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The annual budget timetable



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The annual budget timetable
The budget formulation process is an annual cycle which, in fact, begins two years
before the year being budgeted for (in other words, in year 
y-2
in respect of budget year 
y
).
While the various activities associated with the budget formulation and approval are
multi-faceted (see Figure 1), the essential sequence of budgeting at the federal level can be
summarised as follows:
December
(of year 
y-2
): While the formal approval of the Budget Act for the next year 
y-
1
is being concluded in parliament, the Federal Ministry of Finance begins 
technical
consultations
with the line ministries, inviting them to update the figures in the PFM
System for the budget year 
y
, as well as the figures for the other years previously included
in the Financial Plan (see Section 1.4), namely years 
y+
1 and 
y+
2, and to roll the figures
forward to the new incoming “outer year” 
y+
3. Line ministries can also raise new policy
priorities which may have implications for the overall funding envelope, and the Federal
Chancellery also makes its views known on priority issues. 
January-February
(of year 
y-1):
The government’s official economic forecasts and federal
revenue forecasts for the year ahead are finalised. The Federal Ministry of Finance
endeavours to accommodate new policy priorities within the permitted resource level.
High-priority and contentious issues may be elevated beyond the level of officials to be
resolved at the 
political level,
i.e. State Secretary level or cabinet level if necessary. 
March:
The cabinet agrees the 
Benchmark Figures
setting out the aggregate and sectoral
expenditure limits and revenue figures, consistent with the fiscal constraints, and within
which the ongoing budget negotiations must be concluded. 

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