Definition and Legal Classification of Budgetary Authority
Das Budgetary Authority refers in German and international constitutional law to the constitutionally guaranteed right of a parliament or other democratically legitimized bodies to make binding decisions regarding the budget, in particular on the revenues and expenditures of the state or other entities (e.g., municipalities). It constitutes a central element of democratic separation of powers and parliamentary control over the executive. The budgetary authority is often referred to as the Parliament’s prerogative, as it is fundamental for ensuring parliamentary influence over state financial matters.
Historical Development of Budgetary Authority
Budgetary authority developed in the course of Europe’s constitutional and parliamentary evolution since the Middle Ages. A historic milestone was the Bill of Rights in 1689 in England, which granted the British Parliament exclusive control over public finances. In Germany, budgetary authority was first codified in the 1849 Imperial Law on Imperial Finances and in 1871 in the Constitution of the German Empire. The Weimar Constitution and the Basic Law of the Federal Republic of Germany further refined and differentiated this authority.
Constitutional Foundations of Budgetary Authority in Germany
Budgetary Authority in the Basic Law
In the Basic Law of the Federal Republic of Germany, budgetary authority is regulated in numerous provisions, in particular concerning the procedures for budget preparation and approval. The most relevant provisions include:
- Article 110 Basic Law: Paragraph 2 stipulates that all revenues and expenditures of the federal government must be included in a budget and determined by law.
- Article 113 Basic Law: concerns the Bundestag’s required approval for supplementary budgets and excess expenditures.
- Article 114 Basic Law: obliges the Federal Government to submit the accounts and for these to be audited by the Federal Court of Auditors.
Holder of Budgetary Authority
Budgetary authority lies with the German Bundestag as representative of the people and is exercised in the course of the budget legislative process. The Bundesrat participates within its rights of participation, for example concerning the structure of budget administration and with consent laws.
Content and Scope of Budgetary Authority
Drafting the Budget
In accordance with Article 110 Paragraph 3 of the Basic Law, the Federal Government submits the draft budget and the draft budget act to the Bundestag. While the Federal Government takes the initiative, final deliberation, amendment, and adoption of the budget act and the budget proper rest with Parliament.
Passing Resolutions and Binding Effect
After the budget act has been passed by the Bundestag, appropriations for revenues and expenditures become binding. Changes are generally only possible through a supplementary budget law.
Control of Budget Execution
One of the main aspects of budgetary authority is parliamentary oversight over budget execution, supported by the Federal Court of Auditors. Thus, budgetary authority includes the right to information and supervision.
Supplementary Budget and Retroactive Authorization
If significant changes in the financial situation arise during the fiscal year, the Basic Law allows for the possibility of a supplementary budget law (Article 111 Basic Law). Excess and extra-budgetary expenditures generally require subsequent parliamentary approval.
Doctrinal Aspects of Budgetary Authority
Significance for the Separation of Powers
Budgetary authority serves to safeguard the separation of powers by enabling Parliament, as the legislature, to exercise control and influence over the executive. It restricts the government’s discretion regarding state finances and requires parliamentary consent.
Budgetary Authority as Parliamentary Control Instrument
Budgetary authority is regarded as a central parliamentary instrument for controlling the government. It ensures transparency and accountability in the administration of public funds.
Budgetary Authority at State and Municipal Levels
State Parliaments
The budgetary law of state parliaments is structured in accordance with the provisions of the respective state constitutions and is, in substance, regulated similarly to federal law. Here too, budgetary authority forms a central instrument of parliamentary control.
Special Features under Municipal Law
Within municipalities, budgetary authority regularly resides with the elected representative body (e.g., city council, municipal council). The corresponding provisions are primarily found in the municipal constitutions and municipal codes of the states.
Legal Issues and Controversies around Budgetary Authority
Provisional Budget Management
If there are delays in the approval of the budget, the right of provisional budget management (Article 111 Basic Law) applies, which restricts the executive to indispensable expenditures.
Budget Law and Debt Brake
The debt brake, enshrined since 2009 in the Basic Law and state constitutions, imposes additional requirements and restrictions on public budgets and borrowing. The parliament’s budgetary authority is therefore subject to substantive limitations.
Legal Protection in Budgetary Authority
Budgetary regulations are fundamentally subject to review by the Federal Constitutional Court. The Court examines whether Parliament was involved in the financial legislation in accordance with the Constitution and whether its rights were upheld.
International Perspective and Comparison
In other democratic states as well, budgetary authority is a fundamental component of the constitutional order. Differences exist regarding details, such as the extent of parliamentary control, participation rights of second chambers or upper houses, the government’s responsibility, as well as the involvement of supreme audit institutions.
Literature and Further Sources
- Korioth/Maurer, Constitutional Law, 4th Edition
- Ipsen, Constitutional Law II – Constitutional Process Law and State Organization Law, 21st Edition
- Schuppert, The Importance of Budgetary Authority for Parliamentary Democracy, DVBl. 2002, p. 245
Budgetary authority is a central constitutional competence of Parliament and is essential for democratic opinion-forming, separation of powers, and control over state budgetary management. It is subject to specific statutory and constitutional requirements, but also acquires significant political importance in safeguarding the democratic legitimacy of state actions and the responsible use of public funds.
Frequently Asked Questions
Who is legally entrusted with budgetary authority in Germany?
Under German law, budgetary authority is originally vested in the parliament, specifically the German Bundestag at the federal level and corresponding state parliaments at the state level. It is a fundamental right of parliament derived from the principle of democracy (Art. 20 Basic Law) and separation of powers, and is explicitly regulated in the Basic Law in Article 110 (‘budget law’). The Bundestag therefore decides on the federal budget and approves both revenues and expenditures. This also includes oversight of the budget’s execution by the executive. Although the Federal Government has the right to propose, it is bound by the decisions of Parliament. Changes during budget implementation are only possible with the consent of Parliament (supplementary budget).
What legal limits exist for the exercise of budgetary authority?
Budgetary authority is subject to numerous legal limits and constraints. Parliament is, for one, bound by the constitutional provisions, particularly in Articles 87 et seq. of the Basic Law, for example regarding the principles of budget clarity, truthfulness, and unity. There are also legal restraints stemming from fundamental rights (e.g., welfare state principle, binding force of incurred obligations) as well as statutory provisions such as the Federal Budget Principles Act (HGrG) and the Federal Budget Act. Particularly important is the ‘debt brake’ of Article 109 Basic Law, which, in principle, allows the state only limited new debt. Violations of these limits can be objected to by the Federal Constitutional Court.
How can budgetary authority be enforced by the Constitutional Court?
Budgetary authority can be asserted before the Federal Constitutional Court through several means. Abstract and concrete judicial reviews may be considered if legislative measures violate Parliament’s budget sovereignty. In particular, an Organ Dispute Procedure may be conducted between the Bundestag and the Federal Government if the executive overrides Parliament’s decisions or rights. The Federal Constitutional Court has repeatedly ruled that budgetary authority constitutes a ‘core area’ of parliamentary responsibility requiring special protection (e.g., participation in rescue packages and military deployments with financial commitments). The right to allege violation of budgetary authority can therefore also be asserted by individual Members of Parliament or parliamentary groups.
What special rights does the Bundestag have in the budgetary procedure?
In the budget legislative procedure, the Bundestag has extensive rights: These include introducing, reading, and passing the budget law, supplementary budgets, and amendments. Furthermore, the Bundestag has oversight rights over the executive, for example through the budget committee procedure and the right to freeze or reallocate special funds or residual appropriations. Participation of the Bundesrat is, as in ‘laws requiring consent’, significantly restricted. The final say on the budget generally rests with the Bundestag. Even in urgent situations, Parliament maintains comprehensive rights to information and oversight.
What role does budgetary authority play in intergovernmental financial relations?
Budgetary authority also extends to the federal system and is essential for relations between the federal government and the states. The fiscal constitution of the Basic Law (Art. 104a et seq. Basic Law) regulates the allocation of responsibilities and distribution of revenues. Here, the Basic Law guarantees all public entities their own, autonomous budgetary rights. State parliaments have the inalienable right to decide on their own budgets, while transfer mechanisms and fiscal equalization systems are subject to statutory, including federal, requirements. Disputes over competences and proper budget execution can be resolved before the Federal Constitutional Court via the federal-state dispute procedure.
Can budgetary authority be transferred from the legislature to other bodies?
In general, budgetary authority is a non-transferable core right of the legislature, rooted in the principle of separation of powers. Nevertheless, there are limited possibilities for delegation, for example within the framework of budget execution powers, supplementary laws, or authorization for extraordinary expenditures, but these always require a legal basis in budget law and parliamentary oversight. Permanent, full transfers are unconstitutional and are regularly objected to by the Federal Constitutional Court to prevent an erosion of parliamentary budget autonomy.
What legal control mechanisms exist to safeguard budgetary authority?
Various control mechanisms serve to protect budgetary authority. A central role is played by the Federal Court of Auditors, which, as an independent body, audits the federal government’s budgetary and economic management and reports violations to the Bundestag. The Bundestag also retains rights of interpellation, investigation, and special controls through the Budget Committee. Within the executive branch, there are additionally auditing and internal control bodies. Ultimately, judicial protection by the Federal Constitutional Court and administrative courts provides important final oversight to ensure compliance with budgetary regulations and the preservation of parliamentary sovereignty.
