Fiscal Council Law And Automatic Corrective Mechanisms

Original Language Title: Закон за Фискален съвет и автоматични корективни механизми

Read the untranslated law here: http://parliament.bg/bg/laws/ID/15213/

Name of law Law for fiscal Council and automatic corrective mechanisms of the Name Bill Bill for fiscal Council and corrective mechanisms, date of acceptance 08/04/2015 number/year Official Gazette 29/2015 Decree No 59

On the grounds of art. 98, paragraph 4 of the Constitution of the Republic of Bulgaria

I DECLARE:

To be published in the Official Gazette the law for fiscal Council and automatic corrective mechanisms adopted by the HLÌÌI National Assembly on 8 April 2015.

Issued in Sofia on 16 April 2015.

The President of the Republic: Rosen Plevneliev

Stamped with the State seal.

Minister of Justice: Hristo Ivanov

LAW

the fiscal Council and automatic corrective mechanisms

Chapter one

GENERAL

Art. 1. This law governs the creation, operation and composition of the fiscal Council, as well as the creation and application of automatic corrective mechanisms under art. 23, para. 3 of the law on public finance.

Art. 2. This law aims to create the conditions for compliance with fiscal rules laid down in the law on public finance, with a view to maintaining a sustainable public finances.

Chapter two

FISCAL COUNCIL

Section I

Objectives and principles

Art. 3. Fiscal Council is hereby established, hereinafter referred to as "the Council", as an independent advisory body on matters of fiscal management.

Art. 4. The fiscal Council aims to: 1. independent observation and analysis of the budgetary framework for the maintenance of sustainable public finances;

2. improve the quality of official macro-economic and budgetary forecasts by an impartial evaluation based on objective criteria;

3. improve the transparency and public awareness of the fiscal management of this country.

Art. 5. the Council carries out its activities based on the principles of:

1. independence and publicity;

2. objectivity and transparency;

3. the equality of all its members.

Section II

Activity

Art. 6. (1) the Council shall:

1. monitor compliance with the numerical fiscal rules laid down in the law on public finances, which are relevant for the General Government sector and for the consolidated fiscal program;

2. draw up a reasoned opinion and recommendations on spring and autumn macroeconomic forecasts of the Minister of Finance within 10 days from their publication on the website of the Ministry of finance;

3. draw up a reasoned opinion and recommendations on the Bill on the State budget, the budget bills on State social insurance and for the budget of the national health insurance fund, the Bills for their amendment, in the projects of the medium-term budgetary forecast, as well as other strategic documents of the Council of Ministers, relevant to compliance with the numerical fiscal rules referred to in paragraph 1, within the framework of the consultation procedure and the submission of a draft for consideration at a meeting of the Council of Ministers;

4. draw up a reasoned opinion on the reports on the implementation of the State budget, budgets of State social insurance and the other social security funds, administered by the National Social Security Institute, and the budget of the national health insurance fund, in the framework of the consultation procedure and the submission of draft legislation for consideration at a meeting of the Council of Ministers;

5. prepare and submit to the President of the National Assembly a reasoned opinion and recommendations approved by the Council of Ministers draft laws and documents under item 3 and item 4 reports not later than 14 days from the tabling in the National Assembly;

6. in establishing the significant deviation of macroeconomic forecasts by reporting data in the context of a period of at least four consecutive years, recommended to the Minister of finance taking measures to correct the deviation;

7. review the implementation of automatic corrective mechanisms under art. 23, para. 3 of the law on public finance, by drawing on the reasoned opinion:

(a)) the existence of a significant divergence from the medium-term budgetary objective for the structural deficit or step to attain it and the need for triggering automatic remedial mechanisms – within the time limits under item 2-5;

b) remedial plan – within the framework of the consultation procedure and the submission of draft legislation for consideration at a meeting of the Council of Ministers, as well as for its implementation;

8. draw up a reasoned opinion on the existence and termination of exceptional circumstances pursuant to art. 24 of the Act on public finances, for informing the Minister of finance;

9. draw up a reasoned opinion on the risks to the sustainability of public finances, for informing the Minister of finance and other institutions concerned.

(2) the reasoned opinions and recommendations of the Council shall have no binding force. When the Council of Ministers does not accept those that are relevant to it, you need to be motivated in writing. The reasons shall be published on the websites of the Council of Ministers and the Ministry of finance.

(3) the reasoned opinions and recommendations of the Council shall be published on the website.

(4) the Chairman and the members of the Council operate under this law on the basis of their own expertise. They have the right to request and receive information from public authorities which are obliged to provide it in accordance with the legislation in force.


(5) the Chairman and the members of the Council may not seek or take instructions from the Council of Ministers or by other bodies and institutions.

(6) the Council shall develop and adopt a methodology containing objective criteria for the purposes of the opinions and recommendations on the macroeconomic and budgetary forecasts official, as well as criteria for the identification of significant deviation of the parameters in the macro-economic forecasts by reporting data. The methodology shall be published on the website of the Council.

Section III

Composition

Art. 7. (1) the Council consists of five members, including the Chairman, elected by the National Assembly, following a public tender.

(2) the term of Office of the members of the Council is six years. A person cannot be selected as a member of the Council for more than two consecutive terms.

(3) new members of the Council are elected by the National Assembly no sooner than three months and not later than one month before the expiry of their term of Office. The members of the Council shall continue to perform their duties after the expiry of this period and to the selection of new members.

(4) the term of Office of a member of the Council shall be terminated ahead of schedule: 1. at his request;

2. in the case of permanent incapacity to perform his duties for more than 6 months;

3. in the event of death;

4. in establishing that the person does not meet the requirements of art. 8, al. 1 or in the event of incompatibility under art. 8, al. 2 and 4;

5. opt-out without a good reason in two consecutive meetings of the Council;

6. upon entry into force of the Act, with established conflict of interest under the law for the prevention and detection of conflicts of interest.

(5) in the event of circumstances under para. 4 shall be notified to the National Assembly for making new choices.

(6) in the cases referred to in para. 4, paragraph 1, 3 and 6, the grounds shall be notified by the President of the National Assembly in front of the National Assembly.

(7) upon early termination of the mandate of the Member of the Council, the National Assembly shall elect another person in his place for the remainder of the term.

Art. 8. (1) The members of the Council are elected people with excellence, that have higher economic education with a minimum educational qualification degree "master" and not less than 10 years of professional experience in the field of economic analysis and/or management of public finances.

(2) The members of the Council cannot be elected persons who:

1. have been convicted of an indictable offence wilfully;

2. are deprived of the right to occupy certain position or State to exercise a profession or activity;

3. they have been members of the Executive or supervisory authority or members having unlimited liability in the company when it was cancelled due to bankruptcy if you are left unsatisfied creditors;

4. in the last five years preceding the date of the decision to declare a bank insolvent, were members of its managerial or supervisory authority.

(3) The members of the Council can be elected and non-nationals subject to the requirements under paragraph 1. 1 and 2.

(4) a member of the Council may not take up a post at the State or municipal bodies, as well as to carry out political or other activity that affects his or her independence.

(5) After their election the members of the Council are making to the National Assembly the following oath: "I swear, as a member of the fiscal Council to uphold and dignify the Constitution, laws of the Republic of Bulgaria and the interests of the State and to be independent in their actions. I swore. "

Section IV

Organization of the activity

Art. 9. Meetings of the Board shall be convened by its Chairman either on his own initiative or at the initiative of each of its members.

Art. 10. the President of the Council:

1. represents the Council;

2. inform the public about the opinions and recommendations of the Council;

3. schedule and preside over meetings of the Council;

4. shall administer the business of the Council;

5. submit to the relevant bodies the opinions and/or recommendations of art. 6, al. 1;

6. produce an annual report on the activities of the Council in front of the National Assembly by the end of February of the following year.

Art. 11. (1) in carrying out its activities, the Council shall adopt decisions.

(2) decisions to accept reasoned opinions and/or recommendations are published on the Internet site of the Council within 7 days of their adoption.

Art. 12. (1) the Council shall meet when you attend at least three of its members.

(2) the decisions of the Council shall be taken by a majority of more than half of all its members. The Council cannot make decisions by non-attendance.

(3) it is not permitted to refrain from voting.

(4) The meetings of the Board may attend and outsiders at the invitation of its Chairman.

Art. 13. (1) the Council may receive assessment of the activity of such independent bodies for fiscal surveillance in other countries every three years.

(2) the assessment under paragraph 1. 1 shall be published on the website of the Council and sent to the President of the National Assembly for information.

Art. 14. the Council shall adopt rules of procedure which shall be published on the website.

Art. 15. (1) the organizational and technical and expert service to the Council's activities are carried out by three experts in the administration of the National Assembly, conforming to the requirements laid down in the rules of art. 14. (2) the activities of the Council is financed from the budget of the National Assembly, such funds shall be indicated as expenditure in a particular functional area.


Art. 16. (1) the Chairman and members of the Board receive remuneration for participation in the meetings of the Board, the equivalent of three minimum wages for one session, but the total for the month of no more than three average salaries of employees with an employment service and in the public sector, according to data of the National Statistics Institute.

(2) the remuneration referred to in paragraph 1. 1 shall be paid from the budget of the National Assembly.

Chapter three

AUTOMATIC CORRECTIVE MECHANISMS

Art. 17. (1) the automatic adjustment mechanisms under art. 23, para. 3 of the Act on public finances cover the preparation, adoption and application of corrective plan.

(2) the mechanisms under para. 1 aim at correcting an significant deviation from the medium-term budgetary objective for the structural deficit or by the step for reaching it pursuant to Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies, hereinafter referred to as "Council Regulation 1466/97.

Art. 18. The existence of a significant divergence from the medium-term budgetary objective for the structural deficit or step frame shall be established by one or more bodies as follows:

1. The European Commission in accordance with Regulation 1466/97;

2. the Minister of finance in the framework of the budget process;

3. The Council under art. 6, al. 1, item 7.

Art. 19. (1) Where significant divergence from the medium-term budgetary objective or from the step for reaching it the Minister of Finance within two months of the establishment of the deviation shall draw up and submit for approval by the Council of Ministers a corrective plan.

(2) in the event that the corrective plan provides for measures relating to the powers of the National Assembly, the Council of Ministers shall submit the plan for adoption in the National Assembly.

Art. 20. The corrective plan under art. 19 include:

1. the period of adjustment, which may be up to two consecutive fiscal years after the year in which it is established the presence of a significant deviation;

2. the average annual improvement of its cyclically adjusted balance in the amount of at least 0.5% of the gross domestic product for the period of adjustment;

3. revenue and expenditure corrective measures, described in detail type, size and a quantitative assessment of their impact on the sub-sectors of the General Government sector.

Art. 21. the remedial measures in the plan should lead to the achievement of the medium-term budgetary objective within the time limit laid down before the establishment of the deviation from it or from the step to achieve.

Art. 22. The corrective plan takes into account the recommendations for overcoming the significant divergence from the medium-term budgetary objective or from the frame made to Bulgaria in accordance with Regulation 1466/97.

Art. 23. (1) the implementation of the remedial plan may be suspended in case of extraordinary circumstance within the meaning of art. 24, para. 3 of the Act on public finances, without jeopardising the sustainability of public finances in the medium term.

(2) upon termination of the circumstances under para. 1 the Minister of finance, if necessary, shall submit for approval by the Council of Ministers revised a corrective plan. In the cases under art. 19, para. 2 the Council of Ministers shall submit the revised corrective plan for acceptance into the National Assembly.

ADDITIONAL PROVISION

§ 1. This law introduces the requirements of Directive 85/2011/EC of 8 November 2011 on the requirements for budgetary frameworks of the Member States (OJ L 306/41, of 23 November 2011).

FINAL PROVISION

§ 2. The law shall enter into force on the day of its publication in the Official Gazette.

The law was passed by the National Assembly-43 8 April 2015 and is stamped with the official seal of the National Assembly.

 President of the National Assembly Tsetska Tsacheva:

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