They both exercise state supervision and enforce powers of the state on the bases of, and to the extent prescribed by, law. These functions are the primary responsibilities of inspectorates, whereas executive agencies also have a directing function. The by-laws of an executive agency, an inspectorate and their regional offices are approved by the respective minister, who also approves, amends, and controls the implementation of their budgets. Executive agencies and inspectorates are directed by a director-general, who is appointed to and released from office by the minister on the proposal of the Competition and Evaluation Committee of Higher State Public Servants. The current budget is based mainly on the State Budget Act of 1992.
All ministries are responsible for preparing draft budgets within their areas of respnsibility.
Limits of expenditure are determined, considering the tasks of each ministry and the financial forecasts for the next year. The preparation of the budget usually begins in March of the previous year. Ministerial draft budgets are submitted to the Ministry of Finance, together with a three-year development plan and an investment plan. The Ministry of Finance and the line ministries review the draft budget proposal together and draw up a negotiation protocol on agreements and differences of opinion regarding budget allocations. The Ministry of Finance then compiles the comprehensive budget draft for line ministries.