Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698838105569.pdf (Saint Vincent and the Grenadines)
FISCAL RESPONSIBILITY FRAMEWORK A rules-based fiscal framework for St. Vincent and the Grenadines Published in the Government Gazette on the 7th day of January 2020 Update approved by Cabinet on February 18th 2021, FISCAL RESPONSIBILITY RESOLUTION OF THE GOVERNMENT OF ST. VINCENT AND THE GRENADINES Fiscal Responsibility Framework Resolution Government of St. Vincent and the Grenadines WHEREAS the GOSVG is committed to enhancing the long-term fiscal resilience, stability and sustainability of St. Vincent and the Grenadines whilst at the same time fostering broad-based, inclusive economic growth and development; RECOGNISING that the Government of St. Vincent and the Grenadines (GOSVG), in its National Economic and Social Development Plan (NESDEP) 2013 to 2025, has committed to maintaining strong macroeconomic fundamentals by continuing to implement sound fiscal policies and reducing the debt-to-GDP ratio to a prudential level; within the overall macro-economic context of financial stability, growth, competitiveness and equity; REAFFIRMING that the GOSVG, being a member of the Eastern Caribbean Currency Union, has committed to attaining the debt-to-GDP target of sixty (60) percent by 2030; BEING COGNIZANT that the GOSVG is aware of the myriad attendant risks that confront a small island developing state like St. Vincent and the Grenadines; ACKNOWLEDGING that the GOSVG has expressed the desire to enhance further transparency and accountability in all matters related to the macro-economic and fiscal affairs of the
 state thereby deepening the involvement of all stakeholders; BEING MINDFUL that a strong public financial management system, a comprehensive and credible budget, an internally consistent and coherent, well-structured Medium-Term Fiscal Framework and a properly designed rules-based fiscal framework are fundamental to enhancing fiscal discipline in the furtherance of its long-term fiscal policy objectives; AND BUILDING upon all efforts hitherto to adhere to fiscal responsibility grounded in prudence and enterprise: The GOSVG has adopted the Fiscal Responsibility Framework attached hereto and is hereby submitted to the Parliament and people of St. Vincent and the Grenadines and Gazetted.
Dated the 7th day of January, 2020 FISCAL RESPONSIBILITY FRAMEWORK FOR ST. VINCENT AND THE GRENADINES FISCAL RESPONSIBILITY FRAMEWORK, 2019 THIS FRAMEWORK IS TO ESTABLISH THE PRINCIPLES AND PROCEDURES OF RESPONSIBLE FISCAL MANAGEMENT AND TO FACILITATE EFFECTIVE PARLIAMENTARY OVERSIGHT AND PUBLIC SCRUTINY OF THE FISCAL PERFORMANCE OF THE GOVERNMENT A document of the House of Assembly of St. Vincent and the Grenadines [Published in the Government Gazette on the 7th day of January 2020] 5 Table of Contents INTERPRETATION .............................................................................................................................................................. 7 OBJECTIVES OF FRAMEWORK........................................................................................................................................ 8 GENERAL PRINCIPLES OF RESPONSIBLE FISCAL MANAGEMENT ............................................................................... 8 FISCAL RESPONSIBILITY PRINCIPLES ..................................................................................................................................... 8 FISCAL RULES AND SUSPENSIONS REASONABLY REQUIRED ........................................................................................ 8 PREPARATION OF MEDIUM-TERM ECONOMIC AND FISCAL OUTLOOK REPORT ................................................ 9 MID-YEAR REVIEW
9 MID-YEAR REVIEW .......................................................................................................................................................... 10 PUBLIC FINANCIAL MANAGEMENT SYSTEM ................................................................................................................ 10 FISCAL RESPONSIBILITY MECHANISM .......................................................................................................................... 10 DUTIES OF THE MINISTER OF FINANCE ................................................................................................................................. 11 DUTIES OF THE MINISTRY OF FINANCE ................................................................................................................................. 12 DUTIES OF THE CABINET OF MINISTERS ..................................................................................... ERROR!
BOOKMARK NOT DEFINED.
FIRST SCHEDULE.............................................................................................................................................................. 14 SECOND SCHEDULE ......................................................................................................................................................... 16 THIRD SCHEDULE ............................................................................................................................................................ 18 FOURTH SCHEDULE ........................................................................................................................................................ 20 FIFTH SCHEDULE ............................................................................................................................................................. 21 6 1.
Interpretation In this framework — “annual budget” means the annual estimates of revenues and expenditures and other annual budget documents submitted to House of Assembly; “Committee” means the Standing Committee on Finance established by section 61(1) of the Standing Orders of the House of Assembly; “Constitution” means the Constitution of St. Vincent and the Grenadines; “fiscal balance” means unless otherwise explicitly stated, the balance of revenues and expenditure; “Fiscal Responsibility Mechanism” means the mechanism established pursuant to Article 9; “fiscal policy” means decisions or actions undertaken by public authorities regarding public revenue, expenditure, assets and liabilities to influencethe economy and achieve public policy objectives; “fiscal responsibility principles” means the specific principles of responsible fiscal management in Article 4; “fiscal risks” means the exposure of the government to short -term and medium-term deviations in fiscal variables compared to what was anticipated in the budget, the financial accounts, the fiscal strategy report or other statements or projections of public finances; “fiscal rules” means the measurable fiscal indicators for the fiscal policy to achieve the fiscal responsibility principles formulated in accordance with the First Schedule and stated in the Medium-Term Economic and Fiscal Outlook report; “fiscal sustainability” means the ability to conduct a given fiscal policy for a significant period of time in a manner that does not breach the general
 principles in Article 2 and specific principles of responsible fiscal management in Article 3; “medium-term” means a period of three consecutive financial years; “Minister” means the minister with responsibility for finance “primary balance” means overall fiscal balance excluding interest expenses; “primary expenditure” means total expenditure excluding interest expenses; “public debt” means all liabilities that require payments of interest or principal by the public sector to a resident or non-resident creditor, currently or in the future; “published” means published — (a) on an official website of the Government for a minimum period of five years; and (b) making the document available for inspection in print form in a readily accessible place; “total expenditure” means the sum of recurrent and capital expenditure less debt principal repayment and acquisition of financial assets.
“wage bill” means the aggregate of current expenditure on wages, salaries and allowances paid to employees of the central government in any fiscal year.

7 2.
7 2.

Objectives of Framework (1) The objectives of this Framework are — (a) (b) (c) (d) to establish the principles, procedures and mechanisms for a rules- based fiscal responsibility framework; to guide the formulation and implementation of fiscal rules; to guide and anchor fiscal policy during the annual budget process within a medium- term macro-fiscal framework; and to facilitate further parliamentary oversight and public scrutiny of the fiscal management of the Government.

3.
General Principles of Responsible Fiscal Management (1) The general principles of responsible fiscal management are — (a) (b) (c) (d) accountability, which means the Prime Minister, the Minister and all other Ministers are accountable to the House of Assembly and the public for the manner in which the Government discharges its responsibilities with respect to the management of the economy and fiscal policies; sustainability, which means the long-term fiscal and debt sustainability objectives shall underpin the framing of the medium term economic and fiscal report and the annual budget, including the management of fiscal risks; stability, which means fiscal policy shall be conducted in a manner that does not cause destabilizing changes in the macroeconomic and fiscal indicators; transparency, which means timely disclosure and wide publication of information on macroeconomic and fiscal policy matters to permit further public scrutiny and Parliamentary oversight; 4.
Fiscal Responsibility Principles The fiscal responsibility principles are — achieving and maintaining a sustainable fiscal balance; achieving and maintaining prudent levels of public debt; prudently managing fiscal risks; and (a) (b) (c) (d) promoting prudence and enterprise in fiscal management.

5.
5.

Fiscal Rules and Suspensions Reasonably Required The Minister shall establish the fiscal rules contained in the First Schedule consistent with the achievement of the fiscal responsibility principles set out in Article 3; (1) The Minister shall set quantitative fiscal objectives for the fiscal responsibility principles in the Medium Term Economic and Fiscal Outlook report in accordance with the First Schedule which shall include one or more medium term fiscal objectives.
(2) Subject to the approval of Cabinet, the Minister may suspend, for a period reasonably required by exigent circumstances, the fiscal rules, quantitative fiscal objectives and other fiscal measures where: 8 a) a natural disaster has been declared pursuant to section 32 of the National Emergency Management Act; b) a public health epidemic has been declared; c) real GDP experiences a decline of two percent or more in a given fiscal year or a cumulative decline equal to or greater than three percent over two consecutive fiscal years; d) the Minister, after consultation with the Governor of the Eastern Caribbean Central Bank, certifies in writing that a financial sector crisis has occurred, or is imminent, and the Minister estimates that the fiscal costs of such crisis, including the costs of any related recapitalisation of banks by the Government after all possible private sector solutions have been explored, is likely to disturb appreciably the fiscal balance, if the Minister determines that implementation of the fiscal rules, quantitative fiscal objectives and fiscal measures would be unduly harmful to the public finances, financial stability or the economy.
(3) When the Minister acts under Article 5(2), he/she shall submit for the consideration of Cabinet a paper which shall outline: a. the reasons for the suspension and how the implementation of the fiscal rules would be harmful to the public finances, financial stability or the economy; the impact of the suspension of the fiscal rules on the public finances; b. c. a fiscal adjustment plan setting out the fiscal adjustment measures to be implemented and the expected period of time to return to compliance with the fiscal rules.
(4) The Minister shall ensure the fiscal adjustment plan contains intended actions to return to compliance with the requirements for the fiscal rules in the First Schedule as soon as practicable.

(5) The Minister shall submit, to House of Assembly, the fiscal adjustment plan and provide a copy to the Fiscal Responsibility Mechanism — (a) within thirty days following the decision adopted by the Cabinet; or (b) in the next annual Medium-Term Economic and Fiscal Outlook Report, whichever is earlier.
(6) Upon submission to the House of Assembly of the fiscal adjustment plan, the Minister shall cause the adjustment plan to be published on an official website of the Government.

6.
Preparation of Medium-Term Economic and Fiscal Outlook Report (1) A Medium-Term Economic and Fiscal Outlook which is consistent with the principles and procedures in this Framework shall be prepared by the Economic Research and Policy Unit, in the Ministry of Finance in accordance with the Second Schedule; (2) The Medium-Term Economic and Fiscal Outlook Report shall be formulated based on macroeconomic and fiscal projections which shall be done and updated in the manner prescribed in the Budget Calendar in the Third Schedule.
(3) The Minister shall be responsible for the submission of the report to the Cabinet, Fiscal Responsibility Mechanism and House of Assembly; 9 7.

Mid-Year Review (1) The Minister shall submit to House of Assembly no later than the last day of August of each fiscal year, a mid-year review of the progress against — (a) (b) the requirements of Articles 3 and 4; the fiscal responsibility principles; and the Medium-Term Economic and Fiscal Outlook report.
(c) (2) The mid-year review referred to in subsection (1) shall — (a) (b) contain the information specified in the Fourth Schedule; and be published on an official website of the government within one week of tabling.

(3) The Minister may amend the Fourth Schedule, not inconsistent with the provisions of the Constitution, the Finance Administration Act and any other relevant law.

8.
Public Financial Management System The fiscal responsibility framework requires a properly functioning public finance management system which includes - (1) A credible Medium-Term Fiscal Framework (MTFF) – The Medium-Term Economic and Fiscal Outlook Report shall be approved by the Cabinet and be used as the document to guide the setting of the fiscal policy objectives, budget ceilings, and strategic policies and priorities of the government; (2) Credible budget formulation and preparation process– i. Ministries and Departments shall ensure that their budget submissions accord with the instructions of the Budget Circular, are timely and reflect the policy priorities of the Government.
ii.

the Public Sector Investment Projects should be subjected to an effective process of evaluation to determine priorities; (3) Effective and disciplined budget execution – Revenues and expenditures shall be brought to account in a timely manner and budgets should be seen as reasonable and reliable.
(4) Reasonably reliable debt, macroeconomic and fiscal forecasts – debt, macroeconomic and fiscal forecasts shall be prepared and updated on a regular basis based on the timelines prescribed in the Budget Calendar in the Third Schedule.

9.

Fiscal Responsibility Mechanism There is hereby established a Fiscal Responsibility Mechanism.

1.

Functions of the Fiscal Responsibility Mechanism i.
The Mechanism shall be responsible for assessing compliance with the general principles, fiscal responsibility principles and fiscal rules and to advise on fiscal and budgetary matters of the Government including reviewing the: 10 • Annual Budget; • Medium Term Economic and Fiscal Outlook report; and • Mid-year review.
Monitor compliance with the fiscal rules and targets established with respect to the relevant fiscal year Provide at any time at its own initiative or upon request, advice to the Government on matters related to its functions under this framework; ii.

iii.

2.
iii.

2.

Composition of the Fiscal Responsibility Mechanism The Fiscal Responsibility Mechanism shall consist of three to five members appointed by the Cabinet and drawn from the public and private sectors, having qualifications and experience in law, economics, accounting and finance or related area of expertise.

3.
Reports of the Fiscal Responsibility Mechanism The Mechanism shall submit to the Cabinet and the Finance Committee a number of reports: 1. an assessment of the annual budget for the current year of the Government against general principles, fiscal responsibility principles and fiscal rules; 2. an assessment of the Medium Term Economic and Fiscal Outlook report of the Government against the general principles, fiscal responsibility principles and fiscal rules; 3. an annual report that includes: • The progress towards compliance with the fiscal rules and targets established with respect to the relevant financial year including where applicable, a statement on compliance with a fiscal rule or target within the fiscal year; • Outcomes and implication of the implementation of this framework; • Advice on measures that ensure compliance in accordance to the framework; • The occurrence of circumstances leading to any reasonably required suspension of the fiscal rules.
4.

Reports of the Mechanism which have been submitted to and approved by the Cabinet shall be submitted to the Finance Committee and form part of the Committee’s submission to the House of Assembly.

5.

The annual report of the Mechanism shall be submitted to the Cabinet no later than three months after the end of the fiscal year.

6.

The Cabinet may grant an extension of time for the submission of the Annual Report for a period not exceeding one month.

7.
7.

The Mechanism shall have full access to all public officers, information and documents needed to effectively carry out its mandate.

8.

The Mechanism shall carryout its functions in the manner prescribed in the Fifth Schedule.

10.
Duties of the Minister of Finance The Minister shall take appropriate measures to ensure compliance with this Framework, including taking appropriate measures to ensure the following 11 (a) that the fiscal and financial affairs of the Government are conducted in a transparent manner with full and timely disclosure and wide publication of all transactions and decisions involving public revenues and expenditures and the implications for finances; (b) that there is observation of the principle of fiscal sustainability by ensuring that debt is reduced to, and then maintained at, a prudent and sustainable level as prescribed pursuant to the First Schedule, by maintaining primary surpluses that are consistent with this objective and macro-economic stability, growth and competitiveness; (c) that Government spending does not exceed the budget ceilings set in accordance with the Medium-Term Economic and Fiscal Outlook Report; (d) that management of fiscal risks is in accordance with regulations and guidelines to be issued by the Minister; and (e) that documented public investment procedures are prepared and made available for the submission and approval of all projects submitted for inclusion in the capital expenditure programmes of the Central Government and covered public entities.
11.

Duties of the Ministry of Finance The Director General Finance and Planning shall take appropriate measures to ensure compliance with this Framework, including taking appropriate measures to ensure the following– (a) The Economic Research and Policy Unit within the Ministry of Finance shall be responsible for the preparation of the Medium-Term Economic and Fiscal Outlook report and shall update said report in the manner prescribed in the Third Schedule.
(b) Medium-Term Economic and Fiscal Outlook report shall be the basis for the preparation of the estimates of revenue and expenditure required to be prepared and laid before the House of Assembly.

12.

Duties of the Cabinet of Ministers (1) The Cabinet shall comply with the principles outlined in the Fiscal Responsibility Framework to ensure effective medium-term planning, manage risk and improve accountability.
(2) The Cabinet shall develop and promote sound fiscal policy by adopting revenue and expenditure measures in keeping with the rules prescribed in the First Schedule 12 13 FIRST SCHEDULE FISCAL RULES Fiscal rules in the Medium-Term Economic and Fiscal Outlook 1.

2.

The Government shall state the Fiscal rules to achieve the fiscal responsibility principles in the Medium-Term Economic and Fiscal Outlook.
The Fiscal rules shall be set in accordance with the fiscal responsibility principles and this schedule.

Fiscal rules for debt 3.

4.

The long-term debt fiscal rule is to reduce public debt from to no more than 60 percent of GDP by 2030.

The Fiscal rules for debt shall be expressed as a percentage of GDP and as a nominal debt limit in the Medium-Term Economic and Fiscal Outlook and shall be included in the Annual Budget each year consistent with this Framework.

Primary balance rule 5.


During the period 2021-2024, the government will be implementing a Port Modernisation Project which approximates 20.7 percent of GDP.

Given the nature of this investment there will be temporary departure from the primary balance rule for the period 2021-2023.

During this period the government is expected to sustain primary deficits of on average 1.2 percent of GDP annually.
From 2024 onwards, the fiscal rule for the primary balance is to target an improvement in the primary balance to a surplus of 2.7 percent of GDP from 2024 onwards.

Compliance Margin 6.

Fiscal measures, being based on estimates and forecasts, are subject to some degree of uncertainty about their impact on the fiscal balance.

When assessing the achievement of the fiscal rules, a compliance margin is necessary to accommodate this uncertainty, which shall not exceed 0.55% of GDP.
The compliance margin means that the production of a fiscal adjustment plan shall not apply if the final outcome for the fiscal balance in any given year, is within the compliance margin.

14 Expenditure 7.

8.

9.

The fiscal rule for current expenditure shall be expressed as a nominal expenditure limit set in the Medium-Term Economic and Fiscal Outlook and the Annual Budget each year consistent with this Framework.
The Minister shall take appropriate measures to ensure that the growth in nominal current expenditure in a fiscal year does not exceed the growth in nominal GDP in that year.

The Minister shall take appropriate measures to ensure that the ratio of expenditure on the wage bill shall not exceed twelve-point five percent of GDP from 2022 onwards.

Transition 10.

The ratio of expenditure on the wage bill shall not exceed 13.0 percent in the fiscal year 2021 and 12.5 percent in 2022. Review 11.
The Government shall review the requirements in this Schedule in 2025 and every five years thereafter.

12.

The Government may amend this Schedule by Order subject to affirmative resolution of the House of Assembly following a review under paragraph 9 of the Schedule.

15 SECOND SCHEDULE CONTENTS OF A MEDIUM TERM ECONOMIC AND FISCAL OUTLOOK REPORT 1.
The Medium Term Economic and Fiscal Outlook (MTEFO) report shall contain an overview of recent fiscal and economic developments and an outlook for the budget year and two forward years based on macro-economic forecasts.
The repot shall include — (a) INTRODUCTION (b) ECONOMIC OUTLOOK AND ASSUMPTIONS (i) Overview of and outlook for international economic developments (ii) Overview of and outlook for the domestic economy Assumptions on which GDP forecast is based (c) FISCAL OUTLOOK – NO POLICY CHANGE (PASSIVE SCENARIO) (i) Overview of current policy settings (ii) Revenue Projections (Current Policy) Assumptions on which revenue forecasts are based (iii) Trends in Public Expenditure Assumptions on which expenditure forecasts are based (d) MEDIUM-TERM FISCAL STRATEGY Preliminary MTEFO to Cabinet (prior to budget circular, NOT published) (i) Key principles underlying fiscal strategy (ii) Proposed Medium-Term Fiscal Framework Aggregate expenditure and revenues Fiscal Balance Target and Debt/GDP Ratio Fiscal Adjustment required.
(iii) Policy Options/Fiscal Strategies for Meeting Target Revenue measures Expenditure Measures (iv) Annex - Ministry ‘baseline’ budget ceilings Derivation from rolling forward estimates included in budget circular no.
1 Final MTEFO for publication (published with annual budgetestimates) (i) Key principles underlying fiscal strategy Strengthening fiscal discipline and budget sustainability Reducing fiscal deficit and debt, Correcting structural imbalances (ii) Approved Medium-Term Fiscal Framework Aggregate expenditure and revenues 16 Fiscal Balance Target and Debt/GDP Ratio Approved Fiscal Adjustment (iii) Revenue Policy Highlight actual revenue measures and economic and fiscal implications (iv) Expenditure Priorities Approved major new spending New policy initiatives Development/Investment Expenditure (link to PSIP) Highlight major approved savings Efficiencies Business process reengineering Low priority/poor performing programs Annex: Final MDA Budget Ceilings (e) DEBT MANAGEMENT STRATEGY Present updated projections of outstanding debt and estimated interest payments on public debt in budget and forward estimate years Provide debt tables – gross public debt (nominal and in % of GDP), debt servicing costs (nominal and in % of GDP) Targets for debt and debt servicing Planned strategy for reducing debt Link with fiscal strategy and expenditure priorities Analysis of SOE loans and debt guaranteed by the State (f) FISCAL RISKS, MITIGATION STRATEGIES, AND SENSITIVITY ANALYSES Overview of Fiscal Risks Overview of potential risks to the economy and fiscal strategy Discussion on risk and exposure to the SoE Sector Contingent liabilities; extent of monitoring of autonomous government agencies and public enterprises Risk Mitigation
 Proposed strategies to manage risk E.g., how to respond to external economic shocks, revenues shortfalls, need for savings Develop alternative fiscal scenarios based on changes to economic indicators E.g., assume that GDP growth were one standard deviation (or alternatively 1 percentage point) lower or higher (g) TABLES Approved Fiscal Table with projections 17 THIRD SCHEDULE BUDGET CALENDAR – (The Norm) Key Tasks Preliminary Macroeconomic and Fiscal Forecast Intermediate Macroeconomic and Fiscal Forecast Activities Responsibility Dates The ERPU produces an initial set of macroeconomic and fiscal projections.
The ERPU updates macroeconomic and fiscal projections based on Quarter 1 data.

A preliminary, internal MTEFO is prepared and submitted to Cabinet to guide the budget process.
Budget Call is issued to all Accounting Officers to provide: • Macro-fiscal context for budget and fiscal policy objectives Economic and Research and Policy Unit Economic and Research and Policy Unit February- March May Budget Call Circular • Instructions for Corporate Plan, new spending requests (recurrent and capital); , Budget Department July • Mandatory Saving option and Revenue Measures • Templates for submitting proposals Budget Call Briefing Session Ministries and Departments Submit Budget Proposals Review of Budget Proposals First Draft Estimates Completed and distributed Final Macroeconomic and Fiscal Forecast A briefing session for all Accounting Officers on the Budget Call with a view to enhance compliance.
Budget Department July Accounting Officers to prepare full Corporate Plan along with New Spending (recurrent and capital) proposals, Savings Options and Revenue measures.

MoFEP reviews all submissions for administrative, technical and strategic compliance with Budget Call instructions.

1st Draft completed along with performance indicators and ready for discussion at Cabinet.

Distributed to the Ministries and Departments in preparation for Cabinet discussion.
The ERPU updates macroeconomic and fiscal projections based on Quarter 2 data.

A final MTEFO is prepared and submitted to Cabinet to be published with the annual budget estimates.
Accounting Officers August Budget Department September to October Budget Department October Economic and Research and Policy Unit October 18 Approval of Budget Proposals, Final Budget Ceilings and forward estimates Final Performance Indicators Final Draft Estimates Approval of Estimates Estimates Debate Cabinet meets with Accounting Officers to • To discuss the draft Estimates of Ministries/Departments • To review performance management indicators and reports Ministries and Departments submit final performance indicators.
Budget Department reviews performance management information and completes the final draft Estimates.
The Finance Committee considers and approves the Estimates of expenditure Parliamentarians debate the Estimates of Expenditure Budget Debate Parliamentarians debate the Appropriation Bill Cabinet of Ministers Novembe r Accountin g Officers Budget Department Finance Committe e House of Assembly House of Assembly Novembe r Novembe r Novembe r Novembe r Decembe r 19 FOURTH SCHEDULE CONTENTS OF A MID-YEAR REVIEW (a) The mid-year review shall provide an update to the Medium-Term Economic and Fiscal Outlook report and the annual budget and shall include the following information — updated macroeconomic forecasts and assumptions from Medium-Term Economic and Fiscal Outlook report and annual budget; updated fiscal information from the annual budget including — (i) Government revenue outturn and forecasts for the current year and (b) next three years; (ii) Government expenditure outturn and forecasts for the current year and next three years including for expenditure, primary expenditure and expenditure on wages and related personnel costs; (iii) approval of new spending since the annual budget including major (iv) investment and service projects and policies; fiscal balance forecast for the current year, fiscal balance for past two years, and forecast next three years; net and gross debt for the current year and next three years; level of guarantees; tax relief, remissions, and other waivers; (v) (vi) (vii) (viii) the outstanding stock of arrears for all government entities including showing separately all new unpaid
 invoices since the stock of arrears was last reported; and (ix) other significant financing matters that have occurred or are planned; and (c) (d) (e) (f) (g) information on virements, reallocations, use of the Contingency Fund, use of the Supplementary Estimates and any other matters required to be reported by this framework; an update of the fiscal risk position compared to the Medium-Term Economic and Fiscal Outlook report and the annual budget; progress on Government priorities; any actual or expected significant differences for non-financial performance indicators that were presented in the fiscal strategy report or the Estimates and other annual budget documents of Ministries in the annual budget with an explanation of any deviations; and updated information on the matters set out in paragraph 9(1) and (2) of the Second Schedule and where there has or is likely to be a breach of the fiscal responsibility principles or the fiscal objectives, the mid-year review shall contain a fiscal adjustment plan required by Article 5 of the framework.
20 FIFTH SCHEDULE FISCAL RESPONSIBILITY MECHANISM Composition 1) The Mechanism shall be comprised of suitably qualified individuals pursuant to Section 9(2) of the Framework.

2) Subject to section 9 (2) of the Framework, as far as practicable, each area of expertise shall be represented on the Mechanism.

Tenure 1) Cabinet shall appoint the members of the Mechanism and appoint a Chairman from among the members so appointed.
2) A member of the Mechanism shall be appointed to serve for a period not exceeding three years and shall be eligible for re-appointment subject to subsection 3.

3) A member of the Mechanism shall hold office for a period not exceeding four consecutive years.

4) A person who has served for four consecutive years may be re-appointed to the Mechanism after the expiration of two years.
5) Cabinet may revoke the appointment of a member of the Mechanism, if the member: a) is no longer able to perform the functions of office by reason of mental or physical infirmity; b) a bankrupt c) is convicted of an offense under – the Criminal Code i) ii) the Proceeds of Crime Act or an offence involving dishonesty; d) is absent from three consecutive meetings without the permission of the Chairman of the Mechanism.
6) A member may at any time resign as a member of the Mechanism by notice in writing to the Prime Minister.

7) Where Cabinet appoints a new member to fill a vacancy on the Mechanism arising from a revocation or resignation, the new member shall be appointed to serve the remainder of the term of the former member.

Meetings 8) The Mechanism shall meet as often as is necessary to execute its mandate but, in any event, no less than four times annually.
9) Subject to the provisions of the Fiscal Responsibility Framework, the Mechanism shall regulate its own proceedings.

Administrative and Financial Support 10) The Economic, Research and Policy Unit of the Ministry of Finance shall provide all the relevant data and documents requested by the Mechanism in the discharge of its 21 functions.

11) The Mechanism shall be allocated staff as may be required, on a temporary basis, in order to ensure the efficient operations of its work.
12) All costs associated with the functioning of the Mechanism shall be met from the Consolidated Fund.

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