The Budget Affairs Division incorporates three Directorates.  Its main areas of responsibility include the compilation of the Financial Estimates presented to Parliament together with the annual budget, ensuring that public funds are utilised to achieve the desired outcomes and advising on Malta’s positions with respect to the EU budget.

Organizational Structure

Budget Directorate

Mission Statement

The Budget Directorate ensures that the budgetary process incorporating Ministries, Departments and Public Entities, is managed in a timely manner.  Advice and support are provided for the identification, apportionment and utilisation of the financial resources of the government, to enable the government to sustain commitments and achieve its objectives, within the parameters of a consolidated financial plan.

Main Areas of Responsibility

The compilation, publication and monitoring of the Constitution of Malta and financial legislation, as part of the annual budget process.

Core Functions

• Providing advice on draft Financial Estimates of government, in reflection of set priorities;
• Compiling draft annual and medium-term expenditure and revenue projections for ministries, departments and public entities;
• Keeping in perspective the aggregate budgetary targets of the Government, throughout the public finance management cycle;
• Recommending upon timely corrective measures, where issues of budget containment or revenue shortfalls are envisaged, as the financial year unfolds;
• Co-ordinating all legislation pertaining to the implementation of the initiatives emanating from the annual Budget Speech for eventual debate and legislation in the House of Representatives;
• Monitoring of recurrent expenditure, capital expenditure, and revenue collection of ministries, departments and government entities, with a view towards providing updates within the context of aggregate budgetary targets;
• Developing and implementing financial policies and procedures with which to guide and monitor revenue and expenditure, ensuring value for money performance
• Identifying potential room for efficiencies, through strategic, financial and operational evaluations and other techniques;
• Monitoring the revised estimates of ministries and departments, as well as the financial and management accounts of entities with particular attention to revenue, spending and expenditure plans;
• Preparation of financial and business statements, status reviews, and other financial management reports;
• Implementing an offsetting procedure involving dues to and from Government;
• Where applicable, dealing with non-delegated matters which, through legislation, are vested in the Minister responsible for finance.

Additional Information

Budget Directorate Resources
Budget Documentation
Organizational Structure

Performance and Evaluation Directorate​​

Mission Statement

The Performance and Evaluation (PE) Directorate forms part of the Budget Affairs Division. The Directorate supports the Ministry for Finance in enhancing accountability for public expenditure whilst ensuring that public funds are spent effectively and efficiently to achieve the government’s desired outcomes. The directorate oversees initiatives aimed to strengthen the value-for-money culture within government and enhance programme evaluation capabilities.

Main Areas of Responsibility

The Directorate is headed by a Director and is composed of three units which are:

• Spending Review and Financial Policy
• Government Corporate Expenditure
• Tax, Schemes and Local Councils

Core functions

• Carry out, on an ongoing basis, a review of existing financial management policies and procedures and to make recommendations for updating where necessary;
• Contribute to the implementation of reporting frameworks that build on best practice and ensure effective and efficient reporting standards for government financial data;
• Carry out comprehensive spending reviews, value for money assessments and cost-benefits analysis;
• Further develop the introduction of key performance indicators, budget measures and simplification measures that each Ministry is committed to, through the implementation of the Government’s programme and budget;
• Monitor developments of public sector innovation and transformation, assessing the likely impact of the identified trends and proposing new policies where applicable;
• Collect regular economic and financial intelligence and to carry out or coordinate ongoing economic and financial analysis and to report and advise on proposed/effective changes in government-induced/market costs impacting on the economy generally and the public budget more specifically, with special focus on specific sectoral areas such as the environment, energy, telecommunications, etc;
• Provide financial advice and direction to Ministries and entities on matters related to Pay and Conditions of Service;
• Setting policy and providing lead in matters of government corporate expenditure, including government transport and government travel;
• To advise on policies related to the maintenance of an asset register by Government that comprises all state property and other assets, defining its physical and legal characteristics and its potential for wealth generation;
• Act as lead on funds and schemes issued and/or managed by the Ministry for Finance and liaise on such matters with Ministries on their respective schemes and grants;
• Draft and publish Government Notices for schemes which fall within the remit of the Ministry for Finance;
• Carry out the assessment of business plans as submitted by the Department for Local Government and Local Councils;
• Lead and assess budget measures in conjunction with Transport Malta and the Office of the Commissioner for Revenue;
• Assess and advise upon the business plans submitted by public entities and carry out value-for-money reviews for line Ministries and entities within the public sector;
• Follow-up on National Audit Office and Internal Audit and Investigations Department reports and propose actions as necessary;
• Carry out the necessary analysis and attend Annual and Extraordinary General Meetings of companies in which government has a holding stake.

Address:

Performance and Evaluation Directorate,
Budget Affairs Division,
Ministry for Finance and Financial Services,
3A, Old Mint Street,
Valletta.

Email:

pspe.mfe@gov.mt

Additional Information

Performance and Evaluation Directorate Resources
Organizational Structure

EU Budget Directorate

Mission Statement

To ensure that EU budget related matters are monitored and dealt with so that Malta’s interests are fully safeguarded.

Main Areas of Responsibility

To assist in the preparation of the national position and support negotiations on the finalization, adoption, mid-term revision and ongoing reviews of the EU seven-year multi-annual financial framework (which sets annual ceilings for EU expenditure), so that Malta obtains the maximum possible allocation from the EU budget and has the most possible favourable budgetary balance.

Core functions

• To provide Malta’s position on regular new proposals on EU expenditure as well as on its financing;
• To calculate Malta’s and other Member States’ shares from various EU funds and programmes on the basis of different allocation criteria and monitor payments received from the EU;
•  To assess all Malta’s contributions to the EU own resources and compile and submit to the Commission related annual statements;
•  To provide Malta’s position during the successive stages of the procedures leading to the adoption of the EU annual budget, regular amending budgets and regular transfers by the Commission and other EU Institutions;
• To determine the financial and budgetary repercussions of EU communications and proposals for legislation;
• To represent Malta in committee and bilateral meetings dealing with EU budget related matters.

Additional Information

Organizational Structure