Belgium is a federal state made up of different
levels of power with coordinated competences. Thus, the regions notably
have competence for a large part of economic and employment policy,
while the communities are responsible for cultural policy in the broad
sense (including education). To date, social security is mainly
organised at federal level.
Each of these federate entities not only has
exclusive and autonomous competence over its own remit, but can also
pursue its own fiscal policy. Since Belgium, as a member country of the
Economic and Monetary Union, is subject to a series of international
obligations, notably in fiscal policy matters, and that these concern
the budgetary results of all the public authorities, therefore including
the regions and communities, a budget consultation framework has been
set up between the federal government and the federate bodies.
At the political level, this coordination of
fiscal policy is ensured by the Consultative Committee (composed of
heads of government of the federal authorities and of the communities
and regions) and by the Interministerial Conference on Finance and the
Budget. The Public Sector Borrowing Requirement Section of the High
Council of Finance plays an important preparatory role as an advisory
body. This section is made up of experts nominated by the National Bank
of Belgium, the federal Ministries of Finance and the Budget and the
governments of the communities and regions.
In its annual recommendation, Public Sector
Borrowing Requirement Section sets out the budget targets for the
various public authorities: the federal government, social security,
each community and region, and the local authorities as a whole. As
already stated, the communities and regions have substantial autonomy
over their budgets. The opinions of the High Council are therefore not
binding, but they form the starting point for agreements to be concluded
between the federal government and the communities and regions within
the Interministerial Conference on Finance and the Budget, and to be
confirmed by the Consultative Committee.
