Cash Budgeting

Case study

Cash budgeting, strengths, weaknesses and prospects

I. Overview of the Budgetary System

1. The Constitution provides the legal introduction for expenditure management. It requires expenditure to be authorized by an annexation act (budget law) or supplementary direct sanction by Parliament and issued by the President. However, the President is allowed to issue a confirm without an appropriation act or prior supplementary estimate if he considers the expenditure urgent. Such expenditures must be approved by Parliament in the form of an ex- transmit supplementary estimate, a procedure that is workd quite regularly to confirm expenditures already made. Supplementary estimates argon often prepared on an ad hoc basis late in the year rather than as part of a formal midterm budget review. In principle, they should be met from savings on other items within the same(p) category, but such funding arrangements are rare. The frequent use of urgent warrants is an important feature of the budget system, and ex post supplementary estimates are not always applied. Years with effective expenditures exceeding the budget (original budget plus supplementary budget) are not unusual. The Auditor-Generals reports on the 1996 and 1997 fiscal years attend numerous instances of unconstitutional excess expenditures.





2. MoF is responsible for managing the preparation and execution of the budget. Within line ministries and other budget heads the compulsive officer, normally the permanent secretary, is the key person responsible for financial management. tyrannical officers have to assure that all payments are within the limits compel by the financial rules and regulations. They are personally responsible for either payments made without proper authority, but in practice controlling officers are rarely fired or forced to give back the government for improper payments, and no criminal cases have been brought to dally since 1993. The government often legitimizes payments after...If you want to get a wax essay, order it on our website: Orderessay



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