NATIONAL LABOUR MARKET POLICIES
Basic Information Reports
1.3.5.3.Expenditure
Cf. Appendix 1.
Personnel costs, material costs and AMS investments as well as financial benefits from active and passive labour market policy, BMAGS aid linked to enterprises and the social security contributions of those in receipt of financial benefits are financed from labour market policy budget receipts (e.g. AMS social security contributions as a share of total expenditure on unemployment benefit and emergency assistance: 18.2% for health insurance, 22.8% for pension insurance, 1.3% for accident insurance for members of employment foundations in receipt of unemployment benefit).
The state authorises and finances expenditure on financial benefits from labour market policy without drawing on the labour market policy budget; such expenditure is thus subject to federal budgetary regulations.
The AMS independently covers personnel costs, material costs and expenditure on investments in its own domain on the basis of the longer-term plan and the preliminary budgets; these are fixed annually (under consideration of the federal budget estimate) and require the approval of the Federal Minister of Labour, Health and Social Affairs and the agreement of the Federal Minister of Finance.
The longer-term plan sets out planned AMS expenditure (investments, personnel and material costs) and the projected labour market policy budget revenue for at least three years.
Preliminary budgets for the AMS' own functional area are prepared annually. They set out predicted income and expenditure and the personnel plan for the coming year. Budgeted outlay on individual items may be exceeded by up to 25% under consideration of total expenditure.
AMS outlay is met in advance by the state; thus, labour market policy budget revenue is returned to the state.
Where income exceeds expenditure, the surplus is to be transferred to the AMS so that a reserve can be accumulated. This labour market reserve can be used to finance the cost of building and equipping administrative offices inasmuch as this is required for the maintenance of customer services.
In addition, the labour market reserve can be used to cover the cost of rectifying exceptional regional and local labour market problems. There is a legal upper limit on the amount which can be released for this purpose.
Under the terms of the AMFG (cf. Chapter III, 5.), the reserve also serves as a guarantee for liability assumed by the Federal Ministry of Labour, Health and Social Affairs for bank loans to enterprises.
Where outlay exceeds revenue, the AMS must reimburse the labour market policy budget, insofar as its assets (labour market reserve) - including potential loans - suffice for this purpose.
The AMS can thus take out loans if unforeseeable labour market policy budget outlay cannot be covered by the labour market reserve, or if additional emergency funds are required to temporarily cover the AMS' personnel and material costs.
The upper limit for loans is set at 20% of revenue from unemployment insurance contributions for the respective year.
The sum of the loans is advanced to the AMS from the labour market policy budget. The Federal Ministry of Finance assumes liability for such loans.
| 
