Public Budgeting Process: State and Local Procedures

Preparation and Adoption of the Budget

1. General State Budget

The Government determines the fiscal stability goals for the three following years during the first quarter of each year. These goals apply to the General Administration of the State, autonomous bodies, public entities, the Social Security System, Autonomous Communities, and Local Governments.

The agreement must be submitted to Parliament; if approved, it conditions the development of the Draft Law on the State Budget. If rejected, the Government must resubmit it within one month.

The first phase of the blueprint involves the Ministry of Economy and Finance establishing:

• Criteria for proposal preparation.
• Quantitative limits.
• The constitution of the Committee on Expenditure Policy.

Ministerial departments must submit their proposed budgets to the Ministry of Finance. Once approved by the Government, the agreement is submitted to Parliament by October 1 for approval, amendment, or return. The project documentation must include:

• Descriptive reports of spending programs and annual targets.
• Explanatory memoranda of budget contents.
• An annex on the economic development of funds.
• A multiannual annex of public investment projects.
• Liquidation of prior year budgets and a preview of current-year accounts.
• Social Security balances from the previous year.
• Consolidated budgets, a financial report, and a summary of tax benefits.

If the law is not adopted before the first day of the relevant financial year, the previous year's budget is automatically extended.

2. Budgets of Local Entities

The Chairman develops the budget, which must include the following documents:

• A report explaining its content and major modifications.
• Liquidation of the prior year's budget and progress of the current one.
• An annex regarding staff.
• An annex on financial investments and an economic report.

The President submits the general budget to the Corporation's House before October 15 for approval, amendment, or return. Once approved by the House, it is presented to the public via the Official Gazette of the Province for 15 days for examination and claims. Final approval must occur before December 31. If the new budget is not in force by the start of the fiscal year, the previous budget is automatically extended.