Public Budgeting: Exceptions to Expertise and Expenditure Commitments
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Exceptions to the Principle of Expertise in Temporary Sheds
The State Budget has a limited temporal duration of one year. During this period, expenditure credits are applied to the public needs for which they were granted. If no such application occurs, the law mandates their cancellation (Art. 49 LGP).
Inclusion of Remaining Credit
Regulated in Art. 58 of the LGP, this provision allows for running costs that were not completed within the fiscal year to be carried forward. The regulation establishes that, provided there is a standard legal status, certain income may be incorporated without requiring the cancellation of appropriations on December 31st.
Credit Additions and Multi-Year Commitments
Additions to credit affecting the state budget are funded through the Contingency Fund or reductions in other non-financial transaction receivables. Multi-year spending commitments are limited to four years with the following rate caps:
- Year 1: 70%
- Year 2: 60%
- Years 3 and 4: 50%
Expenditure Commitment Stage
This phase is governed by criteria of publicity, fairness, and competition. It is an administrative act through which the Administration commits to a third party—either unilaterally or bilaterally—to realize a specific expenditure. This phase follows the adoption of administrative measures and leads to the actualization of an expense, requiring precise quantification.
If all conditions are satisfied, the third party becomes a creditor of the State. The authority to commit expenditure is generally attributed to heads of ministerial departments, holders of Constitutional Bodies, and other state entities. These arrangements are executed under procedures based on openness and fairness, as defined by the specific rules governing each expenditure type.
Collective Notes for Expenditure Commitments:
- Approval of the bases.
- Publication of a call.
- Opening of a tender.
- Awarding by competition.
- Publication of the resolution.
Note: This phase may also be delegated.