Government Budget 2008

Program budgeting 2008 Executive summary

PROGRAM BUDGETING 2008

INTRODUCTION
The Ministry of Economy and Finance corresponding to the requirement of the citizens for more effective and transparent management of state resources, moved towards the planning and implementation of important reforms for the modernization of fiscal management, aiming at the improvement of the quality of public goods and services provided. Part of the reforms refers to the change in formulating, implementing, monitoring, and evaluating the State Budget, by adopting the system of program budgeting. Through program budgeting, the recording and control of the efficiency of public expenditure, the control of the effectiveness of various actions and the cost of each program, multiyear planning and the transparency in public finance are facilitated. Program budgeting does not only constitute a different way of presenting the State Budget. It involves a totally different philosophy regarding fiscal management and the overall operation of the public sector. The main parameter for its successful introduction is the strong will and the largest possible consensus for the required reforms. In this framework, the Ministry of Economy and Finance presents the special edition "Program Budgeting 2008", which accompanies the State Budget of the same year. The target of the Ministry of Economy and Finance is, that, this special edition will be the basis in 2008 for: the communication of the changes related to the new way of formulating, implementing, monitoring and evaluating the budget, the decision-making for corrections in the existing system of preparation and monitoring the ordinary budget, the public investment budget, as well as in the way off-budget accounts are treated, so that problems are minimised during the transition period and the dialogue with the line ministries and other spending agencies for the improvement and further analysis of the National Plan of Programs that is presented here.

November 2007

GOVERNMENT BUDGET 2008

PROGRAM BUDGETING 2008

PROGRAM BUDGETING

The state budget, in Greece, consists of two parts, with a distinguished formulation and implementation: the ordinary budget (OB) and the public investment budget (PIB). The public investment budget (PIB) has a program oriented structure, without though the qualitative characteristics of program budgeting, such as the matching between the inputs and the outputs and outcomes. The ordinary budget is an expenditure oriented budget. The most important weaknesses of the existing budgeting system are: Not explicit description of the policies and actions financed and the institutions that materialise them. There are certain government policies in which more than one ministry/agency are involved. The involvement of many agencies in the implementation of one policy without co-ordination causes overlaps, waste of resources and low effectiveness. Not efficient evaluation of the results of the implemented policies. Evaluations are not made systematically and most important, there is no matching between the inputs and the outputs and outcomes.

The detection of the weaknesses as well as the requirement of citizens for transparency and efficiency in public resources management, the need for reduction of fiscal deficits and at the same time the need for improving the quality of provided public goods and services, as well as the need for long term planning led to the decision of adopting the new form of program budgeting. National Plan of Programs (NPP) 2008 In order to classify the actions of the central government in policy areas, the procedure of recording and describing the basic government functions was followed. Accordingly, a system of classification and analysis of the government functions in a form of programs (NPP 2008) was formulated. Regarding public expenditure, the model of the Classification of Functions of Government (COFOG), as well as examples of other countries classifications were taken into account. The aim was to present the state budget in a form of functions and programs taking however into consideration the existing system of code classification of revenues and expenditure. National Plan of Programs 2008 is structured in functions and programs which cover the actions of the central government (table 1). The functions are analysed at the first level, and programs at the second level. The first function concerns budget revenues. Its classification in programs followed the basis of the existing analysis of budget revenues.

GOVERNMENT BUDGET 2008

PROGRAM BUDGETING 2008

Regarding budget expenditure, twelve (12) functions were developed consisting of seventy three (73) programs. The programs were developed taking into consideration the purpose of the financed policy. In NPP 2008 there is, for the first time, a single presentation of the ordinary budget and the public investment budget. The first program in each function is the Operational program. It includes actions for the operational support of the function ( salaries, rents, supplies etc) which could not be allocated to the other programs, for the time being, due to lack of information. In table 2 the detailed NPP 2008 (functions programs) is presented. In table 3 the functions, in which each ministry is involved, are presented In table 4 the ministries involved in each function are presented. In table 5 an analysis of the expenditure per function program is presented (functional classification) and economic category (or nature) of the expenditure (economic classification). Formulation process of the National Plan of Programs 2008 Revenues For the classification of revenues in NPP 2008, the existing classification, which is in accordance with international standards, was taken into consideration. Expenditure Each program of NPP 2008 corresponds to a number of certain expenditure codes (bottom line item codes). These codes constitute, in the existing budgeting system, the only bottom line accounting item for the formulation and implementation of the budgets expenditure. The matching, mentioned above, was necessary for the creation of a framework on which the transition from the existing system to the system of program budgeting will be based. Furthermore, it will help us during the period of parallel operation of the new and the existing budgeting system. In some cases, the information provided from a certain expenditure code line item concerning the nature of the policy/program financed is adequate. In other cases, however, the information provided is not clear or complete. The reason is that the existing system of expenditure coding and classification was formulated so as to serve the need for the correct description of the nature of the expenditure (for instance, salaries, supplies, etc). Moreover, the effort was rather to capture, using the system of expenditure coding and classification, the administrative structure of the ministries and other agencies, than to provide financial information on the policies programs implemented. Obviously, there are programs or/and functions in NPP 2008 that will and should be substantially changed during the process of its further development and enrichment in the future. For instance, through the financing of the function Local governing a lot of main policy fields (education, social welfare, culture, etc) are supported. The target, in the coming future, will be, having the necessary information, to incorporate the actions of the local government into the main policies/programs of the NPP.

GOVERNMENT BUDGET 2008

PROGRAM BUDGETING 2008

In many cases the allocation of the operational cost of a function in its programs is extremely difficult due to lack of information. In these cases, the administrative cost was allocated to the Operational program of the function. The public investment budget, in its existing structure, consists of twenty two sectors which are all incorporated in NPP 2008. The structure of the public investment budget will be reconsidered, in order to be better incorporated into NPP classification. Off-budget accounts are not included in NPP 2008 for the time being. The process of the analysis of these accounts is estimated to be completed by the end of 2008. The target is to incorporate off-budget accounts into the framework of NPP. Pilot program In the third chapter of the edition there is an analysis of the programs of the function Culture, Religion, Sports in specific actions (third level of analysis). The financial resources absorbed from ordinary budget, public investment budget and off budget accounts per action (table 6), as well as the personnel allocation (table 7) are presented.

Targets for 2008 The Ministry of Economy and Finance is determined to continue the effort of reforming the process with which the state budget is prepared and implemented. The special edition Program Budgeting 2008 will be for 2008 the basis for : Communication of the changes related to the new budgeting system. Decision making for corrective actions in the existing system of preparation and implementation of the ordinary budget, the public investment budget, as well as in the offbudget accounts management. The target is to detect potential difficulties during the transition period so as to limit any problems during the full implementation of the system. Discussion with the ministries and other agencies for the improvement and further analysis of NPP.

Additionally, the further development of pilot programs is planned in order to detect any problems of implementation of the new budgeting system. The decision making for necessary changes in the legal framework, and The elaboration of a timetable for the implementation of these reforms. will be completed in 2008.

GOVERNMENT BUDGET 2008

PROGRAM BUDGETING 2008

Table 1 National Plan of Programs (NPP) 2008 per function (thousand euros)
Budget 2008 Code Operations Ordinary budget Investment budget 9.300.000 9.300.000 40.000 193.000 2.731.000 1.260.000 310.000 13.000 74.000 1.423.000 (0) 578.000 363.000 2.052.000 263.000 9.300.000 Total % Participation % GDP

00

Revenues Total Revenues

91.088.000 91.088.000 3.386.814 640.354 5.082.976 6.564.657 608.122 5.802.785 3.231.609 38.203.128 (36.682.040) 1.420.801 72.068 541.506 25.533.181 91.088.000

100.388.000 100.388.000 3.426.814 833.354 7.813.976 7.824.657 918.122 5.815.785 3.305.609 39.626.128 (36.682.040) 1.998.801 435.068 2.593.506 25.796.181 100.388.000 3,4 0,8 7,8 7,8 0,9 5,8 3,3 39,5 (36,5) 2,0 0,4 2,6 25,7 100,0

40,9 40,9 1,4 0,3 3,2 3,2 0,4 2,4 1,3 16,1 (14,9) 0,8 0,2 1,1 10,5 40,9 245.449.000

01 02 03 04 05 06 07 08

External affairs Governments specific domestic actions Local governing Education Culture, religion, sports Defence Public safety and justice Economic affairs and development

(08.03) Public debt management 09 10 11 12 Rural development Environment and housing Infrastructures and transports Health and social policy Total Expenses (01 - 12) Gross Domestic Product (GDP)

GOVERNMENT BUDGET 2008

PROGRAM BUDGETING 2008

Diagram 1 Composition of government budget 2008 expenses

Governments specific domestic actions 0,8%

External affairs 3,4% Health and social policy 25,7%

Local governing 7,8% Education 7,8% Culture, religion, sports 0,9%

Infrastructures and transports 2,6% Environment and housing 0,4% Rural development 2,0%

Defence 5,8%

Public safety and justice 3,3%

Economic affairs and development 39,5%

Diagram 2 Composition of government budget 2008 expenses before public debt

Education 12,3%

Culture, Religion, Sports 1,4% Defence 9,1%

Public Safety and Justice 5,2% Economic Affairs and Development 4,6% Rural Development 3,1%

Local Governing 12,3%

Governments Specific Domestic Actions 1,3%

Environment and Housing 0,7% Infrastructures and Transports 4,1%

External Affairs 5,4%

Health and Social Policy 40,5%

GOVERNMENT BUDGET 2008

PROGRAM BUDGETING 2008

Diagram 3 Government budget 2008 as % of GDP

Health and social policy

Infrastructures and transports

Environment and housing

Rural development Economic affairs and development Public safety and justice

State functions

Defence

Culture, religion, sports

Education

Local governing Governments specific domestic actions External affairs 0,0 2,0 4,0 6,0 8,0 10,0 12,0 14,0 16,0 18,0

% GDP

GOVERNMENT BUDGET 2008

PROGRAM BUDGETING 2008

Table 2 National Plan of Programs (NPP) 2008 per function and program (thousand euros)
Budget 2008 Code Functions Programs Ordinary budget 91.088.000 52.105.000 1.750.000 1.122.000 543.000 34.562.000 1.006.000 0 0 0 91.088.000 Investment budget 9.300.000 0 0 0 0 0 0 240.000 4.292.000 4.768.000 9.300.000 Total 100.388.000 52.105.000 1.750.000 1.122.000 543.000 34.562.000 1.006.000 240.000 4.292.000 4.768.000 100.388.000

00

Revenues 00.01 Tax revenue 00.02 Revenue from property and business activity of the state 00.03 Other non-tax revenue 00.04 00.05 00.06 00.07 Inflows from E.U.-Ordinary Budget (O.B.) Borrowing-O.B. Other specific non-tax revenue Own revenue-investment budget (I.B.)

00.08 Inflows from E.U.- I.B. 00.09 Borrowing - I.B. TOTAL REVENUES

01 01.00 01.01 01.02 01.03 01.04 01.05 02 02.00 02.01 02.02 02.03

External affairs Operational program Promotion of national affairs Diplomatic relations Greek communities abroad European union International relations Governments specific domestic actions Operational program Executive and legislative bodies Public administration Citizens rights protection

3.386.814 92.681 3.115 261.229 73.430 2.682.000 274.359 640.354 129.380 292.766 111.212 28.089 20.032 58.875 5.082.976 4.974.101 0 92.628 16.247 6.564.657 144.199 4.823.350 1.489.084 55.383 52.641 0 608.122 183.501 13.542 127.188 53.774 230.117

40.000 40.000 0 0 0 0 0 193.000 0 4.000 72.000 0 7.000 110.000 2.731.000 0 1.201.000 1.530.000 0 1.260.000 0 0 0 461.000 0 799.000 310.000 0 255.000 0 45.000 10.000

3.426.814 132.681 3.115 261.229 73.430 2.682.000 274.359 833.354 129.380 296.766 183.212 28.089 27.032 168.875 7.813.976 4.974.101 1.201.000 1.622.628 16.247 7.824.657 144.199 4.823.350 1.489.084 516.383 52.641 799.000 918.122 183.501 268.542 127.188 98.774 240.117

02.04 Mass media 02.90 Miscellaneous programs 03 Local governing 03.01 Local governments 03.02 Prefectures- infrastructures 03.03 Support of local governments - infrastructures 03.04 local governing of areas of specific interest 04 04.00 04.01 04.02 04.03 Education Operational program Primary and secondary education Higher education & intellectual institutions Education and vocational training

04.04 Youth 04.90 Miscellaneous programs 05 05.01 05.02 05.03 05.04 Culture, religion, sports 05.00 Operational program Ancient culture - byzantine and cultural inheritance Modern culture Sports Religion

GOVERNMENT BUDGET 2008

PROGRAM BUDGETING 2008

Table 2 National Plan of Programs (NPP) 2008 per function and program (thousand euros)
Budget 2008 Code Functions Programs Ordinary budget 5.802.785 55.778 1.943.882 762.835 1.145.349 1.882.350 12.591 3.231.609 38.263 1.774.194 242.421 479.591 576.268 120.622 250 38.203.128 77.087 1.207.857 36.682.040 137.272 38.352 10.851 49.670 0 1.420.801 102.690 1.174.165 143.946 72.068 0 59.143 12.925 541.506 140.296 401.210 0 25.533.181 44.677 3.375.130 1.682.160 6.682.541 13.574.958 164.788 8.927 91.088.000 Investment budget 13.000 1.000 0 0 0 12.000 0 74.000 39.000 0 35.000 0 0 0 0 1.423.000 192.000 0 0 93.000 706.000 111.000 72.000 249.000 578.000 0 491.000 87.000 363.000 93.000 0 270.000 2.052.000 0 2.017.000 35.000 263.000 0 209.000 0 0 0 54.000 0 9.300.000 Total 5.815.785 56.778 1.943.882 762.835 1.145.349 1.894.350 12.591 3.305.609 77.263 1.774.194 277.421 479.591 576.268 120.622 250 39.626.129 269.087 1.207.857 36.682.040 230.272 744.352 121.851 121.670 249.000 1.998.801 102.690 1.665.165 230.946 435.068 93.000 59.143 282.925 2.593.506 140.296 2.418.210 35.000 25.796.181 44.677 3.584.130 1.682.160 6.682.541 13.574.958 218.788 8.927 100.388.000

06

Defence 06.00 Operational program 06.01 Army 06.02 06.03 06.04 06.05 Navy Aviation Military equipment and infrastructures Operations abroad Public safety and justice 07.00 Operational program 07.01 Urban and rural safety 07.02 Safety of harbours and seas 07.03 07.04 07.05 07.90 Civil protection - physical disasters Judicial services Penitential system Miscellaneous programs Economic affairs and development 08.01 Fiscal planning 08.02 Tax administration and fiscal management 08.03 Public debt management 08.04 08.05 08.06 08.07 08.90 Research and technology Trade industry- handcraft Energy Tourism Miscellaneous programs Rural development 09.00 Operational program 09.01 Agriculture-farming 09.02 Forests - fishery - hunting

07

08

09

10

Environment and housing 10.00 Operational program 10.01 Environment 10.02 Housing

11

Infrastructures and transports 11.00 Operational program 11.01 Transports 11.02 Communications

12

Health and social policy 12.00 Operational program 12.01 Health 12.02 12.03 12.04 12.05 12.90 Welfare Pensions-medical care for civil servants Pensions-medical care for other groups Employment Miscellaneous programs TOTAL EXPENSES (01 - 12)

GOVERNMENT BUDGET 2008

PROGRAM BUDGETING 2008

Table 3 National Plan of Programs (NPP) 2008 per ministry and function (thousand euros)
Budget 2008 Code Ministries Functions Ordinary budget 91.088.000 91.088.000 91.088.000 Investment Budget 9.300.000 9.300.000 9.300.000 Total 100.388.000 100.388.000 100.388.000

23. Ministry of Economy and Finance 00 Revenues Total Revenues

01. Presidency of the Republic 02 Governments specific domestic actions 03. Parliament 01 02 05 12 External affairs Governments specific domestic actions Culture, religion, sports Health and social policy 07. Ministry of Internal Affairs 01 02 03 04 05 07 08 12 External affairs Governments specific domestic actions Local governing Education Culture, religion, sports Public safety and justice Economic affairs and development Health and social policy 09. Ministry of Foreign Affairs 01 03 04 05 08 External affairs Local governing Education Culture, religion, sports Economic affairs and development 11. Ministry of National Defence 01 02 04 05 06 07 08 12 External affairs Governments specific domestic actions Education Culture, religion, sports Defence Public safety and justice Economic affairs and development Health and social policy 15. Ministry of Health and Welfare 01 04 08 12 External affairs Education Economic affairs and development Health and social policy 17. Ministry of Justice 01 02 04 07 08 10 12 External affairs Governments specific domestic actions Education Public safety and justice Economic affairs and development Environment and housing Health and social policy 19. Ministry of National Education and Religious Affairs 01 04 05 12 External affairs Education Culture, religion, sports Health and social policy

5.400 5.400 211.950 1.200 203.825 1.400 5.525 5.950.297 3.613 230.340 3.514.915 4.790 450 2.181.721 0 14.468 471.760 469.510 160 850 40 1.200 6.049.740 84.604 58.865 42 1.302 5.802.505 35.896 20 66.506 5.390.362 3.335 4.500 520 5.382.007 572.820 53 4.991 2.500 555.153 270 9.715 138 6.775.710 59.600 6.405.321 240.788 70.000

0 0 4.000 0 4.000 0 0 932.000 0 182.000 745.000 0 0 0 5.000 0 40.000 40.000 0 0 0 0 16.000 0 0 0 0 13.000 0 3.000 0 210.000 0 0 1.000 209.000 39.000 0 0 0 38.000 1.000 0 0 799.000 0 799.000 0 0

5.400 5.400 215.950 1.200 207.825 1.400 5.525 6.882.297 3.613 412.340 4.259.915 4.790 450 2.181.721 5.000 14.468 511.760 509.510 160 850 40 1.200 6.065.740 84.604 58.865 42 1.302 5.815.505 35.896 3.020 66.506 5.600.362 3.335 4.500 1.520 5.591.007 611.820 53 4.991 2.500 593.153 1.270 9.715 138 7.574.710 59.600 7.204.321 240.788 70.000

GOVERNMENT BUDGET 2008

10

PROGRAM BUDGETING 2008

Table 3 National Plan of Programs (NPP) 2008 per ministry and function (thousand euros)
Budget 2008 Code Ministries Functions Ordinary budget 358.831 1.360 10 1.103 355.558 800 50.589.968 2.712.447 12.916 1.456.503 1.360 2.780 212.250 37.915.757 0 8.275.955 21.090 140 10.200 9.192 1.558 1.320.173 3.000 10.900 23.110 1.283.163 159.922 3.020 3.620 0 0 62.353 90.912 17 9.984.660 1.500 0 0 9.983.160 210.164 29.922 11.843 5 162.394 6.000 366.200 2.904 11 280 16 362.985 4 Investment Budget 315.000 0 0 0 300.000 15.000 1.133.000 0 0 410.000 0 0 0 721.000 2.000 0 15.000 0 0 5.000 10.000 493.000 0 0 0 493.000 2.235.000 0 0 23.000 83.000 362.000 1.767.000 0 496.000 0 441.000 1.000 54.000 530.000 0 0 0 530.000 0 285.000 0 0 0 0 285.000 0 Total 673.831 1.360 10 1.103 655.558 15.800 51.722.968 2.712.447 12.916 1.866.503 1.360 2.780 212.250 38.636.757 2.000 8.275.955 36.090 140 10.200 14.192 11.558 1.813.173 3.000 10.900 23.110 1.776.163 2.394.922 3.020 3.620 23.000 83.000 424.353 1.857.912 17 10.480.660 1.500 441.000 1.000 10.037.160 740.164 29.922 11.843 5 692.394 6.000 651.200 2.904 11 280 16 647.985 4

21. Ministry of Culture 01 03 04 05 08 External affairs Local governing Education Culture, religion, sports Economic affairs and development 23. Ministry of Economy and Finance 01 02 03 04 05 07 08 09 12 External affairs Governments specific domestic actions Local governing Education Culture, religion, sports Public safety and justice Economic affairs and development Rural development Health and social policy 25. Ministry of Macedonia and Thrace 01 02 03 05 External affairs Governments specific domestic actions Local governing Culture, religion, sports 29. Ministry of Rural Development and Food 01 04 08 09 External affairs Education Economic affairs and development Rural development 31. Ministry of the Environment, Physical Planning and Public Works 01 07 08 09 10 11 12 External affairs Public safety and justice Economic affairs and development Rural development Environment and housing Infrastructures and transports Health and social policy 33. Ministry of Employment and Social Protection 01 04 10 12 External affairs Education Environment and housing Health and social policy 35. Ministry of Development 01 02 03 08 12 External affairs Governments specific domestic actions Local governing Economic affairs and development Health and social policy 39. Ministry of Transport and Communications 01 05 06 08 11 12 External affairs Culture, religion, sports Defence Economic affairs and development Infrastructures and transports Health and social policy

GOVERNMENT BUDGET 2008

11

PROGRAM BUDGETING 2008

Table 3 National Plan of Programs (NPP) 2008 per ministry and function (thousand euros)
Budget 2008 Code Ministries Functions Ordinary budget 1.406.675 7.212 247 9.420 5.750 867 242.969 60 35.060 1.105.090 66.380 210 16.500 49.670 104.770 3.024 101.727 20 57.593 15.040 2.961 39.591 1.013.536 160 92.771 96.000 407 9.700 137.638 52.549 624.311 91.088.000 Investment Budget 99.000 0 0 41.000 20.000 0 36.000 2.000 0 0 72.000 0 0 72.000 7.000 0 7.000 0 0 0 0 0 1.580.000 0 1.530.000 0 0 50.000 0 0 0 9.300.000 Total 1.505.675 7.212 247 50.420 25.750 867 278.969 2.060 35.060 1.105.090 138.380 210 16.500 121.670 111.770 3.024 108.727 20 57.593 15.040 2.961 39.591 2.593.536 160 1.622.771 96.000 407 59.700 137.638 52.549 624.311 100.388.000

41. Ministry of Mercantile Marine, Aegean Sea and Island Policy 01 02 03 04 05 07 08 11 12 External affairs Governments specific domestic actions Local governing Education Culture, religion, sports Public safety and justice Economic affairs and development Infrastructures and transports Health and social policy 45. Ministry of Tourism 01 04 08 External affairs Education Economic affairs and development 47. Secretary General for the Communication, Secretary General for the Information External affairs Governments specific domestic actions Economic affairs and development Regional Services of Ministries 04 05 08 Education Culture, religion, sports Economic affairs and development Regions 01 03 04 05 08 09 11 12 External affairs Local governing Education Culture, religion, sports Economic affairs and development Rural development Infrastructures and transports Health and social policy TOTAL EXPENSES

01 02 08

GOVERNMENT BUDGET 2008

12

PROGRAM BUDGETING 2008

Table 4 National Plan of Programs (NPP) 2008 per function and ministry (thousand euros)
Budget 2008 Code Functions Ministries Ordinary budget Investment budget 9.300.000 9.300.000 9.300.000 Total

00

REVENUES 23 Ministry of Economy and Finance Total Revenues

91.088.000 91.088.000 91.088.000

100.388.000 100.388.000 100.388.000

01

External affairs 03 Parliament 07 Ministry of Internal Affairs 09 11 15 17 19 21 23 25 29 31 33 35 39 41 45 47 99 Ministry of Foreign Affairs Ministry of National Defence Ministry of Health and Welfare Ministry of Justice Ministry of National Education and Religious Affairs Ministry of Culture Ministry of Economy and Finance Ministry of Macedonia and Thrace Ministry of Rural Development and Food Ministry of the Environment, Physical Planning and Public Works Ministry of Employment and Social Protection Ministry of Development Ministry of Transport and Communications Ministry of Mercantile Marine, Aegean Sea and Island Policy Ministry of Tourism Secretary General for the Communication, Secretary General for the Information Regions Governments specific domestic actions 01 03 07 11 17 23 25 35 Presidency of the Republic Parliament Ministry of Internal Affairs Ministry of National Defence Ministry of Justice Ministry of Economy and Finance Ministry of Macedonia and Thrace Ministry of Development

3.386.814 1.200 3.613 469.510 84.604 3.335 53 59.600 1.360 2.712.447 140 3.000 3.020 1.500 29.922 2.904 7.212 210 3.024 160 640.354 5.400 203.825 230.340 58.865 4.991 12.916 10.200 11.843 247 101.727 5.082.976 3.514.915 160 10 1.456.503 9.192 5 9.420 92.771

40.000 0 0 40.000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 193.000 0 4.000 182.000 0 0 0 0 0 0 7.000 2.731.000 745.000 0 0 410.000 5.000 0 41.000 1.530.000

3.426.814 1.200 3.613 509.510 84.604 3.335 53 59.600 1.360 2.712.447 140 3.000 3.020 1.500 29.922 2.904 7.212 210 3.024 160 833.354 5.400 207.825 412.340 58.865 4.991 12.916 10.200 11.843 247 108.727 7.813.976 4.259.915 160 10 1.866.503 14.192 5 50.420 1.622.771

02

41 Ministry of Mercantile Marine, Aegean Sea and Island Policy 47 Secretary General for the Communication, Secretary General for the Information 03 Local governing 07 Ministry of Internal Affairs 09 Ministry of Foreign Affairs 21 23 25 35 41 99 Ministry of Culture Ministry of Economy and Finance Ministry of Macedonia and Thrace Ministry of Development Ministry of Mercantile Marine, Aegean Sea and Island Policy Regions

GOVERNMENT BUDGET 2008

13

PROGRAM BUDGETING 2008

Table 4 National Plan of Programs (NPP) 2008 per function and ministry (thousand euros)
Budget 2008 Code Functions Ministries Ordinary budget 6.564.657 4.790 850 42 4.500 2.500 6.405.321 1.103 1.360 10.900 0 5.750 16.500 15.040 96.000 608.122 1.400 450 40 1.302 240.788 355.558 2.780 1.558 11 867 2.961 407 5.802.785 5.802.505 280 3.231.609 2.181.721 35.896 555.153 212.250 3.620 242.969 38.203.128 0 1.200 20 520 270 800 37.915.757 23.110 0 Investment budget 1.260.000 0 0 0 0 0 799.000 0 0 0 441.000 20.000 0 0 0 310.000 0 0 0 0 0 300.000 0 10.000 0 0 0 0 13.000 13.000 0 74.000 0 0 38.000 0 0 36.000 1.423.000 5.000 0 3.000 1.000 1.000 15.000 721.000 0 23.000 Total 7.824.657 4.790 850 42 4.500 2.500 7.204.321 1.103 1.360 10.900 441.000 25.750 16.500 15.040 96.000 918.122 1.400 450 40 1.302 240.788 655.558 2.780 11.558 11 867 2.961 407 5.815.785 5.815.505 280 3.305.609 2.181.721 35.896 593.153 212.250 3.620 278.969 39.626.128 5.000 1.200 3.020 1.520 1.270 15.800 38.636.757 23.110 23.000

04 09 11 15 17 19 21 23 29 33 41 45 90 99 05 03 07 09 11 19 21 23 25 39 41 90 99 06

Education 07 Ministry of Internal Affairs Ministry of Foreign Affairs Ministry of National Defence Ministry of Health and Welfare Ministry of Justice Ministry of National Education and Religious Affairs Ministry of Culture Ministry of Economy and Finance Ministry of Rural Development and Food Ministry of Employment and Social Protection Ministry of Mercantile Marine, Aegean Sea and Island Policy Ministry of Tourism Regional Services of Ministries Regions Culture, religion, sports Parliament Ministry of Internal Affairs Ministry of Foreign Affairs Ministry of National Defence Ministry of National Education and Religious Affairs Ministry of Culture Ministry of Economy and Finance Ministry of Macedonia and Thrace Ministry of Transport and Communications Ministry of Mercantile Marine, Aegean Sea and Island Policy Regional Services of Ministries Regions Defence 11 Ministry of National Defence 39 Ministry of Transport and Communications

07 11 17 23 31 41 08

Public safety and justice 07 Ministry of Internal Affairs Ministry of National Defence Ministry of Justice Ministry of Economy and Finance Ministry of the Environment, Physical Planning and Public Works Ministry of Mercantile Marine, Aegean Sea and Island Policy Economic affairs and development 07 Ministry of Internal Affairs 09 Ministry of Foreign Affairs 11 Ministry of National Defence 15 17 21 23 29 Ministry of Health and Welfare Ministry of Justice Ministry of Culture Ministry of Economy and Finance Ministry of Rural Development and Food

31 Ministry of the Environment, Physical Planning and Public Works

GOVERNMENT BUDGET 2008

14

PROGRAM BUDGETING 2008

Table 4 National Plan of Programs (NPP) 2008 per function and ministry (thousand euros)
Budget 2008 Code 35 39 41 45 47 Functions Ministries Ministry of Development Ministry of Transport and Communications Ministry of Mercantile Marine, Aegean Sea and Island Policy Ministry of Tourism Secretary General for the Communication, Secretary General for the Information Ordinary budget 162.394 16 60 49.670 20 39.591 9.700 1.420.801 0 1.283.163 0 137.638 72.068 9.715 62.353 0 541.506 90.912 362.985 35.060 52.549 25.533.181 5.525 14.468 66.506 5.382.007 138 70.000 8.275.955 17 9.983.160 6.000 4 1.105.090 624.311 91.088.000 Investment budget 530.000 0 2.000 72.000 0 0 50.000 578.000 2.000 493.000 83.000 0 363.000 0 362.000 1.000 2.052.000 1.767.000 285.000 0 0 263.000 0 0 0 209.000 0 0 0 0 54.000 0 0 0 0 9.300.000 Total 692.394 16 2.060 121.670 20 39.591 59.700 1.998.801 2.000 1.776.163 83.000 137.638 435.068 9.715 424.353 1.000 2.593.506 1.857.912 647.985 35.060 52.549 25.796.181 5.525 14.468 66.506 5.591.007 138 70.000 8.275.955 17 10.037.160 6.000 4 1.105.090 624.311 100.388.000

90 Regional Services of Ministries 99 Regions 09 Rural development 23 Ministry of Economy and Finance 29 Ministry of Rural Development and Food 31 Ministry of the Environment, Physical Planning and Public Works 99 Regions 10 Environment and housing 17 Ministry of Justice 31 Ministry of the Environment, Physical Planning and Public Works 33 Ministry of Employment and Social Protection 11 31 39 41 99 12 Infrastructures and transports Ministry of the Environment, Physical Planning and Public Works Ministry of Transport and Communications Ministry of Mercantile Marine, Aegean Sea and Island Policy Regions Health and social policy 03 Parliament 07 Ministry of Internal Affairs 11 Ministry of National Defence 15 17 19 23 31 33 35 39 Ministry of Health and Welfare Ministry of Justice Ministry of National Education and Religious Affairs Ministry of Economy and Finance Ministry of the Environment, Physical Planning and Public Works Ministry of Employment and Social Protection Ministry of Development Ministry of Transport and Communications

41 Ministry of Mercantile Marine, Aegean Sea and Island Policy 99 Regions TOTAL EXPENSES (01 - 12)

GOVERNMENT BUDGET 2008

15

PROGRAM BUDGETING 2008

Table 5 National Plan of Programs (NPP) 2008 and expense categories (thousand euros)
Code Economic classification Investment budget Functional classifications (1) 01 External affairs 01.00 Operational program 01.01 Promotion of national affairs 01.02 Diplomatic relations 01.03 Greek communities abroad 01.04 European union 01.05 International relations 02 Governments specific domestic actions 02.00 Operational program 02.01 Executive and legislative bodies 02.02 Public administration 02.03 Citizens rights protection 02.04 Mass media 02.90 Miscellaneous programs 03 Local governing 03.01 Local governments 03.02 Prefectures- infrastructures 03.03 Support of local governments - infrastructures 03.04 local governing of areas of specific interest 04 Education 04.00 Operational program 04.01 Primary and secondary education 04.02 Higher education & intellectual institutions 04.03 Education and vocational training 04.04 Youth 04.90 Miscellaneous programs 05 Culture, religion, sports 05.00 Operational program 05.01 Ancient culture - Byzantine and cultural inheritance 05.02 Modern culture 05.03 Sports 05.04 Religion 06 Defence 06.00 Operational program 06.01 Army 06.02 Navy 06.03 Aviation 06.04 Military equipment and infrastructures 06.05 Operations abroad 07 Public safety and justice 07.00 Operational program 07.01 Urban and rural safety 07.02 Safety of harbours and seas 07.03 Civil protection - physical disasters 07.04 Judicial services 07.05 Penitential system 07.90 Miscellaneous programs 08 Economic affairs and development 08.01 Fiscal planning 08.02 Tax administration and fiscal management 08.03 Public debt management 08.04 Research and technology 08.05 Trade industry- handcraft 08.06 Energy 08.07 Tourism 08.90 Miscellaneous programs Ordinary budget Salaries Operating and wages expenses (2) (3) 119.706 48.741 0 65.669 5.296 0 0 153.969 51.706 72.188 12.993 6.439 937 9.707 20.140 0 0 14.099 6.041 66.147 10.108 11.228 43.232 1.167 414 0 12.350 9.030 0 1.880 1.440 0 1.184.753 37.937 477.606 215.962 372.591 77.350 3.307 355.295 10.123 163.182 28.718 110.621 20.474 22.177 0 318.292 16.320 288.262 0 887 3.157 4.427 5.240 0 Subsidies grants (4) 136.787 2.250 0 0 11.272 0 123.265 88.320 4.050 59.240 430 7.500 17.100 0 49.156 46.785 0 1.170 1.201 791.159 640 204.378 494.049 44.292 47.800 0 153.034 0 8.047 106.590 33.001 5.397 5.650 601 0 0 49 5.000 0 9.280 0 4.700 55 3.620 0 655 250 199.380 6.450 40.260 0 108.040 12.320 0 32.310 0 Returned resources (5) 2.682.000 0 0 0 0 2.682.000 0 14.420 14.420 0 0 0 0 0 2.965.998 2.965.998 0 0 0 600 0 0 600 0 0 0 10.000 0 0 10.000 0 0 0 0 0 0 0 0 0 20.650 20.570 0 80 0 0 0 0 257.721 400 257.300 0 0 0 21 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Pensions (6) Total central Miscellagovernment neous ex- Public debt budget penditure (7) (8) 173.992 5.500 3.115 5.500 8.783 0 151.094 23.481 11.454 5.901 4.356 1.595 165 10 1.411.215 1.411.200 0 0 15 4.606 503 1.445 41 1.502 1.115 0 11.840 1.005 5.495 335 5.005 0 1.810.910 10.000 130 0 780 1.800.000 0 103.869 770 64.810 565 36.724 0 1.000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3.426.814 132.681 3.115 261.229 73.430 2.682.000 274.359 833.354 129.380 296.766 183.212 28.089 27.032 168.875 7.813.976 4.974.101 1.201.000 1.622.628 16.247 7.824.657 144.199 4.823.350 1.489.084 516.383 52.641 799.000 918.122 183.501 268.542 127.188 98.774 240.117 5.815.785 56.778 1.943.882 762.835 1.145.349 1.894.350 12.591 3.305.609 77.263 1.774.194 277.421 479.591 576.268 120.622 250 39.626.128 269.087 1.207.857 36.682.040 230.272 744.352 121.851 121.670 249.000

40.000 274.329 40.000 0 0 0 0 0 193.000 0 4.000 72.000 0 7.000 110.000 2.731.000 0 1.201.000 1.530.000 0 1.260.000 0 0 0 461.000 0 799.000 310.000 0 255.000 0 45.000 10.000 13.000 1.000 0 0 0 12.000 0 74.000 39.000 0 35.000 0 0 0 0 1.423.000 192.000 0 0 93.000 706.000 111.000 72.000 249.000 36.190 0 190.060 48.079 0 0 360.164 47.750 155.438 93.433 12.555 1.830 49.158 636.467 550.118 0 77.359 8.990 5.702.145 132.948 4.606.301 951.163 8.422 3.312 0 420.898 173.466 0 8.384 14.328 224.720 2.801.472 7.240 1.466.146 546.873 771.929 0 9.284 2.742.515 6.800 1.541.502 213.003 328.626 555.794 96.790 0 677.838 50.837 560.672 0 28.110 21.716 5.383 11.120 0

67.857 36.682.040 3.080 0 61.363 0 0 36.682.040 235 0 1.159 0 1.020 0 1.000 0 0 0

GOVERNMENT BUDGET 2008

16

PROGRAM BUDGETING 2008

Table 5 National Plan of Programs (NPP) 2008 and expense categories (thousand euros)
Code Economic classification Investment budget Functional classifications (1) 09 Rural development 09.00 Operational program 09.01 Agriculture-farming 09.02 Forests - fishery - hunting 10 Environment and housing 10.00 Operational program 10.01 Environment 10.02 Housing 11 Infrastructures and transports 11.00 Operational program 11.01 Transports 11.02 Communications 12 Health and social policy 12.00 Operational program 12.01 Health 12.02 Welfare 12.03 Pensions-medical care for civil servants 12.04 Pensions-medical care for other groups 12.05 Employment 12.90 Miscellaneous programs Total Expenses (01-12) % participation Column (1) (2) (3) (4) (5) (6) (7) (8) 578.000 0 491.000 87.000 363.000 93.000 0 270.000 2.052.000 0 2.017.000 35.000 263.000 0 209.000 0 0 0 54.000 0 Ordinary budget Salaries Operating and wages expenses (2) 186.060 80.760 5.974 99.326 30.310 0 22.160 8.150 231.161 130.305 100.856 0 3.210.298 38.196 3.035.105 101.290 0 0 35.450 257 (3) 51.130 18.880 718 31.532 7.538 0 5.973 1.565 23.142 8.928 14.214 0 30.062 5.761 16.795 690 0 0 5.958 858 2.342.524 2,3 Subsidies grants (4) 423.373 0 423.373 0 3.210 0 0 3.210 270.710 650 270.060 0 13.261.565 500 287.270 1.570.585 1.155.500 10.120.000 120.110 7.600 15.391.624 15,4 Returned resources (5) 62.088 100 61.900 88 31.000 0 31.000 0 16.000 0 16.000 0 1.275.458 0 7.500 0 0 1.267.958 0 0 7.335.935 7,3 Pensions (6) 0 0 0 0 0 0 0 0 0 0 0 0 5.412.000 0 0 0 5.412.000 0 0 0 5.412.000 5,4 Total central Miscellagovernment neous ex- Public debt budget penditure (7) (8) 698.150 2.950 682.200 13.000 10 0 10 0 494 413 81 0 2.343.798 220 28.460 9.595 115.041 2.187.000 3.270 212 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1.998.801 102.690 1.665.165 230.946 435.068 93.000 59.143 282.925 2.593.506 140.296 2.418.210 35.000 25.796.181 44.677 3.584.130 1.682.160 6.682.541 13.574.958 218.788 8.927 100.388.000 100,0

9.300.000 17.273.656 9,3 17,2

6.650.221 36.682.040 6,6 36,5

Expense codes 8000 0100, 0200, 0300, 0400, 0500 (excluded 0518, 0540, 0550), 2223, 2226, 2228, 2229, 2271, 2277, 2800, 5113, 5194 0800, 1000, 0700 2000 (excluded 2223, 2226, 2228, 2229, 2271, 2277, 2800) 3000 (excluded 3300) 0600 0518, 0540, 0550, 3300, 4000, 5000 (excluded 5113, 5194, 5280), 6400, 6500, 6600, 6700, 6800, 6900, 7000 5280, 6100, 6200, 6300

GOVERNMENT BUDGET 2008

17

PROGRAM BUDGETING 2008

Diagram 1.4 Comparative presentation of the existing and new budgeting systems Existing Budgeting System
Government Budget Investment Budget Off Budget Accounts

Ordinary Budget

Ministries, Agencies, Regions

Ministries, Regions

Various forms of accounting

treatment

Collective decisions on investment projects

Subagencies / subbodies

Sections

Projects

Expenditure codes of Ordinary Budget

Expenditure codes of Investment Budget

Program Budgeting
Government Budget

Functions

Programs

Actions

Accounting

GOVERNMENT BUDGET 2008

18

PROGRAM BUDGETING 2008

Table 6 Function 05 Culture Religion - Sports (in thousand euros)

Budget outturn report of 2006 Code Programs / actions Ordinary Budget 160.918 160.918 21.552 6.533 2.844 1.649 10.526 111.550 13.874 66.289 15.258 11.276 4.853 57.555 12.596 36.104 8.855 0 210.600 209.115 1.485 2.684 2.684 564.859 Investment Budget 292 292 132.810 50.111 69.593 1.140 11.966 62.223 6.965 13.456 2.373 9.301 30.128 29.748 0 0 0 29.748 12.059 0 12.059 582 582 237.714 Off budget Accounts 62.776 62.776 0 0 0 0 0 25.298 1.769 2.819 356 1.039 19.312 162.384 37.387 115.625 8.578 794 0 0 0 0 0 250.458 Total

05.00 05.00.00 05.01 05.01.00 05.01.01 05.01.02 05.01.03 05.02 05.02.00 05.02.01 05.02.02 05.02.03 05.02.04 05.03 05.03.00 05.03.01 05.03.02 05.03.03 05.04 05.04.00 05.04.01 05.90 05.90.00

Operational Program Operational support of culture Ancient Times - Byzantine - Cultural Inheritance Excavations improvement of archaeological areas. Fixing restoration of monuments buildings Archaeological and historical museums Folklore and tradition Cultural Institutions Modern Culture Literature Theatre Music - Dance Cinema Audiovisual Arts Plastic Arts Cultural activities Sports Administration development promotion of sports Competitive Sports Amateur sports Sports Infrastructures Religion Administration Religious entities Religious Inheritance Miscellaneous Programs Miscellaneous Programs of Culture

223.986 223.986 154.362 56.644 72.437 2.789 22.492 199.071 22.608 82.564 17.900 21.616 54.293 249.687 49.983 151.729 17.433 30.542 222.659 209.115 13.544 3.266 3.266 1.053.031

TOTAL EXPENDITURE (05.00 05.90)

GOVERNMENT BUDGET 2008

19

PROGRAM BUDGETING 2008

Table 7 Personnel of function 05 Culture Religion - Sports

Personnel 31/12/2006 Ministries Culture 05.00 05.00.00 05.01 05.01.00 05.01.01 05.01.02 05.01.03 05.02 05.02.00 05.02.01 05.02.02 05.02.03 05.02.04 05.03 05.03.00 05.03.01 05.03.02 05.03.03 05.04 05.04.00 05.04.01 05.90 05.90.00 Operational Program Operational support of culture Ancient Times - Byzantine - Cultural Inheritance Excavations improvement of archaeological areas. Fixing restoration of monuments buildings. Archaeological and historical museums Folklore and tradition Cultural Institutions Modern Culture Literature Theatre Music - Dance Cinema Audiovisual Arts Plastic Arts Cultural activities Sports Administration development promotion of sports Competitive Sports Amateur sports Sports Infrastructures Religion Administration religious entities Religious Inheritance Miscellaneous Programs Miscellaneous Programs of Culture 354 354 6.014 5.262 752 0 0 160 20 83 22 9 26 770 474 67 36 193 0 0 0 0 0 564.859 Education 0 0 0 0 0 0 0 344 344 0 0 0 0 0 0 0 0 0 28 28 0 0 0 237.714 354 354 6.014 5.262 752 0 0 504 364 83 22 9 26 770 474 67 36 193 28 28 0 0 0 250.458

Code

Programs/actions

Total

TOTAL EXPENDITURE (05.00 05.90)

GOVERNMENT BUDGET 2008

20

PROGRAM BUDGETING 2008

Diagram 4 Participation of ministries in function 05

Ministry of Culture 77,3%

Ministry of National Education and Religious Affairs 21,6%

Ministry of Economy and Finance Others 0,2% 0,2% Ministry of Macedonia and Thrace Minstry of Tourism 0,4% 0,3%

GOVERNMENT BUDGET 2008

21