523
ACT
on the date September 23th 2004
of Budget Rules of the Public Service and of Change and Amendment of Some Acts

The National Assembly of the Slovak Republic ordered on this act:

Art. 1

PART ONE
BASIC ESTABLISHMENTS

§ 1
Subject and Extent of the Regulation

This Act regulates:
a)	the budget of the public service sector (hereinafter called „public service”), specially the state budget, mutual financial relationships and relationships connected to them in the framework of public service and these relationships to other subjects,
b)	the budgetary procedure, rules of budget management, function and setting of the closing account of public service and state closing account,
c)	the position of the Ministry of Finance of the Slovak Republic (hereinafter called „Ministry of Finance”), further ministries and other central authorities of the civil service) and other legal entities of the public service in the budgetary procedure,
d)	the establishing of budgetary organizations and contributory organizations and the managment of budgetary organizations and contributory organizations.

§ 2
Definition of the Concepts

For the purpose of this act is understood:
a)	as public means those financial means, which the legal entities of public service manage; public means are also the means of the European Union and the contributions to the European Union,
b)	the deficit of the state budget is the negative difference between the incomes of the state budget and the expenditures of the state budget,
c)	the surplus of the state budget is the positive difference between the incomes of the state budget and the expenditures of the state budget,
d)	the obligatory index of the state budget is 
1.	expenditure limit of the state budget for realization of the program of Government of the Slovak Republic,
2.	the intentions and chosen aims of the government’s program,
3.	the income of the state budget’s section (hereinafter called „section”), about which will be established by the Act of State Budget for the corresponding budget year,
4.	the expenditure limits of state budget, which will be established by the Act of State Budget for the corresponding budget year, or the expenditure limit defined according to the § 6, par. 3, § 22 par. 1, § 24 par. 6,
e)	the means of the European Union are financial means rendered to the Slovak Republic from the budget of the European Union, which in the Slovak Republic are rendered through the medium of a payment agency, )
f)	the contributions to the European Union are financial means contributed by the Slovak Republic into the budget of the European Union.

PART TWO
PUBLIC SERVICE

§ 3
Subjects of Public Service

1)	Subjects of public service are legal entities registered in the registrar of organizations led by the Statistical Office of the Slovak Republic according to a particular regulation) and classified in public service in accordance with uniform methodics valid for the European Union, namely
a)	in central administration,
b)	in regional self-administration,
c)	in the funds of social insurance and in the funds of health insurance.

2)	In the central administration are stated state budgetary organizations and state contributory organizations, state objectiv funds (hereinafter called „state fund”), the National Property Fund of the Slovak Republic and the Slovak Estate Fund. In the central administration are also stated public high schools) and further subjects, which are registered and classified in the registrar according to the article 1. In the regional self-administration are stated municipalities and higher regional units and budgetary organizations and contributory organizations established by them. In the funds of social insurance and in the funds of health insurance are stated the Social Insurance Company) and health insurance companies.
3)	This act applies to subjects of public service, which are municipalities, higher regional units and budgetary organizations and contributory organizations established by them, if it is not stated otherwise by a particular act.

§ 4
Budget of Public Service

1)	The budget of public service is a central economical instrument of the financial policies of the state. It is drawn up every year for at least three budget years. The budget year is identical with the calendar year. The budget of public service is created by 
a)	state budget for the corresponding budget year and the summary of budgets of other subjects of the public service for the corresponding budget year,
b)	state budget for the year following the corresponding budget year and the summary of budgets of other subjects for the year following the corresponding budget year,
c)	state budget for the year following the year for which the state budget was drawn up according to the letter b) and the summary of budgets of other subjects of public service for the year following the year for which the budgets were drawn up according to the letter b).

2)	Budgeted incomes and budgeted expenditures described in paragraph 1 letter b) and c) are not obligatory indices.
3)	Ministry of Finance submits the budget of public service to the government for approval. The government submits the state bill of state budget for the corresponding budget year and for information the budget of public service to the National Council of the Slovak Republic (hereinafter called „National Council”).
4)	In the budget of public service, at tracing the fulfilment of the budget of public service and at movements on accounts of financial assets budget classification is applied, according to which budget incomes and expenditures of public service are uniformly defined and incomes and expenditures are classified including their subject matter definition, and financial operations with financial assets. Budget classification consists of generic classification, organisatory classification, economical classification and functional classification. Functional classification is used mainly for the purposes of international comparison of expenditures of public service according to the functions of public service; functional classification is established by a particular regulation. Generic classification, organisatory classification and economical classification are established by measures, which are issued by the Ministry of Finance and which is declared by publishing a proclamation about its publishing in the Statute Book of the Slovak Republic. The obligation to apply budget classification applies to all subjects of public service.
5)	Budget of public service in uniform methodics valid for the European Union in individual budget years is created by
a)	time distinguished incomes and time distinguished expenditures of public service,
b)	budget relationships in the framework of public service and budget relationships with other subjects,
c)	deficit of the budget of public service or surplus of the budget of public service.

6)	For the purposes of stating the budget deficit of the budget of public service in a budget year or of budget surplus of the budget of public service in a budget year in uniform methodics valid for the European Union, into the budget of the subject of public service do not belong
a)	among time distinguished incomes these financial operations with financial assets:
1.	accepted credits, loans and reimbursable financial aids,
2.	instalments of rendered credits, loans and reimbursable financial aids,
3.	incomes from purchase of property shares,
4.	balances of means of the preceding budget year,
b)	among time distinguished expenditures these financial operations with financial assets:
1.	rendered credits, loans and reimbursable financial aids,
2.	instalments of accepted credits, loans and reimbursable financial aids,
3.	expenditures of acquisited property shares.

7)	Deficit of the budget of public service in uniform methodics valid for the European Union is the negative difference between time distinguished incomes of public service and time distinguished expenditures of public service.
8)	Surplus of the budget of public service in uniform methodics valid for the European Union is the positive difference between time distinguished incomes of public service and time distinguished expenditures of public service.

§ 5

State Funds

(1)	State fund is a legal entity which is regulated by the law of financing special defined tasks of the state. Administrator of the state fund is a central authority of civil service established by a law. The administrator of state fund submits the proposal of the budget of state fund to the Ministry of Finance for the corresponding budget year, a summary of the state fund recievables and state fund obligations and a proposal of closing account of the state fund.
(2)	Sources of state fund and the way of use of its means is established by the law, by which the state fund is regulated. As a supplementary source of the state fund, it is possible to render a dotation from the state budget through the medium of the administrator of the state fund in extent approved by the act of state budget for the corresponding budget year.
(3)	The budget of state fund is approved by the goverment together with the state bill about state budget for the corresponding budget year.
(4)	The Slovak Republic does not guarantee the obligations of the state fund and the state fund does not guarantee the obligations of the Slovak Republic.
(5)	The state fund can not be the establisher nor founder of another legal entity.

PART THREE
STATE BUDGET,
STATE FINANCIAL ASSETS
AND STATE FINANCIAL LIABILITIES

§ 6
State Budget

(1)	State budget is the basic component of the budget of public service and the financing of the state’s main functions are secured by it in the corresponding budget year. State budget for the corresponding budget year contains budgetary incomes, budgetary expenditures and financial operations with state financial assets and other operations which influence the state of state financial assets or state financial liabilities.
(2)	State budget for the corresponding budget year is approved by the National Council in the Act of State Budget. By the Act of State Budget for the corresponding budget year is approved the limit of expenditures of state budget, maximum amount of the budgeted deficit or minimal amount of the budgeted surplus of state budget, if the incomes of the state budget and the expenditures of the state budget are not balanced. In the Act of State Budget for the corresponding budget year is also budgeted the amount of incomes of state budget, while the Act of State Budget may establish that some incomes of the sections are obligational indices of the section. In the Act of State Budget for the corresponding budget year are budgeted the expenditures of the section for the repayment of costs of transferred performance of civil service to municipalities and expenditures of the section for the repayment of costs of transferred performance of state service for higher regional units as obligational indices of state budget. Detailed classification of the incomes of state budget and expenditures of state budget are defined by the Act of State Budget for the corresponding budget year. The Act of State Budget for the corresponding budget year can authorize the government to take over a credit in the corresponding budget year.
(3)	Obligational indices approved by the Act of State Budget for the corresponding budget year are classified by the Ministry of Finance for all administrators of sections, while these indices can be defined more detailed.
(4)	The Ministry of Finance publishes the data of state budget in a manner of a particular act in 60 days at the latest after the Act of State Budget for corresponding budget year came into force. 
(5)	State budget consists mainly of 
a)	incomes of state budget in classification according to the sections,
b)	expenditures of state budget for the performance of activities essential for the fulfilment of intetions and aims of government programs in classification according to thesections,
c)	surplus of state budget or deficit of state budget, if the incomes and expenditures are not balanced.

§ 7
Incomes of State Budget

(1)	Incomes of state budget are
a)	taxes, fines and other sanctions connected with taxes (hereinafter called „tax”) from legal entities and natural persons, whose residence or permanent place of abode is at the territory of the Slovak Republic, except for taxes, which according to a particular regulation are incomes of the budgets of municipalities, budgets of higher regional units or budgets of other legal entities according to a particular regulation.
b)	taxes from legal entities and natural persons, whose residence or permanent place of abode is outside the territory of the Slovak Republic and which have incomes from sources at the territory of Slovak Republic, except for taxes, which according to a particular regulation are incomes of the budgets of municipalities, budgets of higher regional units or budgets of other legal entities according to a particular regulation.8
c)	fees, fines and other sanctions connected with fees and other sanctions according to particular regulations, if a particular regulation does not establish otherwise,
d)	interests of means obtained from credits accepted by government  for the term from their acceptance and their usage,
e)	incomes of sections,
f)	drawbacks of allowances, dotations and contributions resulting from the settlement of financial relationships with the state budget, 
g)	profits of property share of the state and profits of transferring property administration in the possession of the Slovak Republic (hereinafter called „state property”), as well as of transferring of possession of state property, with the exception of profits of transferring administration or from transferring of possession of state property in the administration  of a state contributory organization and profits, about which is otherwise established by a particular regulation,
h)	contribution for breach of financial discipline according to this act with the exception of contribution for breach of financial discipline of means of the European Union.
i)	damages and fines in accordance with § 31 and 32 of this act, while the incomes from the damages for breach of financial discipline of means of the European Union will be reduced by the delay interest paid to the European Union,
j)	drawbacks for the means of state budget returned to the European Union in preceding years,
k)	share in withdrawn financial means contributed to the European Union budget as compensation for expenditures connected with their withdrawal,
l)	interests of credit balances of financial means operated at the accounts of State Treasury in the National Bank of the Slovak Republic, bank or branch of a foreign bank reduced by the interests paid by the State Treasury and profits of financial operations secured by the State Treasury reduced by the costs of these financial operations,
m)	profits from the means of state budget if it is not established otherwise by a particular regulation,
n)	further incomes established by particular act.

(2)	The means of the European Union are classified among the incomes of the state budget, if from the legal acts of the European Communities and the European Union it is not resulting otherwise.

§ 8
Expenditures of State Budget

(1)	From the state budget are repaid
a)	expenditures of state budgetary organizations and contributions to state contributory organizations,
b)	expenditures resulting from international contracts, by which the Slovak Republic is tied,
c)	expenditures connected with rendering international aid to developing countries and to the least developed countries,
d)	contributions to the European Union except for duties and contributions for sugar production,
e)	expenditures for repayment of costs of transferred performance of state service to municipalities and higher regional units,
f)	expenditures for repayment of losses by the securment of performances in public interest and compensation for disadvantages caused by the state,
g)	interests and fees connected with administration of the state budget deficit and state debt,
h)	interests connected with the realization of guarantee rendered by state, if they are not rendered in form of reimbursable financial aid,
i)	further expenditures established by the Act of State Budget or by a particular act.

(2)	From the expenditures of state budget it is possible to render dotations to legal entities and natural persons in accordance with the Act of State Budget for the corresponding budget year. Dotations, with the exception of dotations for repayment of expenditures of transferred performance of state service to municipalties and higher regional units, dotations for compensation for losses by the securement of performances in public interest, dotations for financing common programs of the Slovak Republic and the European Union and dotations to public high schools are rendered by the administrator of the section in his own competence usually on the basis of a request. The extent and further conditions of dotation rendering and the way of their granting are established by a generally obligational legal regulation, which is issued by the administrator of section, which is an authority of civil service, if it is not established by a particular act. If the administrator of the section is not an authority of civil service, it may grant dotations on the basis of conditions established by law. The application of the dotations is subject to obligational annual settlement with the state budget, whose manner is defined by the Ministry of Finance.
(3)	For the application of objectively determined means of the European Union classified among the incomes of state budget are budgeted corresponding expenditures in the state budget. The means of state budget determined for financing common programs of Slovak Republic and the European Union also belong to the expenditures of the corresponding section.
(4)	Expenditures of state budget are budgeted and rendered in form of current expenditures and capital expenditures. The subject matter definition of current expenditures and capital expenditures is contained in the economical classification of expenditures (§ 4 par. 4). Capital expenditures may also be used in the following budget years to their exhaustion for the defined purpose. The means of the European Union and the means of state budget determined for financing of common programs of Slovak Republic and the European Union may also be used in following budget years to their exhaustion for the defined purpose. Current expenditures for durable goods and furnishing for military purposes, buildings of military character and military buildings may also be used in the following budget year for the defined purpose with the consent of the Minister of Finance of the Slovak Republic (hereinafter called „Minister of Finance”).
(5)	Current expenditures with the exception of wages, payments, service incomes and other personal settlements, which were rendered to legal entities or natural persons by the competent administrator of the section as a current transfer after October 1st  of the budget year and which were impossible to apply to the end of the corresponding budget year, may be applied to March 31th of the following budget year.
(6)	The administrator of the section is obliged to announce the Ministry of Finance the amount of all expenditures according to paragraph 4, which shall be used in the following budget year, namely by November 20th at the latest of the current budget year; on the basis of this announcement the Ministry of Finance ties the expenditures for the current budget year in the announced amount in the budget of the corresponding section, with the exception of the means of the European Union and the means of state budget designated for financing common programs of the Slovak Republic and the European Union which will be settled by the Ministry only after the delivery of a confirmation of this announcement in the term to December 15th of the current budget year. The Ministry of Finance allows to the corresponding section to exceed the limit of expenditures in the amount of the settled means in the following budget year.
(7)	The deficit of state budget approved by the Act of State Budget for the corresponding budget year may be exceeded in the corresponding budget year by the amount of the positive difference between the sum of settled means in the preceding budget year according to the paragraph 6, applied in the corresponding budget year, and the amount of settled means in the corresponding budget year according to the paragraph 6, designated for use in the following budget year.
(8)	The deficit of the state budget approved by the Act of State Budget for the corresponding budget year will be reduced in the corresponding budget year by the negative difference between the amount of settled means in the preceding budget year according to the paragraph 6, applied in the corresponding budget year, and the amount of the settled means in the corresponding budget year according to the paragraph 6, designated for use in the following budget year.
(9)	The expenditures of state budget may not be used as property share of other legal entity or for founding or establishing other legal entity as budgetary organization or contributory organization. For these purposes only state financial assets may be used in the administration of the Ministry of Finance. 
(10)	Means rendered from the state budget and from the budget of the European Union and moveable and immoveable property are not subject to the performance of decision according to particular regulations, if they are obtained from means rendered by the state budget and the budget of the European Union.

§ 9
Sections

(1)	Incomes of the state budget and expenditures of the state budget are organizationally classified into sections. Section is constituted by the budget of
a)	every ministry including budgets of budgetary organizations, which are connected to its budget and including financial relationships to its contributory organizations and financial relationships to other legal entities and natural persons which belong to its subject matter competence,
b)	Offices of the National Council of the Slovak Republic,
c)	Offices of the President of the Slovak Republic,
d)	Government Office of the Slovak Republic,
e)	Constitution Court of the Slovak Republic,
f)	Supreme Court of the Slovak Republic,
g)	Public Prosecution of the Slovak Republic,
h)	Slovak Academy of Sciences,
i)	Supreme Audit Office of the Slovak Republic,
j)	other central authorities of the civil service1 which are not connected to the budget of the competent ministry,
k)	Slovak Information Service,
l)	General Treasury Administration.

(2)	Organizational classification of the sections is described in the organisational classification of the budgetary classification.
(3)	The section General Treasury Administration is administrated by the Ministry of Finance and it is created by the incomes of the state budget including tax incomes and the expenditures of the state budget  which are not related to the incomes and expenditures of other sections.
(4)	The administrator of the section according to the paragraph 1 is obliged to
a)	draft the proposal of section budget including proposals of intentions and aims of programs and financial relationships with state funds, which it administrates, coordinate the participation of administrated budgetary organizations, contributory organizations and the state funds administrated by them for the drafting of this proposal; the proposal of expenditures for repayment of the transferred performance of state service to the municipalities and higher regional units is discussed with the republic associations of the municipality and the representatives of the higher regional units and the proposal of section budget submits to the Ministry of Finance in extent and term defined by the ministry.
b)	draft the proposal of the section budget in accordance with governmental bill of state budget and submit it in the term defined for the submitting of the proposal of budget of public service to the competent authority of the national council.
c)	coordinate the activity of other section’s administrators which participate on the fulfilment of the government’s cross-resort program, of which it is a guestor,
d)	cooperate with the guestor of the goverment’s cross-resort program in which it participates,
e)	monitor and evaluate the fulfilment of the intentions and aims of goverment’s programs budgeted in the framework of the section,
f)	classify the approved obligational indices of the section, namely for the own budgetary managment and for the budgetary organizations and contributory organizations in its own subject matter competence; the obligational indices classifies in the extent defined by this act and the Act of State Budget for the corresponding budget year; part of this classification for the contributory organizations is also the summary of tasks and activities which the contributory organization has to secure in accordance with the subject matter of its activity in the corresponding budget year,
g)	announce the municipalities and higher regional units, which secure the transferred performance of civil service, the amount of the expenditures for the repayment of expenditures of transferred performance of civil service in term of 30 days after the Act of State Budget for the corresponding budget year came into force,
h)	secure of releasing the expenditures for repayment of expenditures of transferred performance of civil service so, that it can be continually financed,
i)	regulate the management of the section’s budgetary means,
j)	work out reports about the development of the section’s budgetary management, submit them to the Ministry of Finance in the extent and term defined by them and discuss them with the competent authority of national council,
k)	work out summary statements and a summary of budgetary measures for the whole section and submit it in the manner, extent, structure and term defined by the Ministry of Finance,
l)	publish data of the section’s budget in 60 days at the latest in the manner according to a particular regulation after the Act of State Budget for the corresponding budget year came into force.

(5)	The Supreme Court of Slovak Republic and the Public Prosecution of the Slovak Republic submit the proposal of section’s budget and the proposal of the section’s closing account in the extent and term defined by the ministry or by law also to the Ministry of Justice of the Slovak Republic. The Ministry of Justice of the Slovak Republic expresses its opinion to the proposal of section’s budget and to the proposal of the section’s closing account of the Supreme Court of the Slovak Republic and the Public Prosecution of the Slovak Republic; to the proposal of section’s budget of the Supreme Court of the Slovak Republic and Public Prosecution of the Slovak Republic the Ministry of Justice of Slovak Republic expresses its opinion always before presenting the proposal of state budget to the government and the national council.
(6)	The Slovak Academy of Sciences submits the proposal of section’s budget and the proposal of the section’s closing account in the extent and term defined by the ministry or by law also to the Ministry of Education of the Slovak Republic. The Ministry of Education of the Slovak Republic expresses its opinion to the Slovak Academy of Sciences’ proposal of section’s budget and the proposal of the section’s closing account; the Ministry of Education of the Slovak Republic expresses its opinion always before presenting the proposal of state budget to the government and the national council.

§ 10
Budgetary Reserves

(1)	To cover unforeseeable expenditures essential for securing budgetary management or to cover the reducement of budgetary incomes, budgetary reserves are created in the state budget.
(2)	Budgetary reservers are created mainly of
a)	the government’s budgetary reserves
b)	the prime minister’s budgetary reserves
c)	reserve for the means of European Union and contributions to the European Union.

(3)	The amount of budgetary reserves is approved by the national council by the Act of 
State Budget for the corresponding budget year. The budgetary reserve according to paragraph 2 letter a) and c) is budgeted in the section General Treasury Administration. The budgetary reserve according to the paragraph 2 letter b) is budgeted in the section of the Government Office of the Slovak Republic. About the application of means according to the paragraph 2, letter a) decides the government according to the recommendation of the Prime Minister. About the application of means according to the paragraph 2, letter c) decides the Minister of Finance and namely for the purposes according to § 37, par. 7.
(4)	About the management of the budgetary reserves the government delivers a report to the national council in the framework of the report about the fulfilment of the budget of public service and in the framework of the closing account of public service.

§ 11
Budgetary Provision

(1)	If the bill of state budget for the following year is not approved by the national council by December 31st of the current budget year, the budgetary managment is administrated by the budgetary provision in the term from January 1st of the budget year to the time when the Act of  State Budget for the corresponding budget year comes into force.
(2)	Budgetary management of the Slovak Republic and the relationships between the state and other subjects are administrated by the Act of State Budget for the preceding budget year during the budgetary provision. The expenditures of state budget in every calendar month during the budgetary provision must not exceed one twelfth of total expenditures of the state budget approved by the Act of State Budget for the preceding budget year and the expenditures unused and settled in the preceding budget year in accordance with § 8 par. 6 with the exceptions stated in the paragraph 3, while the minister defines the obligational indices of the state budget.
(3)	Expenditures of state budget in every calendar month of the budgetary provision according to the paragraph 2 may be exceeded by
a)	expenditures connected with the administration of state budget deficit and state debt and expenditures for the payment of profits of state bonds,
b)	expenditures of interest payment from the accepted credits or loans and fees connected with the accepted credits or loans,
c)	repayments of benefits and contributions to which legal entities or natural persons have legal title according to particular regulations,
d)	insurance fee and contributions to the insurance companies for the employees of state budgetary organizations and state contributory organizations and insurance fee and contributions for persons, instead whom the state pays insurance fee and contributions.
e)	contributions to the European Union budget.

(4)	Budgetary incomes and expenditures realized during the budgetary provision are settled with the state budget after the Act of State Budget for the corresponding budget year comes into force.

§ 12
War State Budget

After declaring war or after proclaiming state of war the Ministry of Finance draws up a proposal of extraordinary state closing account for the term from the beginning of budget year to the declaration of war or proclamation of state of war. For the term from declaring war or from proclaiming state of war to the end of budget year and for the budget year in time of war or state of war the Ministry of Finance draws up a proposal of war state budget. After the war’s end or after the ending of state of war a proposal of extraordinary state closing account is drawn up for the term from declaring war or from proclaiming state of war to the end of budget year and for the budget year in time of war or state of war. For drawing up the war state budget are applied the establishments of parts three and four of this act, for drawing up the extraordinary state closing account are applied the establishments of the part eight of this act. The budgetary administration of the Slovak Republic is managed by war state budget in time of war or in time of state of war.

§ 13
State Financial Assets
and State Financial Liabilities

(1)	State financial assets are
a)	state financial means created from results of budgetary management of the state budget from preceding years,
b)	state financial means from the repayments of principals of rendered reimbursable aids and credits and loans,
c)	state property shares,
d)	bankable papers in state property,
e)	state recievables of rendered reimbursable financial aids and credits and loans,
f)	further financial means on the basis of the government’s or national assembly’s decision.

(2)	Financial means in the cash desk and on accounts of state budgetary organizations and state contributory organizations are also parts of the state financial assets.
(3)	State financial liabilities are state obligations arisen from accepted credits of the government, from state bankable papers.
(4)	The obligations of state contributory organizations arisen from credit relationships are also part of the state financial liabilities.
(5)	As management of state financial assets and state financial liabilities are understood the registration, analysis, accounting, administration, treatment and control of state financial assets and state financial liabilities.
(6)	State financial assets created from the results of management of state budget from preceding years may be used only with the consent of the national council. State financial assets according to the paragraph 1, letter b) to f), with the exception of state bankable papers, may be reduced only on the basis of the government’s decision or for the purposes according to particular regulation;5 this is not the case with the use of state financial assets for expenditures of state budget about which decides the national council.
(7)	Financial operations with state financial assets and other operations which influence the state of state financial assets are not parts of the incomes of state budget and the expenditures of state budget.
(8)	The administration of state financial assets according to the paragraph 1, letter a), b), e) and f) and state financial liabilities according to the paragraph 3 is performed by the Ministry of Finance; in the extent established by a particular regulation it may also be secured by the Agency for Management of Debt and Liquidaton and the State Treasury.

PART FOUR
BUDGETARY PROCEDURE OF PUBLIC SERVICE

§ 14
General Establishments

(1)	Ministry of Finance manages the works and regulates the drawing up of the proposal of the public service budget, individually the proposal of state budget on the basis of the initials of public service budget approved by the government usually by the end of April of the current budget year. The designation of the share of public service budget deficit or of public service budget surplus on the gross domestic product is also part of the initials of public service budget.
(2)	Ministry of Finance draws up the proposal of public service budget in structure according to § 4 par. 1 in cooperation with the competent subjects of public service.
(3)	The proposal of public service budget submits the Ministry of Finance to the government by August 15th of the current year if the government does not defines an earlier term. The government decides about the public service budget usually by September 30th of the current year.
(4)	During the discussion of public service budget at the negotiations of the government it is not possible to approve proposals, whose result is the rise of deficit share of the public service budget on the gross domestic product in the corresponding budget year approved in the framework of the initials of public service budget approved by the government; this is also so by the negotiations of proposals of budgets of the public service subjects and in the course of the budget year also by discussion of materials presented for discussion to the government.
(5)	The government presents the proposal of the public service budget to the national council by October 15th of the current year, if the national council does not decide otherwise.
(6)	The subjects of public service and legal entities and natural persons, whom means of the state budget are rendered, are obliged to present for the request of the Ministry of Finance the data necessary for the drawing up of the public service budget and evaluation of fulfilment of the public service budget including data about the incomes and expenditures with the indicated financial sources to the other subjects of the public service; these data are published for free. For the purpose of evaluation of fulfilment of the public service budget in uniform methodics valid for the European Union, data about the incomes and expenditures, assets and liabilities are to be presented to the Ministry of Finance quater-yearly.
(7)	Social Insurance company, the Slovak Estate Fund and the National Property Fund of the Slovak Republic are obliged to discuss their budgets with the Ministry of Finance before their discussion with their own authorities according to a particular regulation, which precedes their presenting for approval to the national council or government. The Ministry of  Health of the Slovak Republic is obliged to draw up a proposal of an integrated budget for the health insurance companies and discuss them with the Ministry of Finance. The Ministry of Education of the Slovak Republic is obliged to draw up a proposal of an integrated budget for the public high schools and discuss them with the Ministry of Finance. The Social Insurance Company, health insurance companies administrated by the state or health insurance companies, which were founded by the state, the Slovak Estate Fund, the National Property Fund of the Slovak Republic and state funds through the medium of the administrator of the state fund are obliged to present the proposals of their budgets to the government for approval by August 15th of the current year, if the government did not state a later term. Subjects of public service, whose budgets are approved by the national council, are obliged to present the proposals of their budgets to the national council for approval in accordance with the government’s decision accepted at the discussion of the proposal of their budgets.
(8)	The budget proposals of subjects of public service are presented in accordance with particular regulations19 for approval to the national council in term established for presenting the budget proposals of public service, except for the budget proposal of Slovak Estate Fund and the budget proposals of state funds. Higher regional units presentn their budget proposals for the following budget year for information to the national council and the Ministry of Finance in the mentioned term.

§ 15
Budgetary Measures in the State Budget

(1)	The goverment or, on the basis of its authorization, the Minister of Finance, may permit, in the extent and under terms established by the Act of State Budget for the corresponding budget year, the realization of expenditures essential for the economy of the Slovak Republic and unsecured in the state budget. If during the year arises the need of repayment, which is not secured in the section’s budget, this repayment may be realized on the basis of performed budgetary measures. Budgetary measures concerning expenditures of contributions of the European Union and expenditures of state budget determined for financing common programs of the Slovak Republic and the European Union may be taken only in accordance with the decision of the competent authority of the European Union.
(2)	Budget measures are
a)	transfers of budgetary means,
b)	permitted exceed of expenditure limits,
c)	settling of budgetary means.

(3)	State budgetary organizations and state contributory organizations are obliged to lead an operative register of all budgetary measures executed in their budget in the course of the budget year.

§ 16
Transfers of Budgetary Means

If for the repayment of unavoidable expenditures were not secured necessary means in the section’s budget, the section’s administrator may secure them first of all by transfer of budgetary means in the framework of the budget. By the execution of such transfers of budget means, it is not possible to change the obligational indices of the section’s budget.

§ 17
Permitted Exceed of Expenditure Limits

(1)	If the exceeding of expenditure limits with the exception according to § 23, par. 1 would influence the obligational indice of the section’s budget, the section’s administrator may permit such exceed only with the approval of the Minister of Finance.
(2)	If it comes to the exceed of expenditure limits from the reason of delimitation or task transfer, authorities and organizations, which these measures concern, present a mutually approved delimitation protocol through medium of their establisher to the competent administrator of the section. This protocol contains mutually approved transfer of the means of state budget and the obligations to the state budget. The section’s administrator, to whom the task are transferred, presents these documents to the Ministry of Finance. Without the presenting of these documents, the Ministry of Finance can not permit the exceed of budget expenditures limit.

§ 18
Tying of Budgetary Means

(1)	The tying of budgetary means is the time and subject matter restriction of their application.
(2)	The Ministry of Finance ties in the section’s budget budgetary means
a)	for the reason of delimitation or task transferring to another subject,
b)	in the case of permitted exceed of expenditure limit at the cost of a further obligational index,
c)	on the basis of the goverment’s decision, mainly in the case of disaccordance between incomes and expenditures of the state budget,
d)	on the basis of confirmation of the inclusion of a budgetary organization’s obligation according to a particular regulation, 
e)	on the basis of announcement according to § 8, par. 6.

(3)	The proposal for tying of budgetary means according to the paragraph 2, letter c), which concerned the tying of expenditures for repayment of costs of transferred performance of state service, the Ministry of Finance dicusses it with republic communities of municipalities and with representants of higher regional units in advance before its presenting for approval to the government.
(4)	The section’s administrator is obliged to tie budgetary means in the section’s budget, if
a)	the government or, on the basis of its authorization, the Minister of Finance decided about the tying of budgetary means,
b)	it had secured means for performance of tasks in the budget, whose performance was transferred to other sections,
c)	it does not fulfill the budgetary income, about which was established by the Act of State Budget for the corresponding year that it is an obligational index of the state budget,

(5)	The budgetary organization is obliged to tie budgetary means in its budget, if
a)	these means were defined for the tasks which will not be at all, or only partly realized,
b)	it does not fulfill budgetary incomes; if the budgetary organization cannot secure the balancing of the incomes’ shortage by tying the corresponding part of the expenditures, the budgetary organization agrees the way of reimbursment of the incomes’ shortage with its establisher.
(6)	Tied budgetary means can not be used without their release by the authority which decided about their tying.

PART FIVE
RULES OF THE BUDGETARY MANAGEMENT

§ 19

(1)	Public means may be used for purposes which are in accordance with particular regulations.19 The means of the state budget may be used only for purposes for which they were established by the Act of State Budget for the corresponding budget year or they were established according to this act.
(2)	Public means budgeted for the corresponding budget year may be used to the end of the budget year with the exception of those public means whose unexhausted balances may be used in the following budget year in accordance with this or a particular act. 19
(3)	Legal entities and natural persons, whom public means are rendered, are responsible for their management and are obliged to keep at their usage the economy, efficiency and effectivity of their usage; for rendering advance from public means the establishments of paragraphs 8 to 10 are applied.
(4)	The statutory authority of the subject of public service19 is obliged to secure that the public means shall be released only in such amount that corresponds to the extent of the fulfilment of the tasks included in the budget of the subject of public service.
(5)	Subject of public service is not entitled to be obliged in the current budget year for such repayments which it do not have secured in the budget for the current budget year and which encumber the following budget years for lack of sources in the current budget year.
(6)	Public means may be used for covering essential needs and measures resulting from particular regulations. The subject of public service is obliged to keep at the usage of public means the economy, efficiency and effectivity of their usage.21
(7)	Subject of public service may create its own funds only if it is established by this or a particular act. 
(8)	Subject of public service may render advances if they were agreed in writing in the contract about the delivery of performances and goods, and this maximum for the term of three months in dependence on real fulfilment of deliveries of performances and goods.
(9)	Subjects of public service except for the advances according to the paragraph 8 may also render on the basis of a contract in writing
a)	advance at procurement of military material, special machines, apparatuses, equipments and musical instruments in abroad, if no domestic product exists and the production term exceeds one year,
b)	permanent advance at issuing international pay cards, if their issuing is essential for securing of foreign business trips,
c)	accreditives on behalf of foreign persons at delivering performances and goods,
d)	advance for payment of health care.

(10)	Advances rendered according to the paragraph 8 and paragraph 9, letter a) has to be financially settled at the latest by the end of the budget year, in which they were rendered, with the exception of advances for delivery of heating, water, electric energy, gas, periodical and other press and advances for fuel rendered through the medium of pay cards, by which it is not required the fulfilment of the conditions according to the paragraph 8.
(11)	Paragraphs 8 to 10 are related to the usage of means for financing common programs with the European Union by the final acceptor. The paragraphs 8 to 10 are not used for rendering means to the final acceptor by a competent authority of the civil service and for rendering advances to a municipality and to a higher regional unit for repayment of expenditures of transferred performance of civil service.
(12)	Subject of public service with the exception of a municipality and a higher regional unit may accept credits or loans only in accordance with this act. Subject of public service may accept reimbursable financial aid from state financial assets, if for those purposes, for which the reimbursable financial aid is rendered, the goverment took over a credit.
(13)	Subject of public service may enter into credit or loan relationships as a warrantor only in accordance with this act with the exception of the subject of public service, which is the National Property Fund of the Slovak Republic, if it acts according to a particular regulation.
(14)	Subject of public service may render credits or loans only in accordance with this or a particular act. 

PART SIX
FINANCIAL RELATIONSHIPS WITH THE European Union

§ 20

(1)	Means of the European Union are kept on particular accounts of the Ministry of Finance in the State Treasury.
(2)	From the expenditures according to the § 8, par. 3 the means are rendered to the final acceptor through the medium of a competent authority of civil service on the basis of the conditions defined in a contract concluded with the final acceptor.
(3)	The state authority and the budgetary organization, which concentrate the contributions to the European Union, keep these means on an independent account in the State Treasury, from which they transfer to a particular account kept by the Ministry of Finance in the name of the European Comission, established in the State Treasury; from the expenditures of state budget to the particular account are also transferred contributions to the European Union [§ 8, par. 1, letter d)].
(4)	Incomes of the means of the European Union are the property of the European Union.
(5)	By the means of the European Union and contributions of the European Union is not possible to secure the obligations of the Slovak Republic.
(6)	A legal entity or a natural person, to whom was imposed contribution and fine for breach of financial discipline at managing the means of the European Union rendered according to the paragraph 2, contributes this contribution to the corresponding particular account of the Ministry of Finance according to the paragraph 1; the fine is the income of the state budget in accordance with the § 7, par. 1, letter i).
(7)	If the European Union requires the return of means of the European Union, these means are settled on behalf of or at the cost of the corresponding particular account of the Ministry of Finance according to the paragraph 1.
(8)	Slovak Republic repays to the European Union the interest on late payments in case of late return of the means of the European Union and in case of late transfer of contributions to the European Union according to the interest rate defined by the European Union.
(9)	Legal entities and natural persons, which accepted financial aid directly from the European Union, are obliged to announce the amount of the accepted financial aid and the purpose, for which the financial aid was rendered, to the Ministry of Finance in term of 30 days from the day of its acceptance.

PART SEVEN
BUDGETARY ORGANIZATIONS 
AND CONTRIBUTORY ORGANIZATIONS

§ 21
Management, change and abolition of the budgetary 
organizations and contributory organizations

(1)	A budgetary organization is a legal entity of the state, a municipality or a higher regional unit, which with its own incomes and expenditures is connected to the state budget, municipal budget or the budget or a higher regional unit. It manages independently according to an approved budget with the means which are defined by its establisher in the framework of its budget. Budgetary organizations are according to this act all state authorities, with the exception of state authorities which are organizations according to the § 22, par. 2.
(2)	A contributory organization is a legal entity of the state, a municipality or a higher regional unit, of which less than 50 per cents of the production costs are covered by revenues and which is connected by contribution to the state budget, municipal budget or the budget of higher regional unit. Financial relationships defined by manager in the framework of its budget are applied to it.
(3)	Budgetary organizations and contributory organizations may be established for fulfilment of tasks of the state, municipality or a higher regional unit determined by particular regulations. Budgetary organizations or contributory organizations may not be established for performance of decisive power, which are resulting for the establisher by particular regulations.
(4)	Budgetary organizations and contributory organizations may gain rights in their own name and get obliged from the day of its founding.
(5)	A budgetary organization or a contributory organization may be managed by
a)	law,
b)	the decision of the establisher, which is a central authority of the civil service, if it is not stated otherwise by a particular regulation, a municipality or a higher regional unit.

(6)	The function of establisher in the relationship to a state authority fulfills for the purpose of this act the Ministry of Finance.
(7)	The function of establisher in the relationship to the a central authority of the civil service as a budgetary organization fulfills for the purpose of this act the Ministry of Finance.
(8)	If the budgetary organization or the contributory organization was established by law, its establishing function is performed by an authority, whose budget is connected with financial relationships.
(9)	The stablisher may establish for the fulfilment of its tasks in extent of its competence the budgetary organization or contributory organization only with the preceding consent of the Ministry of Finance in writing from the first day of the following budget year. In well-founded cases may the minister of finance permit another term. To the request for a written approval the establisher is obliged to enclose first of all the proposal of the establishing document and the budget proposal of the organization proposed to establishing, as well as indicate and justify the supposed financial consequences for the state budget, and this not only for the current year but also for the following three budget years. The preceding written consent of the Minister of Finance as well as his permission of other term according to the second sentence is not requested, if the establisher is the municipality or a higher regional unit, or when the establishing is according to a particular law.
(10)	The establisher according to the paragraph 5, letter b) issues an establishing document about the establishment of the budgetary organization or contributory organization. The establishing document of the budgetary organization and contributory organization contains
a)	the indication of the establisher,
b)	the name of the budgetary organization or the contributory organization excluding the possibility of mistaking it with the name of other legal entites, its residence and identification number,
c)	the form of its administration,
d)	date of the establishment of the budgetary organization or contributory organization,
e)	definiton of the subject of its activity,
f)	indication of the statutory authority,
g)	subject matter and financial definition of the property, which is administrated by the budgetary organization or the contributory organization
h)	the definition of the term, for which the budgetary organization or the contributory organization is established.

(11)	Budgetary organization and contributory organization, with the exception of the budgetary organization which is a ministry, and with the exception according to the paragraph 5, letter b) can not be a founder or establisher of another legal entity, if it is not stated otherwise by a particular regulation.
(12)	Budgetary organizations or contributory organization established by the decision of an establisher according to the paragraph 5, letter b) may be discharged, changed its subordinance or the way of its financing from a budgetary organization to a contributory organization or vice versa by the decision of the establisher from the first day of the following budget year according to the preceding written consent of the Ministry of Finance. In well-founded cases the Minister of Finance may permit another term. The preceding written consent of the Ministry of Finance, as well as the permission of another term by the Minister of Finance, according to the second sentence about discharge of the budgetary organization or contributory organization, is not requested, if the budgetary organization or the contributory organization is established by a particular law, or if its establisher is a municipality or a higher regional unit. In the case of change of subordinance both establishers issue a decision, and this so, that the change of subordinance would happen in the same day. In the case of change of subordinance and change of the way of financing, the establisher is obliged to change the establishing document of the budgetary organization or the contributory organization.
(13)	The establisher of the contributory organization is obliged to discharge it by December 31st of the year, when it is realized that
a)	the revenues of the contributory organization do not cover its production costs in accordance with the paragraph 2 during at least two succeeding years or
b)	the contributory organization does not fulfils the conditions according to the paragraph 3.

(14)	If it comes to the extinction of the budgetary organization or the contributory organization by distribution, fusion or merger, the establisher defines the term, subject matter and financial definiton of the property including continuos rights and obligations in the decision, which will be transferred to the legal successor, which may be only a budgetary organization or a contributory organization. If the budgetary organization or contributory organization is extinguished by discharge without a legal successor, the rights and obligations are transferred to the establisher on the day of its discharge, if a particular law does not state otherwise.
(15)	The establisher, with the exception of a municipality or a higher regional unit, is obliged to announce the discharge, change of subordinance or way of financing of the budgetary organization or the contributory organization to the Minister of Finance through the medium of the competent administrator of the budget section in seven days.
(16)	For contributory organizations are applied the rights and obligations of subjects of public service stated in this act, even if they are not stated in the framework of a central administration or regional self-administration according to § 3, par. 1.

§ 22
Management of the budgetary organizations

(1)	A budgetary organization manages budgetary means and means accepted from other subjects. The budgetary organization draws up its budget of incomes and expenditures, while it is governed by obligational indices of the state budget defined by the Act of State Budget for the corresponding budget year and by the establisher. Financial donations with purposeful definition are used in accordance with their definition.
(2)	The establisher defines which internal organizational units in the framework of the budgetary organization in its competence will manage only with delegated advance as advance organizations. The establisher defines at the same time the amount of the advance and the term for which is granted, or it authorizes the budgetary organization, to whose budget the advance organization is connected. The budgetary organization, from whose budget the advance is granted, settles the incomes and expenditures of these advance organizations by the end of the budget year at the latest. Advance organizations are not legal entities. For the financing of advance organizations, which are representative offices of the Slovak Republic in abroad, applies the § 23, par. 4.
(3)	The mutual inclusion of incomes and expenditures in a budgetary organization is acceptable, if it relates to the additional repayment of expenditures made earlier in the same budget year, with which another subject refunds expenditures to the budgetary organization, which paid instead of this subject.
(4)	A budgetary organization concentrates all the incomes of its budget, with the exception of incomes stated in the paragraph 3, on its own income budget account and realizes all its expenditures from the expenditure budget account. A budgetary organization may concentrate its incomes on other accounts and realize the budget expenditures from other account only in cases stated by this act or by a particular act, or if it results from legally obligational acts of the European Communities and the European Union or from an international treaty. A budgetary organization concentrates all its incomes and realizes all its expenditures through the medium of the accounts led in the State Treasury, if it is stated by a particular regulation.18
(5)	Incomes from the rent of state property in the administration of state budgetary organization are incomes of the state budget.
(6)	A budgetary organization may conclude contracts about renting objects with the right of purchase of the rented object, if the rent will be paid from the means of the European Union and from the means of the state budget defined for financing common programs of the Slovak Republic and the European Union.

§ 23
Particularities of Budgetary Managment of Budgetary Organizations

(1)	A budgetary organization is entitled to exceed the budget limit of expenditures by means 
a)	accepted from other subjects on the basis of a gift certificate,
b)	accepted on the basis of a contract of association,
c)	accepted from other subjects, for example in form of dotations or grants,
d)	gained from the difference between profits and costs from enterpreneurial activity after taxation,
e)	accepted from insurance fulfilment from contracted insurance or obligational insurance,
f)	accepted from food allowances,
g)	accepted from a natural person or a legal entity according to a particular regulation,
h)	accepted from the office of labour, social affairs and family according to a particular regulation, 
i)	accepted from participants of operation of registry renewal of some estates and legal relationships to them,
j)	accepted from parents, other persons, who have child support obligations, or pupils for repayment of some expenditures in accordance with particular regulations.

(2)	The means according to the paragraph 1 letter a) to d) the budgetary organization leads on an independent ex-budget account. At its application the budgetary organization transfers them to a particular income account for complementary means and realizes the expenditures from its own expenditure account with the exception of means rendered from abroad in foreign currency defined for payments in foreign currency in inland or in abroad, which are led on a particular account by the budgetary organization, from which it realizes payments.
(3)	Contributions from a legal representative for payment for food allowances and food allowances from other persons in school feeding facilities the budgetary organization may lead on a current account, from which directly repays the expenditures connected with feeding in these facilities.
(4)	Advances to an advance organizations, which is a representative office of the Slovak Republic in abroad, renders the Ministry of Foreign Affairs of the Slovak Republic from its own budget through the medium of a particular advance account to the current account of the advance organization, which is a commercial-economical organisatory unit of the Ministry of Economy of the Slovak Republic in abroad, the Ministry of Economy renders an advance from its own budget through the medium of a particular advance account to the current account of the advance organization in abroad or in cash to the cash-desk of the advance organization in abroad. The balance of the means on these accounts do not forfeit at the end of the year.

§ 24
Management of Contributory Organizations

(1)	A contributory organization manages costs, profits and results of management according to its own budget. Its budget includes also contributions from the budget of the establisher, means of own financial funds, means accepted from other subjects.
(2)	A contributory organization is obliged to achieve profits determined by its budget.
(3)	A contributory organization concentrates all incomes and realizes all expenditures through the medium of accounts led in the State Treasury, if it is defined by particular regulation.18
(4)	A contributory organization may conclude a contract about renting objects with the right of purchase of the rented object,29 if the rent will be payed from its own sources.
(5)	A contributory organization may conclude contracts according to the paragraph 4 after evaluation of the offers at least three independent candidates.
(6)	The financial relationship between the establisher and the contributory organization is defined by obligational indices of the state budget and obligational indices defined by the establisher.
(7)	A contributory organization repays operational expenditures, expenditures for repairs and maintaining of corporeal property, as well as the procurement of corporeal and incorporeal property from own sources and from the contributions from the establisher, while it uses its own sources preferably. The establisher renders a contribution for the operation to the contributory organization in such amount, so that its budget be balanced; this is not the case if the contributory organization is a health-care facility, to which belongs repayment for the rendered health care according to a particular regulation. The contributon for operation may also be used for covering depreciations, maximum to the amount defined by the establisher. The establisher may cut or raise the contribution for the contributory organization by breach or change of conditions, under which the financial relationship between the establisher and the contributory organization was determined.
(8)	If own sources for procurement of corporeal and incorporeal property do not cover the needs of the contributory organization, the establisher defines the amount of the contribution for the procurement of particular corporeal and incorporeal property defined by him.
(9)	A contributory organization performs an account of financial relationship with the budget of the establisher or the state budget after the expiration of the budget year.
(10)	If  the result of managment is positive, this can not be achieved by unfulfilment of tasks, quality restricion or deterioration of services, or change of conditions, under which the obligational limits of the contributory organization were defined. A contributory organization, which states loss in preceding years and in the current year it achieved positive result of management, is obliged to use this result of management for the repayment of the loss of preceding years up to their adjustment.
(11)	If the management of the contributory organization for the current budget year ends with loss, the contributory organization repays this loss 
a)	from reserve fund of the contributory organization,
b)	from profit of the enterpreneurial activity of the contributory organization after taxation at the latest in the following two budget years after the year in which the loss was stated, if the loss can not be repaid according to the letter a),
c)	from the positive result of the management of main activity of the contributory organization at the latest in the following two budget years after the year, in which the loss was stated, if the loss can not be repaid according to the letter b).

(12)	If the loss is not repaid even according to the paragraph 11, letter c), the establisher discharges the contributory organization by the end of the year following after the year, from whose result of management the loss should be repaid.

§ 25
Financial Funds of the Contributory Organization

(1)	A contributory organization creates
a)	replacement fund,
b)	reserve fund. 
(2)	The extent of procurement of corporeal and incorporeal property by the contributory organization included its technical evaluation is defined by the amount of means of the replacement fund.
(3)	The sources of the replacement fund of the contributory organization are
a)	depreciations of corporeal and incorporeal property including salvage price by its discard,
b)	profit from the sale or liquidation of corporeal or incorporeal property,
c)	means from other subjects according to concluded contract about congregation of means for procurement of corporeal and incorporeal property,
d)	means from the reserve fund for the procurement of corporeal and incorporeal property,
e)	means from state funds for the procurement of corporeal and incorporeal property,
f)	gifts for the procurement of corporeal and incorporeal property,
g)	profits from permitted public collections,
h)	means rendered through the medium of the establisher’s budget for procurement of property.

(4)	The replacement fund of the contributory organization may be used for
a)	financing the procurement of corporeal and incorporeal property including its technical evaluation,
b)	rendering means according to concluded contract about congregation of means for the procurement of corporeal and incorporeal property,
c)	instalments of credits accepted for financing the procurement of corporeal and incorporeal property,
d)	financing repairs and maintenance of corporeal property as a complementary source.

(5)	The procurement of corporeal and incorporeal property including its technical evaluation, repairs and maintenance of corporeal property is financed from the replacement fund, even if they are procured in own production.
(6)	The reserve fund of the contributory organization is created of
a)	result of management
b)	gifted means, while financial donations determined for a purpose are used in accordance with its determination,
c)	profits from enterpreneurial activity after taxation.

(7)	The reserve fund of the contributory organization may be used for
a)	repayment of current needs that are not secured by the budget, including wage means, while the expenditures for wage means can not exceed 20 per cents of the annual allowance to the fund from the result of management and from profit of enterpreneurial activity after taxation,
b)	supplement of sources for procurement of corporeal and incorporeal property,
c)	repayment of sanctions for breach of generally obligational legal regulations,
d)	instalments of credits and their interests except for instalments according to the paragraph 4 letter c)
e)	repayment of loss of main activity.
f)	covering time inaccordance between incomes and expenditures during the budget year, 
g)	congregation of means,
h)	repayment of loss of enterpreneurial activity.

(8)	If the contributory organization states loss of preceding years or the management of the contributory organization for the current budget year ends with loss, the reserve fund is used preferably for the repayment of this loss according to the paragraph 7, letter e).

Rights and Obligations
of Budgetary Organizations
and Contributory Organizations

§ 26

(1)	If it is not stated otherwise by a particular regulation, budgetary organizations and contributory organizations render their performances correspondingly in accordance with a particular regulation. State budgetary organizations render mutually performances in their competence for free. Budgetary organization established by a municipality render mutually performances in their competence for free, if the municipal council of this municipality decides so. Budgetary organization established by a higher regional unit render mutally performances in their competence for free, if the representation of the higher regional unit decides so.
(2)	Budgetary organizations and contributory organizations are not entitled to guarantee for payment of a draft, or to draw, get and accept drafts with the exception of a budgetary organization, which is the Ministry of Finance at administration of state debt and by administration of state guarantees according to a particular act,17 they may get and issue other bankable papers or accept guarantee for repayment of their face value or repayment of profit only if it is stated by this act or a particular act.
(3)	In the case of repayments of expenditures from state budget means for the month December, which are realized in January of the following budget year, the budgetary organization may transfer expenditures to the account of foreign means, namely
a)	for the payment of wages, salaries, official incomes and other personal payments including the payments of salaries and wages and travelling costs paid simultaneously with the salary, wage, payment of reward paid on the basis of agreements about works performed extra of the employment and payment of work rewards of doomed, as well as other financial titles of the employees from the labour relations or from seasonal legal relationships, which are to be paid with the wage.
b)	the insurance contributions and insurance fund contributions from the wages according to the letter a),
c)	the insurance contributions and insurance fund contributions for persons, for whom the insurance is paid by the state,
d)	payment of benefits of social care, financial contributions for the compensation of social consequences of serious health deficiency and payments of benefits according to particular regulations.

(4)	A contributory organization repays expenditures according to the paragraph 3 in the following year from its own current account.
(5)	If the expenditures according to the paragraphs 3 and 4 are not exhausted to the end of February, they are transferred to the income account of the state budget in three days after the accounting of the items according to the paragraph 3. In case of lack of these means, the necessary means are accounted at the cost of the budget of the following budget year.
(6)	Budgetary organizations and contributory organizations as a tenant may use capital expenditures for technical evaluation of the rented property, if the term of the rent lasts at least four years from expending such expenditure.
(7)	Budgetary organization, which is the Ministry of Finance may accept or render credits or loans and enter into credit and loan relationships as a guarantee, if it acts according to a particular regulation17 in accordance with the Act of State Budget for the corresponding budget year. Budgetary organization, which is the Ministry of Education of the Slovak Republic may render loans according to a particular regulation.
(8)	Budgetary organizations and contributory organizations may use the means of their budget for repayment of member fees only with the consent of the establisher.
(9)	Budgetary organizations and contributory organizations lead accountancy, draw up and present account balance according to a particular regulation. State budgetary organizations and state contributory organizations are also obliged to present further data of their accountancy to the request of the Minister of Finance or the section’s administrator.
(10)	A budgetary organization can not create particular funds, only if it is established by a particular regulation. The balance from the particular funds shall not forfeit at the end of the year.

§ 27
Congregation of means

(1)	Budgetary organizations or contributory organizations can congregate means according to a particular regulation,30 if by such congregated means will not arise another legal entity. Congregated means are led on an independent account.
(2)	Budgetary organizations and contributory organizations realize payments according to a concluded contract about the congregation according to the paragraph 1 only from the sources, which they are entitled to use for the activity, which is the subject of this contract.
(3)	Budgetary organizations and contributory organizations settle the property gained by performance of mutual activity financed from congregated means according to the paragraph 1 according to a particular regulation.30 Budgetary organizations and contributory organizations are obliged to agree in the contract about the congregation the share of the property gained by mutual activity correspondingly to the amount of the means deposited by them; this is also valid for the case of dissolution of the congregation.
(4)	The means, which the contributory organization gains according to the contract about the congregation of means for a purposeful investment activity, are the source of its replacement fund. It transfers the means determined according to the contract about the congregation of means for operational activity at the end of the budget year in amount of the difference between accepted and expended congregated means at the cost or on behalf of the reserve fund.

§ 28
Enterpreneurial Activity of the Budgetary Organization
and the Contributory Organization

(1)	A budgetary organization can not perform enterpreneurial activity, if it is not stated otherwise by a particular regulation. The costs of this activity has to be covered by their profits. The difference between the profits and costs after taxation stay in full extent as a complementary source of further development and quality improvement of the activity of the budgetary organization. Profits and costs of the enterpreneurial activity are not accounted and they are kept under review on an independent extrabudgetary account. In this way the establishment of particular regulations about financing of secondary economy are not concerned.
(2)	A contributory organization may perform enterpreneurial activity with the consent of the establisher above the framework of the main activity, for which it was established, only if it fulfills the tasks defined by the establisher. The costs of the enterpreneurial activity has to be covered with its profits. Profits and costs of this activity are not accounted and are kept under review on an independent account.
(3)	If the economical result of the enterpreneurial activity is loss by September 30th of the budget year, the manager of the budgetary organization or the contributory organization is obliged to secure that it be balanced to the end of the end of the budget year, or take such measures for the termination of the enterpreneurial activity, that it not be performed in the following budget year.

PART EIGHT
CLOSING ACCOUNT OF THE PUBLIC SERVICE
AND STATE CLOSING ACCOUNT

§ 29

(1)	The closing account of the public service is a summary document, which contains the state closing account for the corresponding budget year and the results of the management of summarized budgets of the public service’s other subjects.
(2)	The closing account of public service contains mainly
a)	data about incomes and expenditures of the state budget and about the summarized budgets of public service’s other subjects for the corresponding budget year.
b)	balance of financing the deficit of the state budget and the state debt,
c)	summary about the state and development of the public service’s debt,
d)	data about the assets and liabilities of public service including the balance of state assets and state liabilities,
e)	summary of rendered reimbursable financial aids and of the state and development of state guarantees,
f)	summary about the usage of reserve funds,
g)	summary of rendered relieves according to a a particular regulation,
h)	summary about the state of tax recievables and customs recievables,
i)	summary report about the result of financial control and internal audit.

(3)	The Ministry of Finance draws up a proposal of closing account of public service including the proposal of state closing account for the corresponding budget year, manages the works of drawing up the closing account of public service and regulates the drawing up of closing accounts of the sections and state funds.
(4)	The section’s administrator draws up a proposal of closing account about the results of budgetary management of the section including the closing account of the state fund, which it administrates in coordinance with the budgetary organization and the contributory organization in its competence. The evaluation of the fulfilment of the intentions and aims of government programs budgeted in the framework of the section is also part of the closing account. The section’s administrator presents the proposal of the section’s closing account in extent and term determined by the Ministry of Finance. He presents the proposal of the section’s closing account for information to the government and to the competent committee of the national concil.
(5)	The sections’ administrators and other subjects of the public service present the annual balances to the Ministry of Finance in the term determined by it; if the balance has to be legalized by an auditor, the subjects of the public service are obliged to present the balance legalized by an auditor. The balances are data for the drawing up of the closing account of the public service.
(6)	Ministry of Finance presents the proposal of closing accont of public service including the state closing account for the corresponding budget year to the government.
(7)	The government presents the proposal of the state closing account and the closing account of public service for the preceding budget year for information to the government in six month after the expiring of the budget year at the latest.
(8)	The national council at discussing state closing account decides about the usage of the surplus of state budget or about the way of payment of the deficit of state budget.
(9)	Ministry of Finance publishes the results of management of public service in uniform methodics valid for the European Union for the corresponding quarter year of the current budget year by way of a  particular regulation.7

PART NINE
RESPONSIBILITY FOR THE MANAGEMENT,
BREACH OF FINANCIAL DISCIPLINE

§ 30
Responsibility for the Management

(1)	The government is responsible to the national council for the management of state budgetary means. The government presents a report about fulfilment of state budget to the national council in the framework of a report about the fulfilment of public service budget for the first half year, and this in 90 days at the latest after the expiry of the first half year. The part of the report about fulfilment of state budget is also information about governmental measures taken for the surmount of inaccordance between the incomes of the state budget and the expenditures of the state budget and about the permitted exceed of expenditures of state budget by the achievment of higher incomes of state budget.
(2)	For the management of public means is responsible the statutory authority of the subject of public service.19

§ 31
Breach of Financial Discipline

(1)	Breach of financial discipline is
a)	rendering or using public means in contrariety with their determined purpose,
b)	rendering or use of public means above the framework of competence, by which comes to the higher drawing of public means,
c)	non-transferring of the means of the public service’s subject in the established or determined term and extent,
d)	non-transferring of the incomes from public means to the budget of the public service’s subject in the established or determined term and extent,
e)	exceeding the term established or determined for the use of the public means,
f)	exceeding the extent of the authority for the taking over of the obligations according to the § 19 par. 5,
g)	making possible of causeless enrichment gained of financial benefit from public means,
h)	performing in contradiction with the § 15 to 18,
i)	using public means for financing, founding or establishing a legal entity in contradiction with this act or with particular regulations,
j)	uneconomical, ineffective and ineffectual management of the public means,21
k)	non-performance of the established or determined way of management of public means,
l)	payment of an advance from public means in contradiction with this act or in contradiction with conditions determined for rendering public means,
m)	breach of rules and conditions at rendering means from the public service’s budget to subjects of public service,
n)	breach of rules and conditions under which the public means were rendered.

(2)	Incorrect classification of incomes and expenditures according to budgetary classification is not understood as breach of financial dicipline according to the paragraph 1, letter a).
(3)	Legal entities or natural persons who breached the financial discipline according to the paragraph 1, letter a) are obliged to return the financial means into the budget, from which they were rendered or used, and this in the amount of the breach of financial discipline; at the same time they are obliged to pay a fine in amount of 0,1 per cents from the amount, by which the financial discipline was breached, for all, already passing days of the breach of the financial discipline to the term of the return of the financial means, maximum up to the total amount of this sum.
(4)	Legal entities or natural persons, which breached the financial discipline according to the paragraph 1, letter b), c) and d), are obliged to pay over the financial means in the amount of the breach of the financial discipline and to pay a fine in the amount of 0,1 per cent of the amount, by which the financial discipline was breached for all, already begun day of the delay with the payment of imposed contribution; if a legal entity or a natural person ascertained itself the breach of financial disciple and contributes the financial means in amount of the breach of the financial discipline according to the paragraph 1, letter b), c) and d) or if the breach of financial disciplne according to the article 1, letter b), c) and d) is ascertained at the performance of control and financial means in amount of the breach of financial  discipline is returned by the legal entity or natural person to the day of the end of the control,21 the legal process will not be started.
(5)	Legal entities or natural persons, which breached financial discipline according to the paragraph 1, letter e), are obliged to pay a fine in amount of 0,1 per cents from the amount used after the determined term for every already begun day of the breach of financial discipline, maximum up to the total amount of this sum.
(6)	Legal entities and natural persons which breached financial discipline according to the paragraph 1, letter f) to i) are obliged to pay a fine. The fine for breach of financial discipline according to the paragraph 1 letter f) and g) is stated from 1 000 Sk to 300 000 Sk in dependence on the seriousness of the breach of financial discipline and the length of the illegal condition’s duration. For the breach of financial discipline according to the paragraph 1, letter h) and i) the fine is stated from 500 Sk to 100 000 Sk in dependance on the seriousness of the breach of financial discipline and the illegal condition’s duration.
(7)	The subject of public service, which breached financial discipline according to the paragraph 1, letter a) to n), is obliged to claim against the employee responsible for the breach of financial discipline a process according to a particular regulation. If the public means were rendered under conditions, whose unfulfilment is connected with the obligation of their reimbursment, at the breach of these conditions the same fine is claimed as at the breach of financial disciplines according to the paragraph 1, letter a).
(8)	Contribution, fine and penalty for the breach of financial discipline by a legal entity or a natural person, to which there were rendered means from the budget of the public service’s subject, are incomes of the budget of that subject of the public service, which rendered them. Fine and penalty for the breach of financial discipline by a subject of public service are incomes of the state budget.
(9)	Contribution, fine and penalyt for the breach of finacial discipline at the treatment of public means is stated and collected by that control authority or authority of state supervision, which is entitled to perform a control or a supervision of public means in extent of its competence established by a particular regulation. Contribution, fine and penalty for the breach of financial discipline by a state budgetary organization and state contributory organization or for the breach of financial discipline by another legal entity or a natural person at the treatment of means of the state budget and with the means of the European Union states the competent administration of the financial control, which collects them. In the case of need, contribution, fine and penalty may be stated and collected by the Ministry of Finance.
(10)	If the breach of financial discipline is ascertained by an authority entitled to perform control according to a particular regulation, it is obliged to announce the breach of financial discipline to the control authority or the authority of state supervision44 according to the paragraph 9.
(11)	Contribution, fine and penalty for the same breach of financial discipline may be stated only once.
(12)	Stating and collecting of contribution, fine and penalty follows the regulations about the admininstrative procedure.
(13)	Contribution together with the fine, which by the controlled subject does not exceed the sum 5 000 Sk, is not stated.
(14)	Contribution, fine and penalty for the breach of financial discipline may be stated in five years from the day of the demonstrated ascertain of the breach of financial discipline.
(15)	For the procedure at the payment of the contribution, fine and penalty for the breach of financial discipline at the administration with means of the European Union the § 20 is applied.
(16)	If the breach of financial discipline according to the paragraph 1, letter a) to i) is also breach of obligations established by a particular regulation, the sanctions are stated for the breach of financial discipline according to this act, if the sanctions for such breach are not stated by a particular regulation.

§ 32

The Ministry of Finance may state for the subject, to which has obligations according to this act, for their non-fulfilment a fine up to the amonte of 1 000 000 Sk according to particular regulations about administrative procedure,48 in terms according to the § 31. The fine is an income of the state budget.

PART TEN
GENERAL, TRANSITIONAL
AND CLOSING ESTABLISHMENTS

§ 33

Recognition of Budgetary Consequences
of Legal Regulations and Other Measures

(1)	By a bill and further generally obligational legal regulations, measures of central authorities of the state administration and other materials presented to the government and the national council for discussing, their presumed financial consequences for the public service have to be laid down and justified, and this not only for the current year, but also for the following three budget years. Together with this, the proposals for payment of enhanced expenditures or for payment of income deficit also has to be laid down.
(2)	The claimants are obliged to discuss the budgetary consequences of the proposals of legal regulations according to the paragraph 1 with the Ministry of Finance in advance.
(3)	Proposals of legal regulations and other measures according to the paragraph 1 presented to the goverment for discussion during the budget year, which have consequences for the budget of public service and whose covering can not be secured during the budget year by enhanced incomes or by saving other expenditures, may entry into force at the latest on January 1st of the following budget year.

§ 34

The subject of the public service is also entitled to repay expenditures for represantative and propagatory purposes from its budget.

§ 35

Responsibility for the breach of financial discipline by a budgetary organization or a contributory organization, which was renamed to other subject according to particular regulations or to which the establishing function was transferred to a muncipality or a higher regional unit according to a particular regulation, is transferred to a new subject on the day on which it was transferred or on which the establishing function was transferred; stating of contribution, fine and penalty for the new subject for the breach of financial discipline by the preceding subject is judged according to the legal form of management of the new subject.

§ 36

Details of management with public means and of managment of budgetary organization and contributory organization are established by a generally obligational legal regulation issued by the Ministry of Finance.

§ 37

(1)	Proposal of the public service budget for years 2005 to 2007 is drafted with consideration of valid establishments of this act about the drafting of the public service budget.
(2)	If the budgetary classification is adjusted for the following budget year, the proposal of the public service budget for the following budget year is drafted in accordance with the budgetary classification valid for the following budget year.
(3)	For procedures started before this act entering into force, present regulations are applied. Present regulations are applied also to the procedures about breach of budgetary discipline started after this act entering into force, if the execution of the financial control began before this act’s entering into force. If the execution of financial control began after this act’s entering into force, the breach of budgetary discipline is also judged according to this act, while the sanctions of this act are applied.
(4)	Establishment § 35 is also applied at breach of budgetary disciplines according to present regulations.
(5)	Ministry of Finance, the municipality and the higher regional unit tie budgetary means of budget for the breach of budgetary discipline also after this act’s entering into force, if the tying for the breach of budgetary discipline was not finished to this act’s entering into force.
(6)	Legal relationships of contributory organization managed according to present regulations, which do not state in the framework of central administration or regonal self-government according to § 3 par. 1, their manager is obliged to coordinate with this act to December 31st 2006.
(7)	For the purposes of this act the means of the European Communities rendered to the Slovak Republic for realization of common programs of the Slovak Republic and the European Communities according to international treaties concluded by May 1st 2004 are understood as public means. For management, procedure of usage and rendering means of the European Communities according to international treaties concluded to May 1st 2004 and for the procedure at payment of sanctions for the breach of financial discipline by management of these means the present regulations are applied.
(8)	For drafting the state closing account for the year 2004 is applied the present regulation.
(9)	Exceptions rendered according to § 54 par. 1 of the act of the National Council of Slovak Republic nr. 303/1995 S. b. about the budgetary rules amended by further regulations lose their validity on January 1st 2005 except for the exceptions rendered in year 2004 according to § 54 par. 1 letter f).

§ 38

The act of the National Council of the Slovak Republic nr. 303/1995 S. b. about budgetary rules amended by the act of the National Council of the Slovak Republic nr. 386/1196 S. b., act nr. 358/1997 S. b., act nr. 377/1998 S. b., act nr. 348/1999 S. b., act nr. 441/2000 S. b., act nr. 169/2001 S. b., act nr. 445/2001 S. b., act nr. 502/2001 S. b., act nr. 506/2001 S. b., act nr. 553/2001 S. b., act nr. 559/2001 S. b., act nr. 291/2002 S. b., act nr. 427/2002 S. b. (full wording nr. 130/2003 S. b.), act nr. 163/2003 S. b., act nr. 267/2003 S. b., act nr. 442/2003 S.b., act nr. 609/2003 S. b. and act nr. 351/2004 S. b. is abolished.

Art. XV.

Force of Legislation

This act entries into force on the day of its promulgation with the exception of art. I. § 1 to 3, § 4 par. 1 to 3 and par. 5 to 8, § 5 to 36, § 37 par. 3 to 8, § 38 and par. II to XII, which entry into force on January 1st 2005.

Ivan Gašparovič
Pavol Hrušovský
Mikuláš Dzurinda