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NATO Archives Online N A T O ^^^^ Copy No. CONFIDENTIAL gg5EDT>2TL2, Addendum 1 " IgrSS April 1952 FINANCIAL AND ECONOMIC. BOARD Summary surveys of the Budget Techniaues_adooted '1 Ja' Belgium. Luxembourg and""thi"lfetherliads ggI^sed^S^Vey of United Kingdom Budget Techniques Note by the Secretary. Ref: FEB-D(>2)h - . FEB-R(52)1 and Corrigendum FEE-D(52 )12 Delegations will find attached summary surveys of the Budget Techniques adopted in Belgium, Luxembourg and the Netherlands. A revised summary of United Kingdom Budget Tecinicues prepared on the basis of a paper communicated to the Financial and Economic Board by the United Kingdom Delegation to NATO has been added.• ' Delegations are therefore requested to substitute Part IV of the present document for Part III of document FEB-Df52 )12 - United Kingdom. 17 ' Similar surveys for the other NATO countries will be prepared as information becomes available. DECLASSIFIED - PUBLIC DISCLOSURE / DÉCLASSIFIÉ - MISE EN LECTURE PUBLIQUE LECTURE EN - MISE / DÉCLASSIFIÉ DISCLOSURE - PUBLIC DECLASSIFIED (signed) J.R.E. Dobson Palais de Chaillot, Paris 16e . CONFIDENTIAL FEB-IJ ( 5 sTHTAddendum No.I. I. GUIVL ÏA RY SURVEY Orn BELGIAN BUDGET TECHNIQUES PREPARATION OF TKE BUDGET .. 1. The final date for the submission of draft budgets is 30th'September. The financial year coincides with the calendar yoar. The preparation of draft budgets involves two basic operations i.e.* estimating expenditure and estimating revenue. The various Ministries'are responsible for the preliminary stages of budget preparation. The Budget Committee (consisting of the Prime Minister and the Finance Minister* who are cx-officio members* as well as tv/o other ministers appointed by the King) then take's over and examines the financial aspects of the Budget proposals of the different Ministries which aro laid before it by the Finance Minister. 2. The Finance Minister notifies his colleagues of the decisions taken with respect to the framing of the draft budgets and'to harmonising proposed expendituro with anticipated receipts. The Budget Committee supervises the preparation of the draft budgets and of the accompanying allocations' documents• All proposals involving further budgotary commitments* even if only provisional* if they are likely to require renewal* of temporary or of unlimited' duration during suecceding financial years* must be submitted to the Budget Committee with an overall programme and f o re ca sts for f ut ure budg et s. 3. For supplies and works extending over more than one financial year* special, obligational authority is requested within the frame- work of tho Budget Acts and Parliament; by voting such expenditures* Parliament gives the Executive authority to enter Into firm con- tracts (for works, or supplies) for'a period extending beyond that cove rod by tho financial year. Later budgets make provision* in the form'of money votes* for annual expenditures to moot these DECLASSIFIED - PUBLIC DISCLOSURE / DÉCLASSIFIÉ - MISE EN LECTURE PUBLIQUE LECTURE EN - MISE / DÉCLASSIFIÉ DISCLOSURE - PUBLIC DECLASSIFIED obligation's. As a general rule* these obligat ional authority commitments are written into an overall long-term programmo which is approved by Parliament by means of successive votes. In cases of exceptional urgency* the Council of Ministers can authorise expenditure commitments In excess of those voted by the legislature. The proposed expenditure must bç submitted to the Budget Committee for its opinion before action is taken by tho Council. C ONFIDEI-ITIAL . FEb-IH a )12 Addendum- No»,l -2_ COMPOSITION OF BUDGETARY DOCUMENTS A. Every draft budget comprises the following throe sections: t a) The text of tho draft b) Tables of roccipts and/or expenditure c) Explanatory notes in support of estimates The C-ovcrnment's financial policy is outl.ncd annually in a paper known as the "General Statement" ( exposé général) v/hich is circulated simultaneously v/ith the draft budgets. It supplies the information and, statistical data required for a clcar under- standing of furthermore » it compares estimated revenue and expenditure with actual revenue and expenditure in- previous years.. 5V Every year* the Finance Minister submits tho following Budget documents: a) Thc AVays and Moans Budget (ordinary revenue budgot) the provisions of v/hich aro classified under three distinct heads: fiscal revenue* non-fiscal revenue and revenue arising from the war. The last-named item includes all extraordinary roccipts whose origin goes back to war-timo eventsj b) Ministries' ordinary expenditure budgets* which include not only all ordinary expenditure properly so-callcd* but also* where appropriate* a section for expenditure arising from the,war*/i.e. extraordinary expenditure due to the war and aesLined to cease at some future time; c) The ordinary budgets for special o.-.pondlturcs: tho Grants-IruAid Budget* the Bad Debts and Puef unds Budget (budgot des Non-Valours ot des Remboursements)* the Pensions Budget; d) The Extraordinary Roccipts and Expenditure Budget; c) The Self-Balancing Revenue and Expenditure Budget (lo budget des Recettes et Déponses pour Ordre). DECLASSIFIED - PUBLIC DISCLOSURE / DÉCLASSIFIÉ - MISE EN LECTURE PUBLIQUE LECTURE EN - MISE / DÉCLASSIFIÉ DISCLOSURE - PUBLIC DECLASSIFIED On the "Expenditure" side of the Extraordinary Receipts and Expondituro Budget* estimates arc arranged under the following heads: 1. Rccovcrablc advances (The State as banker); 2. Participation in tho capital of public bodies (The State as share-holder ) ; COÏT '1IOINTI Mj 'addendum No .1 -3- ; 3. Nov; capitaliscd expenditure (Nov Investment capital); Restoration of national and related property(Repair of public property end the like damaged by acts of war). In principle, all the abovo expenditure is mot through borrowing. On the "Receiptsi! side of the Extraordinary Receipts and ' Expenditure budget, the yield from special taxes levied for the redemption of the Currency Reform Loan is shown offset, on tho "Expenditure" side, by a similar amount, representing the sum written off by means of tho revenue obtained through thi3 oper- ation. 6. In their tables, the Minisi-rios generally arrange the proposed budget allocations ur.de the following four heads: a) Expenditure for general administration' b) Subsidies c) Works d) Other oxpondituro. 7. The explanatory notes in the last section of the Budgot document give all nocossary indications regarding the use uo which the-desired allocations aro to bc put, their composition and, whore applicable, the legislative or administrative regulations on which their assessment was based. ^11' ADOPTION OF TPIE BUDGET 8. The. draft, budgets aro printed and circulated to members of the two Houses before Ist October. Although it is not a prorogative of the House of Represen- tatives to deal with the drafts of the purcl- financial oudgcts before the Senate, In practlcc it does so. Tho other budgets are considered by the two Houses alternately. During che las* 'throe months of tho year, for tho House of Representatives, and _ DECLASSIFIED - PUBLIC DISCLOSURE / DÉCLASSIFIÉ - MISE EN LECTURE PUBLIQUE LECTURE EN - MISE / DÉCLASSIFIÉ DISCLOSURE - PUBLIC DECLASSIFIED from November on, for the Senate, the discussion of oho ara-t ^ budgets is given priority ovor all othor business. Axtor_oxamiru- ' at ion by the Coimait too s, they nrc discusscd in public session. A vote is taken on oach draft separately and the result of such a voto by cither House is immediately announced. A. Examination by the Comm.lt too s a) House of Roprosontativos 9. At the beginning of oach Scssion(2nd Tuesday of November), the House of Reorosontativos forms itself into five sections which aro renewed after tho Erster Rccoss. Each section appoints two "rapporteurs" • Tlio "rapporteurs" of the five sections join the C ON? ISlgITIZ-L gjÏÏ-D ( g 2 ) IT-AdcIondura No .1 -in- appropriate permanent committees, which together constitute tho Spocial Committee • The Hules of Procedure require the sections to examine tv'0 draft budgets before thoy are passed on to the cornaittoes. Sinco tho end of the 19AO-IÎ.5 War, however, the House has waived this condition and refers draft budgots direct to tho competent perman- ent committees for examination. Ihcrc is ono such committee for oach Ministry. b) Senate 10. ' Fourteen committcos aro set up, one for oach Ministry. Sach draft budget is therefore referred to the appropriate coernttcc for examination. 11. The reports drawn up following examination of the draft budgets by tho committees contain a summary of the proceedings of the questions put to the Govermiont and of the replies to thoso questions . 3. Discussion in public, sossion_ 12. Under the Rules of Procedure of the House of Representatives, public discussion of the draft budgots must commoncc in November on the first convenient day of a public session. Budgets of an essentially financial character must be taken first. Every member of either House has the right to move amend- ments. All amendments involving an Increase in expenditure must bc notified to the President of the Houso within cipjnt days oi the distribution of the report on the budget conccrned. There is no legal stipulation to the oCfect that proposals for Increased expenditure submitted ^uring public discussion of the. Budget shall at-the sane time provide for fresh rovonuo to offset tho increase, but the ^ules of Procedure cf the house of Rcprcsentativos nevertheless- lay down that if a favourable report has boon made on the proposal, the former must indicate hoe' the increased charges are to bo 13. Having closcd the general discussion of a budget, the Houso proceeds to vote on each item spcaratcly, aftor whicn a vote on tho draft budget as a whoij is taken. DECLASSIFIED - PUBLIC DISCLOSURE / DÉCLASSIFIÉ - MISE EN LECTURE PUBLIQUE LECTURE EN - MISE / DÉCLASSIFIÉ DISCLOSURE - PUBLIC DECLASSIFIED • A budget adopted by one House is thon referred to the other which, as a rule, has alroady had the original draft examined oy th appropriate comuittoo. ^fter adoption by both Houses, the Budget Act is promulgated and published.
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