National Budget Cycle: Preparation and Approval

Project Preparation and Submission

The preparation of the Bill is the responsibility of the executive branch, which must submit it to Congress before September 15 of each year. At this stage, not only are costs and resources considered, but a thorough analysis of the socio-economic situation is also conducted. This marks the close relationship between the budget and all government programs.

Practically, the draft general budget is prepared by the Treasury Department, based on estimates provided by state agencies. These data are analyzed along with government plans and estimates of public resources. The project is developed and sent to the President for discussion, editing, and approval. Finally, it is sent to Congress with a document explaining each of the items.

The Legislative Approval Process

This process differs from common laws but includes certain specific features. Four key topics are emphasized:

• Legislative Chamber of Origin: While the Constitution does not specify which of the two chambers must initiate the analysis of the annual budget, the House of Representatives has always been recognized as the originating House for consideration.
• Legislative Powers: In our country, Congress can increase or decrease various items of expenditure or include others unforeseen by the original project.
• Veto of Law: After the bill is discussed and approved by both Houses, it goes to the Executive for consideration and subsequent enactment into law. If the Executive has no objections, it has ten days to return it to the Chamber of Deputies. Within these ten days, the Executive may exercise the power of veto, meaning it can dispose of all or part of the Budget Bill.
• Lack of Timely Sanction: If the sanction of the budget has not been made in a timely manner, the Public Accountancy Act provides that the budget governing the previous year remains in effect "for purposes of continuity of services."

Budget Execution and Resource Management

Budget execution involves performing a set of regulated operations or acts intended to raise various public resources and make public expenditures or investments planned by the government.

Budget Control and Public Oversight

At this stage, it is checked whether the objectives were met and whether there was proper management of public funds. Citizens can exercise oversight of the budget through their representatives in Congress. Importantly, one of the basic principles of the National Budget is the principle of advertising. This means that each stage of budget preparation and compliance should be disclosed to the public through, for example, the mass media.

Control systems can be classified according to the time they are conducted:

• Preventive: Performed before the implementation of the budget.
• Concomitant: Performed during the execution of the budget (conducted by SIGEN and the Legislature).
• Definitive or Critical: Practiced at the end of the implementation phase.