Luxembourg

II - Changes to the Budgetary Process

Budgetary process   
II.1
Describe the main characteristics of the budgetary process (cycle, actors, instruments, etc.) in Luxembourg.

In Luxembourg, the public budget is passed on a yearly basis by a parliamentary law. Three steps are usually provided. The first is a general discussion about the budget on the occasion of the governmental declaration on the ‘l’etat de la nation’ in the first half of the year. Every minister has to send the report of his ministry for the last year until 1 March to the parliament. Not later than three weeks before the declaration of the Prime Minister on the state of the nation, the ministers have to hand in their budgetary plan for the next year.[1] The Finance Minister has to send the updated version of the next years public budget to the parliament, at the latest in the third week of September.[2] Stakeholder groups, the Conseil d’Etat and the Court of Auditors deliver opinions on the governmental plans within a period of six weeks.[3] The most important institution in the framework of control is the Court of Auditors, whose role is very dominant since the amendment of the Constitution in 1999. Article 105 of the Luxembourg Constitution grants the Ccourt of Auditors with the highest competence of control for the national budget, including the control of efficiency and quality of budgetary policy (la bonne gestion financière). The second step is the adoption of the budgetary law in December after the discussion at parliament. The third and final one is the discussion in the framework of the examination of the law approving the budgetary balance (loi portant approbation des comptes généraux de l’Etat).


General change           
II.2
How has the budgetary process changed since the beginning of the financial/Eurozone crisis?

The budgetary process will be changed in 2014. Since the legislative proposal (projet de loi 6597 relatif à la coordination et à la gouvernance des finances publiques et modifiant (a) la loi modifiée du 8 juin 1999 sur le budget, la comptabilité et la trésorerie de l’Etat et (b) la loi modifiée du 10 mars 1969 portant institution d’une inspection générale des finances)[4] is still under discussion, it is difficult to predict its outcome. Questions VII.2, VII.3, VII.4, VII.5, IX.4 and IX.5 deal with the changes contained in the legislative proposal.

Institutional change        
II.3
What institutional changes are brought about by the changes in the budgetary process, e.g. relating to competences of parliament, government, the judiciary and independent advisory bodies?

The budgetary process will be changed in 2014. See the answer to question II.2.

Change of time-line 
II.4
How has the time-line of the budgetary cycle changed as a result of the implementation of Euro-crisis law?

The budgetary process will be changed in 2014. See the answer to question II.2.

Miscellaneous
II.5
What other information is relevant with regard to Luxembourg and changes to the budgetary process?

No other relevant information

[1] Michael Schroen, Parlament, Regierung und Gesetzgebung, in: Wolfgang H. Lorig/Mario Hirsch (eds.), Das politische System Luxemburgs – eine Einführung, 2008, p. 106 (127).

[2] Michael Schroen, Parlament, Regierung und Gesetzgebung, in: Wolfgang H. Lorig/Mario Hirsch (eds.), Das politische System Luxemburgs – eine Einführung, 2008, p. 106 (128).

[3] Michael Schroen, Parlament, Regierung und Gesetzgebung, in: Wolfgang H. Lorig/Mario Hirsch (eds.), Das politische System Luxemburgs – eine Einführung, 2008, p. 106 (128).

[4] For an overview about the current status of the legislative procedure see http://www.chd.lu/wps/portal/public/RoleEtendu?action=doDocpaDetails&backto=/wps/portal/public&id=6597