BUDGETARY FEDERALISM Provinces and municipalities in the Netherlands, the country, adopt their own budgets. The Province Act and the Municipality Act, issued by the national legislator provide budget rules which are largely identical. At a provincial level, the provincal council is the budgetary authority; at a municipal level, the local (or town) council is the competent authority. These bodies, directly elected by the inhabitants, are also responsible for the general provincal and municipal administrations, respectively, including provision of provincialand municipal bye-laws udgets are laid down on the recommendation of the provincial and municipal executives, called Gedeputeerde Staten and Burgomaster and Aldermen, respectively. Members of the prov incial executive and aldermen are elected by and from the representative bodies. 12 The adopted provincial budget has to be sent to the Minister of Home Affairs not ater than 15 November of the year preced ing that in which the budget is to be mplemented. The municipal budget has to be sent to the provincial executive, supervisor of municipal finances since days of old, also before Provincial and local councils see to it that their budgets are balanced, at least in the longer term. Items of expenditure in the budget are those deemed necessary for the implementation of provincial or municipal responsibilities and activities, including contingencies. Compulsory expenditure such as interest on and repayment of money loans and other payable debts, as well as expenditure imposed by or under the bw or resulting from enforced cooperation in implementing laws, must also be included. Should these items have been omitted, they will be included in the budget by the aforementioned supervisors. Should the resources insufficiently cover the compulsory and incidental expenditure, the superv isors will decrease the am ount for contingencies or, if necessary, the non-compulsory expenditure If the Minister of Home Affairs is of the opinion that a prov incial budget is not balanced, and in the com ing years it is not likely to be balanced either, this Minister has to approve the budget explicitly. If a budget has not been presented in time or if the account has been aid down late or shows a deficit, the Minister approval may also be required. The same rules apply to the municipal budgets, which have to be approved by the provincal executives. Approval can only be refused if it would be contrary to the law or the general financal good. This specific form of approval has taken the phce of the integral, ex-ante supervision that used to be exercised on provincialand municipal finances Their budgets are binding on the provincal and municipal govemments, expenditure may not exceed the amount budgeted for that particular purpose. The provincial and municipal executives are responsible for the concrete implementation of the respective budgets. Each item of expenditure based on a budget which has not yet been approved needs permission from the supervisors mentioned above, unless exemption from this obligation has been granted for certa in items and up to a certain amount of money. Urgent expenditure can be decided on without previous approval of the budget or the budget modification, provided this decision is sent to the In the near future, the Municipality Act will allow aldermen who were ot elected council membersBUDGETARY FEDERALISM 7 Provinces and municipalities in the Netherlands, the country, adopt their own budgets. The Province Act and the Municipality Act, issued by the national legislator, provide budget rules which are largely identical. At a provincial level, the provincial council is the budgetary authority; at a municipal level, the local (or town) council is the competent authority. These bodies, directly elected by the inhabitants, are also responsible for the general provincial and municipal administrations, respectively, including provision of provincial and municipal bye-laws. Budgets are laid down on the recommendation of the provincial and municipal executives, called Gedeputeerde Staten and Burgomaster and Aldermen, respectively. Members of the provincial executive and aldermen are elected by and from the representative bodies.12 The adopted provincial budget has to be sent to the Minister of Home Affairs not later than 15 November of the year preceding that in which the budget is to be implemented. The municipal budget has to be sent to the provincial executive, supervisor of municipal finances since days of old, also before 15 November. Provincial and local councils see to it that their budgets are balanced, at least in the longer term. Items of expenditure in the budget are those deemed necessary for the implementation of provincial or municipal responsibilities and activities, including contingencies. Compulsory expenditure such as interest on and repayment of money loans and other payable debts, as well as expenditure imposed by or under the law or resulting from enforced cooperation in implementing laws, must also be included. Should these items have been omitted, they will be included in the budget by the aforementioned supervisors. Should the resources insufficiently cover the compulsory and incidental expenditure, the supervisors will decrease the amount for contingencies or, if necessary, the non-compulsory expenditure. If the Minister of Home Affairs is of the opinion that a provincial budget is not balanced, and in the coming years it is not likely to be balanced either, this Minister has to approve the budget explicitly. If a budget has not been presented in time or if the account has been laid down late or shows a deficit, the Minister s approval may also be required. The same rules apply to the municipal budgets, which have to be approved by the provincial executives. Approval can only be refused if it would be contrary to the law or the general financial good. This specific form of approval has taken the place of the integral, ex-ante supervision that used to be exercised on provincial and municipal finances. Their budgets are binding on the provincial and municipal governments; expenditure may not exceed the amount budgeted for that particular purpose. The provincial and municipal executives are responsible for the concrete implementation of the respective budgets. Each item of expenditure based on a budget which has not yet been approved needs permission from the supervisors mentioned above, unless exemption from this obligation has been granted for certain items and up to a certain amount of money. Urgent expenditure can be decided on without previous approval of the budget or the budget modification, provided this decision is sent to the 12. In the near future, the Municipality Act will allow the councils to appoint aldermen who were not elected council members