BUDGET REVIEW: GERMANY
OECD JOURNAL ON BUDGETING – VOLUME 2014/2 © OECD 2015
68
majority of the rapporteurs’ recommendations. More controversial items are revisited and
decided upon in a final “settlement” session which can run through the night. Again
ministers, the MOF and the BRH are represented. The MOF prepares a substantial set of
mainly technical recommendations for this session.
If they are not completely satisfied, the BC has a unique power to insert a “qualified
freeze”, either on a specific item or on a percentage of that item. In essence this means
that appropriated funds cannot be spent without further authorisation from the BC.
Although infrequent, a qualified freeze tends to be used either
where a ministry has
failed to fully convince the BC, in connection with controversial capital expenditure
projects, or if the BC wants additional say on which individual projects should be funded.
The latter serves as a sort of “fine-tuning” instrument, for example, the BC could
authorise spending on monuments with a qualified freeze allowing them greater say later
on which specific monuments should be funded. Some have argued that this power can
be interpreted as blurring the line between legislative approval and executive
implementation (Wehner, 2001).
The Budget Committee presents its final consensus
report with its proposed
amendments to the plenary for the second and third readings sometime in November.
These amendments are typically adopted with little or no changes. The
Bundestag
has
unrestricted amendment powers which it does not hesitate to use in practice. During the
second reading each departmental budget is voted on. During the third reading, the entire
budget with amendments is put to a final vote before being sent back to the
Bundesrat
for a
second reading and agreement. If the
Bundesrat
has serious reservations it may, within
three weeks, ask that the Mediation Committee be convened (Art. 77 of the Basic Law). This
body which brings together an equal number of Members from the
Bundestag
and the
Bundesrat
may then propose amendments that
must be voted on in the
Bundestag
. If the
proposed amendments are rejected by a majority of the
Bundestag
the
Bundesrat
may again
lodge an objection within two weeks but the
Bundestag
can override this objection and pass
the budget. In practice, the
Bundesrat
rarely objects.
The budget is passed in December before the start of the fiscal year,
although delays
are typical in election years.
After its passage through the legislature, the budget
becomes law when it has been countersigned by the Finance Minister and Federal
Chancellor, signed by the Federal President, and promulgated in the Federal Law Gazette.
The executive does not have the power to veto a budget approved by the legislature but
should changes to the draft budget have a significant impact in terms of increasing
expenditure
or decreasing revenues, the executive may demand further legislative
deliberations (Art. 113 of the Basic Law). During budget execution, the executive may also
spend less than what has been approved by the legislature – e.g. they have the authority to
spend but not the obligation to spend what has been approved.
Should the legislature fail to pass the budget before the start of the fiscal year,
Article 111 (1) of the Basic Law allows for all necessary expenditures to be made:
●
to maintain institutions established by a law and to carry out measures authorised by
a law;
●
to meet the legal obligations of the Federation;
●
to continue construction projects, procurements, and the provision of other benefits or
services, or to continue to
make grants for these purposes, to the extent that amounts
have already been appropriated in the budget of a previous year.
BUDGET REVIEW: GERMANY
OECD JOURNAL ON BUDGETING – VOLUME 2014/2 © OECD 2015
69
If specific revenues and working capital reserves are insufficient to cover these
expenditures, Article 111 (2) of the Basic Law allows government to borrow up to a
maximum of one quarter of the total amount of the previous budget. Moreover, Section 5
of the Federal Budget code allows the Federal Ministry of Finance to issue general
administrative regulations concerning provisional budgetary and financial management.
Although parliament takes a back seat during budget implementation
,
it maintains
strong
oversight through, for example, monthly expenditure reports (which are given to
the parliament and published and include information on the federal budget, the Stability
Programme, and the
Länder
) and quarterly reports on debt management. In addition, as
Do'stlaringiz bilan baham: 
