ANNUAL BUDGETING PROCESS Contents: Scope Key Points Background
Scope
1. This section gives guidance on the annual process by which the spending plans of the Scottish Ministers and other bodies funded directly from the Scottish Consolidated Fund are scrutinised and authorised by the Scottish Parliament.
Key Points
2. The budgeting process comprises 3 separate stages involving consideration by the Parliament of: a provisional expenditure plan for the spending review period; detailed expenditure proposals for the upcoming financial year i.e. a draft budget; and the Budget Bill. The first of these stages will only take place in spending review years that do not also fall in election years. 3. The Budget Bill includes expenditure which the Parliament has to approve but is not formally for the Scottish Government to propose - notably expenditure by the Scottish Parliament Corporate Body and by Audit Scotland. 4. In-year transfers of provision between individual entities identified in the Budget Act require the prior approval of the Parliament. 5. In-year transfers of provision between "budget sections" in excess of £50 million (at 1999 values) or 15% of the budget for the receiving section require the prior approval of the Parliament.
Background 6. Section 1 of the Public Finance and Accountability (Scotland) Act 2000 provides that the use of resources by the Scottish Administration and other bodies funded directly from the Scottish Consolidated Fund must be authorised on an annual basis by Budget Act. The Budget Act (as amended by Order) and supported by Budget Documents specifies the purpose for which resources may be used and the maximum amount of related expenditure in the particular financial year to which the Budget Act relates. The principles and procedures for the annual budgeting process, the format of the budget documents and procedures for in-year reallocation of budgetary provision are the subject of Written Agreements between the Scottish Government and the Scottish Parliament Finance Committee. 7. The Scottish Parliament is currently undertaking a review of the budget process. The Finance Committee launched its review in March 2008 and is expected to prepare a report which will form the starting point for an inquiry by the Standards, Procedures and Public Appointments Committee Back to top Page Published/ Updated: May 2009 |