State Budget Law: Preparation and Adoption Process

Preparation and Adoption of the State Budget Law

The preparation process requires government approval and subsequent submission to Parliament (Article 134 EC). The development blueprint is the material or mechanism (Art. 36 LGP), based on the Official Memorandum (OM) issued for that purpose, proceeding in three stages:

1. Partial Drafts: Developed by the various ministries and other bodies by May 1st.
2. Draft Law: Based on the partial drafts.
3. Approval: Approval of the bill by the Government and then by Parliament, accompanied by extensive documentation.

Parliamentary Approval Phases

The approval in Congress is dealt with first, with preferential processing. The phases are:

1. General Debate.
2. Debate in the Budget Commission: Consideration of amendments.
3. Final Debate: Approving or rejecting amendments.

Subsequently, the bill passes to the Senate, also with preferential processing. The phases in the Senate are:

1. Commission Debate: Approval, amendments, or veto.
2. Final Plenary Debate: To approve or reject the Commission's ruling.

In the event of the adoption of amendments or a veto by the Senate, the project returns to Congress, which has the final say on approving or rejecting the Senate's amendments.

Budget Content

A) General Budget

From a subjective point of view, the budget comprises:

• The budget of the entity itself.
• Budgets of dependent Autonomous Agencies (AA).
• Forecast statements of expenditure and income for corporations wholly owned by the local body.

From an objective or material point of view, the general budget comprises:

• The state revenue and expenditure budgets for each budget component.
• The basis for budget implementation.

B) Estimates of Different Entities

1. Budget of the Local Body

The entity's budget is the document that provides for the financial activities of the local government acting as "Matrix Management," meaning when it manages its income and expenses directly through its own means.

2. Budgets of Dependent Autonomous Bodies

Local authorities, like all public entities, can manage commissioned public services through independent bodies. Their main feature is that they possess legal personality and assets separate from the parent entity.

3. Forecast of Revenue and Expenses for Corporations

Another possible method for managing an organization of public services is through trading companies. As noted, the general budget of the organization includes forecast statements of revenue and expenses for corporations whose capital belongs entirely to the parent entity.