| ANNEX C |
| |
| THE ANNUAL BUDGET PROCESS |
| |
| This Annex sets out in detail
the annual budget process as recommended by FlAG. |
| |
| Year - 1 |
| |
| April Individual Departmental
Resource Accounts (for Year -2) are published. |
| |
| December Consolidated
resource accounts (for Year -2) are published. These would give substantial
information in relation to output and performance as well as other financial
information for the previous financial year. |
| |
| Around March The Executive
will provide forward plans for years 1 (and possibly subsequent years depending
on the stage in the three year settlement). This would provide information
in relation to expenditure proposals for main prograrnrnes and the level
of detail would go down to at least main sub-programmes. It should also
provide an indication of intended use, if any, of the tax varying power. |
| |
| Year 0 |
| |
| May Interim reporting
information. This would provide as much information as possible on estimated
outturn for the financial year which will have just drawn to a close (year-1).
In addition, the best performance information available would also be reported
to the Parliament. This might be fairly crude, especially in early years,
but could be improved upon as the new system beds in. |
| |
| April/June Executive publishes
Departmental Report by 20 April. This gives final proposals for the financial
year immediately ahead and (depending on the stage in the 3 year cycle)
provisional proposals for up to 2 more financial years. The report forms
the basis for Stage 1 -a discussion on future strategy and priorities. Changes
in priorities could be suggested as could cases for additional resources.
The Finance Committee would act as a co-ordinating body and would take a
view on overall priorities. This would provide valuable views to the Executive
on the need, or otherwise, for using the tax varying power as well as views
in relation to expenditure priorities. |
| |
| July/August The Executive
prepares proposals taking account of latest information on the Assigned
Budget and the outcome of committees' consideration. Again these would go
down to main sub programmes at least but should be as detailed as possible.
An indication of intentions on the use of tax varying power would also be
provided. |
| |
| September/October Stage
2 consideration. The Executive publishes a preliminary draft budget by mid-
September. Finance Committee proposes motions for debate on the Executive's
proposals taking account of subject committees' comments and proposals.
Individual MSPs could table zero sum amendments and the Business Committee
would decide which to debate taking account of the level of support for
them. The Executive tables a summarised budget, showing expenditure by function
and tier of Government, and how that will be financed. In years when it
wishes to exercise the tax varying power, the Executive will table a resolution,
supported by a report detailing forecast yield and collection costs. |
| |
| December Consolidated
resource accounts (for year - 1) are published. |
| |
| January/February The Executive
publishes a detailed Budget by 20 January. Stage 3 consideration culminating
on debate follows. Parliament votes on tax variation proposals (if needed)
and then on Budget. Budget approved or rejected by 14 February. If no vote
by then, procedures for interim spending approval are initiated. |
| |
| Year 1 |
| |
| May/June Summer Budget
amendments. This would be the first opportunity to amend Budget proposals.
It is suggested that only the Finance Committee become involved (and not
the subject committees) at this stage. Proposals would be debated in plenary
by the Parliament |
| |
| September leading to vote
in September. |
| |
| November Winter Budget
Amendments proposed - voted on in December. |
| |
| December Consolidated
resource accounts (for year 0) are published. |
| |
| Feb/March Proposed Spring
Budget Amendments voted on in March |
| |
| NB Under FlAG's proposals it
would also be possible to take a further set of Budget amendments, if required,
outwith the above depending on spacing and timing. |
| |
| Year 2 |
| |
| April/October Departments
prepare Accounts for year 1. |
| |
| October Separate Departmental
Accounts are made available to the Parliament. |
| |
| December Consolidated
Resource Accounts are published and considered by subject and Audit Committees. |
| |
| Feb/March Budget overspends
from Yr 1 taken at the same time as budget amendments |
| |