Common use of Public Finance Clause in Contracts

Public Finance. In order to ensure a stable public finance policy, public spending and deficit must be reduced. The general government expenditure must be made more flexible with the aim of reallocation of a part of the expenditure to priority development areas, especially to research and development, and with the aim to facilitate the utilisation of European funds and improve the ability to react to the volatility of economic activities and consequently of revenue. Therefore the employment in the public sector must be made more flexible. The mid-term objective is to reduce the share of general government expenditure in gross domestic product, for this is necessary in order to alleviate the burden of tax on the economy. Therefore the Government shall, during the term of this Agreement, ensure limited growth of operative costs for the state operation and adopt measures to improve the efficiency and productivity as well as make the policy of employment in the public sector more efficient. Public procurement shall be regulated so as to prevent unjustified favouring of certain tenderers and forming of cartel links, enable the small and medium-sized enterprises the access to an appropriate share of public procurement, simplify the procedures and ensure their transparency, and rationalise the costs by reasonable centralisation of procedures. As regards social transfers, it is especially their transparency and social efficiency that need to be enhanced. Furthermore, it is necessary to continue the preparation of projections evaluating the long-term financial sustainability of the public finance system and its changes. Government tasks: • to ensure gradual changes in the structure of general government expenditure with consideration of priority economic policy; • to progressively reduce until 2008 the share of general government expenditure in GDP by 2 percentage points compared to the 2005 level; • to improve the harmonisation of development policies and to prepare the national development programme based upon the Slovenia’s Development Strategy; • to enhance efficiency and effectiveness of public administration by promoting the use of modern managerial techniques to manage changes and achieve business excellence in the public sector; to develop human resources and knowledge management; to develop strategic management; • to raise the quality of the public administration services by systematically applying the European excellence model; • to rationalise the operation of the public sector with the help of functional analysis and the introduction of standards of efficiency, comparative monitoring of efficiency and rationality of spending, and by transferring the provision of some public services determined in terms of finance and contents to private sector and co-financing on the basis of an appropriate legal framework and policy in individual fields, which shall be harmonised also with social partners. In the transfer of a part of public services to the private sector the state shall guarantee that the rights and the equal access of citizens to public services shall not be reduced. Financing and provision of public service shall be regulated so as to ensure supervision, observe the criteria of efficiency, quality, accessibility and social acceptability and attain the goals of reduced costs and greater well-being; • to make the preparation and execution of the budget more rational by implementing the principle of actual needs and priorities instead of indexing expenditure, by decentralising the management in the public sector and by establishing budgets on the basis of aims and results (the principle of result-oriented budget); • to prevent illegal work and employment. Employer associations’ tasks: • to stimulate the compliance with the tax and other legislation and to strengthen the tax payment culture, to point out anomalies in the provisions and in practice, and to settle obligations regularly; • to co-operate in the preparation of statutory and implementing acts from the field of public finance; • to prevent illegal work and employment. Trade Union tasks: • to support and enter the procedures for the assessment of business excellence of public institutions as the basis of successful work and performance; • to prevent illegal work and employment; • to monitor the transfer of a part of public services to private operation and to propose the amendments to the legislation in this field when necessary.