XXVII tal-2014 - Att tal-2014 dwar ir-Responsabbiltà Fiskali

The short title of this Act is the Fiscal Responsibility Act, Short title.

2014.

(1)

In this Act, unless the context otherwise requires -

Interpretation.

"1997 Excessive Deficit Regulation" means Council Regulation

(EC) No. 1467/97 of 7 July 1997 as amended by Council Regulation

(EC) No. 1056/2005 of 27 June 2005 and Council Regulation (EU)

No. 1177/2011 of 8 November 2011;

"1997 Surveillance and Coordination Regulation" means

Council Regulation (EC) No. 1466/97 of 7 July 1997, as amended by

Council Regulation (EC) No. 1055/2005 of 27 June 2005 and

Regulation (EU) No. 1175/2011 of 16 November 2011;

"2009 Regulation" means Council Regulation (EC) No. 479/

2009 of 25 May 2009, as amended by Council Regulation (EU) No.

679/2010 of 26 July 2010;

"2013 Regulation" means Regulation (EU) No. 473/2013 of 21

May 2013;

"annual structural balance of the general government", in

relation to a year, means the general government deficit or general

government surplus for the year, cyclically adjusted and net of one-

off and temporary measures, expressed as a percentage of gross

domestic product at market prices;

"Budget" means the budgetary estimates, presented to the House

of Representatives in respect of any financial year, of the expenditure

and revenue for the service of that financial year and includes any

supplementary estimates of expenditure for which it may be

necessary to provide after the estimates have been presented to the

House of Representatives;

"budgetary rule" shall be construed in accordance with article 8;

"cyclically-adjusted" means adjusted to take account of effects

estimated to be due to the operation of the economic cycle;

"European System of Accounts" means the European system of

national and regional accounts in the Community as provided for

under Council Regulation (EC) No. 2223/96 of 25 June 1996, as it has

effect as amended from time to time;

"exceptional circumstances" means

(a)

a period during which an unusual event outside the

control of the State has a major impact on the financial position

of the general government, or

(b) a period of severe economic downturn, within the

meaning of the Stability and Growth Pact;

"fiscal stance" means the change in the annual structural balance

of the general government, excluding interest payments on the

general government debt expressed as a percentage of gross domestic

product at market prices, for a year relative to the preceding year;

"general government", in relation to the State, shall be construed

in accordance with the European System of Accounts;

"general government debt", in relation to a year, means the total

gross debt at nominal value of the general government of the State

which is outstanding at the end of the year, as arrived at in accordance

with the 2009 Regulation;

"general government deficit", in relation to a year, means the net

borrowing of the general government of the State for the year, as

arrived at in accordance with the 2009 Regulation;

"general government surplus", in relation to a year, means the

net lending of the general government of the State for the year, as

arrived at in accordance with the 2009 Regulation;

"Government" means the Government of Malta unless

otherwise specified;

"gross domestic product at market prices", in relation to a year,

means gross domestic product of the State for the year at market

prices, as arrived at in accordance with the European System of

Accounts;

"House of Representatives" has the meaning as it has for the

purposes of the Constitution of Malta;

"Malta" has the same meaning as is assigned to it by article 124

of the Constitution of Malta;

"medium-term budgetary objective" means the medium-term

budgetary objective required by the 1997 Surveillance and

Coordination Regulation;

"Minister" means the Minister responsible for Finance;

"National Audit Office" means the National Audit Office set up

by article 108 of the Constitution;

"official forecasts" means the macroeconomic and budgetary

forecasts published by the Ministry for Finance for the purposes of

fiscal planning;

"Stability and Growth Pact" means the 1997 Surveillance and

Coordination Regulation, the 1997 Excessive Deficit Regulation and

the Resolution of the European Council of 17 June 1997 on the

Stability and Growth Pact;

"stability programme" means the stability programme required

by Article 3(1) of the 1997 Surveillance and Coordination

Regulation;

"subsector", in relation to the general government, shall be

construed in accordance with the European System of Accounts;

"Supplementary estimate" shall have the same meaning

assigned to it by article 103 of the Constitution of Malta.

(2) A word or expression used in this Act and in the Treaty on

Stability, Coordination and Governance has, unless the contrary

intention appears, the same meaning in this Act as in the Treaty on

Stability, Coordination and Governance.

Fiscal Responsibility

The Government shall define and carry out its fiscal and

budgetary policies according to the following principles

(a)

the principle of transparency whereby in setting out

the budgetary targets and objectives and in carrying out its fiscal

and budgetary policies, the Government has the obligation to

make public all the information necessary to allow the

assessment of the implementation of such fiscal and budgetary

policies, the respective outcomes and the stance of central and

local finances. In furtherance of this principle, Government

shall, at the time of the presentation of its annual budget,

disclose in statement form

(i) any significant changes in the accounting

standards, policies and practices affecting or likely to

affect the computation of the prescribed fiscal indicators;

(ii) as far as is practicable and, consistent with

the protection of the public interest, the contingent

liabilities created by way of guarantees, the actual

liabilities arising out of borrowings by Public Sector

Undertakings and Special Purpose Vehicles and other

equivalent instruments where liability for repayment is on

the Government; all claims and commitments made by

Government having potential budgetary implications,

including revenue demands raised but not realised;

(b) the principle of stability whereby Government shall

carry out its fiscal and budgetary policy in a manner that will

ensure medium-term predictability, consistent with the objective

of maintaining macro-economic stability;

(c)

the principle of fiscal responsibility whereby

Government shall carry out its fiscal and budgetary policy and

manage budgetary resources, obligations and fiscal risks in a

manner that ensures the sustainability of the fiscal position in

the medium and long term such that the Government is able to

manage financial risks and unforeseen events in future periods

without having to introduce economically or socially

destabilizing expenditure or revenue adjustments;

(d) the principle of equity whereby Government shall

conduct its budgetary and fiscal policies taking into account the

potential financial impact on current and future generations as

well as the impact on medium and long term economic

development while ensuring that the current generation funds

the costs of its services;

(e)

the principle of efficiency whereby the

Government’s fiscal and budgetary policies shall be aimed at

achieving an efficient use of scarce public resources requiring

that economic efficiency is considered in defining fiscal policies

and that public investment decisions, including those related to

EU funded initiatives or other donors, are based inter alia on an

economic appraisal as well as the assessment of the capacity to

absorb the relevant funding levels;

(f)

the effective management of personnel spending

whereby public sector employment and pay policies in respect

of Ministries, Departments, public sector authorities, entities

and agencies and Local Councils, except where expressly

excluded by the Minister for Finance, shall be consistent with

the fiscal and budgetary targets set out in the fiscal strategy;

(g) the principle of effective financial and asset

management whereby Government shall implement its fiscal

and budgetary policies according to the best practices for sound

and effective financial and asset management. In furtherance of

this principle, there shall be instituted a system of performance

management and reporting, asset registers and the policies and

procedures regulating the acquisition, use and disposal thereof,

policies regulating funding decisions and risk management

policies and practices.

The principles referred to in article 3 shall be equally Applicability of

applicable to the Local Councils, public sector authorities, entities principles.

and agencies that are fully or partially financed from the Consolidated

Fund.

Objectives of Fiscal and Budgetary Policy

Government shall pursue its fiscal and budgetary policy Fiscal and

objectives, and formulate and execute its annual fiscal strategy in budgetary

policy

accordance with the fiscal rules specified in this Act.

objectives.

The objectives of fiscal policy shall be, but not limited, to

Objectives.

(a)

achieve a balanced general government budget over

the economic cycle;

(b) maintain the public debt at sustainable levels over

the medium and long term;

(c)

ensure and enable access to the broadest possible

investor base for Government borrowing at the least possible

cost over the medium to long term, within tolerable levels of

(d) exercise prudent management of public sector

assets, liabilities, and fiscal risks;

(e)

maintain an adequate level of fiscal reserves to

service the public debt;

(f)

maintain the balance between revenue receipts and

the revenue expenditure;

(g) ensure certainty and predictability in the level of tax

rates and composition of the tax base;

(h) ensure that, as far as is reasonable and practicable,

Government borrowing is used for productive purposes and the

accumulation of capital assets, and not to finance recurrent

expenditure;

(i)

manage Government guarantees and other

contingent liabilities prudently with particular reference to the

quality and level of such liabilities;

(j)

maintain the integrity of the tax systems by ensuring

that special incentives, concessions and exemptions are kept at

the appropriate level;

(k) pursue tax policies with due regard to economic

efficiency and compliance costs;

(l)

pursue non-tax revenue policies with due regard to

cost recovery and equity;

(m) pursue revenue and expenditure policies that would

support economic growth, social equity and the general well-

being of the population;

(n) build up a revenue surplus for use in capital

formation and productive expenditure;

(o) disclose sufficient information to allow the public to

scrutinize the conduct of fiscal policy and the state of the public

finances;

(p) ensure that Government uses resources and public

assets in ways that give best value for money and in the best

possible manner;

(q) minimize the fiscal risks associated with the running

of public sector undertakings and utilities providing public

goods and services;

(r)

manage expenditure consistent with the level of

revenue generated;

(s)

formulate budgets in a realistic and objective

manner with due regard to the general economic outlook and

revenue prospects, and minimize deviations during the course of

the year;

(t)

ensure the discharge of current liabilities in a timely

manner.

PART II

FISCAL RULES

(1)

The Government shall endeavour to secure that

Requirements of

the Treaty on

Stability,

(a)

the requirement imposed by article 8, and

Coordination

and

Governance.

(b)

the requirement imposed by article 9,

which derive from Articles 3 and 4 respectively of the Treaty on

Stability, Coordination and Governance, are complied with.

(2) The official forecasts shall set out the data required to

assess whether the requirement specified in sub-article (1)(a) is

complied with.

(1)

The budgetary rule is that for each year either

Budgetary rule.

(a)

the budget condition, as set out in sub-article (2), or

(b) the adjustment path condition, as set out in sub-

article (4),

is satisfied.

(2) The budget condition is that either

(a)

the budgetary position of the general government is

in balance or in surplus, or

(b) the requirement in paragraph (a) is not met only as a

result of exceptional circumstances and the failure to meet it

does not endanger fiscal sustainability in the medium-term.

(3) The requirement in sub-article (2)(a) shall be deemed to be

respected if the annual structural balance of the general government is

at the medium-term budgetary objective.

(4) The adjustment path condition is that either

(a)

the annual structural balance of the general

government is converging towards the medium-term budgetary

objective in line with the timeframe set in accordance with the

1997 Surveillance and Coordination Regulation, or

(b) the requirement in paragraph (a) is not met only as a

result of exceptional circumstances and the failure to meet it

does not endanger fiscal sustainability in the medium-term.

When the ratio of general government debt to gross

domestic product at market prices exceeds 60 per cent, the ratio shall

be reduced in accordance with the 1997 Excessive Deficit Regulation

until the ratio reaches 60 per cent.

(1) Subject to the provisions of sub-article (2), the lower

limit of the medium-term budgetary objective shall be an annual

structural balance of the general government of minus 0.5 per cent of

gross domestic product at market prices.

(2) If the ratio of general government debt to gross domestic

product at market prices is significantly below 60 per cent, and the

risks in terms of long-term sustainability of public finances are low,

the lower limit of the medium-term budgetary objective shall be an

annual structural balance of the general government of minus 1 per

cent of gross domestic product at market prices.

(1) If the European Commission addresses a warning to

the Malta under Article 6(2) of the 1997 Surveillance and

Coordination Regulation or if the Government considers that there is

a failure to comply with the budgetary rule which constitutes a

significant deviation for the purposes of Article 6(3) of that

Regulation, the Government shall, within two months, prepare and

lay before House of Representatives a plan specifying what is

required to be done for securing compliance with the budgetary rule.

(2) The plan shall

(a)

specify the period over which compliance with the

budgetary rule is to be achieved,

(b) if that period is longer than a year, specify annual

targets to be met in moving towards such compliance,

(c)

specify the size and nature of the revenue and

expenditure measures that are to be taken to secure such

compliance, and

(d) outline how any revenue and expenditure measures

that are to be taken will relate to different subsectors of the

general government.

(3) The provisions made by the plan shall be consistent with

(a)

the rules of the Stability and Growth Pact,

(b) any recommendations made to Malta under the

Stability and Growth Pact in relation to the period over which

compliance with the budgetary rule is to be achieved and the

size of measures to be taken to secure such compliance, and

(c)

the current stability programme.

(4) If the Government considers that exceptional

circumstances have arisen during the period specified in the plan, the

things specified in the plan shall no longer be required to be done; but

when the Government considers that the exceptional circumstances

have ceased to exist, the Government shall, unless there is no longer a

failure such as is mentioned in sub-article (1), within two months

prepare and lay before the House of Representatives a new plan under

that sub-article.

(5) If the Government considers that a failure to comply with

the budgetary rule is likely to occur, the Government may, within two

months, prepare and lay a statement before the House of

Representatives outlining the steps the Government intends to take to

avoid such a failure.

PART III

MONITORING OF FISCAL RULES AND ENDORSEMENT

OF OFFICIAL FORECASTS

The Ministry for Finance shall be responsible to publish

official forecasts to be used in the context of the national medium-

term fiscal plan and the draft budget, and such forecasts must also be

submitted simultaneously to the Fiscal Council endorsement for the

purposes of the 2013 Regulation.

(1) The Fiscal Council shall monitor, and at least once

in each year provide an assessment of, whether any obligation under

articles 7(1)(a) or 11(1), or to do things specified in a plan under

article 11(2), is being complied with.

Provided that, in the first year after the coming into force

of this Act, and, if the Council is not yet constituted, the monitoring

and assessment exercise shall be carried out by competent experts

identified by the National Audit Office, selected on the basis of their

knowledge, experience and independence. In the selection or

appointment of such officials the National Audit Office shall have

regard to the desirability of their having competence and experience

in domestic or international macroeconomic or fiscal matters.

(2) An assessment under sub-article (1) shall include an

assessment of whether, in the opinion of the Fiscal Council

(a)

exceptional circumstances exist or have ceased to

exist,

(b) there is a failure such as is referred to in article

11(1), and

(c)

during any period specified in a plan under article

11(2), progress towards securing compliance with the budgetary

rule is being made in accordance with the plan.

(3) The Fiscal Council shall

(a)

endorse, as it considers appropriate, the

macroeconomic and fiscal forecasts prepared by the Ministry

for Finance and provide an assessment of the official forecasts,

and

(b) analyse and assess whether the Government’s

Medium Term Fiscal Policy Statement and Medium Term Fiscal

Policy Strategy are compliant with the provisions of the Act,

issue an opinion and any appropriate recommendations;

(c)

in relation to each National Medium Term Fiscal

Plan, Stability Programme, Annual Draft Budget and Annual

Budget, provide an assessment of whether the fiscal stance for

the year or years concerned is, in the opinion of the Fiscal

Council, conducive to prudent economic and budgetary

management, and in conformity with the provisions of this Act,

including by reference to the provisions of the Stability and

Growth Pact;

(d) assess the Government’s budgetary performance

against the fiscal targets and policies specified in the fiscal

strategy and its compliance with the provisions of this Act;

(e)

analyse and issue an opinion and any

recommendations pursuant to the Government’s publication of

the half-yearly and the annual report on the execution of the

budget;

(f)

provide information and advice to Government and

the Public Accounts Committee concerning any legislative

proposals on the maintenance of fiscal discipline and the

transparency of the fiscal and the budgetary policies and

processes.

(4) The Fiscal Council shall, as soon as is practicable after

completing an assessment under this article, give a copy of the

assessment to the Minister and publish the assessment within the

period of ten days beginning on the day on which the copy is so

given.

(5) The Fiscal Council shall be responsible to arrange for the

dissemination in such form and manner, as considered appropriate, of

such information as it may appear expedient, to give to the public

(a)

a fair representation of the

medium-term

sustainability of government finances and;

(b) a sufficient understanding of whether any obligation

under articles 7(1) or 11(1), or to do things specified in a plan

under article 11(2), is being complied with.

(6) The opinions and the recommendations of the Fiscal

Council shall be considered by Government when preparing and

approving its fiscal strategy and the annual budget.

(7) If the Government does not accept an assessment of the

Fiscal Council in relation to any of the matters referred to in sub-

article (2), the Minister shall, within two months of being given a

copy of the assessment under sub-article (4), prepare and lay before

the House of Representatives a statement of the Government’s

reasons for not accepting it.

PART IV

BUDGETARY PROCESS

Business and Financial Plans

(1) Each Ministry, Department, Public Sector Authority,

Entity and Agency, and Local Council that are in receipt of a

Government subvention shall prepare a three-year rolling Business

and Financial Plan as prescribed, from time to time, by the Minister

for Finance. Such plans shall be submitted to the Ministry for

Finance. Business and Financial Plans shall be based on the most

recently announced Medium Term Fiscal Strategy.

(2) The Ministry for Finance may issue guidelines for the

preparation of the Business and Financial Plans.

(3) Responsibility for the preparation of the Business and

Financial Plans or failure thereof rests entirely with the respective

Ministry, Department, Public Sector Authority, Entity and Agency

and Local Council. Failure to submit a Business and Financial Plan

by any Ministry, Department, Public Sector Authority, Entity and

Agency and Local Council automatically gives the right to the

Ministry for Finance to allocate funds upon its own discretion.

(4) The Ministry for Finance may propose amendments in the

Business and Financial Plans where it deems it necessary in order to

ensure compliance with Government’s Medium Term Fiscal Strategy

as defined by this Act, including compliance with the fiscal rules and

spending targets. Where necessary, proposed amendments shall be

submitted to the respective Ministry, Department, Public Sector

Authority, Entity and Agency, and Local Council that are in receipt of

a Government subvention.

(5) The Ministry, Department, Public Sector Authority, Entity

and Agency, and Local Council that are in receipt of a Government

subvention that receive a revised business and financial plan shall

either endorse the proposal of the Ministry for Finance or provide a

detailed reply highlighting any disagreements with the proposal. The

reply should be sent to the Ministry for Finance on the first week of

September. Failure to send a reply in the due time shall be deemed to

constitute a prima facie acceptance of the proposed revision by the

Ministry for Finance.

Medium Term Fiscal Strategy

(1) In every financial year, the Government shall lay on Medium term

the table of the House, the Medium Term Fiscal Policy Statement and fiscal strategy.

the Fiscal Policy Strategy.

(2) The Medium Term Fiscal Policy Statement and the Fiscal

Policy Strategy Statement shall set forth the Government’s fiscal

objectives, strategic priorities and a three-year rolling target for fiscal

management together with a description of any underlying

assumptions.

The macroeconomic and fiscal forecasts shall be endorsed

by the Fiscal Council and made public.

(3) In particular, and without prejudice to the provisions of

sub-article (2), the medium term fiscal policy statement shall include

an assessment of sustainability relating to

(a)

the

balance

between

revenue

receipts

and

expenditure;

(b) the use of capital receipts including open market

borrowings for generating productive assets; and

(c)

the estimated yearly pension liabilities worked out

on actuarial basis, for the next ten years, within such period as

Government may, by order, specify.

(4) The macroeconomic framework underlying the Medium

Term Fiscal Policy Statement shall contain information on the

macroeconomic situation and forecasts for

(a)

the current budget year and at least the next three

financial years and actual out-turns for the two previous budget

years;

(b)

the gross domestic product and its components;

(c)

consumer prices and the gross domestic product

deflator;

(d)

employment and unemployment;

(e)

the current account position of the balance of

payments;

(f)

the methodologies, assumptions

and

relevant

parameters underlying the forecasts;

(g) a statement of the consistency or differences with

the forecasts from the European Commission, and, if

appropriate, those of other independent bodies, including a

comparison of the main economic assumptions;

(h) an ex-post evaluation of macroeconomic forecasts

of at least four years, clearly identifying forecast errors and

biases. The evaluation is to be made public.

(5) The fiscal framework underlying the Medium Term Fiscal

Policy Statement shall contain actual results for the two previous

budget years, estimated results for the current budget year, spending

ceilings for the forthcoming budget year and two further years

conditional on the revenue forecasts and consistent with the fiscal

rules, and covering

(a)

the total balance of the general government budget

as a percentage of Gross Domestic Product (GDP);

(b) the total of the general government recurrent

expenditure as a percentage of Gross Domestic Product (GDP);

(c)

the total of general government capital expenditure

as a percentage of Gross Domestic Product (GDP);

(d) personnel expenses for the general government

budget as a percentage of Gross Domestic Product (GDP);

(e)

the ceilings on the issuance of guarantees by the

Government through the Ministry for Finance;

(f)

the primary balance of the general government

budget.

(6) The fiscal framework in the Medium Term Fiscal Policy

Statement shall also contain

(a)

updated forecasts for the current budget year and

three further years and actual results for the two previous budget

years for the general government budget and other budgets

specified in the general government budget for

(i)

level of budgetary revenues by classification

of the main categories of revenues;

(ii) level of budgetary expenditures by economic

and functional classifications;

(iii) the balance between total operating expenses

and total operating revenues;

(iv) the contingency reserve;

(v)

capital expenditures;

(vi) level of general government debt;

(vii) any other information which the Minister for

Finance may determine as material to the medium term

fiscal strategy;

(viii) key assumptions on which the above

numbers are based; and

(ix) sensitivity analysis taking account of possible

changes in macroeconomic conditions. The sensitivity

analysis shall be guided by the performance of past

forecasts and shall endeavour to take into account relevant

risk scenarios.

(b) an explanation of the fiscal policies in relation to

fiscal responsibility principles and fiscal rules, and any

temporary measures to be implemented to ensure compliance;

(c)

an analysis and explanation of medium term fiscal

policies with an impact on general government finances broken

(i) revenue policy, including planned changes to

taxes and policies affecting other revenues;

(ii) deficit and debt policy, including an analysis

of debt sustainability; and

(iii) expenditure policy, including expenditure

priorities aggregate expenditure intentions, including for

the general government budget and other budgets; and

expenditure ceilings and other targets or limits implied by

or required by the fiscal rules;

(d)

a description of how medium term fiscal targets

comply with the required adjustment towards the medium term

budgetary objectives compliant with the provisions of this Act;

(e)

a fiscal risk statement, including any commitments

and contingent liabilities not included in the fiscal forecasts, and

all other circumstances which may have a material effect on the

fiscal and economic forecasts and which have not already been

incorporated into the fiscal forecasts, as well as information on

the losses and outstanding payments of the state-owned

enterprises;

(f)

an analysis of the consistency of the updated

medium term fiscal strategy with the previous medium term

fiscal strategy, providing an explanation of significant changes;

(g) projections of each major expenditure and revenue

item of the general government with more specifications on the

central government and social security level, for the budget year

and the following three years based on unchanged policies.

(7) The Medium Term Fiscal Policy Strategy shall set out an

aggregated level of the Government’s spending plans for the

forthcoming budget year, the three subsequent years, estimated actual

results for the current year, and actual results for the two previous

years containing

(a)

expenditure priorities and their rationale, including

an explanation of how the Government intends to improve

policy, the efficiency, effectiveness and equity of service

delivery, the quality of its regulatory activities, and its

initiatives to reduce barriers to business and encourage private

sector growth in various sectors;

(b) the public investment program, including the

Government priorities and its justifications for same.

(8) The Medium Term Fiscal Policy Strategy shall contain a

statement of responsibility signed by the Prime Minister and the

Minister for Finance attesting to the reliability and completeness of

the information in the medium term fiscal strategy and compliance

principles of fiscal responsibility.

(9) Pursuant to the 2013 Regulation, the National Medium

Term Fiscal Plan, to be published ideally by the 15th April but not

later than the 30th April, shall be based on the Medium Term Fiscal

Policy Statement and Fiscal Policy Strategy updated with the latest

official forecasts as appropriate.

Annual Draft Budget

(1) The Ministry for Finance shall prepare a Draft Annual Draft

Budgetary Plan for the forthcoming year based on the Medium Term Budget.

Fiscal Plan projections as updated by the most up to date

macroeconomic projections.

(2) The draft budgetary plan shall contain the following

information for the forthcoming year

(a)

the targeted budget balance for the general

government as a percentage of Gross Domestic Product (GDP),

broken down by subsector of general government;

(b) the projections at unchanged policies for

expenditure and revenue as a percentage of Gross Domestic

Product (GDP) for the general government and their main

components, including gross fixed capital formation;

(c)

the targeted expenditure and revenue as a percentage

of Gross Domestic Product (GDP) for the general government

and their main components, taking into account the conditions

and criteria to establish the growth path of government

expenditure net of discretionary revenue measures under Article

5(1) of the 1997 Surveillance and Coordination Regulation;

(d) relevant information on the general government

expenditure by function, including on education, healthcare and

employment, and, where possible, indications on the expected

distributional impact of the main expenditure and revenue

measures;

(e)

a description and quantification of the expenditure

and revenue measures to be included in the draft budget for the

year to come at the level of each subsector in order to bridge the

gap between the targets referred to in paragraph (c) and the

projections at unchanged policies provided in accordance with

paragraph (b);

(f)

the main assumptions of the independent

macroeconomic

forecasts

and

important

economic

developments which are relevant to the achievement of the

budgetary targets;

(g) an annex containing the methodology, economic

models and assumptions, and any other relevant parameters

underpinning the budgetary forecasts and the estimated impact

of aggregated budgetary measures on economic growth;

(h) indications on how reforms and measures in the

draft budgetary plan, including in particular public investment,

address the current recommendations to the Member State

concerned in accordance with Articles 121 and 148 of the

Treaty on the Functioning of the European Union and are

instrumental to the achievement of the targets set by the Union’s

strategy for growth and jobs.

(3) The Draft Budgetary Plan shall be submitted to the Fiscal

Council for endorsement and shall thereafter be made public.

(4) In addition the Ministry for Finance shall compile a Report

containing -

(a)

the detailed reply referred to in article 14(5)

highlighting any disagreements with the proposed business and

financial plan,

(b) the list of disputed budgetary allocation, the fiscal

impact of every disputed budgetary allocation, and proposal by

the Ministry for Finance to reject the request or to accept subject

to the financing of the additional allocation either through a

detailed revenue measure proposal or through an expenditure

reduction elsewhere in the budget.

(5) The Draft Budget Plan and the Report referred to in sub-

article (4) shall be submitted by the Minister for Finance to Cabinet.

Deliberations shall be made in due consideration of the provision of

this Act and shall constitute the basis for the presentation of the

Budget.

Annual Budget

(1) The Government shall present an annual budget to

the House of Representatives that is consistent with the fiscal

responsibility principles, the fiscal rules, the fiscal strategy and any

other requirements in this Act. The Prime Minister and Minister for

Finance shall sign a statement attesting to such consistency which

shall be presented to the House of Representatives with the Annual

Budget.

(2) The Budget shall supersede any business plan or draft

budget plan.

(3) Earmarking a specific level of funding to a Ministry or

sector shall not be permitted, except where permanently appropriated

by the House of Representatives. Allocations of budget funding to a

Ministry or sector can only be made through the annual budget

process.

(4) The Ministry for Finance shall have the power to request

amendments to any budgetary proposals or to reject all requests for

budgetary allocations that would not be compliant with Government’s

Fiscal Strategy and any instructions that may be issued, from time to

time, by the Minster for Finance. If any spending authority fails to

amend its budget proposal in conformity with the issued instructions,

the Ministry for Finance shall have the power to unilaterally amend

the budget proposal for inclusion in the annual budget.

(5) If the Government considers that exceptional

circumstances as defined by this Act exist and, by virtue of these

exceptional circumstances, it is unable to comply with the

requirements of sub-article (4), the Prime Minister and Minister for

Finance shall prepare and provide a statement that would give

explanations for the deviations. This statement shall be presented to

the House of Representatives with the Annual Budget and shall

include proposals and a timeframe within which Government would

comply with the fiscal responsibility principles, the fiscal rules, the

fiscal strategy and the other requirements of this Act, once

exceptional circumstances cease to exist.

(6) The Fiscal Council shall provide an opinion on the

statement specified in sub-article (5).

(7) The Annual Budget Act shall be consistent with the fiscal

strategy and with the provisions of this Act and shall present

(a)

the fiscal targets for the forthcoming fiscal year and

the two following years, in nominal terms and expressed as a

share of Gross Domestic Product (GDP), for the general

government budget balance, the primary general government

budget balance, revenue and total expenditure and primary

expenditure of the general government budget;

(b)

the level of public debt;

(c)

information on how the targets were set, including

the presentation of the methodology used for calculating and

comparing with their execution in the last two years;

(d) presentation of the financial impact of any

legislative changes and any compensatory measures to be taken.

Budgetary Expenditures

The proponents of project, policy and programme

initiatives and measures that involve new or increased public

expenditure shall provide the Ministry for Finance with

(a)

a detailed description of the proposed project or

program and of its objectives and likely outcomes and impact;

(b) a detailed financial statement, including any

assumptions and any related calculation methodology, that

would identify all capital and recurrent cost expenditures for the

implementation of the project policy or programme;

(c)

a description of how the proposed initiative or

measure complies with the strategic objectives and priorities of

the Government’s Medium Term Fiscal Strategy and with the

annual budget and the expenditure ceilings specified in the

Medium Term Fiscal Strategy as updated with the latest official

forecasts.

The Ministry for Finance shall review and assess all such

proposals and determine on their inclusion in the annual Government

budget or otherwise.

All persons responsible for public service recruitment, pay

policies and wage agreements shall ensure that such recruitment,

policies and agreements comply with the objectives of fiscal

responsibility, the fiscal rules and the objectives and ceilings

established under the fiscal and budgetary strategy.

All persons responsible for publicly-financed social

welfare and pension benefits shall ensure that any new or increases in

such social welfare and pension benefits are consistent with the

objectives of fiscal responsibility, the fiscal rules and the objectives

and ceilings established under the fiscal and budgetary strategy.

In the course of the budget year, no new or additional

expenditures can be made or committed to in excess of the relevant

budgetary allocation, except with the express approval of the Minister

for Finance.

In its exercise of such powers the Ministry for Finance

shall at all times ensure consistency with the fiscal rules and spending

ceilings by requesting from the responsible entity and in this order

(a) virements

between

votes

within

the

same

department;

(b)

re-allocation of expenditure within the same

Ministry.

In the absence of the identification of virements or Rejection of

resource reallocation as defined in article 23, the Ministry for Finance approval

new or

shall have the power to reject approval for new or additional additional

expenditure.

expenditure unless, and in this order

(a) following due notification, the Ministry for Finance

appropriates unspent resources from other ministries,

departments or public sector entity which do not exceed 3 per

cent of the budgetary allocation for that ministry, department or

public sector entity;

(b) drawdown from the Contingency Reserve

established by virtue of this Act is expressly approved by the

Prime Minister following a proposal from the Minister for

Finance.

Any unauthorized new or additional expenditures shall Unauthorized

become the sole responsibility of the person making such new

additional

authorizations and the person occupying the highest executive expenditures.

position in Departments, authorities, agencies and entities falling

within the remit of this Act and shall lead to disciplinary action.

All persons negotiating public sector collective agreements Collective

and other pay negotiations shall ensure that any proposals being made agreements

other pay

in the course of such negotiations are consistent with the objective of negotiations.

fiscal responsibility, the fiscal rules and the objectives and ceilings

established under the fiscal and budgetary strategy. No such

collective agreements and pay negotiations shall be concluded until

their fiscal implications would have been appropriately assessed by

the Ministry for Finance and without the approval of the Minister for

Finance. In the case where a collective agreement would have been

entered into without the prior approval of the Ministry for Finance,

such an agreement shall be deemed to be null and void.

In exceptional and duly justified cases, the Ministry for Exceptional and

Finance may approve an increase to the allocations for personnel duly

cases.

expenditures, provided that the institution requesting such an increase

provides proof on the compliance with article 18 and with the annual

approved budget for that institution.

Ministries, Departments, Public Sector Authorities, Revenue and

Entities and Agencies and Local Councils shall take all necessary expenditure

targets.

measures to meet their revenue and expenditure targets and shall

follow all the instructions that may be issued, from time to time, by

the Minister for Finance.

Budgetary Revenues

The Ministry for Finance shall -

(a)

in the presentation of its annual budget, elaborate

and publish a detailed annual program for revenue collection

that shall include

(i) quarterly targets for revenue collection in

respect of each revenue source;

(ii)

quarterly targets for the recovery of revenue

arrears;

(iii) planned measures to combat tax evasion and

tax fraud;

(b) publish the annual forecasts for revenue collection

from any self-financed institutions including, where applicable,

forecasts for the recovery of revenue arrears.

Proposals for any measure or legislation leading to a

reduction of budgetary revenues must

(a)

be endorsed by the Minister for Finance who, in

turn, must take into account the impact of such measure or

legislative proposal on the budgetary revenue forecast, the

annual budget targets and the medium-term targets;

(b) be accompanied, as far as is reasonably possible or

practicable, by proposals for either expenditure and/or revenue

measures to compensate for the estimated financial impact of

such proposals.

Contingency Reserve

A contingency reserve shall be established by the Ministry

for Finance to ensure that unforeseen expenditure or revenue

slippages do not jeopardize the compliance with fiscal rules.

As long as the budget is not balanced, the contingency

reserve is to be established as an expenditure vote to be appropriated

in the event of temporary and unforeseen circumstances.

Specific financial provisions to the contingency reserve

shall be made as soon as the budgetary position of the general

Government is in surplus. The funds earmarked for the contingency

reserve can be invested in top rated short-term liquid assets.

The Contingency Reserve shall amount to between 0.1 per Amount of

cent and 0.5 per cent of the Gross Domestic Product (GDP) in any contingency

reserve.

one particular year.

The contingency reserve shall be built gradually over a Gradual

period of five years starting from the first year following the entry building

contingency

into force of this Act.

reserve.

Drawdown from the Contingency Reserve shall only be Drawdown from

made in urgent, temporary and unforeseen circumstances following a the

reserve.

proposal from the Ministry for Finance and with the approval of the

Prime Minister.

Any drawdown from the contingency reserve shall be Replenishment

replenished gradually over a period of three years until the ceiling as of

contingency

defined in article 34 is re-established.

reserve.

Any drawdown from the contingency reserve is to be Approval of the

House of

presented to the House of Representatives for final approval.

Representatives.

Monitoring of In year Budget Execution

(1) In the course of the budget execution, the Ministry Implementation

for Finance shall monitor and evaluate regularly the implementation of

budget.

of the approved budget.

(2) In exercising its monitoring and evaluation functions, the

Ministry for Finance shall, from time to time, have the right to

(a)

issue any instructions or directives to Ministries,

Departments, Public Sector Authorities, Entities and Agencies

and Local Councils, as may be deemed necessary in furtherance

of Government’s fiscal strategy objectives and targets;

(b) request from Ministries, Departments, Public Sector

Authorities, Entities and Agencies and Local Councils, as it

may deem fit, any information as may be prescribed.

(3) Ministries, Departments, Public Sector Authorities,

Entities and Agencies and Local Councils shall comply with any

instructions and directions that may be issued by the Ministry for

Finance and shall provide full access and provide all the required

information in the format and within the time period as may be

prescribed, from time to time, by the Ministry for Finance.

(4) Ministries, Departments, Public Sector Authorities,

Entities and Agencies and Local Councils shall have a distinct

responsibility to ensure a reliable, transparent and functioning

institutional framework that would ensure the integrity of all fiscal

reporting systems. For this reason, they shall

(a)

keep proper books of accounts that would provide a

fair and true picture of all their revenues and debtors,

expenditures and creditors, expenditure commitments, and other

contingent liabilities;

(b) follow any prescribed Government accounting

policies, principles, procedures and methodologies as may be

approved or prescribed, from time to time, by the Ministry for

Finance;

(c)

ensure the comprehensiveness, integrity, reliability

and timeliness in reporting financial data and other information

to the Ministry for Finance, the Treasury and the National

Statistics Office.

(5) Heads of Ministries, Departments, Authorities and other

entities shall ensure full observance and compliance with the

statutory and other reporting requirements as provided in this Act or

as may be prescribed, from time to time, by the Ministry for Finance,

the Treasury and/or the National Statistics Office. Any failure to

abide by the provisions of this sub-article and of sub-articles (3) and

(4) shall lead to disciplinary proceedings.

(6) After the approval of the annual budget and in the course

of its execution, the Ministry for Finance shall publish monthly

schedules of revenues and expenditures, desegregated by source and

economic function.

(7) In July of each year, the Minister for Finance shall compile

and lay on the table of the House of Representatives a half-yearly

report on the economic and budgetary situation.

(8) The half-yearly report stipulated in sub-article (7) shall,

without being limited to, contain the following

(a)

a review of the macroeconomic situation that would

include the latest significant changes and trends since the

finalization of the annual budget;

(b) an assessment of the impact on the fiscal targets of

any changes in the macroeconomic situation;

(c)

a presentation of necessary corrective measures

being undertaken and/or to be taken to address such impacts;

(d) an explanation of how the implementation of the

budget is consistent with the Government’s European

commitments, in particular the terms of the Stability and

Growth Pact;

(e)

data on the general budget revenues, detailed for

each category of revenue, indicating the initial forecast,

revenues collected in the first six months and an updated

forecast for the entire year;

(f)

data on the general budget expenditures, detailed by

economic and functional classification for each constituent

budget of the general government budget, indicating the

approved expenditure, the expenditures incurred in the first six

months and an updated forecast for the entire year;

(g) data on the budgetary balance of the general

government budget (total and primary), indicating the approved

program, in the first six months and an updated forecast for the

entire year;

(h) data on the absorption of European funds, indicating

the approved program, the results achieved in the first six

months and an updated forecast for the entire year;

(i)

data on all outstanding creditors for the first six

months of the year;

(j)

data on government debt and financing of the budget

deficit;

(k) explanations for any shortfalls in the forecasted

revenues and revenue arrears, indicating the measures taken and

any planned measures to improve such collection.

(9) The information contained in the half-yearly report

referred to in sub-article (7) on the economic and fiscal situation must

take into account, to the extent possible, any Government decisions

and other developments, which may have an effect on the fiscal and

economic prospects for the year.

(10) The data and information contained in the half-yearly

report on the economic situation and the budget must be presented in

a tabular format comparable to those in the annual budget and in the

medium fiscal strategy.

Revisions

(1) Subject to the provisions of this Act, the fiscal

strategy may be revised if

(a)

there is a change in the coverage of the general

government budget, giving the reasons, the data and other

information that is comparable to the new coverage of the

general government budget;

(b) there would be a significant worsening of the

macroeconomic indicators that were used in preparing the fiscal

strategy;

(c)

a new Government deems it appropriate to change

the Medium Term Fiscal Strategy to reflect its new policy

priorities. In this case, the new government shall indicate the

differences from the previous medium-term fiscal strategy.

(2) The Minister for Finance shall submit any revision to the

fiscal strategy to the House of Representatives for its due

consideration.

(3) The revision of the fiscal strategy, the annual budget, or

any other budget document, shall be subject to review and opinion

from the Fiscal Council.

(4) The revised version of the fiscal strategy should contain a

section detailing and explaining differences from the version

previously laid on the Table of the House of Representatives.

Government Annual Report

(1) The Minister for Finance shall prepare and make

public before or at the end of June of each year, an annual report on

the previous fiscal year.

(2) The purpose of the annual report is to

(a)

provide information on the execution of the previous

budget and to compare its outcome with the strategic objectives

and priorities in the fiscal strategy and the fiscal targets as

announced in the previous annual budget;

(b) analyze how the Government has respected the

principles and rules stipulated in this Act and to explain any

deviations therefrom;

(c)

assess if the fiscal and budgetary policies in the

completed budget year and its results were in line with the

medium-term objective stipulated in the fiscal strategy;

(d) explain any deviations from the Government’s

medium-term objectives and how these are to be addressed;

(e)

explain the outcome of the budget in the context of

the Government’s European commitments, in particular the

terms of the Stability and Growth Pact.

(3) The report on budget execution shall include the final

execution data for the indicators provided in the fiscal strategy, and a

section that shows deviations from the fiscal strategy and from the

initial annual budget, with justification for such deviations.

PART V

THE FISCAL COUNCIL

The Fiscal Council

There shall be a body to be known as the Fiscal Advisory The Fiscal

Council (in this Act referred to as the "Fiscal Council") to perform the Council.

functions conferred or imposed on it by this Act.

(1) The members of the Fiscal Council shall exercise Members of the

their mandate under this Act and will not seek or receive instructions Fiscal

to be

from public authorities or from any other institution or authority.

independent

from public

authorities or

(2) The Fiscal Council shall review and assess the extent to from

institution or

which the fiscal and economic policy objectives proposed by the authority.

Government are being achieved and thus contribute to more

transparency and clarity about the aims and effectiveness of economic

policy.

The Fiscal Council shall be a body corporate that may sue Body corporate.

and be sued.

The Fiscal Council shall be independent in the Fiscal Council

to be

performance of its functions.

independent.

(1) The Fiscal Council shall have all such powers as are Powers for the

performance of

necessary for, or incidental to, the performance of its functions.

functions.

(2) The Fiscal Council may request information, documents or

data as may be relevant for the discharge of its duties and

responsibilities from any Ministry, Department, Public Sector

Authority, Entity and Agency, and Local Council.

(3) Ministries, Departments, Public Sector Authorities,

Entities and Agencies and Local Councils shall make any

information, documents or data available in the format and level of

detail and within the time period as may be established by the Fiscal

Council

Provided that if such information, documents or data is

either not available or cannot be supplied as provided for in this

article, the relevant organization shall inform in writing the Fiscal

Council to that effect also stating the reasons why.

(4) If any Ministry, Department, Public Sector Authority,

Entity and Agency, and Local Council fail to provide the required

information, documents or data and fail to inform the Fiscal Council

accordingly, the latter shall inform the Minister for Finance

accordingly and shall publish this fact.

Membership of the Fiscal Council

The Fiscal Council shall consist of three members.

(1) Subject to the provisions of sub-article (2), the

Fiscal Council shall be appointed by the Minster for Finance.

(2) In appointing the members of the Fiscal Council, the

Minister shall

(a)

have regard to the desirability of their having

competence and experience in domestic and international

macroeconomic and fiscal matters, and

(b) to the extent practicable, ensure an appropriate

balance between men and women in the membership of the

Fiscal Council.

(3) If there is a vacancy in the membership of the Fiscal

Council, the Minister shall, if it is reasonably practicable to do so,

appoint a replacement before the end of the period of six months

beginning on the day on which the vacancy arose.

(4) The Chairperson of the Fiscal Council shall be appointed

by the Minister after consultation with the Opposition.

Term of office

(1) Except where otherwise provided, the term of office

of a member of the Fiscal Council shall be four years.

(2) A person may not be a member of the Fiscal Council for

more than two consecutive terms of office but shall otherwise be

eligible for reappointment.

(1) A member of the Fiscal Council may at any time resign Resignation and

from office by letter addressed to the Minister and the resignation removal.

shall take effect on the date specified in the letter.

(2) The Minister may remove a member of the Fiscal Council

from office if

(a)

the member has become incapable through ill-health

of effectively performing the functions of the office;

(b)

the member has committed proven misbehaviour;

(c)

the member has a conflict of interest of such

significance that, in the opinion of the Minister, the member

should cease to hold office.

(3) Any member of the Fiscal Council may not be removed

from office unless a resolution providing for the removal and stating

the grounds for it is approved by the House of Representatives.

(4) A person shall be disqualified from holding and shall cease

to hold office as a member of the Fiscal Council if he or she

(a)

is declared bankrupt;

(b)

makes a composition or arrangement with creditors;

(c)

is convicted on indictment of an offence or is

convicted outside Malta of an offence consisting of acts or

omissions which would constitute an offence triable on

indictment if done or made in Malta;

(d) is convicted of an offence involving fraud or

dishonesty; or

(e)

has a declaration under the Companies Act made Cap. 386.

against him or her or is subject or is deemed to be subject to a

disqualification order by virtue of that Act.

(5) Where the Minister appoints a new member of the Fiscal

Council because a member of the Fiscal Council has died, resigned,

been removed from office or become disqualified from holding

office, the term of office of the new member shall be the remainder of

office of the former member.

(6) Subject to such rules as the Fiscal Council may make

regarding quorum, the Fiscal Council may act despite one or more

vacancies in its membership.

Remuneration and other terms and conditions of office

Each member of the Fiscal Council shall

(a)

hold office on such terms (other than the payment of

remuneration and allowances for expenses) as the Minister for

Finance may determine; and

(b) be paid by the Fiscal Council, out of the resources at

its disposal, such remuneration and allowances for expenses as

the Minister for Finance may determine.

Staff

(1) The Fiscal Council may appoint such and so many

persons to be members of the staff of the Fiscal Council, and on such

terms, as may be determined by the Fiscal Council.

(2) A member of the staff of the Fiscal Council shall be paid

out of the moneys at the disposal of the Fiscal Council.

Membership of the House of Representatives or

of the European Parliament

(1) Sub-article (2) applies where a person who is a

member of the Fiscal Council or a member of the staff of the Fiscal

Council at any time (in this sub-article referred to as "the material

time")

(a)

becomes a candidate for election to either the House

of Representatives or the European Parliament;

(b) is elected or co-opted to the House

of

Representatives or elected to the European Parliament.

(2) The person referred to in sub-article (1) shall

(a)

if a member of the Fiscal Council, cease to be a

member of the Fiscal Council, and

(b) if a member of the staff of the Fiscal Council, stand

seconded from employment by the Fiscal Council, and not be

paid by, or be entitled to receive from, the Fiscal Council any

remuneration or allowances for expenses in respect of the

period commencing at the material time and ending when the

person ceases to be a member of either the House of the

Representatives and the European Parliament;

(c)

a person who is for the time being either entitled

under the Standing Orders of the House of Representatives to sit

in that House or who is a member of the European Parliament

shall, while so entitled or such a member, be disqualified from

becoming a member of the Fiscal Council or a member of the

staff of the Fiscal Council.

(3) Without prejudice to the generality of the provisions of

sub-article (2)(b), those provisions shall be read as prohibiting,

among other things, the reckoning of a period mentioned in the said

provisions as service with the Fiscal Council for the purposes of any

superannuation benefits.

Prohibition of disclosure of confidential information

(1) A person shall not, without the relevant consent or Confidential

as required by law, disclose confidential information obtained by that information.

person in any capacity, or while performing functions, as

(a)

a member of the Fiscal Council, or

(b)

a member of the staff of the Fiscal Council.

(2) A person who contravenes the provisions of sub-article (1)

shall be guilty of an offence and liable, on conviction, to a fine

(multa) not exceeding one thousand euro (€1000).

(3) Nothing in sub-article (1) shall prevent the disclosure of

information to the Fiscal Council or by or on behalf of the Fiscal

Council to the Minister.

(4) In this article

"confidential information" means information that is expressed

by the Fiscal Council or, in the case of information supplied to the

Fiscal Council by the Minister, to be confidential either as regards

particular information or as regards information of a particular class

or description;

"relevant consent" means -

(a)

in the case of information expressed to be

confidential by the Fiscal Council, the consent in writing of the

Fiscal Council, and

(b) in the case of information expressed to be

confidential by the Minister, the consent in writing of the

Minister.

Funding

(1) Subject to the provisions of sub-article (2), the

expenditure incurred by the Fiscal Council in the performance of its

functions shall be charged on and paid out of the Consolidated Fund

or the growing produce thereof.

(2) Subject to the provisions of sub-article (3), not more than

the sum specified in sub-article (4) shall be so charged and paid out

for any year.

(3) If the provisions of article 53(1) come into operation

otherwise than at the beginning of a year, the amount so charged and

paid out for that year shall be reduced pro rata.

(4) The sum referred to in sub-article (2) shall be -

(a)

for the year in which article 53(1) comes into

operation, two hundred and fifty thousand euro (€250,000), and

(b) for each subsequent year, the sum which (whether

by virtue of this paragraph or paragraph (a)) applies for the

preceding year as adjusted by the Index of Inflation as

established and published by the National Statistics Office.

Accounts and audit

(1) The Fiscal Council shall keep, in such form as may

be approved by the Minister for Finance, all proper and usual

accounts of receipts and expenditure by the Fiscal Council and shall

keep any special accounts which the Minister for Finance may from

time to time direct.

(2) Accounts kept under this article, duly audited, and signed

by the Chairperson of the Fiscal Council, shall be submitted as soon

as is practicable (but not later than three months after the end of the

accounting period to which they relate) to the Minister for Finance.

(3) The Minister for Finance shall lay on the table of the

House of Representatives a copy of the Fiscal Council’s audited

accounts not later than the end of April of each year.

Appearance before Public Accounts Committee

(1) The Chairperson of the Fiscal Council shall, Appearance

whenever requested in writing by Chairperson of the Public Accounts before

Accounts

Committee of the House of Representatives, be required to give Committee.

evidence to that Committee on

(a)

the regularity and propriety of the transactions

recorded or required to be recorded in any account kept under

article 56,

(b) the economy and efficiency of the Fiscal Council in

the use of its resources,

(c)

the systems, procedures and practices employed by

the Fiscal Council for the purpose of evaluating the

effectiveness of its operations, and

(d) any other matter affecting the Fiscal Council and its

operations.

(2) The Chairperson of the Fiscal Council shall, whenever

requested to do so, account for the performance of the functions of the

Fiscal Council to the Public Accounts Committee of the House of

Representatives.

Annual Report

(1) The Fiscal Council shall as soon as practicable after Annual report.

the end of each year prepare a report of its activities during the year to

which the report relates.

(2) The Fiscal Council shall provide a copy of each report

prepared under sub-article (1) to the Minister for Finance who shall

cause a copy to be laid on the Table of the House of Representatives

as soon as is reasonably practicable after the copy is so provided.

Seal of Fiscal Council

(1)

The seal of the Fiscal Council shall be authenticated Seal of Fiscal

Council.

(a)

the signature of the Chairperson or another member

of the Fiscal Council authorised by the Fiscal Council to act in

that behalf, and

(b) the signature of a member of the staff of the Fiscal

Council authorised by the Fiscal Council to act in that behalf.

(2) Judicial notice shall be taken of the seal of the Fiscal

Council and, accordingly, every instrument

(a)

purporting to be an instrument made by the Fiscal

Council, and

(b) purporting to be sealed with the seal of the Fiscal

Council authenticated in accordance with sub-article (1),

shall be received in evidence and be deemed to be such instrument

without further proof, until the contrary is proved.

(3) Any contract or instrument which, if entered into or

executed by an individual, would not require to be under seal, may be

entered into or executed on behalf of the Fiscal Council by any person

generally or specially authorised by the Fiscal Council to act in that

behalf.

Premises

The Fiscal Council may, for the purposes of providing

premises necessary for the performance of its functions, lease, equip

and maintain offices and premises subject to the consent of the

Minister.

Procedure and quorum

Subject to the provisions of this Act, the Fiscal Council

may regulate its own procedures, including the quorum necessary for

a meeting of the Council to be held.

Passed by the House of Representatives at Sitting No. 183 of the

22nd July, 2014.

A NĠLU F ARRUGIA

Speaker

R AYMOND S CICLUNA

Clerk of the House of Representatives