PROVISIONAL INSTITUTIONS OF SELF-GOVERNMENT INSTITUCIONET E PËRKOHSHME TE VETËQEVERISJES PRIVREMENE INSTITUCIJE SAMOUPRAVLJANJA MINISTRY OF ECONOMY AND FINANCE MINISTRIA PËR EKONOMI DHE FINANCA MINISTARSTVO ZA PRIVREDU I FINANSIJE
UNMIK
Memorandum to All Budget Organizations From: Date: Subject: Budget Department, Ministry of Finance And Economy 07 june 2006 Calculation of Costs/Revenues Associated with Proposed Legislation
Regulation # 2005/55 states the following: “A the time of submitting a proposal for preparation of a law to the Government for consideration, a Budget Organization that makes such a proposal shall also submit to the Government an estimate of the financial implications of the law for the 2006 Kosovo Consolidated Budget and the Budget for the two succeeding years. Estimates of the financial implications shall contain all projected budget expenditures and revenues. The Ministry of Finance and Economy shall be responsible for verification or alteration of such estimated financial implications. If additional expenditures are envisaged, the Budget Organization concerned may be required to absorb such additional expenditures within its 2006 approved budgetary resources.” The attachment to this memorandum is intended to provide a format for budget organizations to use in the preparation of budgetary estimates. This format should be filled out for all proposed legislation. The form should be filled out even if there are no cost implications. Budget organizations should provide narrative justifying their cost and/or revenue projections. For example, if this is a social scheme entailing additional costs, how many beneficiaries are projected and at what unit cost? If there are no costs or savings, “zeros” may be used to fill in the table. Consultations will likely be required to resolve outstanding issues and questions pertaining to the estimates. Close cooperation will be required between the staff of the Budget Department and the staff of the budget organization. For revenues, indicate if the revenues are projected to be “own source revenues” or revenues that would not be spent by the budget organization.