Budget execution in line with appropriations

Credibility of the aggregate revenue plans in the annual budget (%)

Measure the percentage difference between the planned revenue/expenditure in the original annual budget bill as adopted by the parliament and the outturn of actual revenues/expenditures collected. The analysis is carried out based on the data of the three most recent years. The average percentage difference over the last three calendar years needs to be within the specific range. Points are allocated based on the average variance of the actual revenue outturn against the budgeted targets in the last three years (x): • x > 12% = 0 points. • 2% < x ≤ 12% = linear function. • x ≤ 2% = 3 points.

Credibility of the disaggregated revenue plans in annual budget (%)

The percentage difference between the planned revenue/expenditure in the original annual budget bill as adopted by the parliament and the outturn of actual revenue/expenditure collected for the three main taxes (PIT, CIT and VAT). The average percentage difference over the last three calendar years must be within the specified range. Points are allocated based on the average variance in revenue composition in the last fiscal year for three main taxes (PIT, CIT and VAT) (x): • x > 15% = 0 points. • 15% ≥ x > 5% = linear function. • x ≤ 5% = 3 points.

Credibility of the aggregate expenditure plans in the annual budget (%)

Measure the percentage difference between the planned revenue/expenditure in the original annual budget bill as adopted by the parliament and the outturn of actual revenues/expenditures collected. The analysis is carried out based on the data of the three most recent years. The average percentage difference over the last three calendar years needs to be within the specific range. Points are allocated based on the average variance of the actual expenditure outturn against the budgeted targets in the last three years (x): • x > 12% = 0 points. • 2% < x ≤ 12% = linear function. • x ≤ 2% = 3 points.

Credibility of the disaggregated expenditure plans in the annual budget for 10 largest budget organisations (%)

Measures the percentage difference between the planned expenditure in the original annual budget bill as adopted by the parliament and the outturn of actual expenditures collected for the 10 largest (based on planned expenditure) ministries/institutions in the budget. The average percentage difference over the last three calendar years needs to be within the specific range. Points are allocated based on the average variance in expenditure composition by administrative and economic classification in the last three years (x): • x > 20% = 0 points. • 5% < x ≤ 20% = linear function. • x ≤ 5% = 3 points.

Clear rules restrict in-year budget adjustments by the government/ministry of finance (MoF) to no more than 5% between individual budget lines

Review of the legislation for budget management, annual budget bills, annual financial statements and the annual SAI reports.

The national rules on restrictions within-year budget adjustments by the government are respected

Review of the legislation for budget management, annual budget bills, annual financial statements and the annual SAI reports. Measured by examining whether the Supreme Audit Institution reports any violations in year budget adjustment rules.

The annual financial statement/budget execution report of the government reports and explains all material variations (over 5%) that were done by the government

Review of the legislation for budget management, annual budget bills, annual financial statements and the annual SAI reports.

No more than two budget amendments by the parliament are passed annually

Review of the legislation for budget management, annual budget bills, annual financial statements and the annual SAI reports.