Proposal for a State Budget Act in Sweden summary and proposal - Report (SOU 1996:14) from the Government Commission on Budget Law
1 Summary The task of the Commission The Commission has had the task of analysing the areas in which an expanded legal regulation of the state budget process would be desirable and making proposals to that effect. The existing legal framework The Constitution (regeringsformen) deals only briefly with the state budget, its focus being primarily on basic provisions on the state budget and on the authority of Parliament and the Government in the sphere of financial power. The concept of financial power refers primarily to the power to decide how state revenues are to be estimated, and to decide on expenditure and other ways of using the assets of the state. The Parliament Act (riksdagsordningeh) contains provisions on the fiscal year, the contents of the budget proposal, and when this bill is to be presented. It also contains provisions on how Parliament is to deal with the budget proposal and other Government bills. The recently adopted provisions on the frame decision model and on areas of expenditure are of special interest in this context. Decisions by Parliament on the state budget and financial power do not necessarily have to have the form of legislation. No special legislation has been promulgated in this area except for the State Borrowing Act (1988:1387). Instead, for decades now. Parliament has adopted special decisions on financial power and the state budget in response to proposals from the Government or on its own initiative. In these ways, decisions have been reached on important issues concerning, inter alia, types of appropriations and conditions for the use of appropriations, sale of state property, financing of investments, and accounting. Regulations in other countries In most countries the provisions on financial power and the state budget are distributed between the constitution and a special budget act. As a rule the constitution establishes that the Government's right to tax and to incur expenditure on behalf of the state shall be subject to parliamentary decisions. As regards the budgetary process, the date when the budget proposal is to be submitted is usually established, as well as various solutions for situations where the state budget has not been decided upon before the beginning of the fiscal year.
In most countries, detailed provisions on the distribution of authority and responsibilities in the area of financial power between Parliament and the Government and on the state budget are contained in a Budget Act. As a rule the Budget Act prescribes that the state budget shall, in principle, include all government revenue and expenditure, and that gross accounting shall be applied. Usually the areas of operations are specified that are not required to be included in the budget, as well as those where net accounting may be applied. Often there are also provisions for how the state budget is to be arranged and presented. There are provisions on the various ways in which the Government may exceed appropriations, save appropriations for coming fiscal years, and transfer appropriations between various areas of the state budget. Most budget acts contain an authorisation for the Government to enter into financial commitments that exceed the appropriations granted. As a rule there are provisions on the accounting principles that are to be applied and on when and how the outcome of the state budget is to be reported to parliament. Research on the budget process In recent years, theoretical and empirical research has been carried out with the aim of shedding light on how large budget deficits have arisen in a number of countries, and especially to explain the significant differences with regard to the growth of central government debt between different countries. Increasing unemployment has naturally been an important common part of the explanation of the growth of government debt. However, the differences in development in various countries can also be explained by the organisation of political institutions and the state budget process. The budget process consists of three phases; the Government's preparation of the budget proposal, the decision by Parliament on the state budget, and implementation by the Government of the operations decided upon. Many researchers have drawn the conclusion that there are strong indications that the organisation of the budget process is an important factor for explaining the differences between countries as regards the budget policies actually carried out. A budget process which can be described as stringent, due to various detailed characteristics, is considered as being able to contribute to a lower deficit in public finances and a more sustainable development of the state debt. In an analysis carried out at the beginning of the 1990s, the Swedish budget process was regarded as being very weak compared with the then twelve EC member states. Since then, the process has been reinforced in a number of ways. The prospects for a long-term approach have been improved by the change in Parliament's mandate period from three to four years. There will be changes in the way in which the state budget is dealt with given the use of the
"frame decision" model. Furthermore, it is intended that a ceiling for public expenditure will be used. Altogether, these changes entail a considerable strengthening of budgetary discipline. However, even after these changes there are still weak points in the Swedish budget process in a broader sense. These are primarily located in two phases of the budget process - the way in which the budget proposal is prepared by the Government, and the implementation of the state budget adopted. 3 The need for a Budget Act It is the responsibility of Parliament to decide upon the fundamental issues concerning the state budget. For a long time Parliament has, in fact, made a number of such decisions. However, these decisions have not been adopted in the form of legislation, or in any particular statutory form. This can be explained by the fact that the Constitution does not require that this type of decision be given the form of legislation. One consequence of this procedure is that it can be difficult to find the decisions of topical interest, and to get a comprehensive view of the rules that apply. As a result, the distribution of responsibility between Parliament and the Government in the area of financial power is not always as clear as would be desirable. On several occasions, the Government has needed to give instructions concerning fundamental issues of government financing that fall within the decision-making sphere of Parliament. In these cases, the Government has obtained the approval of Parliament by summarizing the main content of the intended provisions in a report to Parliament. This is a complicated and unpractical way of acquiring the necessary authority from Parliament. This procedure contains two risks that may partially be contradictory. One risk is related to the Government describing a new procedure at such length and in such detail that it may tie its own hands in relation to Parliament in matters of detail that may be considered as properly belonging to the Government's sphere of authority. The other risk is connected with the fact that a general account of an envisaged regulation is less precise than legislation. This may result in a lack of clarity as to what Parliament has, in fact, approved, especially when a proposal in a report has not been explicitly approved by Parliament, but has been allowed to pass without comments, or has been put aside without action being taken. The problems arising from the lack of legislation in the area of financial power become especially difficult when Governmental powers in a particular area are based on authorisations which have been provided and changed over the course of decades. It may also be the case that Parliament, in conjunction with dealing with a particular factual issue, has decided that a particular technical budget procedure
shall be applied to some area. There is a risk that such decisions may fall into oblivion over the course of time. In the absence of special decisions, particular practices have developed in some areas, which are not unambiguous and clear in every respect. In other areas no appropriate practices whatsoever have been developed. This has led to uncertainty as to the appropriate procedure in some areas of central importance. The account just given shows that it is desirable that the rules that are actually applicable in the sphere of financial power, be clarified, and that appropriate regulations be created in areas where provisions are lacking, or where the rules are no longer appropriate. The lack of a law regulating the state budget and the distribution of authority between Parliament and the Government in the sphere of financial power is very unusual in an international perspective. The existing arrangements in Sweden cannot be justified with reference to the Constitution and the Parliament Act since these provisions are not sufficiently detailed to make further regulation in a Budget Act unnecessary. Insights obtained from theoretical and empirical research show that the organisation of the budget process is important for the development of a budget deficit and government debt. Appropriately drafted regulations may contribute to a further reinforcement of the stringency of the Swedish budget process. EU member states are required to avoid excessive public financial deficits, and to have appropriate budgetary regulations to fulfil this obligation. Therefore, EU membership provides one reason for creating regulations that may serve to reinforce budget discipline. The circumstances described have led the Commission to the conclusion that significant benefits would be obtained if the decisions on the state budget, and on the details of the Government's authority and responsibility in the area of financial power were to be gathered in a special Budget Act. Drafting of the Budget Act The provisions on financial power and the state budget contained in the Constitution and the Parliament Act are a natural starting point for drafting a new Budget Act. A Budget Act should contain regulations that supplement and clarify the provisions contained in the Constitution and the Parliament Act. This would provide a basis for government action and create a bridge between the provisions contained in the Constitution and the Parliament Act on one hand, and the multitude of detailed regulations which the Government is required to issue on the other hand.
The Budget Act should consolidate the budget process in a broad sense by regulating certain fundamental circumstances. At the same time, Parliament and the Government should retain the necessary degree of freedom of action. Therefore, the rules should be sufficiently general to permit various technical budget solutions without requiring a change in the Act. When required, changes in certain provisions of the Act may be made in conjunction with considering and deciding upon the state budget. It has not been the ambition of the Commission to influence the distribution of authority between Parliament and the Government. Instead, the aim has been that the Act should include the existing arrangements as far as possible. However, in some areas there has been a lack of clarity regarding the rules that should apply. In other areas the existing arrangements have not been satisfactory. Development work has taken place in some areas. In these cases the intention has been to draft appropriate provisions on the basis of the expressions of intent contained primarily in the reports of the Parliamentary Standing Committee on Finance and the Government bills. The Budget Act clarifies the authority and responsibility of the Government in the area of financial power. The Act applies primarily to the Government. However, it is unavoidable that the forms of action of Parliament, as well as agencies, will be affected in some cases. The following pages present the main content of the proposed law. Effectiveness and results There are general demands on how the Government should conduct the implementation of state activities. These requirements are expressed in the introductory section of the Act, which states that a high level of effectiveness is to be aimed at and good economy observed in state activities. This provision provides a basis for, inter alia, provisions on management by results, accounting and audit. Objectives must be formulated, and results need to be measured if operations are to be directed towards greater effectiveness. The Act prescribes that the Government give an account to Parliament of the objectives aimed at, and the results achieved in various areas of activity. Performance reports enhance the ability of Parliament to follow up and evaluate the results in the areas of operations that have been decided upon. Appropriations and state budget revenues By granting appropriations Parliament decides how public funds are to be used. Various types of appropriations exist which differ with regard to the right of the Government to exceed the amount appropriated, and to make use of unused funds in a subsequent fiscal year.
The types of appropriations used, and the conditions attached to these are regulated in the Budget Act. Rules are accordingly laid down for fixed appropriations (obelecknade anslag), multi-annual appropriations (reservationsanslag) and flexible appropriations (ramanslag). The use of the present estimated appropriation (forslagsanslag) is discontinued since it is difficult to combine this type of appropriation with the ideas on which the ceiling for government expenditure and limits for expenditure areas are based. To promote high effectiveness and good economy, the Government is given the authority to restrict the use of appropriations by subordinate agencies. Moreover, a right is established for the Government to abstain from using appropriated funds, should this be justified by reasons of public finance or other special circumstances. The concept of state budget revenue is not included in the Constitution. This concept is now consolidated by a provision being included in the Act to the effect that government revenues that are estimated by Parliament shall be accounted for as state budget revenues. Financial commitments The Government may not make financial commitments on behalf of the state without the approval of Parliament. The Budget Act stipulates conditions on which the Government may make such commitments. The Government may, for a purpose and up to a maximum amount decided upon by Parliament, order goods and services, and decide upon grants and the like that entail expenditure under fiscal years subsequent to the year to which the budget refers. On the same conditions, the Government may issue credit guarantees. A risk-related fee shall be charged for guarantees. The Government is also given explicit authorisation to enter into such financial commitments that are essential for the satisfactory conduct of its current work. Financial commitments entered into by the Government shall be reported annually to Parliament. The scope of the state budget Bearing in mind the central role of the state budget, the Commission proposes rules for the government revenues and expenditure that shall be included in the state budget. The proposed state budget shall, in principle, include all government revenue and expenditure, as well as other payments that affect the state's borrowing requirement.
Revenue and expenditure shall be entered gross in the state budget. However, net accounting may be applied if the revenue in an area of operations is intended to cover only part of the expenditure. Areas of operations where the revenue is intended to cover completely the expenses of the state shall not be accounted for in the state budget. The authority of the Government to decide on the disposition of certain revenues from fees is confirmed. Financing of investments Public investments vary in character, and can be financed in several ways. Rules are needed in this area. The Budget Act stipulates that the need for operating capital in central government activities may be financed by credits from the National Debt Office, and that Parliament is to set an annual limit for such credits. Acquisition of fixed assets - material, intangible as well as financial assets - which are used in government activities may be financed by loans from the National Debt Office. Parliament shall establish limits for such loans annually. Acquisition of assets of an infrastructural nature shall be financed by appropriations. Parliament may decide on exceptions from these rules for particular investments or agencies. Sale of state property The state owns real estate, shares and other chattels. Rules are needed for the conditions on which these may be sold, and by whom. Furthermore, regulations are required as to how the revenue from sales may be used. The Budget Act states that the Government may sell real estate with a maximum value of SEK 50 million, unless there are special reasons for the property being owned by the state. Sales to municipalities for urban development purposes may take place without restriction. The Government may sell shares in a company where the state has less than half of the votes, unless Parliament has decided otherwise for a particular company. The Government may not sell shares in a company where the state has half, or more than half of the shares without parliamentary approval. Other goods and chattels, apart from shares, may be sold by the Government if they are no longer needed or have become unusable.
The following provisions are made as regards the use of sales revenue. If Parliament has decided on the sale, the revenue shall be accounted for as state budget revenue, unless Parliament has decided otherwise. If the Government has decided on sale of property that is used in an area of operations for which Parliament has approved an investment plan, the revenue may be used for financing investments included in the plan. If there is no investment plan, and the property has been financed by appropriations, funds equivalent to the book value of the property shall be accounted for as state budget revenue. If the property has been financed by a loan, the loan shall be redeemed. With certain exceptions, the remaining revenue may then be used in the same area of operations where the sold property has been used. If the property has been financed in any other way than by appropriations or loans, the entire revenue may be used in the same area of operations. The Government may always decide that funds are to be accounted for as state budget revenue to a greater extent than stated above. Follow-up, forecasts and outcome Control over public finances in the follow-up phase needs to be reinforced. The Budget Act therefore includes a provision that the Government shall follow up carefully how the state's revenue, expenditure and borrowing develop in relation to the estimated amounts. Furthermore, on at least two occasions during the fiscal year, the Government shall submit forecasts to Parliament on the the outcome of state budget revenues and appropriations, and on the public borrowing requirement. Important discrepancies in relation to budgeted amounts are to be explained. An annual report for the state relating to the preceding financial year shall be presented to Parliament at the latest by September. The report is to contain an operational statement, a balance sheet and a cash-flow statement, as well as the final outcome of state budget revenues and appropriations. The development of public finance To reinforce budget discipline, Parliament has decided on a frame decision model, which comprises limits for areas of expenditure. Moreover, it should be possible to impose a ceiling for government expenditure. If the Government decides to introduce a ceiling for government expenditure in the preparation of the following year's state budget, and when implementing the
operations decided upon, the the Budget Act stipulate that the Government shall present proposals on such an expenditure ceiling in the spring finance bill. Furthermore, if Parliament decides to allocate government expenditure to areas of expenditure, provisions are given in the Act that the Government shall present guidelines in the spring finance bill for how central government expenditure is to be allocated to areas of expenditure in the coming proposal for the next year's budget. To reinforce the long-term focus of budgetary policy, provision is made that proposals on ceilings for state expenditure and on guidelines for areas of expenditure may be applicable for a longer period than one fiscal year. If there is a risk that an adopted ceiling for central government expenditure will be exceeded in the course of implementation of the budgeted activities, or that the limits set on expenditure areas will be exceeded, the Government shall take action to avoid this, or propose necessary measures to Parliament. Accounting and audit Parliament puts state funds at the disposal of the Government, and commissions the Government to carry out the activities of the state. It is therefore natural for the Budget Act to stipulate that the Government is accountable to Parliament. In order to comply with this obligation, government accounting shall abide by generally accepted accounting practices, taken into consideration the special nature of the public sector. The accounts shall provide a true and fair picture of the outcome of operations, assets and liabilities. The Government shall be required to issue instructions on how accounting is to be carried out. The accountability may be observed in various ways, for example through accounts of the results achieved, through forecasts, through reports on the outcome and through an annual report. Ultimately it is the responsibility of Parliament to verify that the state activities are carried out effectively and reliably, that the accounts provide a fair picture, and that applicable regulations are being followed. Such controls takes place, inter alia, through audit. The Budget Act therefore makes provision for government activities to be examined through audit. Delegation The Budget Act primarily regulates the relationship between Parliament and the Government. However, government operations are primarily carried out by agencies subordinate to the Government. Provision must therefore be made in the Budget Act for the Government to delegate authority. The Act, therefore, provides the Government with the right to transfer authority to its agencies in certain specified areas.
10 Implementation It is desirable that the Act comes into force on 1 January 1997. However, it would also be desirable if the proposed regulations serve as a guide for the preparation and adoption of the state budget which is to be implemented from that same date. Older provisions in areas which are to be regulated by the Budget Act and which do not have the form of legislation, shall cease to apply when the Budget Act comes into force.
11 Proposal for a State Budget Act Effectiveness and result 1. A high level of effectiveness and good economy are to be aimed at in government operations. Government operations shall, for the purposes of this Act, mean activities carried out by the Government and by agencies subordinate to the Government. 2. The Government shall report to Parliament on the objectives aimed at and the results achieved in various areas of operations. Appropriations and state budget revenue 3. When Parliament grants appropriations for specified purposes in accordance with Chapter 9, article 3, of the Constitution, these shall be in the form of fixed appropriations, multi-annual appropriations or flexible appropriations. The conditions for the use of appropriations are specified in sections 4-6. Types of appropriations 4. A fixed appropriation (obetecknat anslag) may not be exceeded, and unused funds may not be used in subsequent fiscal years. 5. A multi-annual appropriation (reservationsanslag) may not be exceeded. Unused funds may be used for a maximum of three years after the year when the appropriation was last taken up in the state budget.
6. A flexible appropriation (ramanslag) may be temporarily exceeded by use of an appropriation credit amounting to a maximum of ten per cent of the appropriation granted. With the authorisation of Parliament, the Government may also decide that a flexible appropriation may be exceeded if this is necessary in an area of operations for meeting special expenditure that was unknown at the time the appropriation was granted, or to ensure the fullfilment of a purpose decided upon by Parliament. Unused funds may be used during a subsequent fiscal year. 12 Other provisions relating to appropriations 7. When the Government allocates an appropriation to an agency, the Government may impose restrictions on the use of the appropriation. 8. The Government may decide that appropriated funds shall not be used if there are special circumstances in an an area of operations justifying this, or for reasons of public finance. Slate budget revenue 9. Revenues of the state that have been estimated by Parliament shall be accounted for as state budget revenues. Accounting in relation to appropriations and state budget revenues 10. Accounting in relation to appropriations for transfers shall be carried out currently during the fiscal year as payment takes place. In relation to other appropriations, accounting shall be carried out in the fiscal year to which the expenditure relates. Accounting in relation to state budget revenue for tax shall be carried out currently during the fiscal year as payment is received. In relation to other state budget revenues, accounting shall be carried out in the fiscal year to which the revenues relate. Parliament may decide that accounting in relation to a particular appropriation or state budget revenue shall be made on other grounds.
13 Financial commitments 11. According to sections 12-14, the Government is authorised to enter into commitments on behalf of the state pursuant to Chapter 9, article 10 of the Constitution. In the State Borrowing Act (1988:1387) the conditions are stated on which the Government may incur debts on behalf of the State. Commissioning of goods and services, and related matters 12. For a purpose, and up to an amount decided by Parliament, the Government may commission goods and services, and decide on grants, compensation, loans and the like which entail expenditure during fiscal years subsequent to the year covered by the state budget. 13. The Government may incur such debts on behalf of the state that are necessary for the smooth running of the current work of government. Guarantees 14. The Government may issue credit guarantees and enter into similar commitments for a purpose and up to amounts decided by Parliament. When there are special reasons, commitments may be entered into without the amount being limited, according to a decision of Parliament. 15. A fee is to be charged for the commitments referred to in section 14. The amounts to be charged shall correspond to the state's financial risk and other costs for the commitment, unless Parliament decides otherwise for a particular commitment. The Government, or an agency appointed by the Government, shall decide the amounts to be charged. Reporting on financial commitments 16. The Government shall report annually to Parliament on commitments entered into on behalf of the state pursuant to sections 12 and 14.
14 Scope of the state budget 17. With the exceptions listed in sections 18 (2) and 19, the state budget proposed by the Government pursuant to Chapter 9, article 6 of the Constitution shall include all revenue, expenditure and other payments that affect the government borrowing requirement. 18. Revenue and expenditure shall be budgeted and accounted for gross in the state budget. If revenue in a certain area of operations is to cover partially the expenditure of that area, expenditure may, however, be accounted for net in the state budget. 19. An area of operations where government expenses are to be covered completely by the revenue of that area shall not be budgeted and accounted for in the state budget. 20. The Government may decide on the use of revenues deriving from goods and services provided by the state if the demand is voluntary, and if the revenues are to cover partially or completely the state's expenses for the operations concerned. Financing of investments 21. Within the limits for internal loans decided annually by Parliament, the Government may decide that fixed assets used in state activities shall be financed by loans from the National Debt Office. The Government may decide on the conditions for such loans. 22. Within a credit limit decided annually by Parliament, the Government may decide that operating capital in state activities shall be financed by credits from the National Debt Office. The Government may decide on the conditions for such credits, and on liquid assets at the disposal of agencies. 23. Other assets than those referred to in sections 21 and 22 shall be financed by appropriations or by revenues according to section 33(1).
24. Parliament may decide that assets shall be financed in a manner different from the stipulations in sections 21-23 for a particular agency or for a particular acquisition. 15 Sale of state property 25. In conjunction with Chapter 9, article 9, of the Constitution, sections 26-36 of the present Act state the grounds for the disposition of the state's property. These provisions refer to property which is at the disposal of the Government pursuant to Chapter 9, article 8, with the exception of such goods referred to in section 20. Real estate 26. The Government may decide to sell real estate with a maximum value of SEK 50 million, if it is no longer required for government operations, or required only to an insignificant extent, and when there are no special reasons for the property still being owned by the state. Notwithstanding the provisions made in the first paragraph, the Government may decide upon sale to municipalities for purposes of urban development. Shares 27. The Government may decide upon sale of shares in a company where the government holds less than half of the votes for all shares, unless Parliament has decided otherwise for that company. Without the authorisation of Parliament, the Government may not, by sale or in any other way, reduce the ownership ratio of the state in a company where the government controls half or more than half of the votes of all shares. Other chattels 28. The provisions on sale of real estate apply, as appropriate, to transfer of leased property and sale of leasehold and similar buildings that are chattels. 29. The Government may decide to transfer other chattels than such referred to in sections 27 and 28 if this property is no longer required for government activities, or if it has not been acquired with state funds.
16 Certain common provisions 30. Sales shall be carried out in a business-like manner unless there are special reasons for not so doing. 31. The provisions made regarding sales shall also apply to exchange of property. Disposition of sales revenue 32. If Parliament has decided upon sale of property, the revenue shall be accounted for as state budget revenue unless Parliament decides otherwise. In sections 33-36 rules are given concerning the use of the revenue when the Government has decided upon the sale. 33. If the property has been used in an area of operations for which Parliament has approved an investment plan, the Government may decide that the revenue shall be used to finance investments that are included in the plan. Provisions on the use of sales revenue in other cases are given in sections 34-36. 34. If the property has been financed with appropriations the part of the sales revenue corresponding to the book value of the property shall be accounted for as state budget revenue. The Government may decide that the residue of the revenue shall be used in the area of operations where the sold property has been used. If the sales revenue is insignificant, the Government may decide that the entire revenue shall be used in the area of operations where the sold property has been used. If real estate or shares have been sold, the entire revenue shall, however, be accounted for as state budget revenue. 35. If the property has been financed by loans, these loans shall be redeemed. The Government may decide that the residue of the revenue shall be used in the area of operations where the sold property has been used. If real estate or shares have been sold the residue of the revenue shall, however, be accounted for as state budget revenue. 36. If property has been financed in any other way than by appropriations or loans, the Government may decide that the entire revenue shall be used in the area of operations where the sold property has been used.
17 Follow-up, forecasts and outcome 37. The Government shall carefully follow up how the state's revenues, expenditure and borrowing develop in relation to the estimated or decided amounts. 38. On at least two occasions in the course of the fiscal year, the Government shall submit forecasts to Parliament concerning the outcome of state budget revenue and appropriations, and the state debt. The Government shall explain significant discrepancies between budgeted amounts and the estimated outcome. 39. At the latest four months after the end of a fiscal year, the Government shall submit a report to Parliament on the preliminary outcome of state budget revenue and appropriations. The Government shall explain significant discrepancies between budgeted amounts and the preliminary outcome. 40. As soon as possible, but no later than nine months after the concluded fiscal year, the Government shall have an annual report presented to Parliament. The annual report shall contain an operational statement, a balance sheet, and a cash flow statement. It shall also contain the final outcome of state budget revenues and appropriations. Development of public finance 41. The guidelines for economic policy referred to in the supplementary provision 3.2.1(3) to the Parliament Act may refer to decisions on the maximum amount for government expenditure (ceiling for government expenditure) or guidelines for the maximum amounts of expenditure in different areas of expenditure, or groups of areas of expenditure (expenditure limits). 42. If the Government intends to introduce a ceiling for government expenditure in the preparation of the proposed state budget, and in implementing the budgeted activities, the proposal for such an expenditure ceiling shall be included in the spring finance bill. If Parliament has decided to assign government expenditure to particular areas of expenditure, the Government shall present guidelines, in its spring finance bill, as to how it intends to allocate government expenditure to areas of expenditure, or groups of areas of expenditure, in the coming budget proposal. 43. Proposals on a ceiling for government expenditure or guidelines for expenditure
18 limits may refer to a longer period than one fiscal year. 44. If there is a risk for an overdraft of a ceiling set for government expenditure or expenditure limits applied, the Government shall take such necessary measures to avoid this as it has the authority to carry out, or propose necessary measures to Parliament. 45. If the Government does not present such a proposal as referred to in section 43, it shall, instead, present a long-term estimate of how government revenue, expenditure and borrowing will develop as a result of decisions already made, and under well-defined macro-economic conditions. Accounting and audit 46. The Government is accountable to Parliament for the state funds and other assets that are at the disposal of the Government pursuant to Chapter 9, article 8 of the Constitution. This accountability also includes operations carried out by government and the state's liabilities and other financial commitments. 47. Government accounting shall be carried out in accordance with generally accepted accounting practice. The accounts shall give a true and fair picture of the operations, the financial outcome and position, and of the management of the state's funds and other assets. Detailed provisions on accounting shall be decided by the Government, or by an agency appointed by the Government. 48. The state's operations shall be subject to audit. Concluding provisions 49. The Government may delegate its rights according to sections 12-14, 20-22, 26-29 and 33-36 to the agencies as decided by the Government. 50. This Act applies to Parliament and its agencies to the extent decided upon by the Parliament. This Act comes into force on...