information is necessary for the budget proposal the budget is based on internal BMF ‘as calculations and/or proposals coming from the line ministries, which are validated by the BMF’. All new projects are subject to the oriented impact process (BMF ‘outcome assessment’ 2012) includes information about medium- and long-term According to the ‘which costs’. BMF, are anyhow not directly linked to the MTEF or the annual budget as line ‘[t]hey ministries have the full responsibility for their individual budgets’. The oriented impact process uses standardized economic parameters as ‘outcome assessment’ the basis for MTEF and budget forecasts these are sourced from an independent body, the – Austrian Institute for Economic Research (WIFO). However, the impact assessment process applies only to new spending proposed in the budget. The BMF advised that forecasting methodologies do not differentiate between policy changes and parameter changes except to note that (a) annual budget process considers new spending only and (b) variable ceiling component of the MTEF does acknowledge changes linked to pre-defined program parameters. The BMF advised that whilst there are no explicit allowances for cost contingencies, MTEF ceilings are in part (i.e. the component relating to entitlement program funding). ‘variable’
information is necessary for the budget proposal ‘as the budget is based on internal BMF calculations and/or proposals coming from the line ministries, which are validated by the BMF’. All new projects are subject to the ‘outcome oriented impact assessment’ process (BMF 2012) ‘which includes information about medium- and long-term costs’. According to the BMF, ‘[t]hey are anyhow not directly linked to the MTEF or the annual budget as line ministries have the full responsibility for their individual budgets’. The ‘outcome oriented impact assessment’ process uses standardized economic parameters as the basis for MTEF and budget forecasts – these are sourced from an independent body, the Austrian Institute for Economic Research (WIFO). However, the impact assessment process applies only to new spending proposed in the budget. The BMF advised that forecasting methodologies do not differentiate between policy changes and parameter changes except to note that (a) annual budget process considers new spending only and (b) variable ceiling component of the MTEF does acknowledge changes linked to pre-defined program parameters. The BMF advised that whilst there are no explicit allowances for cost contingencies, MTEF ceilings are in part ‘variable’ (i.e. the component relating to entitlement program funding).
938950WP0P12150ractices0000English.docx