The budget represents the estimated revenue and expenditure for a certain period of time, usually one year. The Government prepares the budget proposal and submits it to the Parliament for approval. Following its approval, the budget becomes a law which must be implemented, like any other law of the country.
The budget has five important characteristics:
- Annuity: A draft budget covering the period of one year is prepared each year, is voted every year, and is executed over one year.
- Unity: Revenues and expenditures, as well as deficit financing, need to be considered together, in order to establish the annual budgetary targets. The budget must cover all ministries, agencies and other institutions conducting governmental operations.
- Monetary unit: Revenues and expenditures must be expressed in the national currency.
- Universality: All resources must be directed to a common fund and are allocated and used for expenditures according to the Government's current priorities.
- Balance: The budget needs to be balanced. Budgetary expenditures must be equal to revenues, plus sources of deficit financing.
Law no. 181 of 25 July 2014 on public finance and fiscal responsibility guides the budget preparation, approval, execution, control and audit processes.