State Administration and Public Policy, Including Public Finance and Budget Process
This section tests state administration and public policy, including public finance and the budget process. It covers the Budget Code, the budget system, the Accounts Committee, state planning and the delivery of public services. Questions often turn on which body approves or controls spending.
Core rules
- The budget system includes the republican budget, local budgets and the National Fund. The Government develops the republican budget; Parliament approves it; the Government executes it.
- Budget process stages: forecasting, drafting, approval, execution, accounting, control and reporting. Spending must have a legal basis and be within the approved budget.
- The Accounts Committee for control over execution of the republican budget is the external state audit body; it reports to Parliament.
- State planning links strategic goals, programmes and budget spending. Public services are delivered under standards; unlawful demands for documents are a common exam issue.
- The National Fund is a stabilization and savings fund, not a free source for current ministry spending.
Worked example
A ministry wants to fund a new programme after the budget is approved. It cannot simply reallocate money by oral decision. It must follow the Budget Code: identify the legal basis, prepare a budget amendment, obtain the authorized decision, and reflect the change in the budget. Otherwise the spending is unlawful even if the policy goal is good.
Traps
Do not confuse the republican budget with local budgets or the National Fund. Do not assume the Government alone approves the budget; Parliament has the approval role. Do not treat extra-budgetary spending as valid because a supervisor approved it.