Cap. 534 Art. 13Monitoring by the Fiscal Council.

(1) The Fiscal Council shall monitor, and at least once in each year provide an assessment of, whether any obligation under articles 7(1)(a) or 11(1), or to do things specified in a plan under article 11(2), is being complied with. Provided that, in the first year after the coming into force of this Act, and, if the Council is not yet constituted, the monitoring and assessment exercise shall be carried out by competent experts identified by the National Audit Office, selected on the basis of their knowledge, experience and independence. In the selection or appointment of such officials the National Audit Office shall have regard to the desirability of their having competence and experience in domestic or international macroeconomic or fiscal matters.

(2) An assessment under sub-article (1) shall include an assessment of whether, in the opinion of the Fiscal Council:

(a) exceptional circumstances exist or have ceased to exist,

(b) there is a failure such as is referred to in article 11(1), and

(c) during any period specified in a plan under article 11(2), progress towards securing compliance with the budgetary rule is being made in accordance with the plan.

(3) The Fiscal Council shall:

(a) endorse, as it considers appropriate, the macroeconomic and fiscal forecasts prepared by the Ministry for Finance and provide an assessment of the official forecasts, and

(b) analyse and assess whether the Government’s Medium Term Fiscal Policy Statement and Medium Term Fiscal Policy Strategy are compliant with the provisions of the Act, issue an opinion and any appropriate recommendations;

(c) in relation to each National Medium Term Fiscal Plan, Stability Programme, Annual Draft Budget and Annual Budget, provide an assessment of whether the fiscal stance for the year or years concerned is, in the opinion of the Fiscal Council, conducive to prudent economic and budgetary management, and in conformity with the provisions of this Act, including by reference to the provisions of the Stability and Growth Pact;

(e) analyse and issue an opinion and any recommendations pursuant to the Government’s publication of the half-yearly and the annual report on the execution of the budget including an ex post evaluation of macroeconomic and fiscal forecasts;

(f) provide information and advice to Government and the Public Accounts Committee concerning any legislative proposals on the maintenance of fiscal discipline and the transparency of the fiscal and the budgetary policies and processes.

(4) The Fiscal Council shall, as soon as is practicable after completing an assessment under this article, give a copy of the assessment to the Minister and publish the assessment within the period of ten days beginning on the day on which the copy is so given.

(5) The Fiscal Council shall be responsible to arrange for the dissemination in such form and manner, as considered appropriate, of such information as it may appear expedient, to give to the public:

(a) a fair representation of the medium-term sustainability of government finances and;

(b) a sufficient understanding of whether any obligation under articles 7(1) or 11(1), or to do things specified in a plan under article 11(2), is being complied with.

(6) The opinions and the recommendations of the Fiscal Council shall be considered by Government when preparing and approving its Medium Term Fiscal Strategy and the annual budget.

(7) If the Government does not accept an assessment of the Fiscal Council in relation to any of the matters referred to in sub-article (2), the Minister shall, within two months of being given a copy of the assessment under sub-article (4), prepare and lay before the House of Representatives a statement of the Government’s reasons for not accepting it.