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4.1.3. Advisory Board to the Federal Ministry of Finance
Established by ministerial decree around the same time as the JEF, and then on a
statutory basis in 1971, the Advisory Board provides the Federal Ministry of Finance with
independent advice, analysis, and policy recommendations on fiscal policy. It may also
look at regulatory issues and European policy; however it does not undertake its own
forecasts or projections. The Advisory Board is free to decide which issues it would like to
consider, although it does take into consideration requests from the Minister of Finance.
The Board comprises of around 25 honorary members, typically respected
academics with a background in economics, public finance, and fiscal policy. Board
members are appointed by the Federal Minister of Finance at the suggestion of the
Board. Board members serve unlimited terms, however, the right to vote expires when
they reach the age of 70. The Chair and the Deputy Chair are elected by the Board for
two-year renewable terms. Board members may hold political posts concurrently but
should not represent interest groups. They may also hold positions in other bodies such
as the Council of Economic Experts. Secretarial services are provided by staff of the
Federal Ministry of Finance. 
The Advisory Board has privileged access to confidential information and can consult
outside experts. The Federal Minister of Finance or representatives of the Minister may
attend any meetings of the Board that they choose. The reports and opinions of the Board
are given directly to the Federal Minister of Finance and the Minister determines their
publication date, although they must be published within two months. Diverging views
may be presented in the Board’s reports, and may take the form of minority reports.
Given that the function of the Board is advisory in nature, it does not have any direct
influence on the budget or the budgetary process, nor is the government obliged to follow,
or respond publically to, their recommendations. However, the Board often chooses to
address topics that are likely to attract public interest. The Federal Minister of Finance
carefully considers the Board’s recommendations and the Board is credited with
contributing to political decision-making and the parliamentary and public debate on
fiscal policy more generally.

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BUDGET REVIEW: GERMANY
OECD JOURNAL ON BUDGETING – VOLUME 2014/2 © OECD 2015