Regulation On The Procedure For Determining The Economic Component According To §5 Of Article 115-Law

Original Language Title: Verordnung über das Verfahren zur Bestimmung der Konjunkturkomponente nach § 5 des Artikel 115-Gesetzes

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Read the untranslated law here: http://www.gesetze-im-internet.de/art115v/BJNR079000010.html

Regulation on the procedure for determining the economic component according to §5 of the articles 115-law (article 115-regulation - Art115V) Art115V Ausfertigung date: 09.06.2010 full quotation: "article 115 regulation of June 9, 2010 (BGBl. I p. 790)" footnote (+++ text detection from: 19.6.2010 +++) input formula on the basis of § 5 paragraph 4 sentence 1 of article 115-law of August 10, 2009 (BGBl. I S. 2702, 2704) directed the Federal Ministry of finance in agreement with the Federal Ministry of Economics and technology : § 1 subject matter of the regulation this regulation lays down the determination of the economic component of the establishment of the federal budget according to § 2 paragraph 2 of the law on amendments to the budget law according to § 8 sentence 3 of the Act, as well as upon completion of the financial year according to § 7 paragraph 1 sentence 1 of the Act.

Section 2 calculated determination of the economic component of budgeting (1) is the economic component of budgeting (§ 2 paragraph 2 of the Act in conjunction with section 5 of the Act) by multiplying 2 particular which referred to in paragraph output gap as paragraph 3 the specific budget sensitivity.
(2) to determine of the output gap as the difference between gross domestic product and production potential (article 5 paragraph 2 of the law), the production potential is estimated that corresponds to the normal utilization of the factors of production to reach gross domestic product. The estimate follows the European stability and Growth Pact procedures using a macroeconomic Cobb-Douglas production function, in accordance with in the framework of budgetary surveillance. Using the production function production potential as a combination stems from the normally busy factors of production labor and capital stock, multiplied by the trend of total factor productivity as a measure of technical progress at normal load.
(3) the budget sensitivity (§ 5 paragraph 3 of the law) captured the cyclical change of the balance of the Federal Government in relation to the gross domestic product, if the gross domestic product to 1 percent of the production potential. You is the sum of the Teilelastizitäten of the General Government budget sensitivity, which is also used in the procedure for budget monitoring to the European stability and Growth Pact weighted with federal units in the cyclical revenue and expenditure of the General Government budget.
(4) for the determination of the economic component, the details of the accounts of the Federal Statistical Office, as well as the current overall estimate of the Federal Government for the short and the medium term are data base.

§ 3 is the cyclical component budget after when determining the deviation to be posted according to § 7 of the Act on the control account to use (economic component after the budget) for the calculation of permissible borrowing the effects of economic development on the budget. To she adjusts determined economic component at the time of budgeting according to § 2 the actual economic development, by correcting the output gap calculated at the time of budgeting for the financial year in question. The correction is carried out on the basis of the difference between the at the time of booking on the control account of the Federal Statistical Office identified and the change of the gross domestic product expected at the time of budgeting.

§ 4 determination of the economic component of supplements to the budget law on amendments to the budget law according to § 8 sentence 3 of the Act is at the time budgeting according to § 2 determined economic component in the meantime changed assessment of macroeconomic development in the financial year adjusted by correcting the output gap represents the difference between the at the time of the establishment of the supplementary budget and the expected at the time of budgeting change of gross domestic product in the fiscal year, determined at the time of budgeting.

Article 5 entry into force this regulation enter into force on the day after the announcement.