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Hungary’s Fiscal Council proposes amendment to act on general government

Hungary's Fiscal Council said it will propose amendments to the act on the general government.

One of the proposed amendments would clarify the definition and a list of the so-called external budgetary items before the start of budget planning, and using the expert-level consultations the Council had with the Finance Ministry.

The Council will also propose to amend the act to make it an obligation for the government to submit a budget bill which corresponds both in form and content with prevailing legislation, the council said.

The external budgetary items are governed by other laws, or macro-economic and demographic developments, thereby determining whether their annual allotments falls outside the scope of budget acts or the government.

The Finance Ministry said in March that it started a review of the external items of the budget in cooperation with the Fiscal Council with the aim to review the list and harmonize the related methodology.

The previous government had included a list of the external items in the appendix of the 2010 budget. The Fiscal Council said at the time, however, that the list should rather be prepared and approved for the long term, as part of the general government act. (MTI – Econews)