PUBLIC FINANCE LAW IN CAMEROON

This book clarifies principles, rules and procedures that govern the finances of the State, as well as those of regional and local authorities. It covers essential elements of budgetary law, public accounting law, and local public finance law. The analyses are grounded on relevant legislation. This includes: CEMAC Directives of 19 December 2011, Law No. 2018/011 of 11 July 2018 to lay down the Code of Transparency and Good Governance in the Management of Public Finances in Cameroon, Law No. 2018/012 of 11 July 2018 relating to the Fiscal Regime of the State and other Public Entities, Law No. 2019/024 of 24 December 2019 to institute the General Code of Regional and Local Authorities, Law No. 2024/020 of 23 December 2024 relating to Local Taxation, Decree No. 2020/375 of 7 July 2020 to lay down the General Rules and Regulations of Public Accounting, and other recent texts.

The book offers a comprehensive exploration of public finance law, organized into six parts and divided into eighteen chapters. It emphasizes the evolution of public finance law, its study, and its core concepts, particularly the budget and finance law. Additionally, it delves into the content of the State budget and presents the normative framework of public finance law by examining its sources and principles applicable to public budget processes. It discusses the drafting of the finance bill, along with the process of its scrutiny and adoption. It also addresses the stakeholders involved in the implementation of the State budget and procedures followed, highlighting the principle of separation between authorizing officers and public accountants, as well as the concept of de facto management. Furthermore, the book elaborates on the three principal types of control over the State budget implementation: administrative, political, and judicial controls, underscoring the significance of accountability. Finally, it focusses on key aspects of local public finance law, including the principles that govern local budgets, their content, and the associated budgetary procedures.

This book comes at a crucial moment, following a series of significant legal and institutional reforms and serving as the first work of its kind in English. It equips readers - students, lecturers, and public finance practitioners - with essential insights into the principles of public finance law.

Foreword ..................................................................................................................................................................................................................                    xix

Préface ..........................................................................................................................................................................................................................                    xxi

preface ......................................................................................................................................................................................................................    xxiii

Acknowledgments .........................................................................................................................................................................................                  xxv

Table of cases ..................................................................................................................................................................................................                    xxvii

Table of instruments ................................................................................................................................................................................                  xxx

List of abbreviations and acronyms .................................................................................................................................                xxxiii

Part I. Introduction to public finance law .......................................................................................................................   1

Chapter 1. Development of Public Finance Law ......................................................................................................     5

1.1. GENESIS OF PUBLIC FINANCE ......................................................................................................................       5

1.1.1. In England (1215-1689) ..............................................................................................................................................             6

1.1.2. In France (1314-1791) ..................................................................................................................................................              8

1.2. BIRTH AND REFORMS OF CAMEROONIAN PUBLIC FINANCE LAW .... 9

1.2.1. Shift from Resource-Based Budgeting to Result-Based Budgeting
(or Programme Budgeting) ..............................................................................................................................................................        10

1.2.2. New Budgetary Cycle ..................................................................................................................................................               12

1.2.2.1. Rule of Four Alternate Times Adjusted .........................................................................................       13

1.2.2.2. Rule of ‘Virtuous Chain’  ...............................................................................................................................             14

Chapter 2. STUDY OF PUBLIC FINANCE LAW .......................................................................................        17

2.1. PUBLIC FINANCE LAW AS AN ESSENTIAL DISCIPLINE
OF PUBLIC LAW ..........................................................................................................................................................................................;.......17

2.2. TEACHING OF PUBLIC FINANCE LAW IN THE FACULTIES
OF LAW AND POLITICAL SCIENCE ...............................................................................................................................20

Chapter 3. BUDGET AND FINANCE LAW .....................................................................................................          23

3.1. DEFINITION OF BUDGET AND FINANCE LAW ...........................................................     23

3.1.1. Definition of Budget .....................................................................................................................................................               24

3.1.2. Definition of Finance Law ....................................................................................................................................              25

3.2. CHARACTERISTICS OF FINANCE LAWS ...................................................................................         25

3.2.1. Financial Nature of Finance Laws .................................................................................................................          26

3.2.2. Annual Nature of Finance Laws ......................................................................................................................           26

3.2.3. Forecasting Nature of Finance Laws  ..........................................................................................................        26

3.2.4. Sui Generis Legislative Nature of Finance Laws  .........................................................................     27

3.3. TYPOLOGY OF BUDGET AND FINANCE LAW .................................................................    29

3.3.1. Types of Budgets .................................................................................................................................................................              29

3.3.2. Types of Finance Laws ..................................................................................................................................................            30

3.3.2.1. Initial Finance Law or Finance Law of the Year ...................................................................    30

3.3.2.2. Amending Finance Laws ................................................................................................................................             32

3.3.2.3. Settlement Law ..........................................................................................................................................................                32

3.4. FUNCTIONS OF BUDGET ................................................................................................................................               33

3.4.1. Political Function of the Budget ....................................................................................................................            33

3.4.2. Socio-economic Function of the Budget .............................................................................................          33

Chapter 4. CONTENT OF THE STATE BUDGET .................................................................................       35

4.1. BUDGETARY REVENUE ........................................................................................................................................             35

4.1.1. Tax Revenue ............................................................................................................................................................................                 35

4.1.1.1. Taxes and Levies on Income, Profit and Assets .....................................................................   36

4.1.1.2. Taxes and Levies on Goods and Services .....................................................................................      36

4.1.1.3. Customs Duties ..........................................................................................................................................................               37

4.1.1.4. Registration Fees and Stamp Duties .................................................................................................          37

4.1.1.5. Other Tax Revenue ................................................................................................................................................              38

4.1.2. Non-Tax Revenue ...........................................................................................................................................................                38

4.1.2.1. Property Income .......................................................................................................................................................               38

4.1.2.2. Proceeds from Sale of Goods and Services .................................................................................     39

4.1.2.3. Pension and Social Insurance Contributions ........................................................................         39

4.1.2.4. Internal and External Borrowings  .....................................................................................................          40

4.1.2.5. Grants from International Cooperation .....................................................................................          41

4.1.2.6. Support Funds and Bequests ....................................................................................................................            41

4.2. BUDGETARY EXPENDITURE ............................................................................................................................           41

4.2.1. Financial Costs of Debt ..............................................................................................................................................             42

4.2.2. Personnel Expenditure ................................................................................................................................................             42

4.2.3. Expenditure on Goods and Services ...........................................................................................................         42

4.2.4. Transfer Expenditure .....................................................................................................................................................             43

4.2.5. Capital Expenditure ......................................................................................................................................................                43

4.2.6. Other Expenditure .........................................................................................................................................................                44

 

Part II.  NORMATIVE FRAMEWORK OF PUBLIC FINANCE LAW ....................... 45

Chapter 5. LEGAL SOURCES OF PUBLIC FINANCE LAW ......................................................   47

5.1. CONSTITUTIONAL AND COMMUNITY SOURCES ................................................        47

5.1.1. Constitution of 18 January 1996 ...................................................................................................................             47

5.1.2. CEMAC Directives .........................................................................................................................................................               49

5.2 LEGISLATIVE SOURCES ...........................................................................................................................................             51

5.2.1. Law No. 2007/006 relating to the Fiscal Regime of the State ...................................... 51

5.2.2. Law No. 2018/011 to lay down the Cameroon Code
of Transparency and Good Governance in Public Finance Management ........................52

5.2.3. Law No. 2018/012 relating to the Fiscal Regime of the State and other Public Entities .........................................................................................................................................................................................               54

5.2.4. Law No. 2019/24 to institute the General Code of Regional and Local Authorities ...................................................................................................................................................................................................       56

5.3. REGULATORY SOURCES ........................................................................................................................................            58

5.3.1. Decree on General Rules and Regulations of Public Accounting  ......................... 58

5.3.2. Decree of 31 May 2019 laying down the State Budget Calendar ............................     59

5.4. OTHER SOURCES  ......................................................................................................................................................                 60

Chapter 6. BUDGETARY AND ACCOUNTING PRINCIPLES APPLICABLE TO THE STATE BUDGET ........................................................................................................................................................                 63

6.1. CLASSICAL BUDGETARY PRINCIPLES ..........................................................................................         63

6.1.1. Principle of Annual Budget ..................................................................................................................................             64

6.1.1.1. Meaning of the Principle of Annual Budget ............................................................................       64

6.1.1.2. Derogations to the Principle of Annual Budget  ................................................................      66

a. Infra-Annual Derogations ..........................................................................................................................................             66

b. Supra-Annual Derogations .....................................................................................................................................              67

6.1.2. Principle of Balanced Budget or Budgetary Equilibrium  ................................................     68

6.1.2.1. Meaning of the Principle of Balanced Budget  .....................................................................      69

6.1.2.2. Derogation to the Principle of Balanced Budget  ..............................................................     70

6.1.2.3. Economic Theories against/for the Balanced Budget  ................................................. 71

a. Theory of Systematic Deficit Spending  ....................................................................................................         71

b. Theory of Cyclical Budget  .......................................................................................................................................             73

c. Theory of Budgetary Impasse .................................................................................................................................           74

d. Theorem of Haavelmo ...................................................................................................................................................             75

6.1.3. Principle of Budget Unity  ....................................................................................................................................              75

6.1.3.1. Meaning of the Principle  .............................................................................................................................              75

6.1.3.2 Exceptions to the Principle of Unity ..................................................................................................         76

a. Pseudo-Exceptions to the Principle  ................................................................................................................        76

b. Real Exception to the Principle: Autonomous Budget ...........................................................    77

6.1.4. Principle of Budget Universality ......................................................................................................................           77

6.1.4.1. Meaning of the Principle  ...............................................................................................................................             77

a. Rule of GDP or Rule of Non-Compensation  ..................................................................................       78

b. Rule of Non-Allocation of Revenue  .............................................................................................................         78

6.1.4.2. Advantages and Disadvantages of the Principle of Universality ......................                     78

a. Advantages:  .................................................................................................................................................................................                79

b. Disadvantages: ..........................................................................................................................................................................               79

6.1.4.3. Exceptions to the Principle  ............................................................................................................................            79

a. Exceptions Common to the Principles of Unity and Universality ..........................   79

b. Specific Exceptions to the Principle of Universality (or Specifically to
 the Rule of Non-Allocation of Revenue) ........................................................................................................       79

6.1.5. Principle of Speciality of Appropriations ..............................................................................................        81

6.1.5.1. Meaning of the Principle  ...............................................................................................................................             81

6.1.5.2. Exceptions to the Principle of Speciality  ....................................................................................       82

a. Secret or Special Funds ...................................................................................................................................................             82

b. Transfers of Appropriations ......................................................................................................................................          83

6.2. NEW BUDGETARY PRINCIPLES ...............................................................................................................          84

6.2.1. Principle of Budget Sincerity  .............................................................................................................................            84

6.2.1.1. Meaning of the Principle of Sincerity .............................................................................................          84

6.2.1.2. Limitations to the Principle of Sincerity ......................................................................................         86

a. Forecast Uncertainty of State Revenue .......................................................................................................         86

b. Inefficiency of the Political Control of Budgetary Sincerity  ............................................   86

6.2.2. Principle of Budget Transparency  ................................................................................................................          87

6.2.2.1. Establishment of the Principle of Budget Transparency ............................................ 87

6.2.2.2. Meaning of Budget Transparency .........................................................................................................         89

6.2.2.3. Exceptions to the Principle of Budget Transparency ....................................................    91

a. Secret or Special Funds ..................................................................................................................................................              91

b. Defence Secrecy .......................................................................................................................................................................              92

c. Other Limitations .................................................................................................................................................................               93

Part III. BUDGET BILL DRAFTING AND VOTE .....................................................................................                    95

Chapter 7. Budget Bill Drafting ..............................................................................................................................................               97

7.1. ACTORS OF THE BUDGET BILL DRAFTING .......................................................................       97

7.1.1. Strategic Actors .....................................................................................................................................................................               97

7.1.1.1. President of the Republic ................................................................................................................................            98

7.1.1.2. Prime Minister, Head of Government ............................................................................................        98

7.1.1.3. Minister of Finance ...............................................................................................................................................               99

7.1.1.4. Minister of Economy, Planning and Regional Development .............................   99

7.1.1.5. Other Ministers ......................................................................................................................................................                  100

7.1.1.6. Heads of Constitutional Bodies ..........................................................................................................              100

7.1.1.7. Parliament .....................................................................................................................................................................                    100

7.1.2. Operational Actors ......................................................................................................................................................                  101

7.1.2.1. Programme Managers .....................................................................................................................................                101

7.1.2.2. Action Managers ...................................................................................................................................................                  101

7.1.2.3. Management Controller ..............................................................................................................................                 102

7.1.2.4. Operators .......................................................................................................................................................................                    102

7.1.2.5. Crosscutting Administrative Actors ...............................................................................................            102

7.2. PHASES OF THE BUDGET BILL DRAFTING .....................................................................         103

7.2.1. Preparatory Phase .........................................................................................................................................................                  103

7.2.2. Macroeconomic and Budgetary Framing Phase ......................................................................           103

7.2.3. Budget Orientation Debate  .............................................................................................................................               105

7.2.4. Phase of Detailed Budget Preparation .................................................................................................            106

7.2.4.1. Preparation at the Level of Ministries  .........................................................................................           107

a. Preparation of Various Programmes ...........................................................................................................           107

b. Collection of the Needs of Public Services/ Public Administrations ...................                     107

c. Content of Programmes ............................................................................................................................................                108

d. Annual Performance Project (APP) ...........................................................................................................             108

7.2.4.2. Technical Role of the Ministry of Finance  ...........................................................................          109

7.2.5. Finalization and Approval Phase ................................................................................................................              109

Chapter 8. BUDGET BILL VOTE ..................................................................................................................................              111

8.1 TABLING AND SCRUTINY OF THE BUDGET BILL ..................................................      111

8.1.1 Tabling of the Budget Bill ....................................................................................................................................                111

8.1.2 Scrutiny of the Budget Bill ...................................................................................................................................                112

8.1.2.1 Outstanding Role of the Committees on Finance and the Budget  ..........    113

8.1.2.2 Restricted Power of Amendment: Financial Inadmissibility  ...........................      114

8.2 ADOPTION OF THE BUDGET BILL ..................................................................................................            116

8.2.1 A Binding Legal Framework for Parliament ...................................................................................          116

8.2.2. A Technically Binding Procedure for the Adoption of Budget Bills .................. 117

Part IV. STATE BUDGET IMPLEMENTATION ...................................................................................... 119

Chapter 9. AGENTS OF THE STATE BUDGET IMPLEMENTATION ................   123

9.1. AUTHORIZING OFFICERS .............................................................................................................................                123

9.1.1. Categories of Authorizing Officers ............................................................................................................            124

9.1.2. Duties of Authorizing Officers  ....................................................................................................................             126

9.1.3. Liability of Authorizing Officers ..................................................................................................................             127

9.2. FINANCE CONTROLLERS ..............................................................................................................................                129

9.2.1. Categories of Finance Controllers .............................................................................................................             129

9.2.2. Duties of Finance Controllers .........................................................................................................................              130

9.2.3. Liability of Finance Controllers ....................................................................................................................              134

9.3. PUBLIC ACCOUNTING OFFICERS (OR PUBLIC ACCOUNTANTS) ....          136

9.3.1. Categories of Public Accounting Officers .........................................................................................          137

9.3.2. Duties of Public Accounting Officers ...................................................................................................            139

9.3.3. Liability of Public Accounting Officers ..............................................................................................            140

9.4. OTHER ACTORS OF THE STATE BUDGET IMPLEMENTATION ....   144

9.4.1. Ministry of Economy, Planning and Regional Development (MINEPAT) ..     145

9.4.2. Bodies under the Authority of the Ministry of Finance ..................................................        147

9.4.2.1. Autonomous Sinking Fund (ASF) ...................................................................................................             147

9.4.2.2. Deposits and Consignments Fund ..................................................................................................             148

9.4.3. Public Contracts Actors .........................................................................................................................................                149

9.4.3.1. Ministry of Public Contracts and its Bodies .......................................................................           149

a. Ministry of Public Contracts (MINMAP), Public Contracts Authority ........     149

b. Tenders Boards .....................................................................................................................................................................                 150

c. Central Contracts Control Boards ...............................................................................................................              151

d. Acceptance Committees and Follow-up and Technical Validation Committees ....................................................................................................................................................................................            151

9.4.3.2. Public Contracts Regulatory Agency and its Bodies .................................................         152

a. Public Contracts Regulatory Agency (PCRA) ................................................................................           152

b. PCRA’s Appeals Review Committee .........................................................................................................            153

c. Standing Committee Responsible for Checking, Reviewing and Updating Accounts .............................................................................................................................................................................................     153

9.4.3.3. Other Public Contracts Actors .............................................................................................................             153

a. Project Owners and Delegated Project Owners ...........................................................................         153

b. Internal Public Contracts Administrative Management Entities ............................      154

c. Contract Managers ..........................................................................................................................................................                  154

d. Contract Engineers ........................................................................................................................................................                  154

e. Chiefs of Service for Public Contracts ......................................................................................................           155

9.4.4. Other Budget Execution Agents .................................................................................................................              155

9.4.4.1. Stores-Accountants ...........................................................................................................................................                  155

9.4.4.2. Imprest Accounts Managers and ad hoc Cashiers  ......................................................        156

9.4.4.3. Intermediate Revenue Collector .....................................................................................................                156

Chapter 10. PRINCIPLE OF SEPARATION OF AUTHORIZING OFFICERS AND PUBLIC ACCOUNTANTS .................................................................................................................................            157

10.1. PRESENTATION OF THE PRINCIPLE OF SEPARATION .............................   157

10.1.1. Origin of the Principle of Separation .................................................................................................            157

10.1.2. Rationale of the Principle of Separation .........................................................................................           159

10.1.3. Implications of the Principle of Separation .................................................................................          160

10.1.3.1. Incompatibility of the Respective Duties of Authorizing Officers and Public Accountants ..................................................................................................................................................................                160

10.1.3.2. Independence of the Public Accountant from the Authorizing Officer .....                    160

10.2. ADJUSTMENTS TO THE PRINCIPLE OF SEPARATION ...............................      161

10.2.1. Secret or Special Funds .......................................................................................................................................                161

10.2.2. Imprests or Imprest Accounts .....................................................................................................................             162

10.2.3. Revenue Collection Services .........................................................................................................................               164

10.3. SANCTIONS FOR NON-COMPLIANCE WITH THE PRINCIPLE
OF SEPARATION ..........................................................................................................................................................................                   165

Chapter 11. PROCEDURES OF THE STATE BUDGET IMPLEMENTATION ......   167

11.1. PROCEDURE FOR THE EXECUTION OF EXPENDITURE OPERATIONS ................................................................................................................................................................................    167

11.1.1. Normal Procedure for the Execution of Expenditure Operations .................   167

11.1.1.1 Administrative Phase ......................................................................................................................................                167

a. Commitment of Public Expenditure .........................................................................................................             167

b. Verification (Clearance or Liquidation) of Public Expenditure .................................    168

c. Payment Order or Authorization of Public Expenditure ...................................................      169

11.1.1.2. Accounting Phase: Payment of Public Expenditure ................................................       170

11.1.2. Exceptional Procedures for the Execution of Expenditure Operations .....                    172

11.1.2.1. Expenditure Paid without Prior Authorization (or Payment Order) ...      172

11.1.2.2. Imprest Account  ..............................................................................................................................................                 173

11.1.2.3. Other Exceptional Procedures ..........................................................................................................             173

11.1.3. Legal Regime for State Debts ......................................................................................................................              173

a. Absence of Forced Execution against the Property of Public Entities ....................                    173

b. Four-Year Forfeiture Period ......................................................................................................................................             175

11.2. PROCEDURE FOR THE EXECUTION OF REVENUE OPERATIONS ...   176

11.2.1. Procedure for Non-Tax Revenue Collection ............................................................................          177

11.2.1.1. Normal Procedure for Non-Tax Revenue Collection ...............................................       177

a. Ascertainment of the Public Revenue  ..............................................................................................................           177

b. Verification or Liquidation of Public Revenue .....................................................................................          177

c. Order for the Collection of Public Revenue .....................................................................................          177

d. Collection of Public Revenue .............................................................................................................................              178

11.2.1.2. Exceptional Procedure for Non-Tax Revenue Collection ................................    178

11.2.2. Procedure for Tax Revenue Collection .........................................................................................             178

11.2.2.1. Procedure for the Collection of Taxes on Expenditure Relating to the Acquisition of Goods and Services .......................................................................................................................... 178

a. Normal Procedure  ...........................................................................................................................................................                 179

b. Exceptional Procedures ..............................................................................................................................................               179

11.2.2.2. Procedure for the Collection of Taxes on Personnel Expenditure ..........                    182

a. Normal Procedure ............................................................................................................................................................                 182

b. Exceptional Procedure ................................................................................................................................................                183

Chapter 12. DE FACTO MANAGEMENT .......................................................................................................             185

12.1. OPERATION OF DE FACTO MANAGEMENT .............................................................         186

12.1.1. Hypotheses of De Facto Management .............................................................................................            186

12.1.2. Dodging Public Accounting Rules as the Aim of De Facto Management ... 188

12.2 JURISDICTION OF THE AUDIT BENCH OF THE SUPREME
 COURT OVER DE FACTO MANAGEMENT ...................................................................................           189

12.3 POSSIBILITY OF CRIMINAL LIABILITY OWING TO DE FACTO MANAGEMENT ..............................................................................................................................................................................                   191

Part V. CONTROL OF THE STATE BUDGET IMPLEMENTATION .......................           193

Chapter 13. ADMINISTRATIVE CONTROL ..............................................................................................             195

13.1. CONTROL BY THE MINISTRY OF FINANCE ..............................................................          195

13.1.1. Control by the Minister in Charge of Finance .......................................................................           195

13.1.1.1. Hierarchical and Supervisory Control ....................................................................................             195

13.1.1.2. Internal Control ................................................................................................................................................                   196

13.1.2. Control by the Inspectorate General of the Ministry of Finance .....................    197

13.1.3. Control by the Finance Controller and its Outcome .....................................................         199

13.1.4. Control by the Public Accounting Officer .................................................................................            200

13.2. CONTROL BY INSPECTORATE GENERAL SERVICES OF MINISTRIES .........................................................................................................................................................................................                  200

13.3. CONTROL UNDER THE AUTHORITY OF THE PRESIDENT OF THE REPUBLIC ..............................................................................................................................................................................               201

13.3.1. Control by the Supreme State Audit Office (CONSUPE) .....................................       201

13.3.1.1. Status of CONSUPE ...................................................................................................................................                202

13.3.1.2. Control Missions of CONSUPE .................................................................................................              203

a. Ordinary Control Missions ..................................................................................................................................                 203

b. Specific Control Missions ......................................................................................................................................                204

c. CONSUPE’s Right of Access to Information .................................................................................        204

d. Outcomes of Control Missions ......................................................................................................................               204

13.3.1.3. CONSUPE’s Budget and Finance Disciplinary Board  ....................................        204

a. Multidimensional Nature of the BFDB .................................................................................................            205

b. Missions of BFDB ...........................................................................................................................................................                 206

13.3.2. Intervention of the National Anti-Corruption Commission  .............................        210

Chapter 14. POLITICAL OR PARLIAMENTARY CONTROL .......................................           213

14.1 PARLIAMENTARY CONTROL AT THE TIME OF THE VOTE ON FINANCE BILLS .............................................................................................................................................................................         214

14.2 PARLIAMENTARY CONTROL DURING BUDGET EXECUTION .....     216

14.2.1. Parliamentary Questions to Members of the Government .....................................      216

14.2.2. Committees on Finance and the Budget  .....................................................................................            217

14.2.3. Committees of Inquiry .......................................................................................................................................                 218

14.2.4. Quarterly Reports on the Execution of the Budget and Implementation
of the Finance Law .........................................................................................................................................................................                  220

14.2.5. Assistance of the Audit Bench of the Supreme Court ...................................................       220

Chapter 15. JUDICIAL CONTROL ..........................................................................................................................                 223

15.1. CONTROL BY THE AUDIT BENCH OF THE SUPREME COURT ....      223

15.1.1. Organization of the Audit Bench ..........................................................................................................              223

15.1.2. Jurisdiction of the Audit Bench ................................................................................................................              224

15.1.3. Procedure before the Audit Bench ........................................................................................................            228

15.2 INTERVENTION OF CRIMINAL COURTS .........................................................................            230

Part VI. LOCAL PUBLIC FINANCE LAW ........................................................................................................        233

Chapter 16. LOCAL PUBLIC FINANCE LAW  .........................................................................................            235

16.1. IMPORTANCE OF LOCAL FINANCES .......................................................................................           236

16.1.1. Economic Importance of Local Finances ......................................................................................          236

16.1.2 Political Importance of Local Finances .........................................................................................              237

16.2. BUDGETARY AND ACCOUNTING PRINCIPLES APPLICABLE TO THE LOCAL BUDGET  ......................................................................................................................................................             238

16.2.1. Principle of Annual Budget  .........................................................................................................................               238

16.2.1.1. Meaning of the Principle .........................................................................................................................                239

16.2.1.2. Exceptions to the Principle of Annual Budget  .............................................................        239

16.2.2. Principle of Budgetary Unity  ...................................................................................................................                 240

16.2.2.1. Meaning of the Principle  .....................................................................................................................                 240

16.2.2.2. Exceptions to the Principle of Budgetary Unity  ........................................................        240

16.2.3. Principle of Budgetary Universality ....................................................................................................              241

16.2.3.1 Meaning of the Principle  .........................................................................................................................               241

16.2.3.2. Exceptions to the Principle of Budgetary Universality ........................................      242

a. Common Exceptions to the Principles of Budgetary Unity and Universality ......                    242

b. Specific Exceptions to the Principle of Universality  ..............................................................       242

16.2.4. Principle of Speciality of Budgetary Appropriations ........................................................        242

16.2.4.1. Meaning of the Principle  ........................................................................................................................               242

16.2.4.2. Exception to the Principle of Speciality of Budgetary Appropriations ......    243

16.2.5. Principle of Budgetary Equilibrium or Balanced-Budget ..........................................       244

16.2.5.1. Meaning of the Principle  .......................................................................................................................               244

16.2.5.2. Procedure for the Restoration of the Budgetary Equilibrium ....................     244

16.2.6. Principle of Budgetary Sincerity .............................................................................................................               245

16.2.6.1. Meaning of the Principle  .......................................................................................................................               245

16.2.6.2. Limitations to the Principle of Budgetary Sincerity  ..............................................        245

Chapter 17. Content of the Local Budget ....................................................................             247

17.1. REVENUES OF REGIONAL AND LOCAL AUTHORITIES ........................     247

17.1.1. Tax Revenues ..................................................................................................................................................................                   247

17.1.1.1. Taxes Collected by the Tax Services of the State ...........................................................     248

a. Taxes Collected on behalf of Councils ....................................................................................................            248

b. Taxes Collected on behalf of Regions  ....................................................................................................           249

17.1.1.2. Levies Issued / Collected by the Tax Services of Local Authorities ........                   249

17.1.2. Proceeds from the Use of Property and Provision of Services ............................... 250

17.1.3. Allocations and Subsidies .................................................................................................................................                250

17.1.4. Other Revenues  ........................................................................................................................................................                   250

17.2. EXPENDITURE OF REGIONAL AND LOCAL AUTHORITIES ...........   251

17.2.1. Operating expenditures .....................................................................................................................................                 251

17.2.2. Investment expenditures ...................................................................................................................................                252

Chapter 18. Local Budgetary Procedures .......................................................................            253

18.1. LOCAL BUDGET DRAFTING ..................................................................................................................              253

18.1.1. Legal Requirements of Local Budget Estimates ....................................................................         253

18.1.2. Sanction of the Preparation Delay .........................................................................................................             255

18.2. LOCAL BUDGET ADOPTION AND APPROVAL .......................................................        255

18.2.1. Adoption of the Local Budget .....................................................................................................................             255

18.2.2. Approval of the Local Budget .....................................................................................................................              257

18.3. LOCAL BUDGET EXECUTION ...........................................................................................................               258

18.3.1. Main Agents of the Local Budget Execution ...........................................................................          258

18.3.1.1. Local Authorizing Officers ...................................................................................................................              258

18.3.1.2. Finance Controllers .......................................................................................................................................                 259

18.3.1.3. Council and Regional Public Accountants (Accounting Officers) ........    260

18.3.2. Procedures of the Local Budget Execution  ................................................................................         262

18.3.2.1. Procedures for the Execution of Expenditure Operations ..................................     262

a. Normal Procedure for the Execution of Expenditure Operations .........................   262

b. Exceptional Procedures for the Execution of Expenditure Operations ............                   264

c. Procedure without Payment Order or Authorization ............................................................       264

18.3.2.2. Procedures for the Execution of Revenue Operations .........................................     264

a. Execution of Revenue Operations through the Prior Issue of the
Claim/Order (Voucher) .................................................................................................................................................                  264

b. Execution of Revenue Operations through the Issuance of the Revenue
Title in Regularization ......................................................................................................................................................                   265

18.4. CONTROL OF THE LOCAL BUDGET EXECUTION ......................................          265

18.4.1. Internal Controls .......................................................................................................................................................                   266

18.4.1.1. Control by the Authorizing Officer or Chief Executive  ...................................     266

18.4.1.2. Control by the Finance Controller ............................................................................................              266

18.4.1.3. Control by the Regional or Municipal Treasurer  ......................................................        267

18.4.1.4. Control by the Deliberative Organ  ..........................................................................................             268

18.4.2. External Controls ......................................................................................................................................................                  269

18.4.2.1. Administrative Control  ..............................................................................................................................                 269

18.4.2.2. Judicial Control ....................................................................................................................................................                     270

18.4.2.3. Independent Audits .........................................................................................................................................                   270

BILINGUAL PUBLIC FINANCE LAW GLOSSARY .............................................................................         271

BIBLIOGRAPHY .....................................................................................................................................................................................                    283

INDEX ...................................................................................................................................................................................................................   301