Budgetary Policy. We will aim to maintain a budget surplus during the government’s term in office and will pursue a trend-based budgetary policy. • By aiming for a budget surplus of around 0.5% of GDP by 2021, we will create scope for conducting a trend-based budgetary policy while respecting the fiscal norms laid down by the Stability and Growth Pact. The government will therefore adopt a fixed expenditure and revenue framework while allowing income and the cyclical part of expenditure on unemployment benefit and social assistance benefit to fluctuate as economic circumstances change. • Whereas the cyclical part of unemployment benefit and social assistance benefit will be removed from the expenditure framework, the interest expenditure on the national debt and the fiscal consequences of policy decisions on natural gas extraction will be included by the government in the expenditure framework, as recommended by the Budget Margin Study Group. On balance, this will strengthen the government budget’s stabilising effect on the economy without diminishing control over public sector spending. • Linking the expenditure framework to salary and price indices will eliminate price-related public sector surpluses or deficits. • The existing fiscal rules will continue to apply, including the alterations recommended by the 15th Budget Margin Study Group. • An initiative entitled ‘Insight into Quality’ will be launched to increase knowledge of policy effectiveness and efficiency. Financial relationship with local and regional authorities • In the context of its programmatic agreements with local and regional authorities, the government will also make agreements concerning its financial relationship with these authorities during its term in office. • The system of indexation applied to the Municipalities and Provinces Funds is based on the principle that funding for the subnational authorities goes or up down in line with movements in the central government budget. This system involves a link to total expenditure under the expenditure framework (minus adjustments such as the Municipalities and Provinces Funds themselves). This link makes the system more proportional and contributes to greater stability in terms of the increases or decreases in the Municipalities and Provinces Funds over time. The part of the social domain integration grant that can be integrated will be subsumed into the block grant as of 2019, thereby becoming part of the indexation system applied to the Municipalities a...
Budgetary Policy. (a) Carrying out during the year 1988 and during the year 1989, up to the time of the exchange of views referred to in paragraph 3 of Schedule 1 to this Agreement, of the Targetted Investment Program.
Budgetary Policy. 1. (a) Submission to the Bank, of two (2) programs, prepared in relation to the Borrower’s budget law for Fiscal Year 1997, covering (i) public investments and recurrent expenditures in respect of sectors covered by the public expenditure review jointly undertaken by the Borrower and the Bank; and (ii) personnel expenditures; (b) discussion with the Bank of the programs referred to under sub-paragraph (a) above; and (c) integration into the Borrower’s draft budget law for Fiscal Year 1997, as adopted by the Council of Government of the Borrower, of measures agreed in consultation with the Bank based on the review referred to under sub-paragraph (a) above.
Budgetary Policy. We will aim to maintain a budget surplus during the government’s term in office and will pursue a trend-based budgetary policy. By aiming for a budget surplus of around 0.5% of GDP by 2021, we will create scope for conducting a trend-based budgetary policy while respecting the fiscal norms laid down by the Stability and Growth Pact. The government will therefore adopt a fixed expenditure and revenue framework while allowing income and the cyclical part of expenditure on unemployment benefit and social assistance benefit to fluctuate as economic circumstances change. Whereas the cyclical part of unemployment benefit and social assistance benefit will be removed from the expenditure framework, the interest expenditure on the national debt and the fiscal consequences of policy decisions on natural gas extraction will be included by the government in the expenditure framework, as recommended by the Budget Margin Study Group. On balance, this will strengthen the government budget’s stabilising effect on the economy without diminishing control over public sector spending. Linking the expenditure framework to salary and price indices will eliminate price-related public sector surpluses or deficits. The existing fiscal rules will continue to apply, including the alterations recommended by the 15th Budget Margin Study Group. An initiative entitled ‘Insight into Quality’ will be launched to increase knowledge of policy effectiveness and efficiency.
