Government decision causes an exceedance of maximum permissible State budget expenditures  15 September 2017

During the Cabinet meeting that took place on 14 September 2017 the Cabinet discussed an agenda item that foresees the reallocation of savings from the budget sub-programme “Payments to the budget of the European Community” to the sub-programmes of the Ministry of Health’s budget programme 33.17.00 “Emergency medical aid provision at hospitals”. A total of 16 400 000 euro are reallocated.

The Council objects to the decision to reallocate savings. This decision reduces maximum permissible government expenditures for 2017 by 16 400 000 euro. The Council contends that the decision to allocate funds to the Ministry of Health by reducing expenditures on payments to the EU budget creates a non-conformity with the Fiscal discipline law.

In order to rectify the non-conformity the Council recommends that the Cabinet develop measures to fully compensate the decision to allocate an additional 16 400 000 euro to the Ministry of Health’s hospitals sub-programmes.

In addition, Council underlines that previous non-conformities that arose as a result of (i) decoupling the submission of the draft legislation of the tax reform from the medium-term budget framework, thus exceeding the maximum permissible State budget expenditures for 2018 and 2019 stipulated in the current medium-term framework, and (ii) the decision to reallocate funding from “Payments to the budget of the European Community” to the sub-programmes of the Ministry of Transport (Cabinet meeting, 5 September) have yet to be resolved.

Irregularity report available here.