Report on the Long-term Sustainability of Public Finances
One of the core tasks of the Council for Budget Responsibility is to draw up and publish its long-term sustainability report, including a baseline scenario and determination of the long-term sustainability indicator. The purpose of the report is to evaluate the situation in public finances within the context of long-term sustainability, taking into particular account the positive and negative impacts which the adopted legislative measures and other polices may have on the sustainability of public finances.
Report on Compliance with Fiscal Responsibility and Transparency Rules
One of the core tasks of the Council for Budget Responsibility is to draw up and submit to the parliament its Report on Compliance with the Fiscal Responsibility and Fiscal Transparency Rules for the previous fiscal year. The objective of the report is to provide information on whether all the rules laid down in the Fiscal Responsibility Act have been adhered to in the processes of budget preparation, execution and reporting.
Monitoring of public finance development
The Council for Budget Responsibility has a duty to monitor and evaluate the development of public finances. This in practice means that the CBR evaluates various documents presented by the government, mainly the General Government Budget. The General Government Budget represents a basic document through which the government implements its economic policy. It is therefore essential that the objectives and impacts of the proposed measures are based on realistic assumptions. The CBR’s objective is to offer the expert community and public at large an independent view on the budget, assess the extent to which the set targets are realistic, and point out both the short- and long-term effects of the measures adopted. In addition, the report evaluates the budget in terms of its compliance with both national and EU rules.
Evaluation of compliance with the balanced budget rule
2014 is the first year in which the assessment of compliance with the balanced budget rule for the previous year is prepared; the rule was transposed into Slovakia’s national legislation on the basis of an obligation arising under the international Treaty on Stability, Coordination and Governance in the Economic and Monetary Union. Under its Title III named Fiscal Compact, Member States are required to define their medium-term objective (MTO), to assess, on a yearly basis, whether the progress towards their respective MTOs has been sufficient and, should any deviations occur, to trigger an automatic correction mechanism to bring the key indicators back on their original adjustment path. In Slovakia, responsibility for the assessment of compliance with the rule rests with the Ministry of Finance. The credibility of this national rule is enhanced through compliance monitoring by an independent fiscal institution. Slovakia has entrusted this task to the Council for Budget Responsibility (CBR). Following each assessment, the Ministry of Finance should provide its opinion to the CBR, in line with the European Commission principles.
Opinions on legislative proposals
The Council for Budget Responsibility may, acting on its own initiative or if invited to do so by a parliamentary caucus, draw up opinions on the legislative proposals submitted to the parliament. The objective is to offer an independent view and thus enable the expert community and public at large to better evaluate all impacts of proposed legislative measures. Apart from the short- and long-term impacts that they have on the general government budget, the CBR opinions also evaluate the impact of these measures on economic growth and household disposable income.
Discussion papers constitute an important communication tool of the Council for Budget Responsibility. Primarily intended for the professional public, they represent a description of the methodologies and assumptions used by the CBR in the pursuit of its tasks as mandated by law. Any comments on the discussion papers are welcome at email@example.com.
This page is intended to publish the results of broader analytical activity performed by internal and/or external experts under the aegis of the CBR Office. The purpose of the exercise is to enhance the body of knowledge in the area of fiscal policy in the context of the challenges and decisions facing Slovakia in the future. Analytical in nature, these working papers are primarily addressed to the expert community. However, no one should feel discouraged from consulting this page regularly, for the executive summary of each working paper will be formulated in a manner comprehensible to the general public.