6. Financial jurisdiction shall be uniformly regulated by a federal law.
7. The Federal Government may issue general administrative rules which, to the
extent that administration is entrusted to Land revenue authorities or to
municipalities (associations of municipalities), shall require the consent of the
Bundesrat.
•
Powers of cabinet
Article 109: [Budget management in the Federation and the Länder] 1. The Federation and the Länder shall be autonomous and independent of one
another in the management of their respective budgets.
•
Subsidiary unit government
2. The Federation and the Länder shall perform jointly the obligations of the
Federal Republic of Germany resulting from legal acts of the European
Community for the maintenance of budgetary discipline pursuant to Article 104
of the Treaty Establishing the European Community and shall, within this
framework, give due regard to the requirements of overall economic
equilibrium.
3. The budgets of the Federation and the Länder shall in principle be balanced
without revenue from credits. The Federation and Länder may introduce rules
intended to take into account, symmetrically in times of upswing and
downswing, the effects of market developments that deviate from normal
conditions, as well as exceptions for natural disasters or unusual emergency
situations beyond governmental control and substantially harmful to the state's
financial capacity. For such exceptional regimes, a corresponding amortisation
plan must be adopted. Details for the budget of the Federation shall be
governed by Article 115 with the proviso that the first sentence shall be deemed
to be satisfied if revenue from credits does not exceed 0.35 percent in relation
to the nominal gross domestic product. The Länder themselves shall regulate
details for the budgets within the framework of their constitutional powers, the
proviso being that the first sentence shall only be deemed to be satisfied if no
revenue from credits is admitted.
•
Balanced budget
•
Budget bills
•
Emergency provisions
4. A federal law requiring the consent of the Bundesrat may establish principles
applicable to both the Federation and the Länder governing budgetary law, the
responsiveness of budgetary management to economic trends, and long-term
financial planning.
