Advice on budgetary funds establishment is presented to the Prime Minister and the Minister of Finance.

In addition to legislative advice, the Advisory Council can also provide advice on subjects it considers to be of particular importance. Last May, the Council issued such advice on the organization of the government administration. In line with this, it draws attention to another development that also hurts the coherence and unity of policy, namely the establishment of separate budgetary funds. At the start of a new term of office, the Council considers it opportune to take a closer look at this development.

This advice aims to present a framework for consideration, in the light of which existing and possible future budgetary funds should be viewed. In its advice, the Council provides an overview of the currently existing budget funds and discusses its advantages and disadvantages.

The Council also discusses its findings regarding the establishment of the existing budget funds, the shortcomings identified in these budget funds, the establishment of the budgets of these funds, and the financial accountability for this. The advice ends with a conclusion and several recommendations. It is recommended that when establishing a budget fund, it should be demonstrated that there is a clear need for this, whereby a budget fund should only be established for specific multi-year projects. Furthermore, the Council recommends including an evaluation provision in the establishment regulation of a budget fund.

You can consult the advice on the Advisory Council website www.rva.aw.