Section 50 of the Budget Principles Act states: Bund und Länder legen ihrer Haushaltswirtschaft je für sich eine fünfjährige Finanzplanung zugrunde. (The federation and the states each base their budget management on a five-year financial plan.) The plan must be presented at the latest together with the draft budget law for the next year. A second law, the Stability and Growth Act, requires the plan to be adjusted and extended every year.