Att dwar ir-Responsabbiltà Fiskali

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

(1) In this Act, unless the context otherwise requires -

"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

o f R e p r e s e n t a t i v e s i n re s p e c t o f a n y f i n a n c i a l y e a r, o f t h e

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

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(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 Council Regulation (EC) No.

1466/97;

"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 Council Regulation (EC)

No. 1466/97, the Council Regulation (EC) No. 1467/97 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 Council Regulation (EC) No. 1466/97;

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"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;

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(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 Medium Term 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

applicable to the Local Councils, public sector authorities, entities

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

objectives, and formulate and execute its annual fiscal strategy in

accordance with the fiscal rules specified in this Act.

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

(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

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tolerable levels of risk;

(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.

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PART II

FISCAL RULES

(1)

The Government shall endeavour to secure that

(a) the requirement imposed by article 8, and

(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

(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 Council Regulation (EC) No.

1466/97, 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 Council Regulation (EC)

No. 1467/97 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

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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 Council Regulation (EC) No. 1466/

97 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.

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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;

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(d) assess the Government’s budgetary performance

against the fiscal targets and policies specified in the

Medium Term 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 including an ex post

evaluation of macroeconomic and fiscal forecasts;

(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 Medium Term 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

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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 the

table of the House, the Medium Term Fiscal Strategy made up of a

Medium Term Fiscal Policy Statement and the Fiscal Policy Strategy.

(2) The Medium Term Fiscal Policy Statement shall set forth

the Government’s fiscal objectives, strategic priorities and a three-

y e a r r o l l i n g t a rg e t f o r f i s c a l m a n a g e m e n t t o g e t h e r w i t h 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

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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 based on objective criteria, 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

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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 based on objective criteria,

taking account of possible changes in

macroeconomic conditions, including growth and

interest rates. 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 down into

(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, based on the independent

assessment by the Fiscal Council of the official forecasts

produced by virtue of article 13(3)(a) and taking into

account the ex post assessment of the Fiscal Council

produced by virtue of article 13(3)(e), 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

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the state-owned enterprises;

(f) an account of current and future actions to be taken

following any identification of significant bias in

macroeconomic forecasts pursuant to sub-article (4)(h);

(g) 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;

(h) 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

with 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

Budgetary Plan for the forthcoming year based on the Medium

Term 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

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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 Council Regulation (EC) No. 1466/97;

(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)

a sensitivity analysis based on objective criteria, of the

budgetary targets taking account of possible changes in

macroeconomic conditions, including growth and interest

rates. The sensitivity analysis shall be guided by the

performance of past forecasts and shall endeavour to take

into account relevant risk scenarios;

(h)

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;

(i)

indications on how reforms and measures in the draft

budgetary plan, including in particular public

investment, address the current recommendations to

Malta 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

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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 that is consistent with the fiscal responsibility principles, the

fiscal rules, the Medium Term Fiscal Strategy and any other

requirements in this Act, including a sensitivity analysis as specified in

article 16(2)(g). The Prime Minister and Minister for Finance shall

sign a statement attesting to such consistency which shall be presented

to the House 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 Medium Term 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

Medium Term 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).

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

Term Fiscal Strategy and with the provisions of this Act and shall

(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.

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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

resource reallocation as defined in article 23, the Ministry for

Finance shall have the power to reject approval for new or

additional 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

become the sole responsibility of the person making such

authorizations and the person occupying the highest executive

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

and other pay negotiations shall ensure that any proposals being

made in the course of such negotiations are consistent with the

objective of 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

Finance may approve an increase to the allocations for personnel

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,

Entities and Agencies and Local Councils shall take all necessary

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.

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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

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

one particular year.

The contingency reserve shall be built gradually over a

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

into force of this Act.

Drawdown from the Contingency Reserve shall only be

made in urgent, temporary and unforeseen circumstances following

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

the Prime Minister.

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Any drawdown from the contingency reserve shall be

replenished gradually over a period of three years until the ceiling

as defined in article 34 is re-established.

Any drawdown from the contingency reserve is to be

presented to the House of Representatives for final approval.

Monitoring of In year Budget Execution

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

Finance shall monitor and evaluate regularly the implementation 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-

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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

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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 Term Fiscal Strategy. Data should reflect actual data or

estimates based on the most recently available data where appropriate.

Revisions

(1) Subject to the provisions of this Act, the Medium Term

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 Medium Term 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

Medium Term Fiscal Strategy to the House of Representatives for its

due consideration.

(3) The revision of the Medium Term 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 Medium Term Fiscal Strategy

should contain a section detailing and explaining differences from

t h e v e r s i o n p r e v i o u s l y l a i d o n t h e Ta b l e o f t h e H o u s e o f

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 Medium Term 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

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completed budget year and its results were in line with

the medium-term objective stipulated in the Medium

Term 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 Medium Term Fiscal

Strategy, and a section that shows deviations from the Medium Term

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

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

the functions conferred or imposed on it by this Act.

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

mandate under this Act and will not seek or receive instructions

from public authorities or from any other institution or authority.

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

which the fiscal and economic policy objectives proposed by the

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

and be sued.

The Fiscal Council shall be independent in the

performance of its functions.

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

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

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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

from office by letter addressed to the Minister and the resignation

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

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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

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.

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

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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 as

required by law, disclose confidential information obtained by that

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

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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, whenever

requested in writing by Chairperson of the Public Accounts

Committee of the House of Representatives, be required to give

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.

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(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

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

c a u s e a c o p y t o b e l a i d o n t h e Ta b l e o f t h e H o u s e o f

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

by

(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

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for a meeting of the Council to be held.