Our role and approach
According to Article 145 of Rules of Procedure of the Parliament, the draft law should include an explanatory letter, which, among other components, should reflect the following information:
Sources of financing the expenses concerning the draft law; influence of the draft law on budget income part; influence of the draft law on budget expenses part; new state financial obligations; possible financial results for the people who may be influenced by the draft law; rules of determining the way of paying taxes, duties and other fees determined by law.
In the frames of existing legislative mandate and according to Rules of Procedure of the Parliament, Parliamentary Budget Office is on the one hand, responsible for preparing respective conclusions on compliance of submitted draft law with the sub-paragraph "b" of paragraph 2 of Article 145 of the Rules of Procedure and on the other hand, is authorized to present independent assessment on financial impact of presented draft laws as a form of additional information.
The methodological documents elaborated by the PBO aim to improve the financial impact assessing tools of legislative initiatives and PBO’s respective legislative role in this process.
Methodology of Assessing Financial Implications by PBO – this document represents the assessment methodology for financial impacts in explanatory notes of legislative initiatives. It aims to present the standards and guides of assessing financial justification of the initiative in order to present the conclusion of PBO on the draft bill and among others, to assess short and medium term assumptions regarding presented financial justification.
Methodology of Assessing Financial Implications is of obligatory nature and represents a guiding document for PBO in assessing financial implications of the draft bill in the frames of legislative mandate of PBO by Rules of Procedure of the Parliament.
In addition to abovementioned facts, in order to support the process of preparing financial justification of the draft bills by initiators, PBO elaborated the recommended Methodology on Preparation of Financial Implications Justification in explanatory note of the draft bill. The document aims to present the key principles and methodological guidelines of preparing financial justification of the initiative in accordance to the requirements from sub-paragraph "b" of paragraph 2 of Article 145 of Rules of Procedure of the Parliament of Georgia so as this information reflected relevant picture of prospective financial information of the draft bill. For this aim, the document reflects main guides and minimum requirements of preparing true and fair information on financial implication of the draft bill for each financial component presented in explanatory note.
Methodology on Preparation of Financial Implications Justification is not of obligatory nature, rather represents a recommended guiding document for the authors of legislative initiatives.