Budgetary Control and Authorization: Principles and Practices in Public Expenditure Management

Extract

[...] The transfer is made by decree - Budgetary reserves: non-specialized credits to face an unforeseen expense. [...]

[...] the government immediately deposits before the national assembly a special law project authorizing it to continue to collect existing taxes until the vote of the finance law of the year' To be applied on January the finance law must be adopted before the end of the civil year It must be deposited on the bureau of the national assembly at the latest on the first Tuesday of October 1. Origin > DDHC 1789 Principle of consent of the people to taxation (article 14) Constitution of 1791 - 'public contributions will be deliberated and fixed each year by the legislative body'" Law of May will then consecrate the principle of an annual authorization given by the parliament to the government each year to engage public expenditures 2. [...]

[...] Its particularity is that it falls within the administrative sphere Distinction : - Taxation of any kind (article 34 of the law) (VAT, taxes, duties) or it is the legislator who sets the framework - ? redevance-> Local deliberation, administrative sphere Tariff or price (example with the school canteen, the use of water, > For the state, there are two annex budgets: - Exploitation and aerial controls - Official publications and administrative information (example of the JO) > Technique of annex budgets very present at the local level Financial balance rule for local SPIC (public industrial and commercial services) (article L2224-1 of the CGCT): (two categories of public services: administrative (operates with fiscal resources such as tax) and industrial-commercial (operates like a private company, with prices, with EDF as an example) III - Principle of universality > Definition: the entirety of revenues and expenses are described in the budget > It implies two sub-principles: - An prohibition of contraction of expenses and revenues - A principle of non-allocation of a revenue to an expense BUT : to ensure that the deliberating organ (parliamentarians) has a view of the entirety of revenues and the entirety of expenses > Interdiction of contraction: Example: we buy a car for 4000 and we sell one for 1000, we will not count the balance (3000 difference between the two) We must not write 3000 of expenses, we must write 1000 of revenue and 4000 of expense? [...]

[...] We have developed authorization of commitments, possibilities to project on several years a policy or the construction of an equipment The payment credit is what we can spend each year - For local budgets: possibility of adoption until April 15, or April 30 in election years Relaxation Next municipal elections on March 7 and 22, 2026 We leave some flexibility because there are a certain number of indicators that depend on the state's finance law They take into account the finance law For example: global operating grant (DGF) is provided by the finance law, base of local taxes 3. [...]

[...] Need for multi-annual programming > If the rule of annuality allows for responding to the budget control requirements, it penalizes a prospective vision Research of multi-annuality: - Authorization of commitment - European context EU requires states to present a Stability/Convergence Pact over three years > LOLF of 2001 report on the situation and economic, social, and financial prospects of the annexed nation attached to the draft budget law > Constitutional revision of 23 July 2008 : - Creation of the laws on programming and public finances - « The multi-annual orientations of public expenditure are defined in the programming laws - The Organic Law of 17 December 2012 has come to specify the content of the programming laws - Creation of a new instance: the High Council of Public Finances, chaired by the President of the Court of Auditors and responsible for enlightening Parliament and the Government on the reliability of macroeconomic forecasts = introduction in the constitution of a new category of laws (forecasting public expenditures for 3 years) II - Principle of unity > Definition: all expenses and all revenues of a public entity must be included in a single document > But Ensure democratic parliamentary transparency and control It must be included in the same document so that the assemblies can make a judgment on the state of finances This also allows for checking that the balance is respected > Derogations : - Existence of annex budgets which have the interest of allowing an individualized follow-up of certain activities or certain services (they are located next to the budget of the state, the commune, the department . ) - Regarding the state budget, the annex budget is provided for in article 18 of the LOLF which says that: "allow to trace the financial operations of the state services not endowed with moral personality resulting from their activity of production of goods and services giving rise to the payment of a fee" The fee, from a legal point of view, is a notion that appears to be a tariff. [...]