The use of savings creates a non-conformity with the Fiscal discipline law  6 September 2017

During the Cabinet meeting that took place on 5 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 Transport’s budget programme “Public transport”. A total of 19 046 489 euro are reallocated.

The Council objects to the decision to reallocate savings. This decision reduces maximum permissible government expenditures for 2017 by 19 046 489 euro. The Council contends that the decision to allocate funds to the Ministry of Transport 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 19 046 489 euro to the Ministry of Transport’s public transport sub-programmes.

In addition, the Council reiterates that the non-conformity identified in July 2017 has yet to be resolved. The non-conformity arose as a result of decoupling the submission of the draft legislation of the tax reform from the medium-term budget framework, thus exceeding the maximum permissible government expenditures for 2018 and 2019 stipulated in the medium-term framework.

The non-conformity report is available here.