetinghavebeendevelopedandstandardizedbyinternationalinstitutions.Cross-countrycomparisonsarefacilitatedbyadherencetotheseinternationalclassificationstandards.

Toanswer“a,”theEnactedBudgetmustpresentexpenditureestimatesbyallthreeoftheexpenditureclassifications.Toanswer“b,”expenditureestimatesmustbepresentedbytwoofthethreeclassifications.A“c”answerappliesifexpenditureestimatesarepresentedbyoneofthethreeclassifications.Answer“d”appliesifexpenditureestimatesarenotpresentedbyanyofthethreeclassifications.

Answer:b.Yes,theEnactedBudgetpresentsexpenditureestimatesbytwoofthethreeexpenditureclassifications.

Source:EnactedBudget2019:http://www.minfin.bg/upload/39412/ZDBRB%202019.pdf

Comment:Byeconomicclassification-consolidatedbudgetp.1andbyadministrativeunit-eachunitinseparatetable(articlesintheLaw),pp2-30.



59b.BasedontheresponsetoQuestion59,checkthebox(es)toidentifywhichexpenditureclassificationsareincludedintheEnactedBudget:

Answer:AdministrativeclassificationEconomicclassification


Comment:



60.DoestheEnactedBudgetpresentexpenditureestimatesforindividualprograms?

GUIDELINES:Question60asksifexpenditureestimatesintheEnactedBudgetarepresentedbyprogram.Thereisnostandarddefinitionfortheterm“program,”andthemeaningcanvaryfromcountrytocountry.However,forthepurposesofansweringthequestionnaire,researchersshouldunderstandtheterm“program”tomeananylevelofdetailbelowanadministrativeunit,suchasaministryordepartment.


Toanswer“a,”theEnactedBudgetmustpresentallprograms,whichaccountforallexpenditures,inthebudgetyear.Toanswer“b,”theEnactedBudgetmustpresentexpendituresforindividualprogramsthatwhencombinedaccountforatleasttwo-thirdsofexpenditures,butnotallexpenditures.A“c”answerappliesiftheEnactedBudgetpresentsprogramsthataccountforlessthantwo-thirdsofexpenditures.Answer“d”appliesifexpendituresarenotpresentedbyprogramintheEnactedBudget.

Answer:b.Yes,theEnactedBudgetpresentsestimatesforprogramsaccountingforatleasttwo-thirdsof,butnotall,expenditures.


Comment:SeetablesbyindividualprogramsbyadministrativeunitsafterArt.6onp4.



61.DoestheEnactedBudgetpresentrevenueestimatesbycategory(suchastaxandnon-tax)?

GUIDELINES:Question61askswhetherrevenueestimatesintheEnactedBudgetarepresentedby“category”—thatis,whethertaxandnon-taxsourcesofrevenueareshownseparately.

Toanswer“a,”theEnactedBudgetmustpresentrevenueestimatesclassifiedbycategory.

Answer:a.Yes,theEnactedBudgetpresentsrevenueestimatesbycategory.

Source:EnactedBudget2019:http://www.minfin.bg/upload/39412/ZDBRB%202019.pdf-Art1HeadlineI

Comment:



62.DoestheEnactedBudgetpresentindividualsourcesofrevenue?

GUIDELINES:Question62askswhetherrevenueestimatesforindividualsourcesofrevenuearepresentedintheEnactedBudget.Thequestionappliestobothtaxandnon-taxrevenue.

Toanswer“a,”theEnactedBudgetmustpresentallindividualsourcesofrevenue,and“other”or“miscellaneous”revenuemustaccountforthreepercentorlessofallrevenue.Toanswer“b,”theEnactedBudgetmustpresentindividualsourcesofrevenuethatwhencombinedaccountforatleasttwo-thirdsofallrevenue,butnotallrevenue.A“c”answerappliesiftheEnactedBudgetpresentsindividualsourcesofrevenuethataccountforlessthantwo-thirdsofrevenues.Answer“d”appliesifindividualsourcesofrevenuearenotpresented.

Answer:b.Yes,theEnactedBudgetpresentsindividualsourcesofrevenueaccountingforatleasttwo-thirdsof,butnotall,revenue.

Source:EnactedBudget2019:http://www.minfin.bg/upload/39412/ZDBRB%202019.pdf-Art1

Comment:Taxrevenuesarelistedascorporatetax,personalincometax,VAT,excises,customduties,othertaxes,non-taxrevenuesarenotbroken-downbyindividualsource



63.DoestheEnactedBudgetpresentthreeestimatesrelatedtogovernmentborrowinganddebt:theamountofnetnewborrowingrequiredduringthebudgetyear;thetotaldebtoutstandingattheendofthebudgetyear;andinterestpaymentsonthedebtforthebudgetyear?

GUIDELINES:

Question63asksaboutthreekeyestimatesrelatedtoborrowinganddebt:

·theamountofnetnewborrowingrequiredduringthebudgetyear;

·thetotaldebtoutstandingattheendofthebudgetyear;

·theinterestpaymentsontheoutstandingdebtforthebudgetyear.

Debtistheaccumulatedamountofmoneythatthegovernmentborrows.Thegovernmentcanborrowfromitscitizens,banks,andbusinesseswithinthe

country(domesticdebt)orfromcreditorsoutsidethecountry(externaldebt).Externaldebtistypicallyowedtoprivatecommercialbanks,othergovernments,orinternationalfinancialinstitutionssuchastheWorldBankandtheInternationalMonetaryFund.



Toanswer“a,”theEnactedBudgetmustpresentallthreeestimatesofborrowinganddebt.Fora“b”answer,theEnactedBudgetmustpresenttwoofthosethreeestimates.Fora“c”answer,theEnactedBudgetmustpresentoneofthethreeestimates.Answer“d”appliesifnoinformationonborrowinganddebtispresentedintheEnactedBudget.



Comment:Interestpayments-Art.1HeadlineII,1.3."Interest";debtceilingforend2019-Art.67(whichisequaltothegovernment'sforecastforoutstandingdebtattheendof2019);newdebtissuance-Art68-72



64.WhatinformationisprovidedintheCitizensBudget?

(Thecoreinformationmustincludeexpenditureandrevenuetotals,themainpolicyinitiativesinthebudget,themacroeconomicforecastuponwhichthebudgetisbased,andcontactinformationforfollow-upbycitizens.)

GUIDELINES:

Question64focusesonthecontentoftheCitizensBudget,askingwhether“core”informationispresented.Thesecorecomponentsinclude:

expenditureandrevenuetotals;themainpolicyinitiativesinthebudget;themacroeconomicforecastuponwhichthebudgetisbased;andcontactinformationforfollow-upbycitizens.

Toanswer“a,”theCitizensBudgetorsupportingdocumentationmustpresentalloftheabovecoreinformationaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theCitizensBudgetmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesiftheCitizensBudgetincludessomeofthecorecomponentsabove,butothercorepiecesofinformationarenotincluded.Answer“d”appliesifaCitizensBudgetisnotpublished.

Answer:a.TheCitizensBudgetprovidesinformationbeyondthecoreelements.


Comment:Thereisbriefpresentationofthemacroeconomicforecast,keyfiscalindicatorsandpolicies,mainpolicyinitiatives,discussionontaxesandexpendituresonkeyfunctions,discussiononmunicipalbudgets/fiscaldecentralization.

Expenditureandrevenuetotals:pg.7

Mainpolicyinitiatives:pp.4-6Macroeconomicforecast:pg.4Contactinformation:pg.16



65.HowistheCitizensBudgetdisseminatedtothepublic?

GUIDELINES:Question65askshowtheCitizensBudgetisdisseminatedtothepublic.CitizensBudgetsshouldbemadeavailabletoavarietyofaudiences.ThereforepaperversionsandanInternetpostingofadocumentmightnotbesufficient.

Toanswer“a,”theexecutivemustusethreeormoredifferenttypesofcreativemediatoolstoreachthelargestpossibleshareofthepopulation,includingthosewhootherwisewouldnotnormallyhaveaccesstobudgetdocumentsorinformation.Disseminationwouldalsobepursuedattheverylocallevel,sothatthecoverageistargetedbothbygeographicareaandpopulationgroup(e.g.,women,elderly,lowincome,urban,rural,etc.).Option“b”appliesifsignificantdisseminationeffortsaremadethroughacombinationoftwomeansofcommunications,forinstance,bothpostingtheCitizensBudgetontheexecutive’sofficialwebsiteanddistributingprintedcopiesofit.Option“c”appliesiftheCitizensBudgetisdisseminatedthroughonlypostingontheexecutive’sofficialwebsite.Option“d”applieswhentheexecutivedoesnotpublishaCitizensBudget.

Answer:a.ACitizensBudgetisdisseminatedwidelythroughacombinationofatleastthreedifferentappropriatetoolsandmedia(suchastheInternet,billboards,radioprograms,newspapers,etc.).


Comment:TheMinistryofFinancehasdonethefollowing:1/PublishedCitizens'Budgetonitswebsitealongwithinfographics;2/Theinfographicswereusedbythemedia,includingonline,TVandnewspapers;3/Printed100,000paperleaflets(summaryversionoftheCitizens'Budget)tobedistributedinkeypublicoffices/desksbytheMinistryofEducation,CustomsAgencyandthetaxoffices;4/Insertedtheleafletinoneofdailynewspaperswithhighestcirculation(24hours);5/PublishedtheCitizens'BudgetinMinistryofFinance'sownmonthlymagazine.



66.Hastheexecutiveestablishedmechanismstoidentifythepublic’srequirementsforbudgetinformationpriortopublishingtheCitizensBudget?

GUIDELINES:Question66askswhethertheexecutivehasestablishedmechanismstoidentifythepublic’srequirementsforbudgetinformationbeforepublishingaCitizensBudget.WhatthepublicwantstoknowaboutthebudgetmightdifferfromtheinformationtheexecutiveincludesintechnicaldocumentsthatcomprisetheExecutive’sBudgetProposalortheEnactedBudget;similarly,differentperspectivesmightexistonhowthebudgetshouldbepresented,andthismayvarydependingonthecontext.ForthisreasontheexecutiveshouldconsultwiththepubliconthecontentandpresentationoftheCitizensBudget.

Toanswer“a,”theexecutivemusthaveestablishedmechanismstoconsultwiththepublic,andthesemechanismsforconsultationarebothaccessibleandwidelyusedbythepublic.Suchmechanismscanincludefocusgroups,socialnetworks,surveys,hotlines,andmeetings/eventsinuniversitiesorotherlocationswherepeoplegathertodiscusspublicissues.IncountrieswhereCitizensBudgetsareconsistentlyproducedandreleased,itmaybesufficientforthegovernmenttoprovidethepublicwithcontactinformationandfeedbackopportunities,andsubsequentlyusethefeedbacktoimproveitsmanagementof

publicresources.

Option“b”appliesiftheexecutivehasestablishedmechanismsforconsultationthatareaccessibletothepublic,butthatthepublicnonethelessdoesnotusefrequently.Thatis,thepublicdoesnottypicallyengagewiththeexecutiveonthecontentoftheCitizensBudget,eventhoughtheexecutivehascreatedopportunitiesforsuchconsultation.Option“c”appliesiftheexecutivehasestablishedmechanismforconsultationwiththepublic,buttheyarepoorlydesignedandthusnotaccessibletothepublic.Option“d”appliesiftheexecutivehasnotcreatedanymechanismstoseekfeedbackfromthepubliconthecontentoftheCitizensBudget.

Answer:d.No,theexecutivehasnotestablishedanymechanismstoidentifythepublic’srequirementsforbudgetinformationintheCitizen’sBudget.


Comment:AccordingtotheGuide"IncountrieswhereCitizensBudgetsareconsistentlyproducedandreleased,itmaybesufficientforthegovernmenttoprovidethepublicwithcontactinformationandfeedbackopportunities,andsubsequentlyusethefeedbacktoimproveitsmanagementofpublicresources".

InBulgariaCitizensBudgetsareconsistentlyproducedandreleasedbytheBudgetDirectorateoftheMinistryofFinance.

ContactinformationfortheMinistryandtheDirectorateisavailableonlinehttp://www.minfin.bg/bg/63

Contactinformationisalsopublishedinthecitizensbudgetitself(onthelastpage)



IBPCommentTheresearcher'scommentiswell-noted.However,asthereisnoevidenceofinputscollectedviathecontactinformationbeingused,theresponseisrevisedfrom"b"to"d"toensureconsistencyacrosssurveycountries.

67.Are“citizens”versionsofbudgetdocumentspublishedthroughoutthebudgetprocess?

GUIDELINES:Question67asksif“citizens”versionsofbudgetdocumentsarepublishedthroughoutthebudgetprocess.WhiletheCitizensBudgetwasinitiallyconceivedasasimplifiedversionoftheExecutive’sBudgetProposalortheEnactedBudget,goodpracticeisnowevolvingandsuggeststhata“citizens”versionofkeybudgetdocumentsshouldbeproducedduringeachofthefourphasesofthebudgetcycle.Thiswouldservetoinformcitizensofthestateofpublicfinancialmanagementthroughouttheentirebudgetcycle.

Toanswer“a,”acitizensversionofatleastonebudgetdocumentispublishedforeachofthefourstagesofthebudgetprocess(budgetformulation,enactment,execution,andaudit)—foratotalofatleastfourcitizensbudgetdocumentsthroughouttheprocess.Option“b”appliesifacitizensversionofabudgetdocumentispublishedforatleasttwoofthefourstagesofthebudgetprocess.Option“c”appliesifacitizensversionofabudgetdocumentispublishedforatleastoneofthefourstagesofthebudgetprocess.Selectoption“d”ifno“citizens”versionofbudgetdocumentsispublished.

Answer:b.Acitizensversionofbudgetdocumentsispublishedforatleasttwoofthefourstagesofthebudgetprocess.

Source:Citizens'BudgetforYER2017:http://www.minfin.bg/upload/38993/Otchet_za_izpylnenieto_na_Budget_2017_nakratko.pdf

Citizens'BudgetforPBS/EBP2019:http://www.minfin.bg/upload/38808/Budget%20za%20grajdanite_draft.pdf

Citizens'BudgetforEnactedBudget2018:https://www.minfin.bg/upload/36684/Budget%20nakratko_2018.pdf

Comment:



IBPCommentAsthereisnocitizens'versionoftheAuditReport,theresponseisrevisedfrom"a"to"b."

68.DotheIn-YearReportspresentactualexpendituresbyanyofthethreeexpenditureclassifications(byadministrative,economic,orfunctionalclassification)?

GUIDELINES:Question68asksifexpenditureestimatesinIn-YearReportsarepresentedbyanyoneofthethreeexpenditureclassifications—byadministrative,economic,andfunctionalclassifications—whichwereaddressedinQuestions1-5above.

Eachoftheclassificationsanswersadifferentquestion:administrativeunitindicateswhospendsthemoney;functionalclassificationshowsforwhatpurposeisthemoneyspent;andeconomicclassificationdisplayswhatthemoneyisspenton.Unlikeclassificationbyadministrativeunit,whichtendstobeuniquetoeachcountry,functionalandeconomicclassificationsforgovernmentbudgetinghavebeendevelopedandstandardizedbyinternationalinstitutions.Cross-countrycomparisonsarefacilitatedbyadherencetotheseinternationalclassificationstandards.

Toanswer“a,”In-YearReportsmustpresentactualexpendituresbyallthreeoftheexpenditureclassifications.Toanswer“b,”actualexpendituresmustbepresentedbytwoofthesethreeclassifications.A“c”answerappliesifactualexpendituresarepresentedbyoneofthethreeclassifications.Answer“d”appliesifactualexpendituresarenotpresentedbyanyofthethreeclassificationsinIn-YearReports.

Answer:c.Yes,theIn-YearReportspresentactualexpendituresbyonlyoneofthethreeexpenditureclassifications.

Source:MonthlyBulletinsontheExecutionoftheBudget:http://www.minfin.bg/bg/statistics/12

Comment:MonthlydatainthebulletinanddatatablespublishedbytheMoFonlyaccordingtoeconomicclassification.First-levelspendingadministrativeunitspublishontheirownwebsitesmonthlyfinancialreportsaswellasquarterlyreportsthathavebreakdownbyprograms.



68b.BasedontheresponsetoQuestion68,checkthebox(es)toidentifywhichexpenditureclassificationsareincludedintheIn-YearReports:

Answer:Economicclassification

Source:MonthlyBulletinsontheExecutionofthebudget:http://www.minfin.bg/bg/statistics/12

Comment:



69.DotheIn-YearReportspresentactualexpendituresforindividualprograms?

GUIDELINES:Question69asksifexpenditureestimatesinIn-YearReportsarepresentedbyprogram.Thereisnostandarddefinitionfortheterm“program,”andthemeaningcanvaryfromcountrytocountry.However,forthepurposesofansweringthequestionnaire,researchersshouldunderstandtheterm“program”tomeananylevelofdetailbelowanadministrativeunit,suchasaministryordepartment.


Toanswer“a,”In-YearReportsmustpresentactualexpendituresforallindividualprograms,accountingforallexpenditures.Toanswer“b,”In-YearReportsmustpresentactualexpendituresforindividualprogramsthatwhencombinedaccountforatleasttwo-thirdsofexpenditures,butnotallexpenditures.A“c”answerappliesifIn-YearReportspresentactualexpendituresforprogramsthataccountforlessthantwo-thirdsofexpenditures.Answer“d”appliesifactualexpendituresarenotpresentedbyprograminIn-YearReports.

Answer:c.Yes,theIn-YearReportspresentactualexpendituresforprogramsaccountingforlessthantwo-thirdsofexpenditures.

Source:MonthlyBulletinsontheExecutionoftheBudget

Comment:First-levelspendingadministrativeunitspublishseparatequarterlyreportsontheirrespectivewebsitesthathavebreakdownbyprograms.SeeforexampleMinistryofEnvironmentquarterlyreportsfor2018:https://www.moew.government.bg/bg/trimesechni-otcheti-po-programi-za-2018-g/.

AccordingtotheGuide:"Insomecountries,theadministrativeunitsissuethe[In-Year]reportsindividually,whileinothercountriestheinformationisconsolidatedintoonereport,whichistypicallyissuedbytheTreasury."

AccordingtothePublicFinanceLaw,art.133.(2)FirstlevelspendingunitsthatapplyaprogrammebudgetformatshallalsopresenttheMinistryofFinancewithquarterlyinformationontheexpenditureperbudgetprogrammes.https://www.lex.bg/laws/ldoc/2135837967

AccordingtotheCouncilofMinistersDecree332ontheexecutionofthestatebudgetin2018,art.34(3)Thereportsshallbepublishedontheirwebsiteswithin10daysafterpresentedtotheMinistryofFinance.https://www.minfin.bg/upload/36135/PMS%20izpalnenie%20DB%202018.pdf

ThecontentsofthereportsandthetimetableforpresentingreportstotheMinistryofFinanceisdeterminedbyMoFguidelinesissuedeveryquarter,andtheysetadeadlineabout15-19daysaftertheendofthereportingperiod.seelinkfor2018:https://www.minfin.bg/bg/1237

Therefore,reportsarepublishedwithin1monthafterthereportingperiod.



70.DotheIn-YearReportscompareactualyear-to-dateexpenditureswitheithertheoriginalestimateforthatperiod(basedontheenactedbudget)orthesameperiodinthepreviousyear?

GUIDELINES:Question70askswhetherIn-YearReportscompareactualexpendituresto-datewitheithertheenactedlevelsoractualexpendituresforthesameperiodinthepreviousyear.

TheOECDrecommendsthatthereportscontainthetotalyear-to-dateexpendituresinaformatthatallowsforacomparisonwiththebudget’sforecast

expenditures(basedonenactedlevels)forthesameperiod.

Toanswer“a,”comparisonsmustbemadeforexpenditurespresentedintheIn-YearReports

Answer:a.Yes,comparisonsaremadeforexpenditurespresentedintheIn-YearReports.

Source:MonthlyBulletinsontheExecutionoftheBudget:http://www.minfin.bg/bg/statistics/12

Comment:Therearecomparisonsforbothrevenueandexpenditure,inthetablesandinthetextofthemonthlybulletin.Seetableonp.4(e.g.here:http://www.minfin.bg/upload/39291/BULETIN_October%20_2018.pdf)



71.DoIn-YearReportspresentactualrevenuebycategory(suchastaxandnon-tax)?

GUIDELINES:Questions71askswhetherIn-YearReportspresentactualrevenuesby“category”—thatis,whethertaxandnon-taxsourcesofrevenueareshownseparately.

Toanswer“a,”In-YearReportsmustpresentrevenueestimatesclassifiedbycategory.

Answer:a.Yes,In-YearReportspresentactualrevenuebycategory.

Source:MonthlyBulletinsontheExecutionoftheBudget:http://www.minfin.bg/bg/statistics/12Seee.g.http://www.minfin.bg/upload/39291/BULETIN_October%20_2018.pdf,onp.2-7

Comment:



72.DoIn-YearReportspresenttheindividualsourcesofrevenueforactualrevenuescollected?

GUIDELINES:Question72askswhetherIn-YearReportspresentactualcollectionsofindividualsourcesofrevenue(suchasincometaxes,VAT,etc.).Thequestionappliestobothtaxandnon-taxrevenue.

Toanswer“a,”In-YearReportsmustpresentactualcollectionsforallindividualsourcesofrevenue,and“other”or“miscellaneous”revenuemustaccountforthreepercentorlessofallrevenue.Toanswer“b,”In-YearReportsmustpresentactualcollectionsforindividualsourcesofrevenuethatwhencombinedaccountforatleasttwo-thirdsofallrevenuecollected,butnotallrevenue.A“c”answerappliesifIn-YearReportspresentindividualsourcesofactualrevenuethataccountforlessthantwo-thirdsofallrevenuecollected.Answer“d”appliesifindividualsourcesofactualrevenuearenotpresented.

Answer:a.Yes,In-YearReportspresentindividualsourcesofactualrevenueaccountingforallrevenue.

Source:MonthlyBulletinsontheExecutionoftheBudget:http://www.minfin.bg/bg/statistics/12Seee.g.http://www.minfin.bg/upload/39291/BULETIN_October%20_2018.pdf,onp.2-7

Comment:Thereisdataonactualrevenueplusnarrativediscussiononindividualsourcesofincome.

PeerReviewerOpinion:DisagreeSuggestedAnswer:b.Yes,In-YearReportspresentindividualsourcesofactualrevenueaccountingforatleasttwo-thirdsof,butnotall,revenue.Comments:TheReviewerbelievestheanswershouldbe'b'asthereismoredetailedinformationaboutdifferenttaxrevenue,suchasVAT,exciseduties,corporatetax,etc.,however,thereisonlyatotalamountfornon-taxrevenueandnodetailsbysource.Therevenuefrom"other"taxes,non-tax,andairfortheexampletheResearcherhassuggestedcomprisearound9.45%oftotalrevenue-http://www.minfin.bg/upload/39291/BULETIN_October%20_2018.pdf,p.4andp.7.


ResearcherResponseWedisagreewiththepeerreviewer.Seealsosimilardiscussionon2017questionnairewithidenticalarguments.Asdefinedinsection1oftheSurvey,In-YearReportsincludethemonthlybulletinaswellastheMonthlydataonconsolidatedfiscalprogramandMonthlydataonthestatebudget.TheMonthlydataonthestatebudgetcontainindividualsourcesofnon-taxrevenuescanbefoundathttps://www.minfin.bg/bg/statistics/18.

73.DotheIn-YearReportscompareactualyear-to-daterevenueswitheithertheoriginalestimateforthatperiod(basedontheenactedbudget)orthesameperiodinthepreviousyear?

GUIDELINES:Question73askswhetherIn-YearReportscompareactualrevenuesto-datewitheithertheenactedlevelsoractualrevenuesforthesameperiodinthepreviousyear.

TheOECDrecommendsthatthereportscontainthetotalyear-to-daterevenuesinaformatthatallowsforacomparisonwiththebudget’sforecastrevenues(basedonenactedlevels)forthesameperiod.

Toanswer“a,”comparisonsmustbemadeforrevenuespresentedintheIn-YearReports.

Answer:a.Yes,comparisonsaremadeforrevenuespresentedintheIn-YearReports.

Source:MonthlyBulletinsontheExecutionoftheBudget:http://www.minfin.bg/bg/statistics/12Seee.g.http://www.minfin.bg/upload/39291/BULETIN_October%20_2018.pdf,onp.4

Comment:Tableonp.4-actualrevenuesuntilOctober,budgetestimatefor2018intheEnactedBudgetfor2018,%execution.Also,thereisnarrativediscussiononthecollectionofrevenuespp.4-7



74.DoIn-YearReportspresentthreeestimatesrelatedtoactualgovernmentborrowinganddebt:theamountofnetnewborrowing;thetotaldebtoutstanding;andinterestpayments?

GUIDELINES:Question74asksaboutthreekeyestimatesrelatedtoborrowinganddebt:

·theamountofnetnewborrowingsofarduringtheyear;

·thecentralgovernment’stotaldebtburdenatthatpointintheyear;and

·theinterestpaymentsto-dateontheoutstandingdebt.

Debtistheaccumulatedamountofmoneythatthegovernmentborrows.Thegovernmentcanborrowfromitscitizensandbanksandbusinesseswithinthecountry(domesticdebt)orfromcreditorsoutsidethecountry(externaldebt).Externaldebtistypicallyowedtoprivatecommercialbanks,othergovernments,orinternationalfinancialinstitutionssuchastheWorldBankandtheInternationalMonetaryFund.



Toanswer“a,”In-YearReportsmustpresentallthreeestimatesofborrowinganddebt.Fora“b”answer,In-YearReportsmustpresenttwoofthosethreeestimates.Fora“c”answer,IYRsmustpresentoneofthethreeestimates.Answer“d”appliesifnoinformationonborrowinganddebtispresentedinIn-YearReports.


Source:Monthlybulletinsonstatedebt:http://www.minfin.bg/bg/statistics/20

Monthlybulletinonthebudgetexecution:https://www.minfin.bg/bg/statistics/12

Comment:1.MonthlybulletinsonstatedebtSeee.g.forOctober2018http://www.minfin.bg/upload/39285/CGD-bulletin_debt_bg%2010.2018.pdf(BGversion)andhttp://www.minfin.bg/upload/39286/CGD-bulletin_debt_en10.2018.pdf(Englishversion).

Seep.11.StructureandDynamicsofCentralGovernmentDebt-columnsshowingdebtoutstandingatvarioustimepoints,incl.31.12.2017andmostrecent,differenceisnetnewborrowing(whichwasnegativein2018asgovernmentdebtfell).

Seep.3chartandtextCentralGovernmentDebtPayments,01.01–31.10.2018-showinginterestratepaymentsbrokendownbytypeofcreditors.

2.Monthlybulletinonthebudgetexecutionhttps://www.minfin.bg/upload/39291/BULETIN_October%20_2018.pdf

Theamountofnetnewborrowingisavailableonpage8-9undertheheading"Findingthebudgetthroughdebtoperations".Thenetnewborrowingisbrokendowntonetexternalborrowingandnetinternalborrowing(botharenegativeasgovernmentdebtfell).



75.DoIn-YearReportspresentinformationrelatedtothecompositionofthetotalactualdebtoutstanding?

(Thecoreinformationmustincludeinterestratesonthedebtinstruments;maturityprofileofthedebt;andwhetheritisdomesticorexternaldebt.)

GUIDELINES:Question75focusesonthecompositionofgovernmentdebt,askingwhether“core”informationrelatedtoitscompositionispresented.Thesecorecomponentsinclude:

interestratesonthedebt;


Theinterestratesaffecttheamountofinterestthatmustbepaidtocreditors.Thematurityprofileindicatesthefinalpaymentdateoftheloan,atwhichpointtheprincipal(andallremaininginterest)isduetobepaid;governmentborrowingtypicallyincludesamixofshort-termandlong-termdebt.AsdiscussedinQuestion74,domesticdebtisheldbyacountry’scitizensandbanksandbusinesses,whileexternaldebtisheldbyforeigners.Thesefactorsrelatedtothecompositionofthedebtgiveanindicationofthepotentialvulnerabilityofthecountry’sdebtposition,andultimatelywhetherthecostofservicingtheaccumulateddebtisaffordable.

Beyondthesecoreelements,agovernmentmayalsoprovideadditionalinformationrelatedtothecompositionofitsdebt,includingforinstance:whetherinterestratesarefixedorvariable;whetherdebtiscallable;thecurrencyofthedebt;aprofileofthecreditors(bilateralinstitutions,multilateralinstitutions,commercialbanks,CentralBank,etc.);ananalysisoftheriskassociatedwiththedebt;andwhereappropriate,whatthedebtisbeingusedtofinance.

Toanswer“a,”In-YearReportsmustpresentallofthecoreinformationrelatedtothecompositionofgovernmentdebtto-dateaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”In-YearReportsmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtothecompositionofgovernmentdebtispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationispresentedonthecompositionofthedebtoutstandinginIn-YearReports.

Answer:a.Yes,informationbeyondthecoreelementsispresentedforthecompositionofthetotalactualdebtoutstanding.

Source:Monthlybulletinsonstatedebt:http://www.minfin.bg/bg/statistics/20

Comment:Seee.g.forOctober2018http://www.minfin.bg/upload/39285/CGD-bulletin_debt_bg%2010.2018.pdf(BGversion)andhttp://www.minfin.bg/upload/39286/CGD-bulletin_debt_en10.2018.pdf(Englishversion).

Dataontotalamountofdebtoutstandingasofendofreportingmonth(i.e.October2018inthiscase)-p.1;structurebydomestic/external-p1.,instruments-p.1and2,creditors-p.1,currency-p.2,maturity-p.3,interestrate(fixed/floating)-p.2,completelistofgovernmentsecuritiesoutstanding(withissuedate,maturitydate,amount,interestrate)-p.4,summaryofoutcomeinGStendersheldsincethebeginningoftheyear,listofbondsissuedoninternationalcapitalmarkets-p.10,holders(domestic/foreign)-p.11,debtservicepaymentsforYTD(interestandprincipal)-p.3.



76.DoestheMid-YearReviewofthebudgetincludeanupdatedmacroeconomicforecastforthebudgetyearunderway?

GUIDELINES:

Question76askswhethertheMid-YearReviewincludesanupdatedmacroeconomicforecastforthebudgetyear,andprovidesanexplanationoftheupdate.

RefertoQuestion15forthecomponentsofthemacroeconomicforecastpresentedintheExecutive’sBudgetProposal.

Toanswer“a,”theMid-YearReviewmustincludeanupdatedmacroeconomicforecastandexplainallofthedifferencesbetweentheinitialforecastpresentedintheExecutive’sBudgetProposalandtheupdatedforecast.Theexplanationmustincludeatleastestimatesofalldifferences;anarrativediscussionisdesirablebutnotrequiredifestimatesofallthedifferencesareprovided.Toanswer“b,”themacroeconomicforecastmustbeupdated,butonlysomeofthedifferencesbetweentheinitialandupdatedforecastsareexplained.Theexplanationwouldbemorelimited,suchasonlyanarrativediscussionofthedifferencesorestimatescoveringonlysomeofthedifferences.A“c”responseappliesiftheMid-YearReviewincludesanupdatedmacroeconomicforecast,butdoesnotprovideanexplanationfortherevisions.A“d”responseappliesifthemacroeconomicforecasthasnotbeenupdated.

Answer:c.Yes,theestimatesformacroeconomicforecasthavebeenupdated,butanexplanationofthedifferencesbetweentheoriginalandupdated

forecastisnotpresented.

Source:Reportontheexecutionoftheconsolidatedbudgetprogramtill30June2018http://pris.government.bg/prin/file_view.aspx?did=84761&pid=94113p.5-10

Comment:Thereisacomprehensivenarrativediscussionontheupdateinmacroeconomicestimatesandcomparisonwiththeoriginalforecast.



IBPCommentTheonlycomponentfromQ15forwhichaspecific,updatedestimatefortheentirebudgetyearunderwayisprovidedisinflation-seepage9.Tomaintainconsistencyacrosssurveycountries,theresponseisrevisedfrom"a"to"c."

77.DoestheMid-YearReviewofthebudgetincludeupdatedexpenditureestimatesforthebudgetyearunderway?

GUIDELINES:Question77askswhethertheMid-YearReviewincludesupdatedestimatesofexpenditureforthebudgetyear,andprovidesanexplanationoftheupdate.

Toanswer“a,”theMid-YearReviewmustincludeupdatedexpenditureestimatesandexplainallofthedifferencesbetweentheinitiallevelspresentedintheExecutive’sBudgetProposal(ortheEnactedBudget)andtheupdatedestimates.Theexplanationmustincludeatleastestimatesofalldifferences;anarrativediscussionisdesirablebutnotrequiredifestimatesofallthedifferencesareprovided.Theexpenditureestimatesmustbeupdated,butonlysomeofthedifferencesbetweentheinitialandupdatedestimatesareexplained.Theexplanationwouldbemorelimited,suchasonlyanarrativediscussionofthedifferencesorestimatescoveringonlysomeofthedifferences.A“c”responseappliesiftheMid-YearReviewincludesupdatedexpenditureestimates,butdoesnotprovideanexplanationfortherevisions.A“d”responseappliesiftheexpenditureestimateshavenotbeenupdated.

Answer:d.No,expenditureestimateshavenotbeenupdated.

Source:Reportontheexecutionoftheconsolidatedbudgetprogramtill30June2018http://pris.government.bg/prin/file_view.aspx?did=84761&pid=94113

Comment:NoupdatedestimatesisprovidedintheMYR.However,onp.11,secondparagraph,firstsentence,thereportstatesthatexpendituresfollowtheestimatesintheEB.Therefore,thereisnoneedtoupdatetheestimates.Moreover,thegovernmentcannotupdateexpenditureestimatesupwards-i.e.theEnactedBudgetisinfactalegalceilingonexpenditures,sotoupdatemeanstodraftanewBudgetActandsendittheParliamentforapproval.



IBPCommentThesentencecitedbytheresearcherdoesnotprovidesufficientsupporttoconcludethatallexpenditureestimatesremainunchangedfromtheinitialbudget.Theresponseisthereforerevisedfrom"e"to"d"toensurecross-countryconsistency.

78.DoestheMid-YearReviewofthebudgetpresentexpenditureestimatesforthebudgetyearunderwaybyanyofthethreeexpenditureclassifications(byadministrative,economic,orfunctionalclassification)?

GUIDELINES:Question78asksifexpenditureestimatesintheMid-YearReviewarepresentedbyanyoneofthethreeexpenditureclassifications—byadministrative,

economic,andfunctionalclassifications—whichwereaddressedinQuestions1-5above.Eachoftheclassificationsanswersadifferentquestion:administrativeunitindicateswhospendsthemoney;functionalclassificationshowsforwhatpurposeisthemoneyspent;andeconomicclassificationdisplayswhatthemoneyisspenton.Unlikeclassificationbyadministrativeunit,whichtendstobeuniquetoeachcountry,functionalandeconomicclassificationsforgovernmentbudgetinghavebeendevelopedandstandardizedbyinternationalinstitutions.Cross-countrycomparisonsarefacilitatedbyadherencetotheseinternationalclassificationstandards.

Toanswer“a,”theMid-YearReviewmustpresentexpenditureestimatesbyallthreeoftheexpenditureclassifications.Toanswer“b,”expenditureestimatesmustbepresentedbytwoofthesethreeclassifications.A“c”answerappliesifexpenditureestimatesarepresentedbyoneofthethreeclassifications.Answer“d”appliesifexpenditureestimatesarenotpresentedbyanyofthethreeclassificationsintheMid-YearReview.

Answer:d.No,theMid-YearReviewdoesnotpresentexpenditureestimatesbyanyexpenditureclassification.

Source:Reportontheexecutionoftheconsolidatedbudgetprogramtill30June2018http://pris.government.bg/prin/file_view.aspx?did=84761&pid=94113p.18-23(byfunction)p31-37(byeconomicclassification)

Comment:Seecommentonq.77.Onp.11,secondparagraph,firstsentence,thereportstatesthatexpendituresfollowtheestimatesintheEB.Therefore,thereisnoneedtoupdatetheestimates.



IBPCommentPleaseseetheIBPcommentonQ77.Inaddition,thefunctionalandeconomicclassificationtablescitedbytheresearcheronpage18and31,respectively,donotcontainanypresentationofupdatedestimatesforthebudgetyearunderway,noranindicationthattheoriginalenactedfiguresarebeingmaintained.Theresponseisrevisedfrom"b"to"d"toensurecross-countryconsistency.

78b.BasedontheresponsetoQuestion78,checkthebox(es)toidentifywhichexpenditureclassificationsareincludedintheMid-YearReview:

Answer:Noneoftheabove


Comment:



IBPCommentPertheIBPcommentonquestion78,theoption"Noneoftheabove"isselected,whiletheoptions"Economicclassification"and"Functionalclassification"arede-selected.

79.DoestheMid-YearReviewofthebudgetpresentexpenditureestimatesforthebudgetyearunderwayforindividualprograms?

GUIDELINES:

Question79asksifexpenditureestimatesintheMid-YearReviewarepresentedbyprogram.Thereisnostandarddefinitionfortheterm“program,”andthemeaningcanvaryfromcountrytocountry.However,forthepurposesofansweringthequestionnaire,researchersshouldunderstandtheterm“program”tomeananylevelofdetailbelowanadministrativeunit,suchasaministryordepartment.


Toanswer“a,”theMid-YearReviewmustpresentexpendituresforallindividualprograms,accountingforallexpenditures.Toanswer“b,”theMid-YearReviewmustpresentexpendituresforindividualprogramsthatwhencombinedaccountforatleasttwo-thirdsofexpenditures,butnotallexpenditures.A“c”answerappliesiftheMid-YearReviewpresentsprogramsthataccountforlessthantwo-thirdsofexpenditures.Answer“d”appliesifexpendituresarenotpresentedbyprogramintheMid-YearReview.

Answer:d.No,theMid-YearReviewdoesnotpresentexpenditureestimatesbyprogram.


Comment:Programorientedbudgetreportsareproducedineachfirst-levelspendingunitandpublishedonindividualwebsites,butthereisnosectionintheMYRthatsummarizesthesedata.



80.DoestheMid-YearReviewofthebudgetincludeupdatedrevenueestimatesforthebudgetyearunderway?

GUIDELINES:Question80askswhethertheMid-YearReviewincludesupdatedestimatesofrevenueforthebudgetyear,andprovidesanexplanationoftheupdate.

Toanswer“a,”theMid-YearReviewmustincludeupdatedrevenueestimatesandexplainallofthedifferencesbetweentheinitiallevelspresentedintheExecutive’sBudgetProposal(ortheEnactedBudget)andtheupdatedestimates.Theexplanationmustincludeatleastestimatesofalldifferences;anarrativediscussionisdesirablebutnotrequiredifestimatesofallthedifferencesareprovided.Toanswer“b,”therevenueestimatesmustbeupdated,butonlysomeofthedifferencesbetweentheinitialandupdatedestimatesareexplained.Theexplanationwouldbemorelimited,suchasonlyanarrativediscussionofthedifferencesorestimatescoveringonlysomeofthedifferences.A“c”responseappliesiftheMid-YearReviewincludesupdatedrevenueestimates,butnoexplanationfortherevisionsisprovided.A“d”responseappliesiftherevenueestimateshavenotbeenupdated.

Answer:d.No,revenueestimateshavenotbeenupdated.


Comment:Noupdatedestimatesfor2018arepresentedintheMYR.However,onp.10,inthebeginningoflastparapraph,thereportexplicitlystatesthatthegovernmentdoesnotexpectanypressureontherevenuesideandalsothattaxrevenueswillfallwithinestimatesintheEB.Thereforeweconsidertheproperansweras"e",oralternatively-"a".

PeerReviewerOpinion:DisagreeSuggestedAnswer:d.No,revenueestimateshavenotbeenupdated.Comments:ThesecondsentenceintheparagraphtheResearchersitesstatesthat"Thetaxrevenueforecastfor2018showsthatanover-performanceinrevenuecanbeexpectedwithregardtosocialandhealthinsurancecontributions,VAT,corporatetax,incometax,andothers".Thiswouldsuggestthatthegovernmenthadareasontobelieveactualtaxrevenuewoulddeviateupwardsfromprojections,butdidnotupdateitsrevenueestimatesleadingtoanoverperformanceoftotalrevenueofBGN1.4bnor3.6%deviationforFY2018.Furthermore,theanswerinthe2017surveyis'd'.


ResearcherResponseWeagreewiththepeerreviewer.Theanswerwaschangedto'd'.

IBPCommentIBPisinagreementwiththepeerreviewer'scommentandtheresearcher's"ResponsetoReview."Theresponseisthereforerevisedfrom"e"to"d."

81.DoestheMid-YearReviewofthebudgetpresentrevenueestimatesforthebudgetyearunderwaybycategory(suchastaxandnon-tax)?

GUIDELINES:Question81askswhetherrevenueestimatesintheMid-YearReviewarepresentedby“category”—thatis,whethertaxandnon-taxsourcesofrevenueareshownseparately.

Toanswer“a,”theMid-YearReviewmustpresentrevenueestimatesclassifiedbycategory.

Answer:b.No,theMid-YearReviewdoesnotpresentrevenueestimatesbycategory.

Source:Reportontheexecutionoftheconsolidatedbudgetprogramtill30June2018http://pris.government.bg/prin/file_view.aspx?did=84761&pid=94113seetableonp.24andfollowingnarrativediscussion.

Comment:Onp.10,inthebeginningoflastparagraph,thereportexplicitlystatesthatthegovernmentdoesnotexpectanypressureontherevenuesideandalsothattaxrevenueswillfallwithinestimatesintheEB(seeq80).Therefore,wechoseanswer"a"asitappliestoenactedlevels.



IBPCommentInlightofthepeerreviewer'scommentandtheresearcher's"ResponsetoReview"onQ80,theresponseisrevisedfrom"a"to"b."

82.DoestheMid-YearReviewofthebudgetpresentindividualsourcesofrevenueforthebudgetyearunderway?

GUIDELINES:Question82askswhetherrevenueestimatesforindividualsourcesofrevenuearepresentedintheMid-YearReview.Thequestionappliestobothtaxandnon-taxrevenue.

Toanswer“a,”theMid-YearReviewmustpresentallsourcesofrevenueindividually,accountingforallrevenues,and“other”or“miscellaneous”revenuemustaccountforthreepercentorlessofallrevenue.Toanswer“b,”theMid-YearReviewmustpresentindividualsourcesofrevenuethatwhencombinedaccountforatleasttwo-thirdsofallrevenue,butnotallrevenue.A“c”answerappliesiftheMid-YearReviewpresentsestimatesofindividualrevenuesourcesthataccountforlessthantwo-thirdsofrevenue.Answer“d”appliesifindividualsourcesofrevenuearenotpresentedintheMid-YearReview.

Answer:d.No,theMid-YearReviewdoesnotpresentindividualsourcesofrevenue.

Source:Reportontheexecutionoftheconsolidatedbudgetprogramtill30June2018http://pris.government.bg/prin/file_view.aspx?did=84761&pid=94113p.24-31

Comment:Detaileddataandnarrativediscussionispresentedp.24-31.Seealsocommentonq.80andq.81-Onp.10,inthebeginningoflastparagraph,thereportexplicitlystatesthatthegovernmentdoesnotexpectanypressureontherevenuesideandalsothattaxrevenueswillfallwithinestimatesintheEB.Therefore,wechoseanswer"a"asitappliestoenactedlevels.



IBPCommentPp.24-31oftheMYRdiscussrevenueexecutionfiguresasofthefirsthalfofFY2018,withoutpresentingupdatedrevenueestimatesfortheentirebudgetyearunderway.Inaddition,inlightofthepeerreviewer'scommentandtheresearcher's"ResponsetoReview"onQ80,theresponseisrevisedfrom"a"to"d."

83.DoestheMid-YearReviewofthebudgetincludeupdatedestimatesofgovernmentborrowinganddebt,includingitscomposition,forthebudgetyearunderway?

GUIDELINES:

Question83askswhethertheMid-YearReviewincludesupdatedestimatesofborrowinganddebt,includingitscomposition,forthebudgetyear,andprovidesanexplanationoftheupdate.

RefertoQuestion13fordetailsonestimatesintheExecutive’sBudgetProposalofborrowinganddebt.Keyestimatesrelatedtoborrowinganddebtinclude:

Theamountofnetnewborrowingrequiredduringthebudgetyear;Thecentralgovernment’stotaldebtburdenattheendofthebudgetyear;andTheinterestpaymentsontheoutstandingdebtforthebudgetyear.

RefertoQuestion14fordetailsonestimatesintheExecutive’sBudgetProposalrelatedtothecompositionofthedebt.Coreinformationrelatedtothecompositionofgovernmentdebtinclude:


Toanswer“a,”theMid-YearReviewmustincludeanupdatedestimatesofborrowinganddebt,includingitscomposition,andexplainallofthedifferencesbetweentheinitialestimatespresentedintheExecutive’sBudgetProposal(orEnactedBudget)andtheupdatedestimates.Theexplanationmustincludeatleastestimatesofalldifferences;anarrativediscussionisdesirablebutnotrequiredifestimatesofallthedifferencesareprovided.Toanswer“b,”theestimatesofborrowinganddebtmustbeupdated,butonlysomeofthedifferencesbetweentheinitialandupdatedestimatesareexplained.Theexplanationwouldbemorelimited,suchasonlyanarrativediscussionofthedifferencesorestimatescoveringonlysomeofthedifferences.A“c”responseappliesiftheMid-YearReviewincludesupdatedestimates,butnoexplanationfortherevisionsisprovided.A“d”responseappliesiftheestimatesofborrowinganddebthavenotbeenupdated.

Answer:d.No,estimatesofgovernmentborrowinganddebthavenotbeenupdated.


Comment:AsdatashowsasizablebudgetsurplusforH12018,revenuegrowthexceedinginitialestimates,noneedfornewgovernmentdebtissuetofinancethedeficit(asthereissurplus),overallpositivemacroeconomicenvironment,theMoFsawnoneedtoupdatethedebtindicatorsforecast-i.e.theymaintainwhatwasintheEnactedBudget.Forexample,onp.11andonp.58thereportstatesthat"Dynamicsofexpendituresandrevenuesforthefirsthalfof2018givesgroundfortheexpectationthatthebudgetbalancewillimproveupontheEnactedBudgetestimate".Insuchcase,itwouldbeillogicaltoputd/-asthiswouldimplythatthegovernmentisnotpublishingupdatedforecast,whereasthereisnoneedforoneasthebudgetexecutionisfollowingtheenactedbudget.

PeerReviewerOpinion:DisagreeSuggestedAnswer:d.No,estimatesofgovernmentborrowinganddebthavenotbeenupdated.Comments:TheReviewerdoesnotagreewiththerationalintheResearcher'scomment,namelythatthereis"noneedfornewgovernmentdebtissuetofinancethedeficit(asthereissurplus)".In2016thereisabudgetsurplusofaroundBGN3.3bn,however,thegovernmentcompletedalargeEurobondissueof€1994mnon21March2016.Inotherwordstheexistenceofabudgetsurplusdoesnotnecessarilymeanthattherewillnotbe

anydebtissued.Furthermore,astheResearcherstates"Dynamicsofexpendituresandrevenuesforthefirsthalfof2018givesgroundfortheexpectationthatthebudgetbalancewillimproveupontheEnactedBudgetestimate".AspointedoutintheReviewer'scommentonquestion080,thegovernmenthasreasontobelievethatthebudgetbalancewillimproveupontheEnactedBudgetestimate,whichwouldsuggestalower,ifatall,needfordeficitfinancing,andaconsequentlyalowerneedfornetnewborrowing.Asthegovernmentdoesnotupdateitsdebtestimates,whenithasreasontobelievetheyshouldchange,aswasthecasewithrevenueestimates,theReviewerbelievestheanswershouldbe'd'.


ResearcherResponseWeagreewiththepeerreviewer.Answerrevisedto"d".

IBPCommentIBPisinagreementwiththepeerreviewer'scommentandtheresearcher's"ResponsetoReview."Theresponseisrevisedfrom"e"to"d."

84.DoestheYear-EndReportpresentthedifferencesbetweentheenactedlevels(includingin-yearchangesapprovedbythelegislature)andtheactualoutcomeforexpenditures?

GUIDELINES:Question84askswhethertheYear-EndReportincludesestimatesofthedifferencesbetweentheenactedlevelsandactualexpendituresfortheyear,andwhethertheseestimatesareaccompaniedbyanarrativediscussion.

Toanswer“a,”theYear-EndReportmustpresentestimatesofthedifferencesbetweentheenactedlevelsandtheactualoutcomeforallexpenditures,alongwithanarrativediscussion.Answer“b”ifestimatesofthedifferencesforallexpendituresarepresented,butanarrativediscussionisnotincluded.Answer“c”ifestimatesofthedifferencesarepresentedforsome,butnotallexpenditures,regardlessofwhetheranarrativediscussionisincluded.Answer“d”ifnoestimatesofthedifferencesarepresentedintheYear-EndReport

Answer:a.Yes,estimatesofthedifferencesbetweentheenactedlevelsandtheactualoutcomeforallexpendituresarepresented,alongwithanarrativediscussion.

Source:YER2017,http://www.minfin.bg/upload/38991/Doklad_po_otcheta_na_DB-na_RB_2017.pdf

AnnextoYER2017,http://www.minfin.bg/upload/38992/Prilojeniq_kym_Doklada-po-otcheta-na-RB_2017.zip,Annex3"Analysisofexpendituresbypolicyareasandbudgetprogramsfor2017"

Comment:Enactedandactualexpenditurelevels-summarytableonp.40(byeconomicclassification)Enactedandactualexpenditurelevels-summarytableonp42(byfunction)Discussionandmoredetailsondifference-textonpp.90-102(byeconomicclassification)Discussionandmoredetailsondifference-textonpp.102-144(byeconomicclassification)

Мoredetailednarrativediscussion-forindividualadministrativeunitsandprograms-inAnnex3"Analysisofexpendituresbypolicyareasandbudgetprogramsfor2017"

Also,onp.20,p.28andpp43-44intheYER-overallassessmentoftheimpactofkeydiscretionaryexpenditurepoliciesonchangeinexpenditures.

Onpp.35-39-specialchapteron"Capitalexpenditures"withfocusontheexecutionofthepublicinvestmentprogram.



85.DoestheYear-EndReportpresentexpenditureestimatesbyanyofthethreeexpenditureclassifications(byadministrative,economic,orfunctionalclassification)?

GUIDELINES:Question85asksifexpenditureestimatesintheYear-EndReportarepresentedbyanyoneofthethreeexpenditureclassifications—byadministrative,

economic,andfunctionalclassifications—whichwereaddressedinQuestions1-5above.Eachoftheclassificationsanswersadifferentquestion:administrativeunitindicateswhospendsthemoney;functionalclassificationshowsforwhatpurposeisthemoneyspent;andeconomicclassificationdisplayswhatthemoneyisspenton.Unlikeclassificationbyadministrativeunit,whichtendstobeuniquetoeachcountry,functionalandeconomicclassificationsforgovernmentbudgetinghavebeendevelopedandstandardizedbyinternationalinstitutions.Cross-countrycomparisonsarefacilitatedbyadherencetotheseinternationalclassificationstandards.

Toanswer“a,”theYear-EndReportmustpresentexpenditureestimatesbyallthreeoftheexpenditureclassifications.Answer“b”ifexpenditureestimatesarepresentedbytwoofthesethreeclassifications.Answer“c”ifexpenditureestimatesarepresentedbyoneofthethreeclassifications.Answer“d”ifexpenditureestimatesarenotpresentedbyanyofthethreeclassificationsintheYear-EndReport.

Answer:a.Yes,theYear-EndReportpresentsexpenditureestimatesbyallthreeexpenditureclassifications(byadministrative,economic,andfunctionalclassification).

Source:Economicclassification:YER2017,http://www.minfin.bg/upload/38991/Doklad_po_otcheta_na_DB-na_RB_2017.pdf,p.90-101,alsoinAnnex2http://www.minfin.bg/upload/38992/Prilojeniq_kym_Doklada-po-otcheta-na-RB_2017.zipinXLS

Functionalclassification:YER2017,http://www.minfin.bg/upload/38991/Doklad_po_otcheta_na_DB-na_RB_2017.pdf,alsoAnnex2(afterline393)http://www.minfin.bg/upload/38992/Prilojeniq_kym_Doklada-po-otcheta-na-RB_2017.zip

Byadministrativeunitandkeypolicies/programs:Annex1http://www.minfin.bg/upload/38992/Prilojeniq_kym_Doklada-po-otcheta-na-RB_2017.zip,alsoanalysisinAnnex3

Comment:



85b.BasedontheresponsetoQuestion85,checkthebox(es)toidentifywhichexpenditureclassificationsareincludedintheYear-EndReport:

Answer:AdministrativeclassificationEconomicclassificationFunctionalclassification

Source:Economicclassification:YER2017,http://www.minfin.bg/upload/38991/Doklad_po_otcheta_na_DB-na_RB_2017.pdf,p.90-101,alsoinAnnex2http://www.minfin.bg/upload/38992/Prilojeniq_kym_Doklada-po-otcheta-na-RB_2017.zipinXLS

Functionalclassification:YER2017,http://www.minfin.bg/upload/38991/Doklad_po_otcheta_na_DB-na_RB_2017.pdf,alsoAnnex2(line393)http://www.minfin.bg/upload/38992/Prilojeniq_kym_Doklada-po-otcheta-na-RB_2017.zip

Byadministrativeunitandkeyprograms/policies:Annex1http://www.minfin.bg/upload/38992/Prilojeniq_kym_Doklada-po-otcheta-na-RB_2017.zip,alsoanalysisinAnnex3

Comment:



86.DoestheYear-EndReportpresentexpenditureestimatesforindividualprograms?

GUIDELINES:Question86asksifexpenditureestimatesintheYear-EndReportarepresentedbyprogram.Thereisnostandarddefinitionfortheterm“program,”andthemeaningcanvaryfromcountrytocountry.However,forthepurposesofansweringthequestionnaire,researchersshouldunderstandtheterm“program”tomeananylevelofdetailbelowanadministrativeunit,suchasaministryordepartment.


Toanswer“a,”theYear-EndReportmustpresentexpenditureestimatesforallindividualprograms,accountingforallexpenditures.Answer“b”iftheYear-EndReportpresentsexpendituresforindividualprogramsthatwhencombinedaccountforatleasttwo-thirdsofexpenditures,butnotallexpenditures.Answer“c”iftheYear-EndReportpresentsprogramsthataccountforonlylessthantwo-thirdsofexpenditures.Answer“d”ifexpendituresarenotpresentedbyprogramintheYear-EndReport.

Answer:b.Yes,theYear-EndReportpresentsestimatesforprogramsaccountingforatleasttwo-thirdsof,butnotall,expenditures.

Source:Byadministrativeunitatprogramlevel:Annex1http://www.minfin.bg/upload/38992/Prilojeniq_kym_Doklada-po-otcheta-na-RB_2017.zip,alsoanalysisinAnnex3

Comment:Seeprogramlevelexpendituresbyadministrativeunitforthegovernmentafterline340intheXLSfile(Annex1)



87.DoestheYear-EndReportpresentthedifferencesbetweentheenactedlevels(includingin-yearchangesapprovedbythelegislature)andtheactualoutcomeforrevenues?

GUIDELINES:Question87askswhethertheYear-EndReportincludesestimatesofthedifferencesbetweentheenactedlevelsandactualrevenuesfortheyear,andwhethertheseestimatesareaccompaniedbyanarrativediscussion.

Toanswer“a,”theYear-EndReportmustpresentestimatesofthedifferencesbetweentheenactedlevelsandtheactualoutcomeforallrevenues,alongwithanarrativediscussion.Answer“b”ifestimatesofthedifferencesforallrevenuesarepresented,butanarrativediscussionisnotincluded.Answer“c”ifestimatesofthedifferencesarepresentedforsome,butnotallrevenues,regardlessofwhetheranarrativediscussionisincluded.Answer“d”ifnoestimatesofthedifferencesarepresentedintheYear-EndReport.

Answer:a.Yes,estimatesofthedifferencesbetweentheenactedlevelsandtheactualoutcomeforallrevenuesarepresented,alongwithanarrativediscussion.

Source:YER2017:http://www.minfin.bg/upload/38991/Doklad_po_otcheta_na_DB-na_RB_2017.pdfpp.44-71andpp.72-90.

Comment:ThereisaspecialchapterontheimpactofmeasurestoimprovecompliancebyNationalRevenueAgencyandCustomsAgency(pp44-71).Explanationsandnarrativediscussionofdifferencesbetweenactualandenactedlevelsinthesectiononrevenuespp72-90



88.DoestheYear-EndReportpresentrevenueestimatesbycategory(suchastaxandnon-tax)?

GUIDELINES:Question88askswhetherrevenueestimatesintheYear-EndReportarepresentedby“category”—thatis,whethertaxandnon-taxsourcesofrevenueareshownseparately.

Toanswer“a,”theYear-EndReportmustpresentrevenueestimatesclassifiedbycategory.

Answer:a.Yes,theYear-EndReportpresentsrevenueestimatesbycategory.

Source:YER2017http://www.minfin.bg/upload/38991/Doklad_po_otcheta_na_DB-na_RB_2017.pdf,pp72-90,alsoAnnex2http://www.minfin.bg/upload/38992/Prilojeniq_kym_Doklada-po-otcheta-na-RB_2017.zip(inXLS)

Comment:



89.DoestheYear-EndReportpresentindividualsourcesofrevenue?

GUIDELINES:

Question89askswhetherrevenueestimatesforindividualsourcesofrevenuearepresentedintheYear-EndReport.Thequestionappliestobothtaxandnon-taxrevenue.

Toanswer“a,”theYear-EndReportmustpresentallsourcesofrevenueindividually,accountingforallrevenue,and“other”or“miscellaneous”revenuemustaccountforthreepercentorlessofallrevenue.Answer“b”iftheYear-EndReportpresentsindividualsourcesofrevenuethatwhencombinedaccountforatleasttwo-thirdsofallrevenue,butnotallrevenue.Answer“c”iftheYear-EndReportpresentsestimatesofindividualrevenuesourcesthataccountforlessthantwo-thirdsofrevenue.Answer“d”ifindividualsourcesofrevenuearenotpresentedintheYear-EndReport.

Answer:a.Yes,theYear-EndReportpresentsindividualsourcesofrevenueaccountingforallrevenue.

Source:YER2017http://www.minfin.bg/upload/38991/Doklad_po_otcheta_na_DB-na_RB_2017.pdf,pp72-90,alsoAnnex2http://www.minfin.bg/upload/38992/Prilojeniq_kym_Doklada-po-otcheta-na-RB_2017.zip(inXLS)

Comment:NarrativediscussionintheYER2017onpp.72-90



90.DoestheYear-EndReportpresentthedifferencesbetweentheoriginalestimatesofgovernmentborrowinganddebt,includingitscomposition,forthefiscalyearandtheactualoutcomeforthatyear?

GUIDELINES:Question90askswhethertheYear-EndReportincludesestimatesofthedifferencesbetweentheoriginalestimatesandtheactualoutcomeforthefiscalyearforborrowinganddebt,includingitscomposition,andwhethertheseestimatesareaccompaniedbyanarrativediscussion.

RefertoQuestion13fordetailsonestimatesintheExecutive’sBudgetProposalofborrowinganddebt.Keyestimatesrelatedtoborrowinganddebtinclude:

theamountofnetnewborrowingrequiredduringthebudgetyear;thecentralgovernment’stotaldebtburdenattheendofthebudgetyear;andtheinterestpaymentsontheoutstandingdebtforthebudgetyear.

RefertoQuestion14fordetailsonestimatesintheExecutive’sBudgetProposalrelatedtothecompositionofthedebt.Coreinformationrelatedtothecompositionofgovernmentdebtinclude:


Toanswer“a,”theYear-EndReportmustincludeestimatesofthedifferencesbetweenalloftheoriginalestimatesofborrowinganddebt,includingitscomposition,forthefiscalyearandtheactualoutcomeforthatyear,includinganarrativediscussion.Answer“b”iftheYear-EndReportpresentsestimatesofthedifferencesbetweenalloftheoriginalestimatesofborrowinganddebtforthefiscalyearandtheactualoutcomeforthatyear,butdoesnotincludeanarrativediscussion.Answer“c”ifestimatesofthedifferencesbetweensomebutnotalloftheoriginalestimatesofborrowinganddebtforthefiscalyearandtheactualoutcomeforthatyeararepresented,regardlessofwhetheranarrativediscussionisincluded.A“d”responseappliesifestimatesofthedifferencesarenotpresented.

Answer:c.Yes,estimatesofthedifferencesbetweensomebutnotalloftheoriginalestimatesofgovernmentborrowinganddebtforthefiscalyearandtheactualoutcomeforthatyeararepresented.

Source:YER2017:http://www.minfin.bg/upload/38991/Doklad_po_otcheta_na_DB-na_RB_2017.pdf,Annex:Reportongovernmentdebt2017http://pris.government.bg/prin/file_view.aspx?did=84932&pid=94341

Comment:InYER2017,seediscussionp.22-24,interestpaymentsonp99,newborrowing144.

TheAnnex-Reportongovernmentdebt2017-in-depthanalysisanddataonsizeandstructureofthedebtbyinterestrates,currency,creditors,maturity,instruments,etc.



ResearcherResponseAdditionalrelevantpagesintheAnnex:Sizeofdebtexternal/domestic-p.4,currencystructureandinterestratestructure(fixed/floating)-p.4,maturitystructureandbyinstruments-p.6,stateguarantees-p7;debtissuanceanddebtservicing-p.8-9,compliancewithfiscalrulesondebtceiling-p.11

IBPCommentAsestimatesofthedifferencebetweenoriginalestimatesofinterestratesonthedebtandactualoutcomesarenotpresented,theresponseisrevisedfrom"a"to"c"tomaintainconsistencyacrosssurveycountries.

90b.BasedontheresponsetoQuestion90,checkthebox(es)toidentifywhichestimatesofgovernmentborrowinganddebt,includingitscomposition,havethedifferencesbetweentheoriginalforecastandtheactualoutcomefortheyearpresentedintheYear-EndReport:

Answer:TheamountofnetnewborrowingrequiredduringthebudgetyearThecentralgovernment’stotaldebtburdenattheendofthebudgetyearTheinterestpaymentsonoutstandingdebtforthebudgetyearMaturityprofileofthedebtWhetherthedebtisdomesticorexternal

Source:YER2017:http://www.minfin.bg/upload/38991/Doklad_po_otcheta_na_DB-na_RB_2017.pdf,Annex:Reportongovernmentdebt2017http://pris.government.bg/prin/file_view.aspx?did=84932&pid=94341

Comment:



91.DoestheYear-EndReportpresentthedifferencesbetweentheoriginalmacroeconomicforecastforthefiscalyearandtheactualoutcomeforthatyear?

GUIDELINES:Question91askswhethertheYear-EndReportincludesestimatesofthedifferencesbetweentheoriginalmacroeconomicforecastforthefiscalyearandtheactualoutcomeforthatyear,andwhethertheseestimatesareaccompaniedbyanarrativediscussion.

RefertoQuestion15forthecomponentsofthemacroeconomicforecastintheExecutive’sBudgetProposal.CorecomponentsincludeestimatesofthenominalGDPlevel,inflationrate,realGDPgrowth,andinterestrates,althoughtheimportanceofothermacroeconomicassumptions,suchasthepriceofoil,canvaryfromcountrytocountry.

Toanswer“a,”theYear-EndReportmustincludeestimatesofthedifferencesbetweenalloftheoriginalmacroeconomicassumptionsforthefiscalyearandtheactualoutcomeforthatyear,includinganarrativediscussion.Answer“b”iftheYear-EndReportpresentsestimatesofthedifferencesbetweenalloftheoriginalmacroeconomicassumptionsforthefiscalyearandtheactualoutcomeforthatyear,butdoesnotincludeanarrativediscussion.Answer“c”ifestimatesofthedifferencesbetweensomebutnotalloftheoriginalmacroeconomicassumptionsforthefiscalyearandtheactualoutcomeforthatyeararepresented,regardlessofwhetheranarrativediscussionisincluded.A“d”responseappliesifestimatesofthedifferencesarenotpresented.

Answer:c.Yes,estimatesofthedifferencesbetweensomebutnotalloftheoriginalmacroeconomicassumptionsforthefiscalyearandtheactualoutcomeforthatyeararepresented.

Source:YER2017:http://www.minfin.bg/upload/38991/Doklad_po_otcheta_na_DB-na_RB_2017.pdf

Comment:page12-14-ComparisonbetweenthereporteddataandtheoriginalmacroeconomicforecastNarrativediscussionfornominalGDP,consumption,investment,deflatorofGDP,employment,compensationgrowth,unemployment,inflation.Atableonpage13-14listscomparisonthereporteddataandtheoriginalmacroeconomicforecast.



IBPCommentAsestimatesofthedifferencesbetweenoriginalinterestrateprojectionsandtheactualoutcomearenotpresented,theresponseisrevisedfrom"a"to"c"tomaintainconsistencyacrosssurveycountries.

91b.BasedontheresponsetoQuestion91,checkthebox(es)toidentifywhichelementsofthemacroeconomicforecasthavethedifferencesbetweentheoriginalforecastandtheoutcomefortheyearpresentedintheYear-EndReport:

Answer:NominalGDPlevelInflationrateRealGDPgrowthInformationbeyondthecoreelements

Source:YER2017:http://www.minfin.bg/upload/38991/Doklad_po_otcheta_na_DB-na_RB_2017.pdf

Comment:



IBPCommentThepeerreviewer'scommentiswell-received.SpecificinterestratesmuststillpresentedintheYERtoqualifyforan"a"response.Thecurrentresponseismaintained.

92.DoestheYear-EndReportpresentthedifferencesbetweentheoriginalestimatesofnonfinancialdataoninputsandtheactualoutcome?

GUIDELINES:Question92askswhethertheYear-EndReportincludesestimatesofthedifferencesbetweentheoriginalestimatesofnonfinancialdataoninputsandtheactualoutcomefortheyear,andwhethertheseestimatesareaccompaniedbyanarrativediscussion.

RefertoQuestion49forthenonfinancialdataoninputsincludedintheExecutive’sBudgetProposal.

Toanswer“a,”theYear-EndReportmustincludeestimatesofthedifferencesbetweenalloftheoriginalestimatesofnonfinancialdataoninputsandtheactualoutcome,includinganarrativediscussion.Answer“b”iftheYear-EndReportpresentsestimatesofthedifferencesbetweenalloftheoriginalestimatesofnonfinancialdataoninputsandtheactualoutcome,butdoesnotincludeanarrativediscussion.Answer“c”ifestimatesofthedifferencesbetweensomebutnotalloftheoriginalestimatesofnonfinancialdataoninputsandtheactualoutcomearepresented,regardlessofwhetheranarrativediscussionisincluded.A“d”responseappliesifestimatesofthedifferencesarenotpresented.

Answer:d.No,estimatesofthedifferencesbetweentheoriginalestimatesofnonfinancialdataoninputsandtheactualoutcomearenotpresented.

Source:Annex3totheYER2017http://www.minfin.bg/upload/38992/Prilojeniq_kym_Doklada-po-otcheta-na-RB_2017.zip

Comment:



93.DoestheYear-EndReportpresentthedifferencesbetweentheoriginalestimatesofnonfinancialdataonresultsandtheactualoutcome?

GUIDELINES:Question93askswhethertheYear-EndReportincludesestimatesofthedifferencesbetweentheoriginalestimatesofnonfinancialdataonresultsandtheactualoutcomefortheyear,andwhethertheseestimatesareaccompaniedbyanarrativediscussion.Nonfinancialdataonresultscanincludedataonbothoutputsandoutcomes,butnotoninputs(whichareaddressedinQuestion92).

RefertoQuestion50forthenonfinancialdataonresultsincludedintheExecutive’sBudgetProposal.

Toanswer“a,”theYear-EndReportmustincludeestimatesofthedifferencesbetweenalloftheoriginalestimatesofnonfinancialdataonresultsandtheactualoutcome,includinganarrativediscussion.Answer“b”iftheYear-EndReportpresentsestimatesofthedifferencesbetweenalloftheoriginalestimatesofnonfinancialdataonresultsandtheactualoutcome,butdoesnotincludeanarrativediscussion.Answer“c”ifestimatesofthedifferencesbetweensomebutnotalloftheoriginalestimatesofnonfinancialdataonresultsandtheactualoutcomearepresented,regardlessofwhetheranarrativediscussionisincluded.A“d”responseappliesifestimatesofthedifferencesarenotpresented.

Answer:c.Yes,estimateofthedifferencesbetweensomebutnotalloftheoriginalestimatesofnonfinancialdataonresultsandtheactualoutcomearepresented.

Source:Annex3totheYER2017http://www.minfin.bg/upload/38992/Prilojeniq_kym_Doklada-po-otcheta-na-RB_2017.zip

Comment:Therearetableswithcomparisonofactualandoriginalestimatesfor"outputindicators"forsomeindividualprogramsinmostadministrativeunits.(Seee.g.tableonp53on"BudgetProgramPopularizationofBulgarianCultureAbroad"aspartofthebudgetoftheMinistryofCulture)



94.DoestheYear-EndReportpresentthedifferencesbetweentheenactedleveloffundsforpolicies(bothnewproposalsandexistingpolicies)thatareintendedtobenefitdirectlythecountry’smostimpoverishedpopulationsandtheactualoutcome?

GUIDELINES:Question94askswhethertheYear-EndReportincludesestimatesofthedifferencesbetweentheenactedleveloffundsforpoliciesthatareintendedtobenefitdirectlythecountry’smostimpoverishedpopulationsandtheactualoutcomefortheyear,andwhethertheseestimatesareaccompaniedbyanarrativediscussion.

RefertoQuestion52forassistancetothemostimpoverishedpopulationsintheExecutive’sBudgetProposal.

Toanswer“a,”theYear-EndReportmustpresentestimatesofthedifferencesbetweentheenactedlevelforallpoliciesthatareintendedtobenefitthecountry’smostimpoverishedpopulationsandtheactualoutcome,includinganarrativediscussion.Answer“b”iftheYear-EndReportpresentsestimatesofthedifferencesbetweentheenactedlevelforallpoliciesthatareintendedtobenefitthecountry’smostimpoverishedpopulationsandtheactualoutcome,butdoesnotincludeanarrativediscussion.Answer“c”ifestimatesofthedifferencesbetweentheenactedlevelforsomebutnotallofthepoliciesthatareintendedtobenefitthecountry’smostimpoverishedpopulationsandtheactualoutcomearepresented,regardlessofwhetheranarrativediscussionisincluded.A“d”responseappliesifestimatesofthedifferencesarenotpresented.

Answer:c.Yes,estimatesofthedifferencesbetweentheenactedlevelforsomebutnotallofthepoliciesthatareintendedtobenefitdirectlythecountry’smostimpoverishedpopulationsandtheactualoutcomearepresented.

Source:YER2017http://www.minfin.bg/upload/38991/Doklad_po_otcheta_na_DB-na_RB_2017.pdfpp.119-125Annex3http://www.minfin.bg/upload/38992/Prilojeniq_kym_Doklada-po-otcheta-na-RB_2017.zippp.39-43

Comment:In-depthanalysisanddetaileddataonsocialprogramsintheReportonBudgetImplementationbyPrograms2017oftheMinistryofLaborandSocialPolicy(https://www.mlsp.government.bg/ckfinder/userfiles/files/dokumenti/programen%20biudjet%20i%20otcheti/arhiv/Archiv%202017.zip),wordfileinzippedfolder



95.DoestheYear-EndReportpresentthedifferencesbetweentheoriginalestimatesofextra-budgetaryfundsandtheactualoutcome?

GUIDELINES:Question95askswhethertheYear-EndReportpresentsestimatesofthedifferencesbetweentheoriginalestimatesofextra-budgetaryfundsandtheactualoutcomefortheyear,andwhethertheseestimatesareaccompaniedbyanarrativediscussion.

RefertoQuestion33forestimatesofextra-budgetaryfundsintheExecutive’sBudgetProposal.

Toanswer“a,”theYear-EndReportmustincludeestimatesofthedifferencesbetweenalloftheoriginalestimatesofextra-budgetaryfundsandtheactualoutcome,includinganarrativediscussion.Answer“b”iftheYear-EndReportpresentsestimatesofthedifferencesbetweenalloftheoriginalestimatesofextra-budgetaryfundsandtheactualoutcome,butdoesnotincludeanarrativediscussion.Answer“c”ifestimatesofthedifferencesbetweensomebutnotalloftheoriginalestimatesofextra-budgetaryfundsandtheactualoutcomearepresented,regardlessofwhetheranarrativediscussionisincluded.A“d”responseappliesifestimatesofthedifferencesarenotpresented

Answer:a.Yes,estimatesofthedifferencesbetweenalloftheoriginalestimatesofextra-budgetaryfundsandtheactualoutcomearepresented,alongwithanarrativediscussion.

Source:YER2017http://www.minfin.bg/upload/38991/Doklad_po_otcheta_na_DB-na_RB_2017.pdfpp.165-172

Comment:



96.IsafinancialstatementincludedaspartoftheYear-EndReportorreleasedasaseparatereport?

GUIDELINES:Question96askswhetherafinancialstatementisincludedaspartoftheYear-EndReport,orwhetheritisreleasedasaseparatereport.Thefinancialstatementcanincludesomeorallofthefollowingelements:acashflowstatement,anoperatingstatement,abalancesheet,andnotesonaccounting.Forpurposesofrespondingtothisquestion,thefinancialstatementinquestiondoesnotneedtobeaudited.Foranexampleofafinancialstatement,seethedocument"FinancialStatementsoftheGovernmentofNewZealand2013"(https://treasury.govt.nz/sites/default/files/2013-10/fsgnz-year-jun13.pdf)

Toanswer“a,”afinancialstatementmusteitherbeincludedintheYear-EndReportormustbereleasedasaseparatereport.Answer“a”appliesifafinancialstatementisreleasedasaseparatereport,eveniftheYear-EndReportisnotpubliclyavailable.Answer“b”appliesifnofinancialstatementisreleasedeitheraspartoftheYear-EndReportorasaseparatereport.

Answer:b.No,afinancialstatementisneitherpartoftheYear-EndReportnorreleasedasaseparatereport.

Source:

Comment:


GovernmentReviewer

https://treasury.govt.nz/sites/default/files/2013-10/fsgnz-year-jun13.pdf

Opinion:Agree

97.Whattypeofaudits(compliance,financial,orperformance)hastheSupremeAuditInstitution(SAI)conductedandmadeavailabletothepublic?

GUIDELINES:Question97asksaboutthetypesofauditsconductedbytheSupremeAuditInstitution(SAI).Therearethreebasictypesofaudits:

Financialauditsareintendedtodetermineifanentity’sfinancialinformationisaccurate(freefromerrorsorfraud)andpresentedinaccordancewiththeapplicablefinancialreportingandregulatoryframework.SeeISSAI200(http://www.issai.org/issai-framework/3-fundamental-auditing-priciples.htm)formoredetail.Complianceauditslookattheextenttowhichtherelevantregulationsandprocedureshavebeenfollowed.SeeISSAI400(http://www.issai.org/issai-framework/3-fundamental-auditing-priciples.htm)formoredetails.Performanceauditsassesswhetheractivitiesareadheringtotheprinciplesofeconomy,efficiency,andeffectiveness.SeeISSAI300(http://www.issai.org/issai-framework/3-fundamental-auditing-priciples.htm)formoredetails.≈

Financialandcomplianceauditsaremorecommonthanperformanceaudits,whichusuallyoccuronlyonceaperformanceframeworkhasbeenagreedupon.Insomecountries,theSAI’smandatelimitsthetypeofaudititcanconduct.

Toanswer“a,”theSAImusthaveconductedallthreetypesofaudit—financial,compliance,andperformance—andmadeallofthemavailabletothepublic.A“b”responseappliesiftheSAIhasconductedtwoofthethreeaudittypes,anda“c”appliesifithasconductedonlyonetypeofaudit.Answers“b”and“c”maybeselectedeveniftheAuditReportisnotpubliclyavailable,aslongastheSAIhasconductedcomplianceorperformanceauditsandmadethemavailabletothepublic.A“d”responseappliesiftheSAIhasnotconductedanyofthethreetypesofaudits,orhasnotmadethemavailabletothepublic.

Answer:a.TheSAIhasconductedallthreetypesofaudits(compliance,financial,orperformance)andmadethemavailabletothepublic.

Source:Auditprogramfor2018http://www.bulnao.government.bg/bg/articles/download/11196/POD_2018_NS_08_11_18.doc

Comment:AllauditsarepublishedonlinebytheSAI.



98.WhatpercentageofexpenditureswithinthemandateoftheSupremeAuditInstitution(SAI)hasbeenaudited?

GUIDELINES:Question98focusesonthecoverageofauditsbytheSupremeAuditInstitution(SAI),askingwhatpercentageofexpenditureswithintheSAI’smandatehasbeenaudited.

TheSAI’smandateistypicallydefinedinstatute.Onlyexpendituresrelatedtobudgetarycentralgovernment(ministries,departments,andagencies)thatarewithintheSAI’smandateshouldbeconsideredforthisquestion.(Question99addressesauditsofextra-budgetaryfunds.)Further,thequestiondoesnotapplyto“secretprograms”(forexample,security-relatedexpendituresthatareconfidential).Further,ifthemandategivestheSAItheauthoritytooutsourcesomeaudits,thenthoseauditscountforpurposesofthisquestion.

OnlytheAuditReportidentifiedinSection1shouldbeusedtoanswerthisquestion.Financialauditsandcomplianceaudits,orahybridofthetwo,canbetakenintoaccounttoanswerthisquestion.Performanceauditsshouldnotbeconsideredforthisquestion.

Toanswer“a,”allexpenditureswithintheSAI’smandatemustbeaudited.A“b”responseappliesifatleasttwo-thirds,butnotall,expenditureswithintheSAI’smandatehavebeenaudited.A“c”responseisappropriatewhenlessthantwo-thirdsofexpenditureswithintheSAI’smandatehavebeenaudited.A“d”responseapplieswhennoexpenditureshavebeenaudited.

Answer:

http://www.issai.org/issai-framework/3-fundamental-auditing-priciples.htm



a.AllexpenditureswithintheSAI’smandatehavebeenaudited.


Comment:In2018theSAIplanned325audits-includingallministries,first-levelspendingunits,universities,municipalitieswithbudgetaboveLv10million(plusselectionofsmallermunicipalities-theSAIhasfulldiscretiontochoose)andotherpublicbodiesandcompanies.

Also,inthe2019AuditProgram(seep.2http://www.bulnao.government.bg/bg/articles/download/12086/016-4-310119-POD_2019.docx)allmunicipalitieswithbudgetbelowBGN10mwillbeauditedatleastoncein2019-2021period.



IBPCommentThegovernmentreviewer'sadditionalcontextiswell-received.

99.Whatpercentageofextra-budgetaryfundswithinthemandateoftheSupremeAuditInstitution(SAI)hasbeenaudited?

GUIDELINES:

Question99focusesonauditsofextra-budgetaryfunds,askingwhatpercentageofextra-budgetaryfundswithinthemandateoftheSupremeAuditInstitution(SAI)hasbeenaudited.Thesefunds,althoughtechnicallyoutsidethebudget,aregovernmentalinnatureandthusshouldbesubjecttothesameauditrequirementasothergovernmentprograms.

TheSAI’smandateistypicallydefinedinstatute.Onlyexpendituresrelatedtoextra-budgetaryfundswithintheSAI’smandateshouldbeconsideredforthisquestion.(Question98addressesauditsofbudgetarycentralgovernment.)Further,ifthemandategivestheSAItheauthoritytooutsourcesomeaudits,thenthoseauditscountforpurposesofthisquestion.

Toanswer"a,”allextra-budgetaryfundswithintheSAI’smandatemustbeaudited.A“b”responseappliesifextra-budgetaryfundsaccountingforatleasttwo-thirdsof,butnotall,expendituresassociatedwithextra-budgetaryfundswithintheSAI’smandatehavebeenaudited.A“c”responseappliesifextra-budgetaryfundsaccountingforlessthantwo-thirdsofexpendituresassociatedwithextra-budgetaryfundswithintheSAI’smandatehavebeenaudited.A“d”responseappliesifextra-budgetaryfundshavenotbeenaudited.

Answer:b.Extra-budgetaryfundsaccountingforatleasttwo-thirdsof,butnotall,expendituresassociatedwithextra-budgetaryfundswithintheSAI’smandatehavebeenaudited.


Comment:TheAgricultureFund,EnvironmentManagementCompany(PUDOOS),theElectricitySecurityFund(FundSES)areincludedintheauditprogram.TheNationalFund(thatdistributesEU-fundsisnotincluded)-however,itisjustapass-throughaccount,whileexpendituresareinfactdispersedbyindividualministries.Theyareauditedwhilespentatindividualministries.

AccordingtotheGuide"Onlyexpendituresrelatedtoextra-budgetaryfundswithintheSAI’smandateshouldbeconsideredforthisquestion."TheNationalFundisnotwithinthemandateoftheSAI.TheNationalFunddistributesEU-funds-theEUfundsarenotnationalfunds,theseareforeignfundsprovidedbytheEuropeanUnion.TheEUfundsaremanagedandauditedundercommonEUrules(forexample,Regulation966/2012onthefinancialrulesapplicabletothegeneralbudgetoftheUnionandRegulation1303/2013layingdowncommonprovisionsonEUfunds).TheauditingoftheEUfundsinBulgariaisdelegatedtotheExecutiveAgency"AuditofEUFunds".TheagencyitselfisfundedbytheEU.



IBPCommentThegovernmentreviewer'scommentiswellnoted.AswithQuestion98,financialauditsandcomplianceaudits,orahybridofthetwo,canbetakenintoaccounttoanswerthisquestion.However,astheNationalFundisnotincludedintheauditprogram,theresponseisrevisedfrom"a"to"b"toensureconsistencyacrosssurveycountries.

100.DoestheannualAuditReport(s)preparedbytheSupremeAuditInstitution(SAI)includeanexecutivesummary?

GUIDELINES:Question100askswhethertheannualAuditReportincludesanexecutivesummary.OnlytheAuditReportidentifiedinSection1shouldbeusedtoanswerthisquestion.TheAuditReportcanbeafairlytechnicaldocument,andanexecutivesummaryofthereport’sfindingscanhelpmakeitmoreaccessibletothemediaandthepublic.

Toanswer"a,"theAuditReportmustincludeatleastoneexecutivesummarysummarizingthereport’scontent.Answer“b”appliesiftheAuditReportdoesnotincludeanexecutivesummary,ortheAuditReportisnotmadepubliclyavailable.

Answer:a.Yes,theannualAuditReport(s)includesoneormoreexecutivesummariessummarizingthereport’scontent.

Source:ARfor2017,page7-8http://www.bulnao.government.bg/bg/search/download/12205/od-db-2017-081019.doc

Comment:



101.Doestheexecutivemakeavailabletothepublicareportonwhatstepsithastakentoaddressauditrecommendationsorfindingsthatindicateaneedforremedialaction?

GUIDELINES:Question101askswhethertheexecutivereportstothepubliconthestepsithastakentoaddressauditrecommendationsmadebytheSupremeAuditInstitution(SAI).Theultimatepurposeofauditsistoverifythatthebudgetwasexecutedinamannerconsistentwithexistinglaw,andtoholdthegovernmentaccountableforthisexecutionanditsfutureimprovement.Theextenttowhichauditsachievethelatterdependsonwhetherthereisadequateandtimelyfollow-upontherecommendationsprovidedintheSAI’sauditreports.

Toanswer"a,"theexecutivemustreportpubliclyonthestepsithastakentoaddressallauditfindings.A“b”responseappliesiftheexecutivereportspubliclyonthestepsithastakentoaddressmost,butnotall,auditfindings.A“c”responseappliesiftheexecutivereportspubliclyonthestepsithastakentoaddressonlysomeauditfindings.Aslongastheexecutivereportspubliclyonthestepsithastakentoaddressauditfinding,answer“a,”“b,”or“c”maybeselected,eveniftheAuditReportisnotmadepubliclyavailable.A“d”responseappliesiftheexecutivedoesnotreportatallonitsstepstoaddressauditfindings.

Answer:d.No,theexecutivedoesnotreportonstepsithastakentoaddressauditfindings.

Source:

Comment:ThereisnoreportbytheexecutivethatdiscussestheimplementationofauditrecommendationsbytheSAI.



102.DoeseithertheSupremeAuditInstitution(SAI)orlegislaturereleasetothepublicareportthattracksactionstakenbytheexecutivetoaddressauditrecommendations?

GUIDELINES:Question102askswhethertheSupremeAuditInstitution(SAI)orthelegislaturetrackactionsbytheexecutivetoaddressauditrecommendations.Afterauditresultsandrecommendationsarediscussedandvalidatedbythelegislature,theexecutiveisnormallyaskedtotakecertainactionstoaddresstheauditfindings.Foraccountabilitypurposes,thepublicneedstobeinformedaboutthestatusofthoseactions,andstepstheexecutivehastakentoaddressauditrecommendations.Inadditiontotheexecutivereportingonitsactions(seeQuestion101),theSAIandlegislature—asthekeyoversightinstitutions—havearesponsibilitytokeepthepublicinformedbytrackingtheexecutive’sprogressinaddressingauditrecommendations.

Toanswer“a,”theSAIorlegislaturemustreportpubliclyonwhatstepstheexecutivehastakentoaddressallauditfindings.A“b”responseappliesiftheSAIorlegislaturereportspubliclyonwhatstepstheexecutivehastakentoaddressmost,butnotall,auditfindings.A“c”responseappliesiftheSAIorlegislaturereportspubliclyonwhatstepstheexecutivehastakentoaddressonlysomeauditfindings.AslongastheSAIorlegislaturereportspubliclyonthestepstheexecutivehastaken,answer“a,”“b,”or“c”maybeselected,eveniftheAuditReportisnotmadepubliclyavailable.A“d”responseappliesifneithertheSAInorthelegislaturereportsontheexecutive’sstepstoaddressauditfindings.

Answer:a.Yes,theSAIorlegislaturereportspubliclyonwhatstepstheexecutivehastakentoaddressallauditrecommendations.

Source:Report-onanalysisandinformationfortheimplementationoftherecommendationsin2018http://www.bulnao.government.bg/bg/articles/download/12320/doklad-izpalnenie-preporaki-2018-210319.pdf

Reportsontheimplementationoftherecommendationshttp://www.bulnao.government.bg/bg/articles/izpylnenie-na-preporykite-133

TheNationalAuditOfficepublishesseparatereportsontheimplementationoftherecommendationsintheauditedinstitutions.Thereportscontaininformationontherecommendations,theactionstakenbytherelevantinstitutionsandanassessmentwhethertherecommendationsisfulfilled.

Comment:AccordingtothelawonSAI(art50)-thepresidentoftheNationalAuditOffice,orthevicepresidentauthorisedbythepresident,shallorganisetimelyfollow-upontheimplementationofrecommendations.Theheadoftheauditedorganisationmusttakemeasurestoimplementtherecommendationsandmustnotify,inwriting,thepresidentoftheNationalAuditOfficeaboutthemeasureswithinatimelimitspecifiedinthereportwhichneedstobeappropriatelydeterminedgiventhenatureoftherecommendations.Intheeventoffailuretoimplementtherecommendations,theNationalAuditOfficeshallsendareportwithproposalsforactiontotheNationalAssembly,theCouncilofMinisters,ortheMunicipalCouncil,asappropriate.



103.IsthereanIndependentFiscalInstitution(IFI)thatconductsbudgetanalysesforthebudgetformulationand/orapprovalprocess?

GUIDELINES:Question103examineswhetheranIndependentFiscalInstitution(IFI)existsthatcontributesbudgetanalysestothebudgetformulationand/orapprovalprocess.AccordingtothePrinciplesforIndependentFiscalInstitutions,adoptedbytheOECDCouncilin2014,“independentfiscalinstitutionsarepubliclyfunded,independentbodiesunderthestatutoryauthorityoftheexecutiveorthelegislaturewhichprovidenon-partisanoversightandanalysisof,andinsomecasesadviceon,fiscalpolicyandperformance”,andwith“aforward-lookingexantediagnostictask”.Inpractice,theycomeintwomainforms:

Parliamentarybudgetoffices(alsoknownasPBOs)suchastheCongressionalBudgetOfficeintheUnitedStates(https://www.cbo.gov/),theParliamentaryBudgetOfficeinSouthAfrica(https://www.parliament.gov.za/parliamentary-budget-office),andtheCenterforPublicFinanceStudiesinMexico(CentrodeEstudiosdelasFinanzasPúblicas,http://www.cefp.gob.mx/);or

FiscalcouncilssuchastheOfficeforBudgetResponsibilityintheUnitedKingdom(https://obr.uk/),theFiscalPolicyCouncilinSweden(FinanspolitiskaRådet,http://www.finanspolitiskaradet.com/),andtheHighCouncilforPublicFinancesinFrance(HautConseildesfinances

https://www.cbo.gov/

https://www.parliament.gov.za/parliamentary-budget-office

http://www.cefp.gob.mx/

https://obr.uk/

http://www.finanspolitiskaradet.com/

publiques,https://www.hcfp.fr/).

Formoreinformation,seevonTrappetal.‘PrinciplesforIndependentFiscalInstitutionsandCaseStudies’,OECDJournalonBudgeting15:2(specialissue,2016),https://doi.org/10.1787/budget-15-5jm2795tv625.

Toanswer“a,”theremustbeanIFI,anditsindependencemustbesetinlaw.Inaddition,itmusthavesufficientstaffingandresources,includingfunding,tocarryoutitstasks.Answer“b”appliesifanIFIexists,buteitheritsindependenceisnotsetinlaworitsstaffingandresourcesareinsufficienttocarryoutitstasks.Answer“c”appliesifanIFIexists,butitsindependenceisnotsetinlawanditlackssufficientstaffingandresources.Answer“d”appliesifnoIFIexists.

Iftheansweris“a,”“b,”or“c,”pleasespecifyinthecommentsthenameandtypeofIFIthatexists(e.g.,parliamentarybudgetofficeorfiscalcouncil).Iftheansweris“a”or“b,”identifythelawthatguaranteesitsindependence,andprovideevidenceinsupportoftheassessmentoftheadequacyofitsstaffingandresources.ThiscanincludetheIFI’stotalbudgetallocationoverrecentyears,anypressreportsthatdiscussperceivedfundingshortfalls,assessmentsbyinternationalorganizations,and/orinformationfrominterviewswithstaffoftheIFI.

Answer:b.Yes,thereisanIFI,buteitheritsindependenceisnotsetinlaworitsstaffingandresources,includingfunding,areinsufficienttocarryoutitstasks.

Source:Lawonthefiscalcouncilandautomaticcorrectivemechanismshttps://www.lex.bg/en/laws/ldoc/2136477159

Comment:Article3ofthelawstatesthattheFiscalCouncilisanindependentconsultativebody.Itconsistsof5members,votedbytheParliament(art.7).ItsactivityisfundedbythebudgetoftheParliament(art.15).Thecouncil'sworkissupportedbyfiveexpertsfromtheadministrationoftheParliament(art.15).Thefirstcouncilmemberswereelectedattheendof2015.

Theinstitutionisgraduallyincreasingitsanalyticalcapacityin2017-2018.In2018thenumberofexpertswasincreasedfrom3to5,alsoitsbudgetfor2019is50%higherthan2017.Initsworkprogrammefor2019theFiscalCouncilaimstoimprovethequalityofitsreportsandopinions.



ResearcherResponseWebelievethestaffnumberisstillnotsufficientandsomestaffpositionsarestillnotfilled.Countriesfromtheregion-suchasGreece,SloveniaandRomania-havehigherstaffingnumbers.

104.DoestheIndependentFiscalInstitution(IFI)publishmacroeconomicand/orfiscalforecasts?

GUIDELINES:Question104assesseswhetheranIndependentFiscalInstitution(IFI)hasaroleinproducingthemacroeconomicforecast(e.g.,GDPgrowth,inflation,interestrates,etc.)and/orthefiscalforecast(revenues,expenditure,deficits,anddebt),andifso,whatkindofroleithas.Macroeconomicand/orfiscalforecastingisatypicalcorefunctionacrossIFIs,buttheirroleinforecastingtakesseveralforms(vonTrappetal.2016,p.17andTable2).SomeIFIsproducejustamacroeconomicforecast,whileothersproduceacompletefiscalforecast(whichalsotypicallyrequiresanunderlyingmacroeconomicforecast).Insomecases,thefiscalforecastreflectscontinuationofcurrentbudgetpolicies;suchforecastscanbeusedbythelegislature,themedia,orthepublictoassesstheprojectionsintheexecutive’sbudgetreflectingthegovernment’spolicyproposals.

SomeIFIsproducetheofficialmacroeconomicandfiscalforecastsusedintheexecutive’sbudget.Inothercases,IFIsdonotpreparetheirownindependentforecasts,butratherproduceanassessmentoftheofficialestimates,orprovideanopinionon,orendorsementof,thegovernment’sforecasts.Someothershavenoroleatallinforecasting.

Toanswer“a”,theremustbeanIFIthatpublishesbothitsownmacroeconomicANDfiscalforecasts.Answer“b”appliesifanIFIpublishesitsownmacroeconomicORfiscalforecast(butnotboth).Answer“c”appliesiftheIFIdoesnotpublishamacroeconomicorfiscalforecast,butratherpublishesanassessmentoftheofficialforecastsproducedbytheexecutiveandusedinthebudget.Chooseoption“d”ifthereisnoIFI;orifthereisanIFIthatneitherpublishesitsownmacroeconomicand/orfiscalforecasts,noracommentaryontheofficialforecastsforthebudget.

Macroeconomicforecastsmayincludeindicatorsrelatingtoeconomicoutputandeconomicgrowth,inflation,andthelabormarket,amongstothers.Fiscalforecastsmayincludeestimatesofrevenues,expenditures,thebudgetbalance,anddebt.Iftheansweris“a”or“b,”pleasespecifywhichindicatorsandestimatesareincludedintheforecastsandwhethertheforecastisusedbygovernmentastheofficialforecast.Iftheansweris“c,”pleasedescribethenatureanddepthoftheassessment(e.g.,thelengthofthecommentary,orwhetheritcoversbotheconomicandfiscalissues).

https://www.hcfp.fr/

https://doi.org/10.1787/budget-15-5jm2795tv625

Answer:c,No,theIFIdoesnotpublishitsownmacroeconomicorfiscalforecast,butitdoespublishanassessmentoftheofficialmacroeconomicand/orfiscalforecastsproducedbytheexecutive.

Source:Lawonthefiscalcouncilandautomaticcorrectivemechanismshttps://www.lex.bg/en/laws/ldoc/2136477159

FiscalCouncil,StatementontheDraftoftheStateBudgetActfor2019andtheUpdatedMid-termBudgetaryForecastfortheperiod2019-2021:https://www.fiscalcouncil.bg/uploads/stanovishta/Stanovishte_FS_ASBP_2019-2021EN_0612_1720.pdf

Comment:TheFiscalCouncilproduces"impartialandcompleteassessmentofthemacroeconomicandfiscalforecastsofthegovernment,includingexpostevaluation".(art.6,point7oftheLaw)



105.DoestheIndependentFiscalInstitution(IFI)publishitsowncostingsofnewpolicyproposals,toassesstheirimpactonthebudget?

GUIDELINES:Question105assesseswhetheranIndependentFiscalInstitution(IFI)hasacostingfunctionthatinvolvesassessingthebudgetaryimplicationsofnewpolicyproposalsforbothrevenuesandexpenditures,andifso,whatkindofroleithas.ManyIFIshaveacostingrole,butwithsubstantialdiversityinthenatureandextentofthiswork(vonTrappetal2016,pp.17-18andTable2).Someassessvirtuallyallnewpolicyproposals,whileotherscostonlyaselectionofnewpolicyproposals.Othersonlypublishopinionson,orscrutinizethecostingsof,budgetmeasuresproducedbytheexecutive.

Toanswer“a,”theIFImustpublishitsowncostingsofall(orvirtuallyall)newpolicyproposals.Answer“b”appliesiftheIFIpublishesitsowncostings,butonlyformajornewpolicyproposals–forinstance,onlythoseproposalsthatcostorsaveaboveacertainamount.Answer“c”appliesiftheIFIpublishesitsowncostings,butonlyonalimitednumberofproposals.Thiscouldoccur,forinstance,iftheIFIlackedthecapacitytoassessproposalsdealingwithcertainsectors.Insteadofproducingacostestimate,itcanalsopublishanassessmentoftheestimatesproducedbytheexecutive.Answer“d”appliesifthereisnoIFI;oriftheIFIdoesnotpublishitsowncostingsofnewpolicyproposalsorprovideanassessmentoftheofficialcostingsofnewpolicyproposals.

Answer:d.No,thereisnoIFI;ortheIFIdoesnotpublishitsowncostingsofnewpolicyproposals.

Source:FiscalCouncil,StatementontheDraftoftheStateBudgetActfor2019andtheUpdatedMid-termBudgetaryForecastfortheperiod2019-2021:https://www.fiscalcouncil.bg/uploads/stanovishta/Stanovishte_FS_ASBP_2019-2021EN_0612_1720.pdf

Comment:TheFiscalCouncildoesnotpublishitsowncostingsofnewpolicyproposals.ThelawdoesnotexplicitlystatesucharolefortheCouncil.TheFiscalCouncilassessmentprovideratherbroadcommentsongovernmentexpendituresbutnottheirownestimationofcostsforspecificprogramsorproposals.



106.Inthepast12months,howfrequentlydidtheheadoraseniorstaffmemberoftheIndependentFiscalInstitution(IFI)takepartandtestifyinhearingsofacommitteeofthelegislature?

GUIDELINES:

Question106concernstheinteractionbetweentwoimportantoversightactorsandassesseshowfrequentlytheIndependentFiscalInstitution(IFI)madehigh-levelinputstotheworkoflegislativecommittees.AlmostallIFIsinteractwiththelegislatureinsomeform(vonTrappetal2016,p.18),buttheintensityoftheinteractionvaries.Thisquestionassessesthisaspectbyasking,withreferencetothepast12months,howfrequentlytheheadoraseniorstaffmemberoftheIFItookpartandtestifiedinhearingsofacommitteeofthelegislature.TheintentistoassesstheextenttowhichtheIFIstaffmemberinquestionwasnotonlypresentatameetingofalegislativecommittee,butwasanactiveparticipant(asopposedtoapassiveobserver,servingonlyasaresourcewhencalledupon).Asevidencetosupportyouranswer,youcanrefertoofficialrecordsoflegislativecommittees,websitesandannualreportsoftheIFI,pressreleasesandmediacoverage,forexample.Chooseanswer“a”ifthisoccurredfivetimesormore;“b”forthreetimesormore,butlessthanfivetimes;and“c”foronceortwice.Answer“d”shouldbeselectediftheheadoraseniorstaffmemberoftheIFInevertookpartandtestifiedinhearingsofacommitteeofthelegislature,orifthereisnoIFI.

Answer:c.Rarely(i.e.,onceortwice).

Source:Minutesfrom1November2018BudgetandFinanceCommitteehearingonthe2019EBP:https://www.parliament.bg/bg/parliamentarycommittees/members/2576/steno/ID/5321

Comment:ThechairmanoftheFiscalCouncilwaspresentatthecommitteehearingdedicatedtotheEBP2019,butdidnottestify.TheFiscalCouncilsenttothebudgetcommitteeawrittenopinion,whichwaspublishedonthewebsiteoftheparliamentalongwiththedraftlaw.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:c.Rarely(i.e.,onceortwice).Comments:TheChairpersonoftheFiscalCouncilattendseveryhearingoftheBudgetandfinancecommittee.However,hedoesnotreceiveexplicitinvitation,norishispresenceenvisionedinthelegislation.Thus,hisnameisnotincludedintheListofattendeesintheMinutesofthehearings.However,theChairpersonisalwaysavailabletoanswerquestionsofhiscompetencies.HealsoattendssomeofthehearingsoftheHealthcarecommitteeandtheLabour,socialanddemographicpoliciescommittee.TheretheChairpersonsometimestestifiesabouttopicsrelatedtothereportsoftheNationalHealthInsuranceFundandtheNationalSocialSecurityInstitute

ResearcherResponseWetentativelyagreewiththegovernmentreviewer,butwehavenotfoundanywrittenrecord,eveninthe2018annualreportoftheIFIitself.

IBPCommentToensureconsistencyacrosssurveycountries,theresponseisrevisedfrom"d"to"c."

107.Doesthefulllegislatureand/oralegislativecommitteedebatebudgetpolicypriortothetablingoftheExecutive’sBudgetProposal?

GUIDELINES:Question107askswhetherthelegislaturedebatesbudgetpoliciespriortothetablingoftheExecutive’sBudgetProposal.Ingeneral,priortodiscussingtheExecutive’sBudgetProposalforthecomingyear,thelegislatureshouldhaveanopportunitytoreviewthegovernment’sbroadbudgetprioritiesandfiscalparameters.OftentimesthisinformationislaidoutinaPre-BudgetStatement,whichtheexecutivepresentstothelegislaturefordebate.(SeeQuestions54-58.)

Anumberofcountriesconductapre-budgetdebateinthelegislaturearoundsixmonthsbeforethestartofthebudgetyear.Insomecases,theyadoptlawsthatguidetheupcomingbudget,forexampletheBudgetGuidelinesLawinBrazilandtheSpringFiscalPolicyBillinSweden.Apre-budgetdebatecanservetwomainpurposes:1)toallowtheexecutivetoinformthelegislatureofitsfiscalpolicyintentionsbypresentingupdatedreportsonitsannualandmedium-termbudgetstrategyandpolicypriorities;and2)toestablish“hard”multi-yearfiscaltargetsorspendingceilings,whichthegovernmentmustadheretowhenpreparingitsdetailedspendingestimatesfortheupcomingbudgetyear.

Toanswer“a,”thefulllegislaturemustdebatebudgetpolicypriortothetablingoftheExecutive’sBudgetProposalandapproverecommendationsfortheupcomingbudget.

Answer“b”appliesifalegislativecommittee(butnotthefulllegislature)debatesbudgetpolicypriortothetablingoftheExecutive’sBudgetProposal,andapprovesrecommendationsforthebudget.Option“b”alsoappliesif,inadditiontotheactionbythecommittee,thefulllegislaturealsodebatesbudgetpolicyinadvanceofthebudget,butdoesnotapproverecommendations.

Answer“c”appliesifthefulllegislatureand/oralegislativecommitteedebatesbudgetpolicypriortothetablingoftheExecutive’sBudgetProposal,butdoesnotapproverecommendationsforthebudget.Answer“d”appliesifneitherthefulllegislaturenoranylegislativecommitteedebatebudgetpolicypriortothetablingoftheExecutive’sBudgetProposal.

Inyourcomment,pleaseindicatethedatesofthebudgetdebate,andifboththefulllegislatureandalegislativecommitteeheldadebate.Notethatadebate

doesnotneedtobeopentothepublic,butapublicrecordofthemeetingorapublicnoticethatthemeetingoccurredisrequired.Inaddition,pleaseindicatewhetherthebudgetdebatewasfocusedonaPre-BudgetStatementpublishedbytheExecutive.IftheExecutivedidnotpublishaPre-BudgetStatement,thenpleaseindicatewhatservedasthefocusofthelegislature’sdebate(forinstance,areportreleasedbyanIFIorsomeotherinstitution).

Answer:d.No,neitherthefulllegislaturenoranylegislativecommitteedebatebudgetpolicypriortothetablingoftheExecutive’sBudgetProposal.

Source:

Comment:Thereisnosuchpractice.



108.HowfarinadvanceofthestartofthebudgetyeardoesthelegislaturereceivetheExecutive’sBudgetProposal?

GUIDELINES:Question108examineshowfarinadvanceofthestartofthebudgetyearthelegislaturereceivestheExecutive’sBudgetProposal.InternationalgoodpracticerecommendsthattheExecutive’sBudgetProposalshouldbesubmittedtothelegislaturefarenoughinadvancetoallowthelegislaturetimetoreviewitproperly,oratleastthreemonthspriortothestartofthefiscalyear.(See,forinstance,Principle2.2.2oftheIMF’sFiscalTransparencyHandbook(2018)(https://www.elibrary.imf.org/view/IMF069/24788-9781484331859/24788-9781484331859/24788-9781484331859.xml).

Forthepurposesofrespondingtothisquestion,if—andonlyif—themostrecentbudgetsubmissionoccurredlaterthanusualasaresultofaparticularevent,suchasanelection,pleaseuseamorenormalyearasthebasisfortheresponse.If,however,delayshavebeenobservedformorethanonebudgetyear,andthelegislaturehasnotreceivedtheExecutive’sBudgetProposalinatimelymanneronmorethanoneoccasioninthelastthreeyears,then“d”willbetheappropriateanswer.

Toanswer“a,”thelegislaturemustreceivetheExecutive’sBudgetProposalatleastthreemonthsinadvanceofthestartofthebudgetyear.Answer“b”appliesifthelegislaturereceivestheExecutive’sBudgetProposalatleasttwomonths,butlessthanthreemonths,beforethestartofthebudgetyear.Answer“c”appliesifthelegislaturereceivestheExecutive’sBudgetProposalatleastonemonth,butlessthantwomonths,beforethestartofthebudgetyear.Answer“d”appliesifthelegislaturedoesnotreceivetheExecutive’sBudgetProposalatleastonemonthpriortothestartofthebudgetyear,ordoesnotreceiveitatall.

Answer:b.ThelegislaturereceivestheExecutive’sBudgetProposalatleasttwomonths,butlessthanthreemonths,beforethestartofthebudgetyear.

Source:Executivebudgetproposal2019-websiteofparliamenthttps://www.parliament.bg/bg/bills/ID/78264/

Comment:ThegovernmentisrequiredbythePublicFinanceLawtoapproveandsubmitthedraftbudgetbytheendofOctober,i.e.2monthsbeforethestartofthenextbudgetyear(article79ofthelaw).Thedeadlineisusuallyobserved.EBP2019wassubmittedon29October2018(seesource)



109.WhendoesthelegislatureapprovetheExecutive’sBudgetProposal?


GUIDELINES:Question109examineswhenthelegislatureapprovestheExecutive’sBudgetProposal.InternationalgoodpracticerecommendsthattheExecutive’sBudgetProposalshouldbeapprovedbythelegislaturebeforethestartofthefiscalyearthebudgetproposalrefersto.Thisgivestheexecutivetimetoimplementthebudgetinitsentirety,particularlynewprogramsandpolicies.

Insomecountries,theexpenditureandrevenueestimatesoftheExecutive’sBudgetProposalareapprovedseparately;forpurposesofthisquestion,atleasttheexpenditureestimatesmustbeapproved.Further,approvalofthebudgetimpliesapprovalofthefull-yearbudget,notjustashort-termcontinuationofspendingandrevenueauthority.

Toanswer“a,”thelegislaturemustapprovetheExecutive’sBudgetProposalatleastonemonthbeforethestartofthebudgetyear.Answer“b”appliesifthelegislatureapprovestheExecutive’sBudgetProposallessthanonemonthinadvanceofthestartofthebudgetyear,butatleastbythestartofthebudgetyear.Answer“c”appliesifthelegislatureapprovestheExecutive’sBudgetProposallessthanonemonthafterthestartofthebudgetyear.Answer“d”appliesifthelegislatureapprovestheExecutive’sBudgetProposalmorethanonemonthafterthestartofthebudgetyear,ordoesnotapprovethebudget.

Answer:a.Thelegislatureapprovesthebudgetatleastonemonthinadvanceofthestartofthebudgetyear.

Source:EBP2019:https://www.parliament.bg/bg/bills/ID/78264/

Comment:TheEBP2019wasapprovedbyparliamenton29November2018.ThedateofapprovalispostedontheonlinefolderoftheEBPintheParliament.(seesource)



110.DoesthelegislaturehavetheauthorityinlawtoamendtheExecutive’sBudgetProposal?

GUIDELINES:

Question110examinesthelegislature’spowertoamend—asopposedtosimplyacceptorreject―thebudgetproposalpresentedbytheexecutive.Thisquestionisaboutlegalauthorityratherthanactionsthelegislaturetakesinpractice.Thelegislature’spowerstoamendthebudgetcanvarysubstantiallyacrosscountries.

The“a”responseisappropriateonlyiftherearenorestrictionsontherightofthelegislaturetomodifytheExecutive’sBudgetProposal,includingitsrighttochangethesizeoftheproposeddeficitorsurplus.The“b”responsewouldbeappropriateif,forinstance,thelegislatureisrestrictedfromchangingthedeficitorsurplus,butitstillhasthepowertoincreaseordecreasefundingandrevenuelevels.Themorelimited“c”responsewouldapplyif,forinstance,thelegislaturecanonlyre-allocatespendingwithinthetotalssetintheExecutive’sBudgetProposalorcanonlydecreasefundinglevelsorincreaserevenues.Finally,response“d”wouldapplyifthelegislaturemaynotmakeanychanges(oronlysmalltechnicalchanges),orifamendmentsmustfirstbeapprovedbytheexecutive.Inthesecases,thelegislatureisessentiallyonlyabletoapproveorrejectthebudgetasawhole.Iftheansweris“b”or“c”,pleaseindicatethenatureoftheamendmentpowersavailabletotheParliamentandhowtheyarelimited.

Answer:a.Yes,thelegislaturehasunlimitedauthorityinlawtoamendtheExecutive’sBudgetProposal.

Source:Lawonpublicfinances,Chapter2FiscalRules,Art22-41http://www.minfin.bg/document/18172:7

WiththenewLawonpublicfinancesBulgarianlegislatureadoptedcertainrulestolimitthebudgetdeficitandpublicdebt.Therulesarenumerousandverystrict,butinpracticetheydonotlimitthediscretionofthemembersoftheparliamenttoproposeamendmentstothedraftbudgetlaw(theConstitutionandtheParliament'sownRulesofProceduredonotlimitthelegislativediscretionconcerningthebudgetlaw).

Comment:Thebudgetlawfollowsthesameprocedureasallotherlaws-onfirstreadingthewholedraftisvotedonwhileonsecondreadingtheparliamentvotestextbytextandthemembersoftheparliamantcanproposeamendmentstoanytextsornewtexts(theseamendmentsarethenalsovotedonebyone).Thereisonlyonegenerallimitationforalllaws-"proposalsthatareinconsistentwiththeprinciplesandscopeofthebillshallnotbeconsideredorputtoavote"(art.84),butthisprovisionisnotusedinpractice.RulesofOrganisationandProcedureoftheNationalAssemblyhttps://www.parliament.bg/bg/rulesoftheorganisations



111.Duringthemostrecentbudgetapprovalprocess,didthelegislatureuseitsauthorityinlawtoamendtheExecutive’sBudgetProposal?

GUIDELINES:Question111assesseswhetheranyformalauthorityofthelegislaturetoamendtheExecutive’sBudgetProposalisusedinpractice.TheresponsestothisquestionshouldbedeterminedbasedonactionbythelegislaturerelatedtotheEnactedBudgetusedintheOBS.Chooseanswer“a”ifthelegislatureuseditsauthorityinlawtoamendtheExecutive’sBudgetProposalduringthemostrecentbudgetapprovalprocess,andamendmentswereadopted(all,oratleastsomeofthem).Answer“a”alsoappliesifthelegislatureuseditsauthorityinlawtoamendtheExecutive’sBudgetProposal,buttheamendmentswererejectedbyexecutiveveto.Answer“b”appliesifthelegislatureuseditsauthorityinlawtoproposeamendmentstotheExecutive’sBudgetProposal,butnoneoftheseamendmentswereadopted.Answer“c”appliesifthelegislaturehastheauthorityinlawtoamendthebudget,butnoamendmentswereproposedduringitsconsideration.Answer“d”applieswhenthelegislaturedoesnothaveanyauthoritytoamendthebudget(thatis,Question110isanswered“d”).

Iftheansweris“a”or“b”,pleasespecifyinthecommentsthenumberofamendmentsintroducedbythelegislature(andinthecaseofan“a”response,thenumberadopted,orifapplicable,informationaboutanexecutiveveto)anddescribetheirnature.Forexample,didtheamendmentsresultinanincreaseordecreaseofthedeficit?Whatwerethemostsignificantamendmentstorevenuesandtoexpendituresintermsofthesumsinvolved?Howdidamendmentsaffectthecompositionofexpenditures?Iftheansweris“a,”pleasespecifywhichamendmentswereadopted,andprovideevidenceforit.

Answer:a.Yes,thelegislatureuseditsauthorityinlawtoamendtheExecutive’sBudgetProposal,and(atleastsomeof)itsamendmentswereadopted.

Source:Executivebudgetproposal2019-websiteofparliamenthttps://www.parliament.bg/bg/bills/ID/78264/

Comment:ThedraftbudgetlawfolderintheParliamentshowsalltheproposalsmadebymembersoftheparliamenttoamendthedraftbudgetlaw.

In2019atotalof83amendmentsweremade-most(around70)wererejectedbytheBudgetcommitteeandthefullparliament.https://www.parliament.bg/bg/parliamentarycommittees/members/2576/reports/ID/9811



112.Duringthelastbudgetapprovalprocess,didaspecializedbudgetorfinancecommitteeinthelegislatureexaminetheExecutive’sBudgetProposal?

GUIDELINES:Question112assessestheroleofaspecializedbudgetorfinancecommitteeduringthebudgetapprovalstage.Effectivecommitteeinvolvementisanessentialconditionforlegislativeinfluenceinthebudgetprocess.Specializedcommitteesprovideopportunitiesforindividuallegislatorstogainrelevantexpertise,andtoexaminebudgetsandpolicyindepth.Yet,theinvolvementofcommitteesdiffersacrosslegislatures.Somelegislatureshaveseparatecommitteestoexaminespendingandtaxproposals,whileothershaveasinglefinancecommittee.Notalllegislatureshaveaspecializedbudgetorfinancecommitteetoexaminethebudget.Inaddition,therecanbedifferencesinthetimeavailableforthecommittee’sanalysisofthebudget.

Areportwiththecommittee’sfindingsandrecommendationsisintendedtoinformthedebateinthefulllegislature,thereforeitmustbepublishedbeforethelegislaturehasadoptedthebudget.

Response“a”requiresthat,inthelastbudgetapprovalprocess,aspecializedbudgetorfinancecommitteehadonemonthormoretoexaminetheExecutive’sBudgetProposal,anditpublishedareportwithfindingsandrecommendationspriortothebudgetbeingadopted.Response“b”applieswheresuchacommitteeexaminedthedraftbudgetandpublishedareport,butwithinashortertimeframeoflessthanonemonth.Response“c”appliesifacommitteeexaminedthebudget(withoutregardtothetimeperiod),butdidnotpublishareportpriortotheadoptionofthebudget.Response“d”applieswhereaspecializedbudgetorfinancecommitteedidnotexaminetheExecutive’sBudgetProposal.

Pleasespecifyinyourcommentthenameofthecommitteeandthenumberofdaysithadavailabletoexaminethebudgetandtopublishareport.Forbicamerallegislatureswhereonehouseorchamberhasgreaterconstitutionalauthorityinbudgetarymatters,thequestionappliestothehouseorchamber(usuallytheupperorsecondone)thatisdecisive.Forbicamerallegislatureswithco-equalhousesorchambers,thequestionshouldbeansweredwithreferencetotheonethatachievesthehigherscoreforthisquestion.Inthecaseofbicamerallegislatures,pleasenotetherelevantarrangementsineachhouseorchamber.Ifapplicable,provideacopyofthereport.Pleasenotealsoifareportispublished,butonlyafterthebudgethasbeenadopted.

Answer:b.Yes,aspecializedbudgetorfinancecommitteehadlessthanonemonthtoexaminetheExecutive’sBudgetProposal,anditpublishedareportwithfindingsandrecommendationspriortothebudgetbeingadopted.

Source:BudgetandFinanceCommitteereportbeforefirsthearing:https://www.parliament.bg/bg/parliamentarycommittees/members/2576/reports/ID/9709BudgetandFinanceCommitteereportbeforesecondhearing:https://www.parliament.bg/bg/parliamentarycommittees/members/2576/reports/ID/9811

Comment:TheEBP2019wassubmittedtoparliamenton29October2018.ThefirstreportbythespecializedBudgetandFinanceCommitteewaspreparedon2November,thesecond-on26November.Thetimefordiscussionwasslightlyshorterthan1month.



113.Duringthelastapprovalprocess,didlegislativecommittees,responsibleforparticularsectors(e.g.,health,education,defense,etc.),examinespendingintheExecutive’sBudgetProposalrelatedtothesectorforwhichtheyareresponsible?

GUIDELINES:Question113assessestheroleofcommitteesofthelegislaturethatareresponsibleforparticularsectors(e.g.,health,education,defense,etc.)duringthebudgetapprovalstage.Theroleofsectoralcommitteesdiffersacrosslegislatures.Somelegislaturesdonotinvolvetheminthebudgetapprovalprocess,whileothersdo.Inaddition,thetimeavailableforcommitteeanalysisdiffers.

Areportwiththecommittee’sfindingsandrecommendationsisintendedtoinformthedebateinthefulllegislature,sothereforemustbepublishedbeforethelegislaturehasadoptedthebudget.Response“a”requiresthatsectorcommitteeshadonemonthormoretoexaminetheExecutive’sBudgetProposal,andpublishedareportwithfindingsandrecommendationspriorthebudgetbeingadopted.Response“b””applieswheresuchcommitteesexaminedthedraftbudgetandpublishedareport,butwithinashortertimeframeoflessthanonemonth.Response“c”appliesifsectoralcommitteesexaminedthebudget(withoutregardtothetimeperiod),butdidnotpublishareportpriortotheadoptionofthebudget.Response“d”applieswheresectoralcommitteesdidnotexaminetheExecutive’sBudgetProposal.

Pleaseprovideinthecommentsabriefoverviewofthecommitteestructureandspecifythenumberofdaysthatsectoralcommitteeshadavailabletoexaminethebudgetandtopublishtheirreports.Forbicamerallegislatureswhereonehouseorchamberhasgreaterconstitutionalauthorityinbudgetarymatters,thequestionappliestothehouseorchamber(usuallytheupperorsecondone)thatisdecisive.Forbicamerallegislatureswithco-equalhousesorchambers,thequestionshouldbeansweredwithreferencetotheonethatachievesthehigherscoreforthisquestion.Inthecaseofbicamerallegislatures,pleasenotetherelevantarrangementsineachhouseorchamber.Ifapplicable,provideasamplecopyofatleastoneofthereports.Pleasenoteifareportispublished,butonlyafterthebudgethasbeenadopted.

Forpurposesofrespondingtothisquestion,usethosesectoralcommitteesthatarebestperforming–thatis,theonesthatexaminethebudgetthelongestandthatpublishreports.

Answer:b.Yes,sectorcommitteeshadlessthanonemonthtoexaminetheExecutive’sBudgetProposal,andtheypublishedreportswithfindingsandrecommendationspriortothebudgetbeingadopted.

Source:EBP2019folder(seereportsbyparliamentarycommittees):https://www.parliament.bg/bg/bills/ID/78264/

Comment:Allparliamentcommitteesdiscussthebudgetlawandpublishreportbeforefirstreading.Reportswerepublishedwithin10daysofaftertheEBPwassubmittedtotheparliament.



114.Inthepast12months,didacommitteeofthelegislatureexaminein-yearimplementationoftheEnactedBudgetduringtherelevantbudgetexecutionperiod?

GUIDELINES:Question114isaboutlegislativeoversightofbudgetexecution.Itassesseswhetherandhowoftenacommitteeexaminedtheimplementationofthebudgetduringthebudgetexecutionperiod(i.e.,financialyear)forwhichitwasapproved,andwhetherthisresultedinanofficialreportwithfindingsandrecommendations.Thisquestiondoesnotapplytotheexpostreviewofimplementationfollowingtheendofthebudgetyearaspartoftheauditstage,whichisassessedseparately.Nordoesitapplytothelegislature’sreviewofthebudgetthatitmayundertakeaspartoftheprocessofconsideringasupplementalbudgetduringtheyear.In-yearmonitoringbythelegislaturewillbeaffectedbythefrequencythattheexecutivepublishesIn-YearReports.

Toanswer“a,”acommitteemusthaveexaminedin-yearimplementationoftheEnactedBudgetatleastthreetimesduringthecourseoftherelevantbudgetyearandpublishedreportswithfindingsandrecommendations.Answer“b”applieswherethisoccurredonlyonceortwiceduringtheyear.

Exception:Ifalegislatureisinsessiononlytwiceduringtheyear,anditexaminestheimplementationofthebudgetduringbothsessions,thenitwouldbeeligibleforan“a”response.

Choose“c”ifacommitteeexaminedin-yearimplementation(withoutregardtofrequency),butdidnotpublishanyreportwithfindingsandrecommendations.Answer“d”applieswherenocommitteeexaminedin-yearimplementation.

Iftheansweris“a”or“b,”pleasespecifythenameofthecommitteeandwhenitreviewedbudgetimplementation,andprovideacopyofitsreport(s).Iftheansweris“c,”pleasespecifythenameofthecommitteeandwhenitreviewedbudgetimplementation.

Forpurposesofrespondingtothisquestion,ifmorethanonecommitteeholdsin-yearreviewsofthebudget,usethecommitteethatisbestperforming–thatis,theonethatexaminesin-yearimplementationthemosttimesandthatpublishesareport.

Answer:d.No,acommitteedidnotexaminein-yearimplementation.

Source:Hearingin2017:https://www.parliament.bg/bg/parliamentarycommittees/members/2576/steno/ID/4780/

Comment:Underart.29oftheRulesofOrganisationandProcedureoftheNationalAssembly,onthefirstWednesdayorThursdayofeachmonth,membersoftheFinanceandBudgetCommitteemayposequestionstotheMinisterofFinanceregardingthethein-yearimplementationoftheEnactedBudget.Duringthemeetingaverbatimreportsarerecorded.

In2018thecommitteeheldnohearingsasnorequestsfrommemberswereposed,in2017onehearingontheimplementationofthe2017EBwasheld.

However,theMinisterofFinanceansweredseveralquestionbyMPs.Forexample,on4thMay2018theMinisterofFinanceansweredaquestionintheparliamentaboutthebudgetimplementationinthefirstthreemonthsoftheyear.https://www.parliament.bg/bg/plenaryst/ns/52/ID/6161

AnotherquestiononthebudgetimplementationwasansweredinDecemberhttps://www.parliament.bg/bg/topical_nature/31274



115.DoestheexecutiveseekapprovalfromthelegislaturepriortoshiftingfundsbetweenadministrativeunitsthatreceiveexplicitfundingintheEnactedBudget,andisitlegallyrequiredtodoso?

GUIDELINES:Question115examineswhethertheexecutiveseeksapprovalfromthelegislaturepriortoshiftingfundsbetweenadministrativeunits,andwhetheritislegally

requiredtodoso.

Insomecountries,theexecutivehasthepowerinlawtoadjustfundinglevelsforspecificappropriationsduringtheexecutionofthebudget.Thisquestionexaminesrulesaroundshiftingfundsbetweenadministrativeunits(ministries,departments,oragencies)orwhateverfundingunit(or“vote”)isspecifiedintheEnactedBudget.

Theconditionsunderwhichtheexecutivemayexerciseitsdiscretiontoshiftfundsshouldbeclearlydefinedinpubliclyavailableregulationsorlaw.Inaddition,theamountoffundsthattheexecutiveisallowedtotransferbetweenadministrativeunitsshouldnotbesoexcessiveastounderminetheaccountabilityoftheexecutivetothelegislature.

Toanswer“a,”theexecutiveisrequiredbylaworregulationtoobtainpriorlegislativeapprovalbeforeshiftingfundsbetweenadministrativeunits,anditdoessoinpractice.Answer“b”appliesiftheexecutiveobtainslegislativeapprovalbeforeshiftingfundsbetweenadministrativeunits,butisnotlegallyrequiredtodoso.Answer“c”appliesiftheexecutiveislegallyrequiredtoreceivelegislativeapprovalbeforeshiftingfunds,butdoesnotdosoinpractice.Answer“d”appliesiflegislativeapprovalisnotlegallyrequiredfortheexecutivetoshiftfundsbetweenadministrativeunitsandtheexecutivedoesnotobtainlegislativeapprovalinpractice.Answer“d”alsoappliesiftheexecutiveisauthorizedtoshiftanamountconsideredsoexcessiveastoundermineaccountability(roughlyequalto3percentoftotalbudgetedexpenditures).A“d”responseappliesifthelegislatureonlyapprovestheshiftingoffundsafterithasalreadyoccurred.

Inthecomments,pleaseindicateanylaworregulationthatprovidestheexecutivewithstandingauthoritytoshiftfundsbetweenadministrativeunitsand,ifso,describethatauthority.Similarly,legislativeapprovalforshiftingfundsbetweenadministrativeunitstypicallyoccurswiththeadoptionoflegislationsuchasasupplementalbudget.Butifotherformalproceduresforgainingapprovalfromthelegislatureexist,thenpleaseprovideinformationaboutthatapprovalprocess.

Answer:d.Thereisnolaworregulationrequiringtheexecutivetoobtainapprovalfromthelegislaturepriortoshiftingfundsbetweenadministrativeunits,andinpracticetheexecutiveshiftsfundsbetweenadministrativeunitsbeforeobtainingapprovalfromthelegislature.

Source:PublicFinanceLaw,article109-112http://www.minfin.bg/document/18172:7

Comment:NorequirementforapprovalfromthelegislatureinthePublicFinanceLaw.TheexecutivecanshiftfundsbetweenadministrativeunitswithCoMdecision.Inart.113thereisanexceptionforthebudgetoftheParliamentandtheCourtSystem-thegovernmentcannotshiftfundsfromtheirbudgettootherinstitutions(butcangivethemmorefunds-whichhappens)



116.Doestheexecutiveseekapprovalfromthelegislaturepriortospendingexcessrevenue(thatis,amountshigherthanoriginallyanticipated)thatmaybecomeavailableduringthebudgetexecutionperiod,andisitlegallyrequiredtodoso?

GUIDELINES:Question116examineswhethertheexecutivereceivesapprovalfromthelegislaturepriortospendingexcessrevenue,andwhetheritislegallyrequiredtodoso.GoodpracticerequiresthelegislaturetoapprovechangesinrevenueorexpenditurerelativetotheEnactedBudget.Forexample,ifadditionalrevenueiscollectedunexpectedlyduringtheyear,whichoftenhappensinoil/mineral-dependentcountries,anditwasnotaccountedforintheEnactedBudget,thereshouldbeaprocedureinplacetoensurethatthelegislatureapprovesanyproposeduseofthese“new”funds.Ifsuchrequirementsarenotinplace,theexecutivemightdeliberatelyunderestimaterevenueinthebudgetproposalitsubmitstothelegislature,inordertohaveadditionalresourcestospendattheexecutive’sdiscretion,withnolegislativecontrol.

Toanswer“a,”theexecutiveisrequiredbylaworregulationtoobtainpriorlegislativeapprovalbeforespendinganyfundsresultingfromhigher-than-expectedrevenues,anditdoessoinpractice.Answer“b”appliesiftheexecutiveobtainslegislativeapprovalbeforespendingexcessrevenue,butisnotlegallyrequiredtodoso.Answer“c”appliesiftheexecutiveislegallyrequiredtoreceivelegislativeapprovalbeforespendingexcessrevenue,butdoesnotdosoinpractice.Answer“d”appliesifpriorlegislativeapprovalisnotlegallyrequiredfortheexecutivetospendexcessrevenueandtheexecutivedoesnotobtainlegislativeapprovalinpractice.A“d”responseappliesifthelegislatureonlyapprovestheadditionalspendingafterithasalreadyoccurred.

Typically,legislativeapprovalofadditionalspendingbeyondwhatwasreflectedintheEnactedBudgetwouldoccurwiththeadoptionofasupplementalbudget.Butotherformalproceduresforgettingapprovalfromthelegislatureinadvanceofitadoptingthesupplementalbudgetmayexist.Ifthatisthecase,thenpleaseprovideinformationaboutthatapprovalprocess.

Answer:aTheexecutiveisrequiredbylaworregulationtoobtainapprovalfromthelegislaturepriortospendingexcessrevenues,anditdoessoinpractice.

Source:art.26ofthePublicFinanceLawhttp://www.minfin.bg/document/18172:3

Comment:



117.DoestheexecutiveseekapprovalfromthelegislaturepriortoreducingspendingbelowthelevelsintheEnactedBudgetinresponsetorevenueshortfalls(thatis,revenueslowerthanoriginallyanticipated)orotherreasonsduringthebudgetexecutionperiod,andisitlegallyrequiredtodoso?

GUIDELINES:Question117examineswhethertheexecutivereceivesapprovalfromthelegislaturepriortocuttingspendingbelowthelevelsintheEnactedBudgetinresponsetorevenueshortfallsorforanyotherreason,andwhetheritislegallyrequiredtodoso.GoodpracticerequiresthelegislaturetoapprovechangesinrevenueorexpenditurerelativetotheEnactedBudget.Forexample,iflessrevenueiscollectedunexpectedlyduringtheyear,thelegislatureshouldapproveorrejectanyproposedreductionsinexpendituresthatareimplementedasaresult.Ifsuchrequirementsarenotinplace,theexecutivemightsubstantiallychangethecompositionofthebudgetattheexecutive’sdiscretion,withnolegislativecontrol.

Typically,legislativeapprovalofproposalstoreducespendingbelowthelevelsreflectedintheEnactedBudgetwouldoccuraspartofthesupplementalbudget.Butotherformalproceduresforgettingapprovalfromthelegislatureinadvanceofitadoptingthesupplementalbudgetmayexist.Ifthatisthecase,thenpleaseprovideinformationaboutthatapprovalprocess.

Toanswer“a,”theexecutiveisrequiredbylaworregulationtoobtainpriorlegislativeapprovalbeforeimplementingspendingcutsinresponsetorevenueshortfallsorforotherreasons,anditdoessoinpractice.Answer“b”appliesiftheexecutivereceivedlegislativeapprovalbeforeimplementingsuchcuts,butisnotlegallyrequiredtodoso.Answer“c”appliesiftheexecutiveislegallyrequiredtoobtainlegislativeapprovalbeforeimplementingsuchcuts,butdoesnotdosoinpractice.Answer“d”appliesiflegislativeapprovalisnotlegallyrequiredfortheexecutivetoimplementsuchcutsandtheexecutivedoesnotobtainsuchapprovalinpractice.A“d”responseappliesifthelegislatureonlyapprovesthespendingcutsaftertheyhavealreadyoccurred.

Answer:c.Theexecutiveisrequiredbylaworregulationtoobtainapprovalfromthelegislaturepriortoreducingspendingbelowenactedlevels,butinpracticetheexecutiveimplementsthesecutsbeforeseekingapprovalfromthelegislature.

Source:PublicFinanceLaw,art.27andart.102https://www.lex.bg/laws/ldoc/2135837967

Comment:Accordingtoarticle102theministriesandotherfirstlevelspendingunitsarenotallowedtospendmorethantheirapprovedbudget.Thus,thebudgetisaceiling-theyarenotallowedtospendmorethanthebudget,buttheycanspendless,iftheydecide.Sotheexecutivecanspendlessthatbudgeted,andinrecentyearsthebudgetspendinghasbeenconsistentlybelowbudget(withoutparliamentapproval).

Accordingtoart.27incaseofnegativedeviationfromtheannualtargetforthebudgetarybalance,theMinisterofFinanceproposestothegovernmenttoapprovecompensatorymeasures.Ifthemeasuresnecessitatechangestothemainvariablesofthestatebudget,thegovernmentshallasktheParliamenttoamendtheannualbudgetlaw.Thisprocedure,introducedfrom2014,hasnotbeentestedyet,asthebudgetrevenuesareusuallyabovetarget.Theprocedureisrathervague-itisuptothegovernmenttodecidewhetheritshouldapprovethecompensatorymeasuresorshouldasktheParliamenttoamendtheannualbudgetlaw.

Article102.(1)Firstlevelspendingunitsmaynotincurexpenditureormakeexpenditurecommitmentsforthecurrentyearwhichexceedthetotalamountofexpenditureorexpenditurecommitmentsapprovedwithintheirbudgets.Article27.(1)Thebudgetarybalanceobjectiveconcerningtheconsolidatedfiscalprogrammecalculatedonacashbasisshallbetoreachand/ormaintainanilorpositivebalance.(2)Whenexpectinganegativedeparturefromtheannualobjectiveforthebudgetarybalanceoftheconsolidatedfiscalprogramme,theMinisterofFinanceshallproposetotheCouncilofMinisterstoapprovecompensatorymeasures.(3)IfthemeasuresreferredtoinParagraph2necessitatechangestothemainvariablesofthestatebudgetand/orthebudgetsofthesocialsecurityfunds,theCouncilofMinistersshallputforwardaproposaltotheNationalAssemblytoamendtheStateBudgetActand/orthelawsregulatingthepublicsocialinsurancebudgetandthebudgetoftheNationalHealthInsuranceFund.

PeerReviewer

Opinion:Agree


118.DidacommitteeofthelegislatureexaminetheAuditReportontheannualbudgetproducedbytheSupremeAuditInstitution(SAI)?

GUIDELINES:Question118isaboutexpostoversightfollowingtheimplementationofthebudget.ItprobeswhetheracommitteeexaminedtheAuditReportontheannualbudgetproducedbytheSupremeAuditInstitution(SAI),andwhetherthisresultedinanofficialreportwithfindingsandrecommendations.AkeyissueishowsoonaftertheSAIreleasesthereportdoesitlegislaturereviewit.Thisquestiondoesnotapplytothelegislativescrutinyofin-yearimplementationoftheEnactedBudgetduringtherelevantbudgetexecutionperiod,whichisassessedseparately.Also,thequestionisaskingspecificallyabouttheSAI’sannualreportontheexecutionofthebudget,notaboutotherauditreportsthattheSAImayproduce.(ThisistheAuditReportusedforrespondingtoQuestion98.)

Toanswer“a,”alegislativecommitteemusthaveexaminedtheannualAuditReportwithinthreemonthsofitbeingreleasedbytheSAI,andthenpublishedareport(orreports)withfindingsandrecommendations.(Notethatthethree-monthperiodshouldonlytakeintoaccounttimewhenthelegislatureisinsession.)

Answer“b”applieswhenthecommitteeexaminesitwithinsixmonthsofitbeingreleased(butmorethanthreemonths),andthenpublishedareportwithitsfindingsandrecommendations.Choose“c”ifacommitteeexaminedtheannualAuditReportmorethansixmonthsafteritbecameavailableoritdidnotpublishanyreportwithfindingsandrecommendations.Answer“d”applieswherenocommitteeexaminedtheannualAuditReport.

Iftheansweris“a”or“b,”pleasespecifythenameofthecommitteeandwhenitreviewedtheAuditReport,andprovideacopyofitsreport(s).Iftheansweris“c,”pleasespecifythenameofthecommitteeandwhenitreviewedbudgetimplementation.Answers“a,”“b,”or“c”maybeselectediftheAuditReportisproducedbytheSAIbutnotmadepubliclyavailable.

Answer:d.No,acommitteedidnotexaminetheAuditReportontheannualbudget.

Source:NationalAuditOfficeActhttp://www.bulnao.government.bg/en/articles/national-audit-office-act-1035

Comment:NorecordofsuchhearingattheBudgetandFinanceCommittee.UnderthelawtheparliamentmustapprovetheAuditReportwithin3months(art.62).However,inpracticethesedeadlinesarenotbinding.



119.Wastheprocessofappointing(orre-appointing)thecurrentheadoftheSAIcarriedoutinawaythatensureshisorherindependence?

GUIDELINES:Question119concernstheappointmentprocessofthecurrentheadoftheSupremeAuditInstitution(SAI).Appointmentproceduresvarygreatlyacrosscountries,aswellasacrossdifferenttypesofSAIs.Moreover,conventionsandinformalpracticescangreatlyaffectthedefactoindependenceoftheheadoftheSAI.WhilethesefactorsmakeitdifficulttodeviseasinglemetricagainstwhichallSAIscanbeassessedwithregardtothisparticularaspect,thisquestionfocusesonwhetherthelegislatureorjudiciarymustappointorapprovetheappointmentoftheheadoftheSAIasawaytoensuretheSAI’sindependencefromtheexecutive.However,iftheappointmentiscarriedoutinanotherwaythatnonethelessensurestheindependenceoftheSAIhead,thenthatapproachcouldbealsoconsidered.

Toanswer“a,”thelegislatureorjudiciarymustappoint(orre-appoint)theheadoftheSAI,orapprovetherecommendationoftheexecutive,asawaythatensurehisorherindependencefromtheexecutive.(Asnotedabove,alternativeapproachesmayalsobeacceptable.)Choose“b”iftheappointmentprocessdoesnotensuretheindependenceoftheheadoftheSAI,e.g.theexecutivemayappointtheheadoftheSAIwithoutthefinalconsentofthelegislatureorjudiciary.

Irrespectiveofwhichansweryouselected,provideadescriptionofhowtheheadoftheSAIisappointed.

Answer:a.Yes,theheadoftheSAImayonlybeappointedbythelegislatureorjudiciary,orthelegislatureorjudiciarymustgivefinalconsentbeforetheappointmenttakeseffect.

Source:Art17SAIActhttp://www.bulnao.government.bg/bg/articles/zakon-za-smetnata-palata-1685

Decisionofthe43rdNationalAssemblyontherulesandproceduresandonthepublichearingshttp://www.parliament.bg/bg/desision/ID/15264/

Decisionofthe43rdNationalAssemblyappointingheadoftheSAIhttp://www.parliament.bg/bg/desision/ID/15303/

Comment:



120.Mustabranchofgovernmentotherthantheexecutive(suchasthelegislatureorthejudiciary)givefinalconsentbeforetheheadoftheSupremeAuditInstitution(SAI)canberemovedfromoffice?

GUIDELINES:

Question120coversthemannerinwhichtheheadorseniormembersoftheSAImayberemovedfromoffice.ThisquestiondrawsonbestpracticesidentifiedintheLimaDeclarationofGuidelinesonAuditingPrecepts(http://internationalbudget.org/wp-content/uploads/LimaDeclaration.pdf),includingmeasuresintendedtoguaranteetheoffice’sindependencefromtheexecutive.

Toanswer“a,”theheadoftheSAImayonlyberemovedbythelegislatureorjudiciary,orthelegislatureorjudiciarymustgivefinalconsentbeforetheheadoftheSAIisremoved.Forexample,thelegislatureorjudiciarymaygivefinalconsentfollowingacertainexternalprocess,suchasacriminalproceeding.Sowhiletheexecutivemayinitiateacriminalproceeding,thefinalconsentofamemberofthejudiciary—orajudge—isnecessarytorenderaverdictofwrongdoingthatmayleadtotheremovalfromofficeoftheheadoftheSAI.Answer“b”appliesiftheexecutivemayremovetheheadoftheSAIwithoutthefinalconsentofthejudiciaryorlegislature.

Answer:a.Yes,theheadoftheSAImayonlyberemovedbythelegislatureorjudiciary,orthelegislatureorjudiciarymustgivefinalconsentbeforeheorsheisremoved.

Source:Art19ottheSAIAct:http://www.bulnao.government.bg/bg/articles/zakon-za-smetnata-palata-1685

Comment:



121.WhodeterminesthebudgetoftheSupremeAuditInstitution(SAI)?

GUIDELINES:

Question121askswhodeterminesthebudgetoftheSupremeAuditInstitution(SAI).Toensureobjectiveauditsofgovernmentbudgets,anotherimportantcomponentoftheSAI’sindependencefromtheexecutiveistheextenttowhichtheSAI’sbudgetisdeterminedbyabodyotherthantheexecutive,andwhethertheSAIhasadequateresourcestofulfillitsmandate.

http://internationalbudget.org/wp-content/uploads/LimaDeclaration.pdf

Answer“a”appliesifthefundinglevelisbroadlyconsistentwiththeresourcestheSAIneedstofulfillitsmandate,ANDeithertheSAIdeterminesitsownbudgetandthensubmitsittotheexecutive(whichacceptsitwithlittleornochange)ordirectlytothelegislature,orthebudgetoftheSAIisdetermineddirectlybythelegislatureorjudiciary(orsomeindependentbody).Answer“b”appliesiftheSAI’sbudgetisdeterminedbytheexecutive(absentarecommendationfromtheSAI),andthefundinglevelisbroadlyconsistentwiththeresourcestheSAIneedstofulfillitsmandate.Answer“c”appliesifthelegislatureorjudiciary(orsomeindependentbody)determinestheSAI’sbudget,butthefundinglevelisnotconsistentwiththeresourcestheSAIneedstofulfillitsmandate.Answer“d”appliesiftheexecutivedeterminestheSAI’sbudget,andthefundinglevelisnotconsistentwiththeresourcestheSAIneedstofulfillitsmandate.PleaseprovideevidenceinsupportoftheassessmentthatthefundinglevelisorisnotbroadlyconsistentwiththeresourcestheSAIneedstofulfillitsmandate.

Answer:a.TheSAIdeterminesitsownbudget(i.e.,submitsittotheexecutive,whichacceptsitwithlittleornochange,ordirectlytothelegislature),orthebudgetoftheSAIisdeterminedbythelegislatureorjudiciary(orsomeindependentbody),andthefundinglevelisbroadlyconsistentwiththeresourcestheSAIneedstofulfillitsmandate.

Source:Art11oftheSAIAct:http://www.bulnao.government.bg/bg/articles/zakon-za-smetnata-palata-1685

Comment:TheSAIhasanindependentbudgetwhichispartofthestatebudgetandisvotedbytheparliament.TherearenoofficialrecordofSAIcomplaintaboutinsufficientfunds;otherindependentinstitutions(e.g.thejudiciary,theCommissiononEnergyRegulation,theFinancialSupervisionCommission,allwiththeirownbudgetsvotedbytheParliament)havewrittenpositionsdemandingmorefunds.



122.DoestheSupremeAuditInstitution(SAI)havethediscretioninlawtoundertakethoseauditsitmaywishto?

GUIDELINES:Question122exploresthescopeoftheinvestigativepowersoftheSupremeAuditInstitution(SAI)asprescribedinlaw.

Question97askswhichofthethreetypesofaudits—financial,compliance,andperformance—theSAIconducts.ThisquestionasksiftheSAIisconstrainedbylaw(ratherthanbyalackofcapacityoraninadequatebudget)fromundertakinganyformofauditorinvestigatingirregularitiesinanyprogramoractivity.

Therearenumerousexamplesoflimitations.Forinstance,someSAIsarenotpermittedbytheirlegalmandatetoauditjointventuresorotherpublic-privatearrangements.Othersareonlyallowedtoundertakefinancialaudits,precludedfromconductingperformanceorvalue-for-moneyaudits.TheSAIsinsomecountriesdonothavethelegalmandatetoreviewarrangementsinvolvingoilorstabilizationfunds,orothertypesofspecialorextra-budgetaryfunds.TheSAImayalsonothavetheabilitytoauditcommercialprojectsinvolvingthepublicandprivatesector.

Toanswer“a,”theSAImusthavefulldiscretioninlawtodecidewhichauditstoundertake.Answer“b”appliesifsomelimitationsexist,buttheSAIenjoyssignificantdiscretiontoundertakethoseauditsitwishesto.Answer“c”appliesiftheSAIhassomediscretion,butsignificantlegallimitationsexist.Answer“d”appliesiftheSAIhasnopoweratalltochoosewhichauditstoundertake

ConsultingtheLimaDeclarationofGuidelinesonAuditingPrecepts(http://internationalbudget.org/wp-content/uploads/LimaDeclaration.pdf)maybeusefulinansweringthisquestionasitsprovisionsservetodefinetheappropriatescopeofaSAI’slegalmandateandjurisdiction.

Answer:a.TheSAIhasfulldiscretiontodecidewhichauditsitwishestoundertake.

Source:Art.6,7and38oftheSAIAct:http://www.bulnao.government.bg/bg/articles/zakon-za-smetnata-palata-1685

Comment:Article6.(1)TheNationalAuditOfficeshallaudit:1.thestatebudget;2.thebudgetofthepublicsocialsecurityscheme;3.thebudgetoftheNationalHealthInsuranceFund;4.thebudgetsofmunicipalities;5.otherbudgetsadoptedbytheNationalAssembly.(2)TheNationalAuditOfficeshallalsoaudit:1.thebudgetsofbudgetauthorisersreferredtoinparagraph1andthemanagementoftheirproperty;2.thebudgetsofbudgetorganisationsunderArticle13,paragraphs3and4ofthePublicFinanceAct;3.thebudgetaryfundsgrantedtopersonsengagedinbusinessactivities;4.theaccountsforEuropeanUnionfundsandfundsunderotherinternationalprogrammesandagreementsreferredtoinArticle8,paragraphs2and4ofthePublicFinanceAct,includingtheirmanagementbytherelevantauthoritiesandbytheendusersofsuchfunds;5.thebudgetexpendituresoftheBulgarianNationalBank(BNB)andtheirmanagement;6.theformulationofanyannualsurplusofincomeovertheexpenditureoftheBNBthatispayableintothestatebudget,andanyotherdealingsoftheBankwiththestatebudget;7.theoriginationandmanagementofthegovernmentdebt,thegovernmentguaranteeddebt,themunicipaldebt,andtheutilisationofdebtinstruments;8.(amended,SG

http://internationalbudget.org/wp-content/uploads/LimaDeclaration.pdf

No.96/2017,effective1.01.2018)theprivatisationofstateandmunicipalproperty,aswellasthepublicresourcesandpublicassetsplacedatthedisposalofpartiesoutsidethepublicsector,includinginthecourseofimplementationofconcessionagreements;9.theexecutionofinternationalagreements,treaties,conventionsorotherinternationalinstruments,wheresoprovidedforintherespectiveinternationalinstrumentorassignedbyanempoweredauthority;10.otherpublicresources,assetsandactivities,wheresoassignedbylaw.(3)TheNationalAuditOfficeshallaudit:1.stateenterprisesreferredtoinArticle62,paragraph3oftheCommerceAct;2.commercialcompanieswithmorethan50%stakeholdingofthestateand/ormunicipalities;3.legalentitieswithliabilitiesguaranteedbythestateorliabilitiesguaranteedwithstateand/ormunicipalproperty.(4)TheNationalAuditOfficeshallauditthemanagementanddisposalofpublicassetsandliabilities,regardlessofthegroundsforsaidmanagementanddisposalandthelegalsituationofthepersonsperformingit.(5)TheNationalAuditOfficeshallpreparereportscontainingopinionsontheimplementationofthestatebudget,thebudgetofthepublicsocialsecurityscheme,thebudgetoftheNationalHealthInsuranceFundandonthebudgetaryexpenditureoftheBNBandputforwardthesereportstotheNationalAssembly.(6)TheNationalAuditOfficecanalsoaudittheaccountsfornon-treasuryfundsofbudgetorganisations.

Article7.(1)TheNationalAuditOfficeshalladoptanAnnualAuditProgramme.TheNationalAssemblymayissuedecisionsassigningtotheNationalAuditOfficetocarryoutupto5audits,onanannualbasis,otherthanthoseincludedintheannualprogramme.

Article38.(1)AuditsincludedintheAnnualAuditProgrammeshallbeassignedbyanorderofoneofthevicepresidentsoftheNationalAuditOffice.(2)AuditsbasedondecisionsoftheNationalAssemblyshallbeassignedbyanorderofthepresidentoftheNationalAuditOffice.



123.AretheauditprocessesoftheSupremeAuditInstitution(SAI)reviewedbyanindependentagency?

GUIDELINES:Question123assesseswhetherandtowhatextenttheauditprocessesoftheSupremeAuditInstitution(SAI)aresubjecttoreviewbyanindependentagency.ThelattercouldbeapeerSAI,aninternationalorganization,anacademicinstitutionwithrelevantexpertise,oranindependentdomesticagencywithqualityassurancefunctionsintheareaoffinancialreporting.

Toanswer“a,”anindependentagencymustconductandpublishareviewoftheauditprocessesoftheSAIonanannualbasis.Answer“b”appliesifareviewwascarriedoutwithinthepastfiveyears,andpublished,butitisnotconductedannually,but.Chooseanswer“c”iftheSAIhasaninternalunitthatreviewstheauditprocessesoftheSAIonaregularbasis,butanindependentagencydoesnotconductsuchareview.Answer“d”appliesiftheauditprocessesoftheSAIarereviewedneitherbyanindependentagencynorbyaunitwithintheSAI.

Iftheansweriseither“a”or“b,”pleasespecifythenameoftheindependentagencyandwhenlastitconductedsuchareview,andprovideacopyofthepublishedreport.Iftheansweris“c,”pleasespecifythenameoftheunitwithintheSAIthatistaskedwithconductingsuchreviews.

Answer:c.No,butaunitwithintheSAIconductsareviewoftheauditprocessesoftheSAIonaregularbasis.

Source:Statutesoftheinternalauditunithttp://www.bulnao.government.bg/bg/articles/download/11285/Audit_Charter_2017-1.docx

Independentcommissionwillauditthe2017reportoftheNationalAuditOfficehttp://www.bulnao.government.bg/bg/articles/komisiq-shte-oditira-finansoviq-otchet-na-smetnata-palata-za-2017-g-1919

Reportsfromtheindependentcommissionhttp://www.bulnao.government.bg/bg/articles/dokladi-po-chl-65-ot-zakona-za-smetnata-palata-880

Comment:TheinternalauditunitisindependentandcoversallactivitiesoftheNationalAuditOffice.Theinternalauditisrequiredtoreporteverysixmonthsandannually.Theannualreportissentby31MarcheveryyeartotheMinisterofFinance,whichpublishesannualconsolidatedreportontheinternalauditinthepublicsector.Thelatestconsolidatedreportsareavailableherehttp://fukvopublic.minfin.bg/Public/DocumentList?sectionId=3

Inaddition,theannualfinancialreportoftheNationalAuditOfficeisauditedbyanindependentcommissionappointedbytheparliament.Allreportsarepublishedonline.



IBPCommentForadditionaldetails,pleaseseethe"Statutesoftheinternalauditunit"documentlinkedbytheresearcher,whichholdsthat:"InternalauditplaysasignificantroleinachievingtheobjectivesoftheorganizationbyassistingtheCourtofAuditorsthrough:1.IdentificationandassessmentofrisksintheCourtofAuditors;2.Assessmentoftheadequacyandeffectivenessoffinancialmanagementandcontrolsystemswithregardto:-identifyingit,evaluatingitandmanagingthisrisk;-compliancewithlegislation,internalactsandcontracts;-thereliabilityandcomprehensivenessofthefinancialandoperationalinformation;-theeffectiveness,efficiencyandeconomyoftheactivities;-safeguardingassetsandinformation;-effectiveinteractionbetweenthedifferentlevelsofgovernment;-accomplishingthetasksandachievingthegoals.3.MakingrecommendationsforimprovingtheCourt'sriskmanagement,controlandmanagementprocesses."

124.Inthepast12months,howfrequentlydidtheheadoraseniorstaffmemberoftheSupremeAuditInstitution(SAI)takepartandtestifyinhearingsofacommitteeofthelegislature?

GUIDELINES:Question124concernstheinteractionbetweentwoimportantoversightactorsandassesseshowfrequentlytheSupremeAuditInstitution(SAI)madehigh-levelinputstotheworkoflegislativecommittees.ManySAIsinteractwiththelegislatureinsomeform,butthenatureandintensityoftheinteractionvaries.Thisquestionprobesthisaspectbyasking,withreferencetothepast12months,howfrequentlytheheadoraseniorstaffmemberoftheSAItookpartandtestifiedinhearingsofacommitteeofthelegislature.TheintentistoassesstheextenttowhichtheSAIrepresentativeinquestionwasnotonlypresentatameetingofalegislativecommittee,butwasanactiveparticipant(asopposedtoapassiveobserver,servingonlyasaresourcewhencalledupon).Youcanrefertoofficialrecordsoflegislativecommittees,websitesandannualreportsoftheSAI,pressreleasesandmediacoverage,forexample.Chooseanswer“a”ifthisoccurredfivetimesormore;“b”forthreetimesormore,butlessthanfivetimes;“c”foronceortwice,and“d”fornever.

Answer:b.Sometimes(i.e.,threetimesormore,butlessthanfivetimes).

Source:BudgetandFinanceCommittee,17May2018,SAIchairman:https://www.parliament.bg/bg/parliamentarycommittees/members/2576/steno/ID/5112/

Subcommitteeonpublicsectorreporting,18July2018,SAIchairmanhttp://www.bulnao.government.bg/bg/articles/podkomisiqta-po-otchetnost-na-publichniq-sektor-v-narodnoto-sybranie-obsydi-dokladite-za-finansovo-upravlenie-i-stanovishtata-na-smetnata-palata-1929#%20

SAImeetingwiththeMacedonianSAI,theBudgetandFinanceCommitteeandSubcommitteeonpublicsectorreportinghttp://www.bulnao.government.bg/bg/articles/predsedatelite-na-komisiqta-po-bjudzhet-i-finansi-i-na-podkomisiqta-po-publichna-otchetnost-zapoznaha-oditori-i-deputati-ot-makedoniq-kak-si-vzaimodejstvat-narodnoto-sybranie-i-smetnata-palata-1970#%20

Comment:TheMay2018hearingwasrelatedtoadecisiontoextendthetimeframeofaspecificauditmandatedbytheparliament.InJulythesubcommitteediscussedopinionsoftheSAIontworeports.Therearetwomorehearingsinearly2019.



125.Doestheexecutiveuseparticipationmechanismsthroughwhichthepubliccanprovideinputduringtheformulationoftheannualbudget(priortothebudgetbeingtabledinparliament)?

GUIDELINES:ThisquestionreflectstheGIFTprincipleson“Inclusiveness”and“Timeliness”andassessestheextenttowhichtheparticipationmechanism(s)usedbytheexecutivearetrulyinteractiveandinvolveatwo-wayconversationbetweencitizensandtheexecutive.

ThedraftingofthisquestionanditsanswersarepartiallydrawnfromtheIAP2SpectrumofPublicParticipation,inparticularwithregardstotheconceptsof

“involvement”(option“a”intheresponses)and“consultation”(option“b”).See:https://cdn.ymaws.com/www.iap2.org/resource/resmgr/foundations_course/IAP2_P2_Spectrum_FINAL.pdf.

PleaseconsideronlyparticipationmechanismsthattheMinistryofFinance,leadbudgetagency,orcentralcoordinatingagencydesignatedbythegovernmenttoimplementparticipationmechanisms(“theexecutive”)iscurrentlyusingtoallowthepublictoparticipateintheformulationoftheannualbudget,includingannualpre-budgetdiscussions.Participationmechanismsusedonlybylineministriesshouldnotbeusedtoanswerthisquestion.Ifthereismorethanonemechanismusedbytheexecutive,pleaseselectthedeepestormostinteractivemechanismthatreflectsthegovernment’seffortstoincorporatecitizens’inputintotheformulationoftheannualbudget.Theparticipationmechanismscaninvolvearangeofdifferentissues,suchasspendingandtaxpolicy,fundingandrevenuelevels,andmacro-fiscalplanning.

Toanswer“a,”theexecutivemustuseopenparticipationmechanismsthatinvolvethepublicintheformulationoftheannualbudget.ThismeansthatapublicprocessisinplacewherebyCSOsand/orindividualmembersofthepublicandgovernmentofficialsinteract,andhavetheopportunitytoexpresstheiropinionstoeachotherinwhatcanbeconsideredapublicdialoguebetweenthem(i.e.,in-personandonlinediscussionforums).Additionally,themechanismshouldbeopentoanyCSOand/orindividualmembersofthepublicwhowishtoparticipate.Byselectingthisanswer,theresearchermustpresentevidencetosupportthepresenceofapublicdialogueamongcitizensandgovernmentofficials.Examplesincludepublicmeetingsandonlinedeliberativeexchanges.

Answer“b”appliesifanopenconsultationmechanismisinplacewherebymembersofthepublic(i.e.,individualsand/orCSOsaswellasacademics,independentexperts,policythinktanks,andbusinessorganizations)canprovidetheirinputintheformulationoftheannualbudget.Thisanswerappliesifthegovernmentisusingamechanismthatisstructuredandwellestablished,andnotad-hoc.Theresearchermustpresentevidencetosupportthepresenceofconsultativeprocessesthroughwhichtheexecutiveseeksoutinputsfromcitizens.Examplesincludesurveys,focusgroups,reportcards,publishedpolicyconsultationexercises,andonlineplatformsthatgovernmentofficialsactivelymanagetosolicitinputs.

Answer“c”appliesiftheexecutivehasestablishedamechanismormechanismstoallowcitizenstoparticipateinthebudgetformulationphase,but:

1)Themechanismsarenotstructuredandhappenonlyonad-hocbasis,ornotregularly.

and/or

2)Theexecutiveconsultswithand/orinteractswith,citizens,butthereisdiscretioninwhoisallowedtoparticipate,andtheexecutivedeterminesfullyorpartiallysuchselectionprocessbyinvitingspecificgroups(forexamplebymakinganopencallbutjusttoexpertsfromaparticularsector,ornamingspecificorganizations).Whileitisnotpossibleforallcitizensand/orCSOstoparticipateinthisorotherphasesofthebudgetprocess,options“a”and“b”applyifthegovernmentdoesnotexerciseanydiscretionindeterminingwhoisallowedtoparticipate.Whilethereislikelygoingtobeself-selection,itisimportantthattheselectionisnotmadebytheexecutive.

Incaseswherethereisdiscretioninwhoisallowedtoparticipate,toselectanswerchoice“c”,thereshouldbesomesortofpublicrecord(heldinpublic,minutesofmeetingsreleasedtopublic)sothattheallCSOsandindividualmembersofthepubliccanhaveknowledgeofthemeeting,whoparticipated,andwhatwasdiscussed.

Examplesofmechanismsthatmightqualifyasa“c”responseincludehotlines,Facebookannouncements,andone-offmeetingswithNGOsinwhichthereisapublicrecord.

Theresearchermustpresentevidencetosupportselectionofa“c”response.

Answer“d”appliesiftherequirementsfora“c”responseorabovearenotmetoriftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetformulationstage.

Answer:b.Yes,theexecutiveusesopenparticipationmechanismsthroughwhichmembersofthepublicprovidetheirinputsonthebudget.

Source:Lawonnormativeacts,Art26-theadministrativebodythatdraftsanormativeactshouldpublishitontheinternetandestablishmechanismpublicconsultation.http://www.lex.bg/laws/ldoc/2127837184

MinistryofFinancepublishesitsdraftdocuments(includingdocumentsrelatedtobudgetformulationandtaxamendmentlaws)onadedicatedpagefordrafts.

Art3ofthebylawsoftheNationalCouncilforTri-partiteCooperation(abodyestablishedbyart.3aoftheLaborCode)statesthattheCouncilshoulddiscussbudgetpolicymatters.http://www.lex.bg/laws/ldoc/-12291072IthappensbeforetheexecutivesendstheEBPtothelegislature.In2018,thediscussionontheEBP2019attheCouncilwasheld26October(theEBPwassubmittedtotheparliamenton29October).

Fullrecordofdiscussionsinthetri-partitecouncilhere:http://saveti.government.bg/c/document_library/get_file?p_l_id=10631&folderId=1224888&name=DLFE-8250.pdf

WrittentestimoniesoforganizationsontheEBP,senttothetri-partitecouncilhere:http://saveti.government.bg/c/document_library/get_file?p_l_id=10631&folderId=1224888&name=DLFE-8251.zip

PublicationforconsultationoftheMid-termBudgetForecast2019-2021inApril(Pre-budgetstatement):http://www.minfin.bg/bg/legislation1/170

PublicationforconsultationoftheExecutiveBudgetProposal2019andtheupdatedMid-termBudgetForecast2017-2019inOctoberhttp://www.minfin.bg/bg/legislation1/197

ConsultationofchangesinthetaxlawsinSeptember2018http://www.minfin.bg/bg/legislation1/191

https://cdn.ymaws.com/www.iap2.org/resource/resmgr/foundations_course/IAP2_P2_Spectrum_FINAL.pdf

Comment:Theprocessisopentoeveryoneandformalthroughdedicatedpublicchannels.Sometimeframesaretight-8daysforthePBSinApriland4daysfortheEBPinOctober.But,other-suchasthetaxlawsconsultationofferedonemonth.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:b.Yes,theexecutiveusesopenparticipationmechanismsthroughwhichmembersofthepublicprovidetheirinputsonthebudget.

ResearcherResponseThereisasignificantchangewithregardtoparticipationmechanisms.First,inNovember2016asignificantamendmenttotheLawonNormativeActswaspassedwhichintroducedrequirementsforpreliminaryimpactassessmentandpublicconsultationsforalldraftregulations(includinglaws,ordinances,decrees,decisionsthataffectpublicrevenuesandspending).Second,theCouncilofMinistersadoptedaRegulationonthemethodologyforimpactassessments(http://dv.parliament.bg/DVWeb/showMaterialDV.jsp?idMat=109227)-inforcefromMarch2018-whichexplicitlyrequiresapreliminarypublicationofalldraftsforconsultationandalsothatthefeedbackfromthecitizensshouldbepublishedandbecomepartofthedraftpackagetobelatertabledforapprovalintheexecutiveorthelegislature.Thescopeofconsultationsthereforewasbroadened,andcitizenscannowreadapreliminaryimpactassessmentoftheproposedactandformaninformedopinionasabasisforquestionsorproposals.Thenumberofpublicconsultationsincreasedand-moreimportantly-thecourtsstartedrevokingactsthatwereapprovedwithouttherequiredpublicconsultation.So,thenewrulesareenforcedandpublicbodieshavenochoicebuttocomply.Also,onthecitizens'participationbecamemoreactive-e.g.onthenewregulationoffiscalcashregistersthesummarytablewithproposalsfromvariousstakeholdersis138pages.

IBPCommentPerthequestionguidelines,wearenarrowingtheresponsetoevaluatethe“deepestormostinteractivemechanismthatreflectsthegovernment’seffortstoincorporatecitizens’inputintotheformulationoftheannualbudget.”Therefore,wearefocusingontheexpandedpublicconsultationsthatwerecreatedviatheamendmenttotheLawonNormativeActsandthenewRegulationonthemethodologyforimpactassessments,asdetailedintheresearcher's"ResponsetoReview"andtheiroriginalcommentonQ128.Throughtheseconsultations,citizenscansubmittheirinput/proposalselectronically;participationisopentoallmembersofthegeneralpublic.Theresponseisrevisedfrom“c”to“b.”Inaddition,thelinktotheconsultationportalcanbefoundat:http://www.strategy.bg/PublicConsultations/List.aspx?lang=bg-BG&sortDirection=Descending&sortExpression=OpenningDate&typeConsultation=1&typeCategory=0&docType=0&obshtiniValue=0Clickon"Моля,изберететема:/Pleaseselectatopic:"then"Бизнессреда/Businessenvironment"or"Финансииданъчнаполитика/Financeandtaxpolicy"toviewpubliccommentsonproposalsputforwardbytheMinistryofFinance.

126.Withregardtothemechanismidentifiedinquestion125,doestheexecutivetakeconcretestepstoincludevulnerableandunder-representedpartsofthepopulationintheformulationoftheannualbudget?

GUIDELINES:ThisquestionreflectstheGIFTprincipleof“Inclusiveness”,andexaminestheexecutive’sefforttoactivelyreachouttocitizenswhoarefromsociallyvulnerablegroupsand/orunderrepresentedinnationalprocesses.Theemphasishereisontheexecutive’seffortstoseekouttheviewsofmembersofthepublicfromsociallyvulnerablegroupsand/orwhoareunderrepresentedintheprocess.

Toanswer“a,”theexecutivemustactivelyseekoutindividualsfromvulnerableandunderrepresentedcommunitiesand/orcivilsocietyorganizationsrepresentingvulnerableandunderrepresentedindividualsandcommunities.Theresearchermustprovideevidencetoshowthegovernment’seffortsandactions.Theresearchermustspeakwiththerelevantgovernmentofficial(s),andsubsequentlydoublecheckwithanalternativesource,suchasrepresentativesofvulnerable/underrepresentedgroups.

Answer“b”appliesiftheexecutivedoesnottakeconcretestepstoincorporatevulnerable/underrepresentedindividuals,ororganizationsrepresentingthem,intoparticipationmechanismsoriftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetformulationstage.

Answer:b.Therequirementsforan“a”responsearenotmet.

Source:n.a.

Comment:Therearenospecialprovisions;anyNGOcanparticipatebysendingcommentsandsuggestiononanequalfooting.

Art3ofthebylawsoftheNationalCouncilforTri-partiteCooperation(abodyestablishedbyart.3aoftheLaborCode)statesthattheCouncilshoulddiscussbudgetpolicymatters.TradeunionsaremembersoftheCouncil.TheCouncildiscussestheEBP:http://www.lex.bg/laws/ldoc/-12291072



IBPCommentPertheIBPcommentonQ125,theTri-partitebodyisnotbeingevaluatedforthisquestion.Nevertheless,thecurrentresponseof"b"ismaintained.

127.Duringthebudgetformulationstage,whichofthefollowingkeytopicsdoestheexecutive’sengagementwithcitizenscover?

Forthepurposeofthisquestion,keytopicsareconsideredtobe:

1.Macroeconomicissues2.Revenueforecasts,policies,andadministration3.Socialspendingpolicies4.Deficitanddebtlevels5.Publicinvestmentprojects6.Publicservices

GUIDELINES:ThisquestionreflectstheGIFTprinciplesof“Transparency”and“Timeliness”.Pleaseconsiderallofthemechanismscurrentlyusedbytheexecutivetopromotepublicparticipationduringtheformulationoftheannualbudget.

Pleasenotethatwhilethepublicengagementcan/maycoverothertopics--andforthisreasontheotherquestionsassessingtheexecutive’sengagementwiththepublicduringbudgetformulationcanbeansweredonthebasisofengagementontopicsotherthanthesixlistedabove--forthepurposeofansweringthisquestion,“keytopics”areconsideredtobeonlytheoneslistedabove.Iftheexecutive’sengagementwiththepubliccoverstopicsotherthanthesixlistedabove,pleasespecifythesetopicsinthecomments.

Notealsothatthisquestionassessesonlythecoverageofpublicengagement(i.e.,“whatissuesisthepublicinvitedtoengageon?”)andissuesrelatedtothedepthofengagementorselectivityofengagedarenotdealtwithbythisquestion.

Answer“d”appliesifrequirementsfora“c”responseorabovearenotmetoriftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetformulationstage.

Answer:b.Theexecutive’sengagementwithcitizenscoversatleastthree(butlessthansix)oftheabove-mentionedtopics.

Source:ConsultationonPBS2019:http://www.minfin.bg/bg/legislation1/170ConsultationonEBP2019:http://www.minfin.bg/bg/legislation1/197

Comment:BothPBSandEBPwhicharepublishedontheinternetpriortosubmissionandthepubliccansendopinion,commentsandrecommendationscoverallofthelistedtopics.



IBPCommentIBPrevisedtheresponsefrom"a"to"b".Thisindicatorisscoredbasedontheconsultationsportalnotedinindicator125.MinistryofFinanceengagescitizensonissuesoftaxpolicy,socialspendingpolicy,debtandmacroeconomicissueslikemonetarypolicy.Priortothetablingofthebudgetinparliament,theMinistryofFinancesolicitedpubliccommentsonmeasurespertainingtokeytopics,including:-adraftbilltoamendtheCorporateIncomeTaxAct(http://www.strategy.bg/PublicConsultations/View.aspx?lang=bg-BG&Id=3747)-adraftbilltoamendandsupplementtheSocialSecurityCode(http://www.strategy.bg/PublicConsultations/View.aspx?lang=bg-BG&Id=3658)

128.Doestheexecutiveuseparticipationmechanismsthroughwhichthepubliccanprovideinputinmonitoringtheimplementationoftheannualbudget?

GUIDELINES:ThisquestionreflectstheGIFTprincipleson“Inclusiveness”and“Timeliness”andassessestheextenttowhichtheparticipationmechanism(s)usedbytheexecutivearetrulyinteractiveandinvolveatwo-wayconversationbetweencitizensandtheexecutive.

ThedraftingofthisquestionanditsanswersarepartiallydrawnfromtheIAP2SpectrumofPublicParticipation,inparticularwithregardstotheconceptsof“involvement”(option“a”intheresponses)and“consultation”(option“b”).See:https://cdn.ymaws.com/www.iap2.org/resource/resmgr/foundations_course/IAP2_P2_Spectrum_FINAL.pdf.

PleaseconsideronlyparticipationmechanismsthattheMinistryofFinance,leadbudgetagency,orcentralcoordinatingagencydesignatedbythegovernmenttoimplementparticipationmechanisms(“theexecutive”)iscurrentlyusingtoallowthepublictoparticipateinmonitoringtheimplementationoftheannualbudget.Iftheexecutivehasdesignatedacentralcoordinatingagencytoimplementparticipationmechanismsthroughoutthenationalbudgetprocess,researchersmayconsiderthesemechanisms.Participationmechanismsusedonlybylineministriesshouldnotbeusedtoanswerthisquestion.Ifthereismorethanonemechanismusedbytheexecutive,pleaseselectthedeepestormostinteractivemechanismthatreflectsthegovernment’seffortstoincorporatecitizens’inputintotheimplementationoftheannualbudget.Theparticipationmechanismscaninvolvearangeofdifferentissues,suchasrevenueadministration,publicservicedelivery,publicinvestmentprojectimplementation,includingprocurement,andtheadministrationofsocialtransferschemes.

Toanswer“a,”theexecutivemustuseopenparticipationmechanismsthatinvolvethepublicintheimplementationoftheannualbudget.ThismeansthatapublicprocessisinplacewherebyCSOsand/orindividualmembersofthepublicandgovernmentofficialsinteract,andhavetheopportunitytoexpresstheiropinionstoeachotherinwhatcanbeconsideredapublicdialoguebetweenthem(i.e.,in-personandonlinediscussionforums).Additionally,themechanismshouldbeopentoanyCSOand/orindividualmembersofthepublicwhowishtoparticipate.Byselectingthisanswer,theresearchermustpresentevidencetosupportthepresenceofapublicdialogueamongcitizensandgovernmentofficial.Examplesincludepublicmeetings,online,deliberativeexchanges,procurementcomplaintmechanisms,andsocialmonitoringanddialogue.

Answer“b”appliesifanopenconsultationmechanismisinplacewherebymembersofthepublic(i.e.,individualsand/orCSOsaswellasacademics,independentexperts,policythinktanks,andbusinessorganizations)canprovidetheirinputontheimplementationoftheannualbudget.Thisanswerappliesifthegovernmentisusingamechanismthatisstructuredandwellestablished,andnotad-hoc.Theresearchermustpresentevidencetosupportthepresenceofconsultativeprocessesthroughwhichtheexecutiveseeksoutinputsfromcitizens.Examplesincludepublichearings,surveys,focusgroups,reportcards,andonlineplatformsthatgovernmentofficialsactivelymanagetosolicitinputs.

Answer“c”appliesiftheexecutivehasestablishedamechanismormechanismstoallowcitizenstoprovideinputonbudgetimplementation,but:

1)Themechanismsarenotstructured,happenonlyonad-hocbasis,ornotregularly.

and/or

2)Theexecutiveconsultswithand/orinteractswith,citizens,butthereisdiscretioninwhoisallowedtoparticipate,andtheexecutivedeterminesfullyorpartiallysuchselectionprocessbyinvitingspecificgroups(forexamplebymakinganopencallbutjusttoexpertsfromaparticularsector,ornamingspecificorganizations).Whileitisnotpossibleforallcitizensand/orCSOstoparticipateinthisorotherphasesofthebudgetprocess,options“a”and“b”applyifthegovernmentdoesnotexerciseanydiscretionindeterminingwhoisallowedtoparticipate.Whilethereislikelygoingtobeself-selection,itisimportantthattheselectionisnotmadebytheexecutive.

Incaseswherethereisdiscretioninwhoisallowedtoparticipate,toselectanswerchoice“c”,theresearchermusthaveevidencethatthegovernmentisholdingparticipationmechanismsthathavesomesortofpublicrecord(heldinpublic,minutesofmeetingsreleasedtopublic)sothatallCSOsandmembersofthepubliccanhaveknowledgeofthemeeting,whoparticipated,andwhatwasdiscussed.

Examplesincludehotlines,Facebookannouncements,one-offmeetingswithNGOsinwhichthereisapublicrecord.


Answer“d”appliesiftherequirementsfora“c”responseorabovearenotmetoriftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetimplementationstage.

Answer:d.Therequirementsfora“c”responseorabovearenotmet.

Source:Publicconsultationsportal-www.strategy.bg

ConsultationonInvestmentProject"Acquiringanewtypeofcombataircraft"http://strategy.bg/PublicConsultations/View.aspx?lang=bg-BG&Id=4002&fbclid=IwAR24tNZldO4kernI89KCZ-6V1qzqTTT_16VeS4zDyscpe3uChFph306iA8o

Consultationsondraftchangesinmilitarysalarieshttp://strategy.bg/PublicConsultations/View.aspx?lang=bg-BG&Id=4005&fbclid=IwAR1CTDTOxR-9k9tqwedDCEA2EKgt8Dq-UG1Pvxz_mIyaGuUOhAbQiOsNUoc

Consultationsondraftchangesforpolicesalarieshttp://www.strategy.bg/PublicConsultations/View.aspx?@lang=bg-BG&Id=3589

Consultationondraftdecreeontheguaranteedmonthlyincomehttp://www.strategy.bg/PublicConsultations/View.aspx?@lang=bg-BG&Id=3057

Consultationondraftchangesintheenergybenefits


http://www.strategy.bg/PublicConsultations/View.aspx?@lang=bg-BG&Id=3520

Consultationonthedecreefortheimplementationofthe2019budgethttp://www.minfin.bg/bg/legislation1/211

Consultationonanewminimumwagein2019http://strategy.bg/PublicConsultations/View.aspx?@lang=bg-BG&Id=3842

Consultationonfiscalcashregisershttp://strategy.bg/PublicConsultations/View.aspx?@lang=bg-BG&Id=3897

Consultationoncourtfeeshttp://strategy.bg/PublicConsultations/View.aspx?lang=bg-BG&Id=3852

Consultationontheincreaseofthesocialpensionhttp://strategy.bg/PublicConsultations/View.aspx?lang=bg-BG&Id=3518

Consultationonpublicsectorsalarieshttp://strategy.bg/PublicConsultations/View.aspx?lang=bg-BG&Id=3917

Comment:Somedraftdocumentslinkedtothebudgetimplementationarepublishedonthepublicconsultationsportal.Itisacentralizedportalforpublicconsultationswheretheexecutivepublishesmostlydraftsofnormativeacts(lawsanddecreesbytheCouncilofMinisters).Citizenscanpostcommentsandopinionsandtherelevantministryshouldaddressallofthemandpublishareportwhetheritwillacceptornottheproposalsandwhy.



IBPCommentThedirectlinktothenationalpublicconsultationportalcanbefoundat:http://www.strategy.bg/PublicConsultations/List.aspx?lang=bg-BG&sortDirection=Descending&sortExpression=OpenningDate&typeConsultation=1&typeCategory=0&docType=0&obshtiniValue=0Basedontheresearcher'ssourcesandthelinkabove,thereisnoformalmechanismdevotedtopublicparticipationinmonitoringtheimplementationoftheannualbudget;forFY2018,theconsultationportaldoesnotcontainanyexecution/implementationdocumentssubmittedforpublicfeedbackbytheFinanceMinistryinthecategories"Бизнессреда/Businessenvironment,""Държавнаадминистрация/Publicadministration,"or"Финансииданъчнаполитика/Financeandtaxpolicy."Inaddition,apageontheportaltitled"Whentoconsult"(http://www.strategy.bg/StaticPages/CalculatingManual.aspx?guidanceType=2§ionName=WhenToOrganizeConsultations)notesthat"Intheprocessofdevelopingthelegislativeact,youMUSTconsultintwostages:1)inthedevelopmentofthesix-monthlegislativeprogramoftheCouncilofMinistersand2)inthedevelopmentoftheactbeforeitsadoption."Assuch,theconsultationsareacknowledgedandscoredinQ.125askingaboutparticipationduringbudgetformulationphase.Forthepurposeofcross-countryconsistency,theresponseisthereforerevisedfrom"b"to"d."

129.Withregardtothemechanismidentifiedinquestion128,doestheexecutivetakeconcretestepstoreceiveinputfromvulnerableandunderrepresentedpartsofthepopulationontheimplementationoftheannualbudget?

GUIDELINES:ThisquestionreflectstheGIFTprincipleof“Inclusiveness”,andexaminestheexecutive’sefforttoactivelyreachouttocitizenswhoarefromsociallyvulnerablegroupsand/orunderrepresentedinnationalprocesses.Theemphasishereisonnationalgovernment’seffortstoobtaininputfrommembersofthepublicwhoarefromsociallyvulnerablegroupsand/orunderrepresentedinnationalprocessesduringtheimplementationoftheannualbudget.

Toanswer“a,”theexecutivemustactivelyseekoutindividualsfromvulnerableandunderrepresentedcommunityand/orcivilsocietyorganizationsrepresentingvulnerableandunderrepresentedindividualsandcommunities.Theresearchermustprovideevidencetoshowthegovernment’seffortsandactions.Theresearchermustspeakwiththerelevantgovernmentofficial(s),andsubsequentlydoublecheckwithanalternativesource,suchasrepresentativesfromvulnerable/underrepresentedgroups.

Answer“b”appliesifthenationalexecutivedoesnottakeconcretestepstoincorporatevulnerable/underrepresentedindividuals,ororganizationsrepresentingthem,intoparticipationmechanismsoriftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetimplementationstage.


Source:Thereareseveralcouncilsthroughwhichthegovernmentisdiscussingwithvulnerableandunderrepresentedpartsofthepopulation:

-Nationaltripartitecouncil(includingtradeunions)http://www.saveti.government.bg/web/cc_13/1

-NationalCouncilonintegrationofpeoplewithdisabilitieshttp://www.saveti.government.bg/web/cc_11/1

-NationalCouncilonsocialinclusionhttp://www.saveti.government.bg/web/cc_201/1

Comment:Thesecouncilsdiscusssomeinitiativesofthegovernment,buttheyarenotfocusedonthebudget.



IBPCommentPertheIBPcommentonquestion128,thereisnoformalmechanismestablishedforthepublictoprovideinputinmonitoringtheimplementationoftheannualbudget.Theexistingresponseof"b"ismaintained.

130.Duringtheimplementationoftheannualbudget,whichofthefollowingtopicsdoestheexecutive’sengagementwithcitizenscover?


1.Changesinmacroeconomiccircumstances2.Deliveryofpublicservices3.Collectionofrevenue4.Implementationofsocialspending5.Changesindeficitanddebtlevels6.Implementationofpublicinvestmentprojects

GUIDELINES:ThisquestionreflectstheGIFTprinciplesof“Transparency”and“Timeliness”.Pleaseconsiderallofthemechanismscurrentlyusedbytheexecutivetopromotepublicparticipationduringtheimplementationoftheannualbudget.

Pleasenotethatwhilethepublicengagementcan/maycoverothertopics--andforthisreasontheotherquestionsassessingtheexecutive’sengagementwiththepublicduringbudgetimplementationcanbeansweredonthebasisofengagementontopicsotherthanthesixlistedabove--forthepurposeofansweringthisquestion,“keytopics”areconsideredtobeONLYtheoneslistedabove.Iftheexecutive’sengagementwiththepubliccoverstopicsotherthanthesixlistedabove,pleasespecifythesetopicsinthecomments.


Answer“d”appliesifrequirementsfora“c”responseorabovearenotmetoriftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetimplementationstage.


Source:Publicconsultationsportal-www.strategy.bg

ConsultationonInvestmentProject"Acquiringanewtypeofcombataircraft"http://strategy.bg/PublicConsultations/View.aspx?lang=bg-BG&Id=4002&fbclid=IwAR24tNZldO4kernI89KCZ-6V1qzqTTT_16VeS4zDyscpe3uChFph306iA8o

Consultationsondraftchangesinmilitarysalarieshttp://strategy.bg/PublicConsultations/View.aspx?lang=bg-BG&Id=4005&fbclid=IwAR1CTDTOxR-9k9tqwedDCEA2EKgt8Dq-UG1Pvxz_mIyaGuUOhAbQiOsNUoc

Consultationsondraftchangesforpolicesalarieshttp://www.strategy.bg/PublicConsultations/View.aspx?@lang=bg-BG&Id=3589

Consultationondraftdecreeontheguaranteedmonthlyincome

http://www.strategy.bg/PublicConsultations/View.aspx?@lang=bg-BG&Id=3057

Consultationondraftchangesintheenergybenefitshttp://www.strategy.bg/PublicConsultations/View.aspx?@lang=bg-BG&Id=3520

Consultationonthedecreefortheimplementationofthe2019budgethttp://www.minfin.bg/bg/legislation1/211

Consultationonanewminimumwagein2019http://strategy.bg/PublicConsultations/View.aspx?@lang=bg-BG&Id=3842

Consultationonfiscalcashregisershttp://strategy.bg/PublicConsultations/View.aspx?@lang=bg-BG&Id=3897

Consultationoncourtfeeshttp://strategy.bg/PublicConsultations/View.aspx?lang=bg-BG&Id=3852

Consultationontheincreaseofthesocialpensionhttp://strategy.bg/PublicConsultations/View.aspx?lang=bg-BG&Id=3518

Consultationonpublicsectorsalarieshttp://strategy.bg/PublicConsultations/View.aspx?lang=bg-BG&Id=3917

Comment:Thesetopicsareusuallycovered:-Changesindeficitanddebtlevels-thisrequireschangeintheannualbudgetlawandpublicconsultationareorganizedbeforethat-Collectionofrevenue-everychangeinproceduresorrequirementsisdoneafterpublicconsultation-Implementationofsocialspending-changesaredoneafterpublicconsultation-Deliveryofpublicservices-usuallyconsultationisneeded-Implementationofpublicinvestmentprojects-sometimesconsultationisorganized



IBPCommentPertheIBPcommentonquestion128,thereisnoformalmechanismestablishedforthepublictoprovideinputinmonitoringtheimplementationoftheannualbudget.Theresponseisrevisedfrom"b"to"d."

131.Whentheexecutiveengageswiththepublic,doesitprovidecomprehensivepriorinformationontheprocessoftheengagement,sothatthepubliccanparticipateinaninformedmanner?

Comprehensiveinformationmustincludeatleastthreeofthefollowingelements:

1.Purpose2.Scope3.Constraints4.Intendedoutcomes5.Processandtimeline

GUIDELINES:ThisquestionrelatestotheGIFTprincipleof“Openness,”andaddresseswhethertheexecutiveprovidesrelevantinformationontheprocessoftheengagementbeforepublicparticipationtakesplace,inordertohelpcitizensengageeffectively.Thequestionaddresseswhetherthe“rulesofthepublicengagement”areclearlyspelledout,inadvanceandindetail,sothatthosemembersofthepublicwhowanttoengageknowhowtodoso,intermsofwhentheycandoso,whattheyareexpectedtoprovideinputon,bywhen,towhom,etc.Thisquestiondoesnotcoverthesubstanceoftheengagement,whichiscoveredbyquestions127and130.

Non-comprehensiveinformationmeansthatthegovernmentprovidesinformationthatincludesatleastonebutlessthanthreeoftheelementslistedabove.

Purposereferstoabriefexplanationofwhythepublicengagementisbeingundertaken,includingtheexecutive’sobjectivesforitsengagementwiththepublic.

Scopereferstowhatiswithinthesubjectmatteroftheengagementaswellaswhatisoutsidethesubjectmatteroftheengagement.Forexample,thescopemayincludehowacurrentpolicyisadministeredbutexcludethespecificsofthepoliciesthemselves.

Constraintsreferstowhethertherearethereanyexplicitlimitationsontheengagement.Anexampleofaconstraintcouldbethatanypolicychangesmustnot

cost(orforgorevenue)morethanaspecificamountorhavenonetfiscalcost.

Intendedoutcomesreferstowhattheexecutivehopestoachieveasaresultoftheengagement.Examplesofintendedoutcomescouldberevisingapolicytobetterreflectcitizenorservice-userviewsortoimprovethewayinwhichaparticularprogramisadministered.

Processreferstothemethodsbywhichthepublicengagementwilltakeplaceandthediscretestepsintheprocess.Forexample,theprocessmaysimplybeaone-offInternet-basedconsultation,withasummarypublishedofpublicinputsandtheofficialresponse.Theprocessmayinvolvesimultaneousoroverlappingsteps,andmaybeconductedinoneroundorintwoormoreroundsofengagement.

Timelinereferstothespecificdatesonwhichthediscretestepsintheprocesswilltakeplace,orduringwhichtheywillbecompleted,andclearstartandenddatesfortheoverallengagement.

Answer“d”appliesiftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetimplementationorformulationstage.

Answer:c.Informationisprovidedinatimelymannerinbothoroneofthetwophases,butitisnotcomprehensive.

Source:ConsultationontheMid-termBudgetForecast2019-2021inApril(Pre-budgetstatement)http://www.minfin.bg/bg/legislation1/170

Comment:Itisaone-offprocessofpublicationofdraftsonaspecificweb-pagewithaformtoprovidefeedback;aftertheconsultationtheopinionsandsuggestionsaresummarizedandthesummaryisalsopublished.Thereisnoexplanationoftheprocessoftheengagement,otherthanaskingcitizensandorganizationstosendtheiropinionsandproposals.



IBPCommentPertheresearcherandIBPcommentsonquestion125,formalengagementwiththepublicisprimarilyforthebudgetformulationphase.Whileagenciessolicitinginputprovidedraftlegislationtothepublic,theprocessofengagementisnotalwaysclear,astheresearchernotes.Theexistingresponseof"c"ismaintained.

132.Withregardtothemechanismidentifiedinquestion125,doestheexecutiveprovidethepublicwithfeedbackonhowcitizens’inputshavebeenusedintheformulationoftheannualbudget?

GUIDELINES:ThisquestionreflectstheGIFTprinciplesof“Transparency”and“Sustainability”,andexaminestheextenttowhichtheexecutiveprovidesinformationtocitizensonwhichpublicinputswerereceived,whichonesareusedintheformulationoftheannualbudget,andhow/why.

By“writtenrecord”,wemeanadocumentthatisproducedandreleasedbytheleadbudgetagency(MinistryofFinance,Treasury)thathassetupandholdstheparticipationactivity.

Answer“a”applieswhentheexecutiveprovidesawrittendocumentwith:

-Theinputs(e.g.,awrittentranscript)receivedfromthepublicand

-Adetailedreportonhowtheinputswereusedornotused(suchreportshouldincludeinformationonwhichinputswereusedornotused,why,andhow)

Answer“b”applieswhentheexecutiveprovidesawrittendocumentthatincludes:


-Anot-so-detailedreport,suchasadocumentwithafewparagraphs,onhowpublicinputswereusedornotused.Thisdocumentonlygivesageneralideaonhowthoseinputswereusedornotused.

Answer“c”applieswhentheexecutiveprovidesawrittendocumentthatincludes:

-Theinputs(e.g.,awrittentranscript)receivedfromthepublicor

-Areport(beingitdetailedornot-so-detailed)onhowpublicinputshavebeenusedornotused.

Answer“d”appliesiftherequirementsfora“c”responseorabovearenotmetoriftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetformulationstage.

Answer:b.Yes,theexecutiveprovidesawrittenrecordwhichincludesboththelistofinputsreceivedandasummaryofthehowtheinputswereusedintheformulationoftheannualbudget.

Source:Theministryoffinanceprovidesfeedback(summaryreports)ontheinputsfromthepublicandwhethertheyarebeingtakenintoaccountinadedicatedsubpagehttp://www.minfin.bg/bg/1118

ThesummaryreportontheEBPisincludedasasupportingdocumentintheEBP(file9-Spravka-общественообсъждане)https://www.parliament.bg/bg/bills/ID/78264/

Comment:WecouldnotfindareportontheconsultationsrelatedtothePBS.



IBPCommentTheexpandedpublicconsultationsdescribedbytheresearcherinQ125requireagenciessolicitingfeedbacktoincludealistofpublicinputsinthedraftsofproposedregulations,aswellaswhetherornotithasacceptedthisfeedback,andwhy.Theresponseisrevisedfrom"c"to"b."

133.Withregardtothemechanismidentifiedinquestion128,doestheexecutiveprovidethepublicwithinformationonhowcitizens’inputshavebeenusedtoassistinmonitoringtheimplementationoftheannualbudget?

GUIDELINES:

ThisquestionreflectstheGIFTprinciplesof“Transparency”and“Sustainability”,andexaminestheextenttowhichtheexecutiveprovidesinformationtocitizensonwhichpublicinputswerereceivedduringtheimplementationoftheannualbudget,whichonesaretakeintoaccounttoimprovebudgetmonitoring,andhow/why.

By“writtenrecord”,wemeanadocumentthatisproducedandreleasedbytheleadbudgetagency(MinistryofFinance,Treasury)thathassetupandholdstheparticipationactivity.

Answer“a”applieswhentheexecutiveprovidesawrittendocumentwith:


-Adetailedreportonhowtheinputswereusedornotused(suchreportshouldincludeinformationonwhichinputswereusedornotused,why,andhow)

Answer“b”applieswhentheexecutiveprovidesawrittendocumentthatincludes:

-Theinputsreceived(e.g.,awrittentranscript)fromthepublicand

-Anot-so-detailedreport,suchasadocumentwithafewparagraphs,onhowpublicinputswereusedornotused.Thisdocumentonlygivesageneralideaonhowthoseinputswereorwerenottakenintoaccountbytheexecutiveduringbudgetmonitoring.

Answer“c”applieswhentheexecutiveprovidesawrittendocumentthatincludes:

-Theinputs(e.g.,awrittentranscript)receivedfromthepublicor


Answer“d”appliesiftherequirementsfora“c”responseorabovearenotmetoriftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetimplementationstage.


Source:Consultationonanewminimumwagein2019http://strategy.bg/PublicConsultations/View.aspx?@lang=bg-BG&Id=3842-seeinputspublishedatthebottom,alsoreportonhowtheywereused:http://strategy.bg/FileHandler.ashx?fileId=15267

Consultationonfiscalcashregistershttp://strategy.bg/PublicConsultations/View.aspx?@lang=bg-BG&Id=3897-seeinputspublishedatthebottom,alsoreportonhowtheywereused:http://strategy.bg/FileHandler.ashx?fileId=15602

Comment:Theexecutiveprovidesawrittenrecordwhichincludesthelistoftheinputsreceivedandasummaryreportonhoworwhethertheywereused.Seeexamplesinsource.



IBPCommentPertheIBPcommentonquestion128,thereisnoformalmechanismestablishedforthepublictoprovideinputinmonitoringtheimplementationoftheannualbudget.Theresponseisrevisedfrom"b"to"d."

134.AreparticipationmechanismsincorporatedintothetimetableforformulatingtheExecutive’sBudgetProposal?

GUIDELINES:ThisquestionreflectstheGIFTprincipleson“Sustainability,”“Timeliness”and“Complementarity”andaddresseswhethertheexecutiveisabletolinkparticipationmechanismstotheadministrativeprocessesthatareusedtocreatetheannualbudget.

Pleasenotethat“timetable”referstoadocumentsettingdeadlinesforsubmissionsfromothergovernmententities,suchaslineministriesorsubnationalgovernment,totheMinistryofFinanceorwhatevercentralgovernmentagencyisinchargeofcoordinatingthebudget’sformulation.ThisdocumentissometimesreferredtoasthebudgetcalendarandisthesamedocumentreferencedinQuestion53.

Answer“a”appliesifthenationalexecutiveestablishesaclearsetofguidelinesthatenablecitizensandcivilservantstounderstandwhenparticipationmechanismsshouldbeusedtoenablecitizeninputstobeincorporatedintotheannualbudget.Foranswerchoice“a”,thetimetablemustbeavailabletothepublicpriortothebudgetpreparationprocessbeginning.

Answer“b”appliesiftheexecutivedoesnotestablishaclearsetofguidelinesthatenablecitizensandcivilservantstounderstandwhenparticipationmechanismsshouldbeusedtoenablecitizeninputstobeincorporatedintotheannualbudgetoriftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetformulationorimplementationstage.


Source:DecisionoftheCouncilofMinisters51onthebudgetprocedurefor2019http://www.minfin.bg/upload/36443/RMS-51.pdf

Comment:Thereisaclearanddetailedtimetablefortheformulationofthebudget(i.e.budgetcalendar)butitdoesnotincorporatepublicconsultationsinitstimeframeandsteps.



135.Dooneormorelineministriesuseparticipationmechanismsthroughwhichthepubliccanprovideinputduringtheformulationorimplementationoftheannualbudget?

GUIDELINESWhilequestions125–135focusonlyonparticipationmechanismsthattheMinistryofFinance,leadbudgetagency,orcentralcoordinatingagencycurrentlyusetoallowthepublictoparticipateinthenationalbudgetprocess,thisquestionasksaboutparticipationmechanismsusedbylineministriestoallowthepublictoparticipateinnationalbudgetprocesses.Thus,participationmechanismsusedbytheMinistryofFinance,leadbudgetagency,orcentralcoordinatingagencyshouldnotbeusedtoanswerthisquestion.Ifthereismorethanonemechanismusedbyalineministryorifmultiplelineministriesuseparticipationmechanisms,pleaseselectthedeepestormostinteractivemechanismthatreflectsthegovernment’seffortstoincorporatecitizens’inputintotheformulationand/orimplementationoftheannualbudget.

ThisquestionreflectstheGIFTprincipleson“Inclusiveness”and“Timeliness”andassessestheextenttowhichtheparticipationmechanism(s)usedbytheexecutivearetrulyinteractiveandinvolveatwo-wayconversationbetweencitizensandtheexecutive.

ThedraftingofthisquestionanditsanswersarepartiallydrawnfromtheIAP2SpectrumofPublicParticipation,inparticularwithregardstotheconceptsof“involvement”(option“a”intheresponses)and“consultation”(option“b”).See:https://cdn.ymaws.com/www.iap2.org/resource/resmgr/foundations_course/IAP2_P2_Spectrum_FINAL.pdf

Toanswer“a,”alineministrymustuseopenparticipationmechanismsthatinvolvethepublicintheformulationorimplementationoftheannualbudget.ThismeansthatapublicprocessisinplacewherebyCSOsand/orindividualmembersofthepublicandgovernmentofficialsinteract,andhavetheopportunitytoexpresstheiropinionstoeachotherinwhatcanbeconsideredapublicdialoguebetweenthem(i.e.,in-personandonlinediscussionforums).Additionally,themechanismshouldbeopentoanyCSOand/orindividualmembersofthepublicwhowishtoparticipate.Byselectingthisanswer,theresearchermustpresentevidencetosupportthepresenceofapublicdialogueamongcitizensandgovernmentofficial.Examplesincludepublicmeetingsandonlinedeliberativeexchanges.Answer“b”appliesifanopenconsultationmechanismisinplacewherebymembersofthepublic(i.e.,individualsand/orCSOsaswellasacademics,independentexperts,policythinktanks,andbusinessorganizations)canprovidetheirinputintheformulationorimplementationoftheannualbudget.Thisanswerappliesifthegovernmentisusingamechanismthatisstructuredandwellestablished,andnotad-hoc.Theresearchermustpresentevidencetosupportthepresenceofconsultativeprocessesthroughwhichalineministryseeksoutinputsfromcitizens.Examplesincludesurveys,focusgroups,reportcards,publishedpolicyconsultationexercises,andonlineplatformsthatgovernmentofficialsactivelymanagetosolicitinputs.

Answer“c”appliesifalineministryhasestablishedamechanismormechanismstoallowcitizenstoparticipateinthebudgetformulationphase,but:

1)Themechanismsarenotstructuredandhappenonlyonad-hocbasis,ornotregularly.

and/or

2)Alineministryconsultswithand/orinteractswith,citizens,butthereisdiscretioninwhoisallowedtoparticipate,andthelineministrydeterminesfullyorpartiallysuchselectionprocessbyinvitingspecificgroups(forexamplebymakinganopencallbutjusttoexpertsfromaparticularsector,ornamingspecificorganizations).Whileitisnotpossibleforallcitizensand/orCSOstoparticipateinthisorotherphasesofthebudgetprocess,options“a”and“b”applyifthegovernmentdoesnotexerciseanydiscretionindeterminingwhoisallowedtoparticipate.Whilethereislikelygoingtobeself-selection,itisimportantthattheselectionisnotmadebytheexecutive.

Incaseswherethereisdiscretioninwhoisallowedtoparticipate,toselectanswerchoice“c”,thereshouldbesomesortofpublicrecord(heldinpublic,minutesofmeetingsreleasedtopublic)sothattheallCSOsandindividualmembersofthepubliccanhaveknowledgeofthemeeting,whoparticipated,andwhatwasdiscussed.


Examplesofmechanismsthatmightqualifyasa“c”responseincludehotlines,Facebookannouncements,andone-offmeetingswithNGOsinwhichthereisapublicrecord.

Answer:b.Yes,atleastonelineministryusesopenparticipationmechanismsthroughwhichmembersofthepublicprovidetheirinputsonthebudget.

Source:Thereisnoprovisioninlawsorstatutesthatobligeslineministriestopublishdraftbudgetsforconsultations.Theycandoitonavoluntarybasis.TheNationalHealthInsuranceFundpublisheditsdraftbudgeton22October2018https://www.nhif.bg/get_file?uuid=78D2E1638E0069D5E05400144FFB42AE

Comment:MostlytheMinistryofFinanceandthecentralizedportalforpublicconsultationswww.strategy.bgopenconsultationsonthePBS,EBPandotherdocumentsthroughoutthebudgetprocess.First-levelspendingadministrativeunitsarenotrequiredbylawtopublishtheirownprogrambudgetsorthenational(consolidated)PBSandEBPforconsultation.

However,allministriesusestrategy.bgand/orhavededicatedspaceontheirwebsitesforconsultationswiththepubliconactsthattheydraftintheirownrespectiveareas-someofthesehavedirectimplicationsonspendingastheysetupcostingmodels,eligibility,salaries,socialbenefitsetc.SeeforexampleMinistryofEducationsub-page:https://www.mon.bg/bg/100164;MinistryofLabourandSocialPolicy:https://www.mlsp.government.bg/index.php?section=CONTENT&I=230




IBPCommentIBPconfirmsresponseBbasedontheconsultationsportal(http://www.strategy.bg/).Variouslineministriesinvitecommentsfromthepublicondraftbillsonpolicies.Theconsultationisopenasanymemberofthepubliccancomment,however,itisnotapublicdialoguebetweengovernmentandcitizens.

136.Doesthelegislatureortherelevantlegislativecommittee(s)holdpublichearingsand/oruseotherparticipationmechanismsthroughwhichthepubliccanprovideinputduringitspublicdeliberationsontheformulationoftheannualbudget(pre-budgetand/orapprovalstages)?

GUIDELINES:ThisquestionreflectstheGIFTprincipleon“Sustainability,”“Transparency,”and“Complementarity”andassessestheextenttowhichtheparticipationmechanism(s)usedbythelegislativeareinteractiveandinvolveatwo-wayconversationbetweencitizensandthelegislature,ratherthanbeinglimitedtoallowingthepublictoattendorhearpublicbudgetdeliberations.

Pleaseconsiderparticipationmechanismsthatthelegislature(bothinitswholeinstitutionoritsrelevantbudget/publicaccounts/financecommittees)hasputinplaceandisusingtoallowthepublictoparticipateintheirdeliberationsontheannualbudget.Thisincludesdeliberationsduringthepre-budgetphase(i.e.,whentheexecutiveisstillintheprocessofformulatingthedraftbudget)andthebudgetdiscussionsafterthebudgethasbeentabledtoparliamentandbeforeitisapproved.Inthecommentbox,pleasespecifyduringwhichstageofthebudgetcyclethelegislaturehasputinplaceapublicparticipationmechanism.

MechanismsthroughwhichmembersofthepublicreachouttoindividualMembersofParliamentasopposedtothelegislature(bothinitswholeinstitutionoritsrelevantbudget/publicaccounts/financecommittees)orunofficialhearingsorganizedbyasubsetofcommitteemembersshouldnotbeconsideredinansweringthisquestion.

Ifthereismorethanonemechanism,pleaseselectamechanismthatbestshows/reflectsthelegislature’seffortstoincorporatecitizensintotheformulationoftheannualbudget.Theparticipationmechanismscaninvolvearangeofdifferentissues,suchasrevenues,policyselection,andmacro-fiscalplanning(pleasenotethattheissueofcoverageiscoveredinasubsequentquestion).

Toanswer“a,”thelegislaturemustholdpublichearingswherecitizensareallowedtotestify.Thisanswerappliesonlyifthelegislaturedoesnotexercisediscretionindeterminingwhichcitizensand/orCSOscantestify(forexample,participationtakesplaceonafirst-come-first-servedbasis).

Answer“b”shouldbeselectedifthefollowingapplies:

Thelegislatureholdspublichearingsonthebudget;TestimonyisnotallowedfrommembersofthepublicorCSOs;butThereareothermeansusedbythelegislaturetoreceiveandcollectviewsfromcitizensandCSOsonthebudget,andthelegislaturedoesnotexercisediscretionindeterminingwhichcitizensand/orCSOscanprovideinput.Theresearchermustprovideevidencetosupportthepresenceofthosealternativeprocessesthroughwhichthelegislatureseeksinputsfromcitizens.Forexample,thereshouldbeapublicrecordindicatingthatviewsfromcitizensandthepublicweresought.

Answer“c”shouldbeselectedifthefollowingapplies:

Thelegislatureholdspublichearingsonthebudget;TestimonyisnotallowedfrommembersofthepublicorCSOs;Noothermeansareusedbythelegislaturetoreceiveandcollectviews/inputfromcitizensandCSOsonthebudget,butThelegislatureinvitesafewindividuals/groupstoprovideinput(throughpublichearingsorelsewhere)

Answer“d”appliesiftherequirementsfora“c”responseorabovearenotmetorifthelegislaturedoesnotusepublicparticipationmechanismsduringitsdeliberationsontheannualbudget

Answer:c.Yes,publichearingsareheld.Notestimonyfromthepublicisprovidedduringthepublichearings,andtherearenoothermechanismsthroughwhichpubliccontributionsarereceived,butthelegislatureinvitesspecificindividualsorgroupstotestifyorprovideinput(participationisnot,inpractice,opentoeveryone).

Source:FulltranscriptofthejointhearingofthecommittesonBudgetandFinance,Health,andLabour,SocialandDemographicissueson1November2018:https://www.parliament.bg/bg/parliamentarycommittees/members/2576/steno/ID/5321

ListofwrittenstatementssenttotheparliamentbyvariousinstitutionsandNGOsinthededicatedfolderfortheEBP2019ontheparliamentwebsiteaswellasrecordsofhearingsinothercommittees(seeendofpage):https://www.parliament.bg/bg/bills/ID/78264/

Comment:Underart.31oftheRulesofOrganisationandProcedureoftheNationalAssembly(https://www.parliament.bg/bg/rulesoftheorganisations)themeetingsofthestandingcommitteesareopen.TheymaybestreamedliveonthewebsiteoftheNationalAssembly.Underart.32oftheRulesofOrganisationandProcedureoftheNationalAssemblycitizensmayattendCommitteemeetingsincompliancewiththeNationalAssemblyaccesspolicyandtherulesofprocedureoftherelevantCommittee(fortheBudgetandFinancecommittee,requestforattendanceshouldbesentthedaypriortothehearingaccordingtotherulesofconductofthecommitteehttps://www.parliament.bg/bg/parliamentarycommittees/members/2576/info)

Representativesoftradeunions,professionalandindustrialorganisationsorNGOsmaysubmitwrittenopinionsand,attheirowninitiative,attendCommitteemeetings,aswellasparticipateindebatesonlegislativeacts.AccreditedreportersandotherjournalistsalsocanattendthemeetingsoftheCommittee.ThecontributionsfromthepubliccanbereceivedintheFinanceandBudgetCommitteeinwritingbypostorontheemailaddress(writtentestimoniesarepublishedontheparliamentwebsite).



137.Duringthelegislativedeliberationsontheannualbudget(pre-budgetorapprovalstages),whichofthefollowingkeytopicsdoesthelegislature’s(orrelevantlegislativebudgetcommittee)engagementwithcitizenscover?


1.Macroeconomicissues2.Revenueforecasts,policies,andadministration3.Socialspendingpolicies4.Deficitanddebtlevels5.Publicinvestmentprojects6.Publicservices

GUIDELINES:ThisquestionreflectstheGIFTprinciplesof“Transparency”and“Timeliness”.Pleaseconsidertherangeofmechanismscurrentlyusedbythelegislaturetopromotepublicparticipationduringlegislativedeliberationsontheannualbudget.

Pleasenotethatwhilethepublicengagementcan/maycoverothertopics,forthepurposeofansweringthisquestion,“keytopics”areconsideredtobeonlytheoneslistedabove.Ifthelegislature’sengagementwiththepubliccoverstopicsotherthanthesixlistedabove,pleasespecifythesetopicsinthecomments.


Answer“d”appliesiftherequirementsfora“c”responseorabovearenotmetorifthelegislaturedoesnotusepublicparticipationmechanismsduringitsdeliberationsontheannualbudget.

Answer:a.Thelegislatureseeksinputonallsixtopics.

Source:SeefullrecordofthejointhearingofthecommitteesonBudgetandFinance,Health,andLabour,SocialandDemographicissueson1November2018:https://www.parliament.bg/bg/parliamentarycommittees/members/2576/steno/ID/5321

Comment:Аlltopicsarediscussed.Thehearingisanoveralldiscussiononallbudgetpriorities,macroeoconomicforecasts,revenueandexpendutureplanning,publicservices,publicdebtetc.



138.Doesthelegislatureprovidefeedbacktothepubliconhowcitizens’inputshavebeenusedduringlegislativedeliberationsontheannualbudget?

GUIDELINES:ThisquestionreflectstheGIFTprinciplesof“Transparency”and“Sustainability”,andexaminestheextenttowhichthelegislatureprovidesinformationtocitizensonwhichpublicinputswerereceivedandhowinputswereusedduringlegislativedeliberations(pleasenotethatthesedeliberationscanrefertothepre-budgetandapprovalphases).By“writtenrecord”inthisquestion,wemeanadocumentthatisproducedandreleasedbythelegislature.

Answer“a”applieswhenthelegislatureprovidesawrittendocumentwith:

-Theinputsreceivedfromthepublic(e.g.,awrittentranscript)and

-Adetailedreportonhowtheinputswereusedornotused(suchreportshouldincludeinformationonwhichinputswereusedornotused,why,andhow).

Answer“b”applieswhenthelegislatureprovidesawrittendocumentthatincludes:

-Theinputsreceivedfromthepublic(e.g.,awrittentranscript)and

-Anot-so-detailedreportonhowpublicinputswereusedornotused.Thisdocumentonlygivesageneralideaonhowthoseinputswereusedornotusedinlegislativedeliberationsontheannualbudget(pleasenotethatthesedeliberationsrefertothepre-budgetandapprovalphases).

Answer“c”applieswhenthelegislatureprovidesawrittendocumentthatincludes:

-Theinputsreceivedfromthepublic(e.g.,awrittentranscript)or


Answer“d”appliesiftherequirementsfora“c”responseorabovearenotmetorifthelegislaturedoesnotusepublicparticipationmechanismsduringitsdeliberationsontheannualbudget.

Answer:c.Yes,thelegislatureprovidesawrittenrecordwhichincludeseitherthelistoftheinputsreceivedorareportorsummaryonhowtheywereused.

Source:SeefullrecordofthejointhearingofthecommittesonBudgetandFinance,Health,andLabour,SocialandDemographicissueson1November2018:https://www.parliament.bg/bg/parliamentarycommittees/members/2576/steno/ID/5321SeeallwrittentestimoniesbyinstitutionsandNGOs(endofpage)andallindividualamendmentstabledbymembersofparliamentonspecificarticles:https://www.parliament.bg/bg/bills/ID/78264/

Comment:Hearingsinthestandingcommittees(includingFinanceandBudgetCommittee)areopen.TheymaybestreamedliveonthewebsiteoftheNationalAssembly.Inthisrespectcitizenscanhavedirectfeedbackwhethertheirinputshavebeenacceptedbythemembersoftheparliamentduringlegislativedeliberationsontheannualbudget.Inaddition,foreachmeetingthereisaverbatimrecord,thatispublic.Also,ascitizensororganizationscannotdirectlytableamendmentstothebudgetact,typicallysomeindividualmembersofparliamentpickupsuggestionsfromNGOsorotherorganizationsanddraftamendmentsontheirbehalf-fulldetailedlistofsuchproposalsbyMPsisalsoavailableontheparliamentwebsite(seesource).



139.Doesthelegislatureholdpublichearingsand/oruseotherparticipationmechanismsthroughwhichthepubliccanprovideinputduringitspublicdeliberationsontheAuditReport?

GUIDELINES:ThisquestionreflectstheGIFTprincipleon“Sustainability,”“Transparency,”and“Complementarity”andassessestheextenttowhichtheparticipationmechanism(s)usedbythelegislativeareinteractiveandinvolveatwo-wayconversationbetweencitizensandthelegislature,ratherthanbeinglimitedtoallowingthepublictoattendorhearpublicbudgetdeliberations.

Akeyconstitutionalroleofthelegislatureinalmostallcountriesistooverseethegovernment’smanagementofpublicresources.WhiletheSupremeAudit

Institutionisresponsibleforcheckingthegovernment’saccountsandpublishingtheoutcomeoftheiraudits,foraccountabilitypurposesitisessentialthatthelegislaturereviewsandscrutinizesthosereports,andchecksonwhethertheexecutiveistakingtheappropriatecorrectiveactionsbasedontheSupremeAuditInstitution’srecommendations.

Holdingpublichearingstoreviewauditfindingsallowsthepublictolearnmoreabouthowthegovernmenthasmanageditsresourcesforthebudgetyearsthathaveended,anddemandaccountabilityincaseofmismanagementandirregularities.Reviewinganddiscussingthosereportsinpublicisthereforeakeyresponsibilityofalegislature.

Pleasenotethatby“AuditReport”werefertothesameauditreportassessedinthetransparencysectionofthisSurvey,i.e.,oneoftheeightkeybudgetdocumentsthatallgovernments(inthiscase,theSupremeAuditInstitution)mustproduce,accordingtobestpractice.

Pleaseconsiderparticipationmechanismsthatthelegislature(bothinitswholeinstitutionoritsrelevantbudget/publicaccounts/financecommittees)haveputinplaceandusingtoallowthepublictoparticipateintheirdeliberationsontheAuditReport.

Mechanismsthroughwhichmembersofthepublicreachouttoindividualmembersofparliamentasopposedtothelegislature(bothinitswholeinstitutionoritsrelevantbudget/publicaccounts/financecommittees)orunofficialhearingsorganizedbyasubsetofcommitteemembersshouldnotbeconsideredinansweringthisquestion.

Toanswer“a,”thenationallegislaturemustholdpublichearingswherecitizensareallowedtotestify.Thisanswerappliesonlyifthelegislaturedoesnotexercisediscretionindeterminingwhichcitizensand/orCSOscantestify(forexample,participationtakesplaceonafirst-come-first-servedbasis).

Answer“b”shouldbeselectedifthefollowingapplies:

Thelegislatureholdspublichearingsonthebudget;Notestimonyisallowedfromthepublic;BUTThereareothermeansusedbythelegislaturetoreceiveandcollectviewsfromcitizensandCSOsonthebudget,andthelegislaturedoesnotexercisediscretionindeterminingwhichcitizensand/orCSOscanprovideinput.Theresearchermustprovideevidencetosupportthepresenceofthosealternativeprocessesthroughwhichthelegislatureseeksinputsfromcitizens.Forexample,thereshouldbeapublicrecordindicatingthatviewsfromcitizensandthepublicweresought.

Answer“c”shouldbeselectedifthefollowingapplies:

Thelegislatureholdspublichearingsonthebudget;Notestimonyisallowedfromthepublic;Noothermeansareusedbythelegislaturetoreceiveandcollectviews/inputfromcitizensandCSOsonthebudget,BUTThelegislatureinvitesafewindividuals/groupstoprovideinput(throughpublichearingsorelsewhere)

Answer“d”appliesiftherequirementsfora“c”responseorabovearenotmetorifthelegislaturedoesnotusepublicparticipationmechanismsduringitsdeliberationsontheAuditReport.


Source:TheBudgetandFinanceCommitteeexaminedthreereportsoftheNationalAuditOfficehttp://www.bulnao.government.bg/bg/articles/komisiqta-po-bjudzhet-i-finansi-razgleda-tri-doklada-na-smetnata-palata-2014

Comment:WehavefoundnoevidenceofpublichearingontheAuditReport2017atthebudgetandfinancecommittee.



140.DoestheSupremeAuditInstitution(SAI)maintainformalmechanismsthroughwhichthepubliccansuggestissues/topicstoincludeintheSAI’sauditprogram(forexample,bybringingideasonagencies,programs,orprojectsthatcouldbeaudited)?

GUIDELINES:ThisquestionassesseswhethertheSupremeAuditInstitution(SAI)hasestablishedmechanismsthroughwhichthepubliccanprovidesuggestionsonissues/topicstobeincludedinitsauditprogram.Whendecidingitsauditagenda,theSAImayundertakeauditsforasampleofagencies,projects,andprogramsinthecountry;andsuchaselectioncouldbebasedoncomplaintsandsuggestionsmadebymembersofthepublic.Toreceivesuchsuggestions,theSAImaycreateformalmechanisms,likesettingupawebsite,hotline,oroffice(orassigningstafftoliaisewiththepublic).


Source:TheNationalAuditOfficepublishedcontactinformationonitswebsite(address,emails,phonenumbers)http://www.bulnao.government.bg/bg/articles/kontakti-905

LawontheNationalAuditOfficehttp://www.bulnao.government.bg/bg/articles/zakon-za-smetnata-palata-1685

Comment:Article7oftheLawstipulatesthattheNationalAuditOfficeapprovesanannualauditprogramaftertheannualbudgetlawispublished,butnolaterthan31stDecemberofthepreviousyear.Theparliamentcanassignupto5auditsperyeartotheNationalAuditOffice.TheNationalAuditOfficecollaborateswithstateinstitutions,professionalandnon-governmentorganizations.

Thereisnoformalmechanismforthepublictosuggestissue/topicstobeincluded.However,inthe2019auditprogramtheNationalAuditOfficedeclaredthatitisfocusedonproblemsofpublicimportance.

Accordingtothe2017IBPguidance,theavailabilityofcontactinformationisenoughforan"a"response(seequestionnairesforCanadaorAustralia)https://www.internationalbudget.org/wp-content/uploads/australia-open-budget-survey-2017-responses.pdf



IBPCommentContactinformation/commentfieldsalonearenotconsideredasaformalmechanismbywhichthepubliccancontributetotheSAI'sworkprogram.Tomaintainconsistencyacrosssurveycountries,theresponseisrevisedfrom"a"to"b."

141.DoestheSupremeAuditInstitution(SAI)providethepublicwithfeedbackonhowcitizens’inputshavebeenusedtodetermineitsauditprogram?

GUIDELINES:

ThisquestionreflectstheGIFTprinciplesof“Transparency”and“Sustainability”,andexaminestheextenttowhichtheSupremeAuditInstitutionprovidesinformationtocitizensonwhichpublicinputswerereceived,whichonesareusedtodeterminetheSupremeAuditInstitution’sauditprogram.By“writtenrecord”inthisquestion,wemeanadocumentthatisproducedandreleasedbytheSupremeAuditInstitution.

Answer“a”applieswhentheSupremeAuditInstitutionprovidesawrittendocumentwith:

-Theinputsreceivedfromthepublicand

-Adetailedreportonhowtheinputswereusedornotused(suchreportshouldincludeinformationonwhichinputswereusedornotused,why,andhow).

Answer“b”applieswhentheSAIprovidesawrittendocumentthatincludes:

-Theinputsreceivedfromthepublicand

-Anot-so-detailedreportonhowpublicinputswereusedornotused.ThisdocumentonlygivesageneralideaonhowthoseinputswereusedornotusedtodeterminetheSAI’sannualauditprogram.

Answer“c”applieswhentheSAIprovidesawrittendocumentthatincludes:

-Thereceivedfromthepublicor


Answer“d”appliesifrequirementsfora“c”responseorabovearenotmetorifmaintainformalmechanismsthroughwhichthepubliccansuggestsissues/topicstoincludeintheSAI’sauditprogram.


Source:

Comment:Thereisnoformalmechanismforreceivinginputsfromthepublic;seeq140



142.DoestheSupremeAuditInstitution(SAI)maintainformalmechanismsthroughwhichthepubliccancontributetoauditinvestigations(asrespondents,witnesses,etc.)?

GUIDELINES:Thisquestionmirrorsquestion140,butinsteadofcoveringpublicassistanceinformulatingtheSAI’sauditprogram,itfocusesonwhethertheSupremeAuditInstitutionhasestablishedmechanismsthroughwhichthepubliccanparticipateinauditinvestigations.Inadditiontoseekingpublicinputtodetermineitsauditagenda,theSAImaywishtoprovideformalopportunitiesforthepublicandcivilsocietyorganizationstoparticipateintheactualauditinvestigations,aswitnessesorrespondents.


Source:LawontheNationalAuditOfficehttp://www.bulnao.government.bg/bg/articles/zakon-za-smetnata-palata-1685

Comment:AccordingtotheLaw(art.43)theNationalAuditOfficecanuseexternalexperts.TheSAImayrequestinformationandevidencefrompersons/entitiesoutsideoftheauditedorganizationifillegalbehaviorissuspected.(art.39)Thereisnoformalmechanismforreceivinginputsfromthepublic.



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