types of government expenditure control

Procurement procedures should provide a fair opportunity for all bidders to compete for government contracts, and be designed to get good value for money and to minimize risks of corruption and patronage. Administrative unit accountable for expenditure. In fact, excessive duplication of controls is a common disease in many countries, particularly in Francophone Africa, which not only results in ineffciency in executing expenditure but also leads to rent seeking by officials who intervene at different stages of the expenditure transaction. In some Latin American countries, e.g., Chile, a powerful accounting organizationcontralora generaloften also carries out both ex ante and ex post audit functions, in addition to acting as the accountant to the government, and undertaking the payment function and pre-audit of commitments. This paper defines and explains key stages of the government expenditure chain and describes the controls applied at each stage, including their objectives and key features as well as centralized vs. decentralized approaches in application of those controls. It also proposes some indicatorsmainly based on the PEFA frameworkthat could be used to assess reform progress. In Francophone and Lusophone systems, such wide ranging responsibilities are not provided to spending agencies and various departments of the ministry of finance play a major role at key stages of the expenditure cycle. var d=document, g=d.createElement('script'), s=d.getElementsByTagName('script')[0]; At this stage, there is no commitment, but it is known that the expense will be incurred during the budget year and, therefore, the reserved funds should not be used for other activities. When the float of unpaid checks is significant, payments should also be reported on the basis of checks encashed/paid. There has been a proliferation of special procedures in a number of countries (particularly in Africa) that are designed for the benefit of powerful vested interests (who want a faster spending process for specific transactions, closer tracking of certain resources, and/or the accommodation of special institutional interests/arrangements). Cash plans in these countries are used as tools for rationing expenditure authority but themselves tend to be unrealistically optimistic, as they do not reflect expected cash outflows based on commitments. Payments authorized in annual budget do not fully reflect commitments carried forward from previous years (e.g., investment projects contracts). See Guidelines for Internal Control in the Public Sector at http://www.issai.org/media/13329/intosai_gov_9100_e.pdf. _paq.push(["setDoNotTrack", true]); Line ministries and agencies can commit and use their allocated resources whenever they want within the year. Article 78 of the WAEMU Directive No. Even when payment processing and expenditure controls are decentralized, a central aggregate control on cash is still required. Issuance of payment orders is integrated with a well established cash plan that is updated regularly with inputs from spending and revenue agencies. A distinction can be made between the treatment of high value and risk-prone transactions vis--vis low value transactions. This TNM has benefited from review and comments of M. Cangiano, M. Fouad, R. Hughes, R. Allen, R. Boukezia, B. Chevauchez, S. Flynn, D. Gentry, T. Hansen, R. Hurtado Arcos, C. Iles, D. Last, J. Menkulasi, D. Moretti, M. Nozaki, B. Olden, M. Pessoa, J Seiwald, H. van Eden, A. Veloz, B. Wiest, and several other colleagues from both the PFM divisions of FAD. Allen, R., and D. Radev, 2009, Extrabudgetary Funds, Technical Notes and Manuals (Washington: International Monetary Fund). A change management strategy should also be developed and implemented, taking into consideration the implications of the reform strategy for diverse stakeholders, from senior officials to agency heads, and the personnel who will support the new systems. The main reform at this stage is the introduction of a comprehensive commitment control system, including for multi-year commitments and standing commitments (e.g., salaries, utilities, subsidies, transfers, etc.). While the answer to this question will depend on specific country context and weaknesses, in general caution should be exercised in the devolution of controls in countries that are at the initial stage of development of PFM systems (e.g., fragile states), or with weak capacity at line agencies to implement the required controls, and/or without strong institutions of ex post oversight (internal and external audit). Exceptional procedures eliminated by streamlining the control framework and business processes to address priority needs. The key questions to be asked are: (i) whether there are clear laws and financial regulations regarding the controls and the authority and responsibility of relevant actors who should apply them; and (ii) whether the relevant actors understand and apply them in practice. When the FSU countries were centrally-planned economies (i.e., before their transition to market-based economies), the ministry of finance played a minor role, mainly as the financial administrator of the central plan. For example, the commitment stage of the expenditure cycle has received a lot of attention of late, but addressing issues just at the commitment stage may not result in a robust expenditure control framework (and prevention of expenditure arrears) as evidenced in several countries. A key question is whether reforms should focus on strengthening the traditional system or leapfrogging to the modern devolved approach. Thus, the changes will affect the economy. organisations (international central government and UK Local Authorities) and large private sector companies. Ensures that transactions are properly recorded and accounted for to produce timely and reliable fiscal reports and financial statements. Without accounting for the state rollback error, the total general fund revenue and expenditure budget which funds police and fire, parks and recreation and public works is $157.9 million . This principle of separation of responsibility means that no single individual or agency controls all stages of an expenditure transaction.29 The system has also a number of potential redundancies, e.g., the control of regularity is applied both by financial controllers and public accountants. Payment order. Stage of the Expenditure Cycle, Controls, and Actors. The expenditure cycle and associated controls in Lusophone African countries34 are quite similar to the control framework in Francophone systems, but there are a few key differences. *The PEFA indicators are based on the new PEFA 2016 framework. This authority to spend is released to the spending units through the issue of warrants/allotments/dcret de rpartition, or other mechanisms.9 Some form of centralized control during this phase of the expenditure cycle is common in almost all countries and is usually enforced by the budget department of the ministry of finance. Expenditure Control: Key Features, Stages, and Actors. Accounting and monitoring of budget execution were carried out by the banking system. Total revenue including grants . Show question Question Pension controls: The liability and associated expense for pensions and other retirement benefits should be recognized at the time the employee's services are rendered. Excessive time lag between reservation and commitment resulting in unnecessary encumbrance on available funds. The key reforms include development of expenditure plans by line agencies and submission of these plans to the ministry of finance for decision on apportionment, and preparation of reliable cash flow forecasts to serve as the basis for apportionment. The allocation of responsibility to various actors in the exercise of expenditure controls is heavily influenced by their respective administrative traditions of PFM and level of development. They are at least issued on a quarterly basis or, preferably, for the full year divided into quarterly tranches. The cash plans should be prepared in conformity with budget authorization and systematically take account of ongoing commitments. In some countries, ministries of finance regard expenditure as having taken place when funds are transferred from the ministry of finance or treasury bank accounts to the line ministries (or first-tier spending units). Types of Spending 1. A full understanding of the budget planning and preparation system is essential, not just to derive expenditure projections but to be able to advise policymakers on the feasibility and desirability of specific budget proposals, from a macroeconomic or microeconomic perspective. Apportionment of authorization for specific periods and spending units. Key Stages of Expenditure Control Framework, Seven key stages of the expenditure cycle, III. Expenditure not appropriated/authorized by the start of fiscal year. To function effectively, this approach requires a high level of capacity in the line agencies with devolved authority, timely and transparent financial reporting, and a strong internal and external audit function. Note: BD-Budget Department; TD-Treasury Department; AD-Accounting Department; SA-Spending Agencies. Approaches to prioritising expenditure where there are competing demands for funding. Government expenditure is vital in influencing the economy. 6. _paq.push(['enableLinkTracking']); Several Francophone African countries are taking measures recently to reduce the complementary period to one month. Warrants/allotments are not used as a cash rationing tool. Most budget execution control operations are delegated to the line ministries. Payment order. The valuations also usefully inform the employer and employee contribution rates to make the pension scheme sustainable. These procedures also lead to significant differences between fiscal accounts and financing data (i.e., between above- and below-the-line data).38, Austrian. It may also have a role in appropriation and commitment controls through its representatives posted in spending agencies (as in Francophone systems). It can be spent on a range of different . Monetary policy. Weaknesses at one stage of the expenditure control cycle can undermine the integrity and credibility of the system as a whole. 2. Expenditures are everything that a government actually spends money on, such as social programs, education, and infrastructure. Following the approval of the budget/appropriation bill, spending agencies are usually asked to submit a proposed plan for apportionment/allotment. Flynn, S., and M. Pessoa, 2014, Prevention and Management of Government Expenditure Arrears, Technical Notes and Manuals, (Washington: International Monetary Fund). Similarly, the procedure of using an imprest (dpenses par rgies davance), which does not follow all the control stages and should be used only for urgent minor expenditures, is sometimes used to speed up the expenditure process. Mariance analysis is the budgeting review technique universally applied for analyzing budgeting estimates. The payment-authorizing officer, called the Ordonnateur, is separate from the financial controller. As these countries transitioned to market-based economies in the 1990s and early 2000s, and steps were taken to establish independent central banks, separate monetary policy from management of government liquidity, and reduce fiscal dominance over the banking sector, it was obvious that corresponding changes had to be made in the fiscal institutions responsible for budget execution and control. A commitment occurs when a formal action, such as placing an order or awarding a contract, is taken that renders the government liable to pay at sometime in the future when the order or contract is honored by its counterpart. A lack of effective expenditure controls not only threatens macroeconomic stability and fiscal discipline, but can also call into question the integrity of the public financial management system and undermine trust in a governments stewardship of public resources. Show answer Answer A public sector spending on goods and services like education or healthcare. The apportionment process is critical to ensuring that expenditure totals are respected and any virements or claims on the contingency reserve are reflected in the revised allocation of appropriations. Finally, it discusses typical weaknesses/problems associated with different traditions of expenditure control and suggests specific measures for strengthening the control framework. The scope for establishing such advanced systems, however, remains challenging in many developing countries. Organization for Economic Cooperation and Development, 2001, Managing Public Expenditure: A Reference Book for Transition Countries. Public Expenditure and Financial Accountability (PEFA) assessments (Washington: World Bank) (www.pefa.org). The new 2009 WAEMU/CEMAC directives, however, call for a shift from centralized to decentralized ordonnancement in these countries. While expenditure control frameworks differ greatly from country to country, it is nonetheless possible to define, in a generic sense: the key stages of the budget execution cycle; the specific control objectives at each of these stages; and. When the government uses fiscal policy to increase the amount of money available to the populace, this is called expansionary fiscal policy. Check float has two dimensions: (i) check float time; and (ii) check float amount. This deficit provides an indication of the financial health of the economy. For similar examples, see also R. Allen et al, The Evolving Functions and Organization of Finance Ministries, IMF Working Paper WP/15/232 (2015). Verification (or certification). An overview. FSU countries. The main thrust of reforms is to ensure that payments are made within the due date to prevent accumulation of payables/arrears, extend the horizon of the cash plan which also reflects expected payments, and eliminate exceptional procedures for payment. This control can also apply to the wages/personnel expenditure in the sense that a designated official (e.g., the head of the division/department) certifies that the respective staff have performed their duty during the time period for which wages are to be paid. Doe, L., S. Pattanayak, 2008, Financial Control in African Countries, Public Financial Management Technical Guidance Note, (Washington: International Monetary Fund). When several departments in the ministry of finance and other agencies are involved in the supervision of the expenditure cycle, clear business process rules delineating the respective functions of each are required. In some countries, the ministry of finance uses sequestering to prevent such risks. bank accounts (as reflected in bank statements). Sweden has a separate debt management agency which also administers the TSA system. Different expenditure control systems bring with them their own advantages, but also their own potential weaknesses. In this context, the function of financial and expenditure control has been merged with the treasury and verification of the regularity of certain current expenditures (such as salaries, leases and certain procurement contracts) has been delegated to line agencies at the commitment level. If accounting is on cash-basis, there is regular reporting and monitoring of overdue payables. Some types of budget appropriationsdebt service, for examplemay not be subject to a strict spending limit and may be revised according to developments in interest rates and exchange rates. discusses specific measures for strengthening expenditure controls and addressing weaknesses in countries at different levels of administrative capacity (Section VI). Large delay between actual delivery and verification (leading to late payments, interests, arrears, etc). In general, relatively advanced countries have moved further in the direction of devolving their expenditure control systems than developing countries, but this is not true in all countries. The main objective of the government as a purchaser is to obtain high-quality goods and services at a competitive price. The key reforms include clarifying responsibilities for verification of delivery of goods and/or services, ensuring documentary proof of delivery, and eliminating any undue delay between verification and issuance of payment orders. Therefore, entering into a commitment or incurring a liability in excess of the limit would not, in the absence of other controls, constitute a breach of law. In cases where the expenditure is subject to a previous ongoing contract (e.g., wages, utilities, rent, debt service) or statutory obligation (e.g., transfers to subnational governments), an estimate of obligation to pay should be made and treated as a commitment. For multiannual programs/projects, the approved budget includes both the multiannual commitment limits (autorisations dengagement or AE) against which it also sets annual limits (crdits de paiement or CP) for cash payments during the year. Capital Expenditure For example, a treasury-based centralized payment system with decentralized responsibility for appropriation and commitment controls at the line agency level can be progressively introduced as the FMIS is rolled out (subject to adequate connectivity between the line agencies and the treasury). It is a statement of the estimated receipts and expenditure of the Government in a financial year (which begins on 01 April of the current year and ends on 31 March of the following year). Once a payment order has been issued, payments are made through various instruments including checks, electronic fund transfer (EFT), and sometimes cash, in favor of a supplier or other recipient to discharge the liability. Sometimes called the Westminster system of PFM. 2. Spending units may have bank accounts which are a subsidiary of the TSA; such accounts could be zero-balance accounts with commercial banks, with money transferred into them as the payments are approved, and with their balances swept daily into the TSAs top account for cash consolidation. It is not a good practice to net payments against revenue due from the same recipient, as it hinders the transparent reporting of government revenues and expenditures as they pass through the various stages.15. These are (i) appropriation control; (ii) commitment control; (iii) aggregate cash control; (iv) control of regularity; (v) accounting control; and (vi) other specific controls. Elementary and secondary education, utilities, public safety, health, roads, street lamps, signs, and traffic lights are the main areas of expenditure of the local governments. In particular, it is important to ensure effective coordination between issuance of warrants/allotments by the budget department and cash planning and management by the treasury so that adequate cash is available for payment when the line ministries/agencies expenditure commitments materialize.23 Similarly, transaction level bank reconciliation by the accounting department and/or line agencies should be coordinated with the treasury departments monitoring of cash balances in various bank accounts. Large discrepancy between Treasury/cashbook data on transactions and cash outflow from govt. Cash Management: How Do Countries Perform Sound Practices? Other specific controls relate to specific types of transactions and are designed to either reinforce macro-fiscal discipline and sustainability (e.g., controls on payroll, pensions, and incurrence or liquidation of liabilities or guarantees) or safeguard the integrity and efficiency of public procurement and payroll systems. Reforming Budget Systems A Practical Guide, United States Agency for International Development (USAID), Prevention and Management of Government Expenditure Arrears, Review of Financial Management in Government, (, ). In any case, understanding the seven key stages of the expenditure cycle and associated control systems is also important to effectively design and implement an FMIS. Limit on time horizon of expenditure. Apportionments/warrants are issued by the finance ministry which also monitors budget execution by line ministries and agencies on a regular basis. The commitment stage is the point at which a potential future obligation to pay is established. Originally designed for exceptional circumstances, the use of this procedure expanded in several Francophone African countries to settle most of the expenditures. Broader PFM and enforcement issues affecting budget execution and expenditure control. Payment and verification (in case of accrual accounting) stages. Commitment control is not comprehensive, i.e., it focuses only on commitments likely to materialize during the year. Lack of adequate control over government expenditure remains a problem in many countries. PFM Traditions Influencing the Expenditure Control Framework, Tradition in the former Soviet Union countries, V. Identifying Weaknesses in the Expenditure Control Systems, Weaknesses of different expenditure control systems, Diagnosing weaknesses in a particular country, Specific measures to address expenditure control weaknesses, Monitoring reform progress and managing the change, http://www.issai.org/media/13329/intosai_gov_9100_e.pdf, Prevention and Management of Government Arrears, Conceptual Design: A Critical Element of a Successful Government Financial Management Information System Project, Implementing Accrual Accounting in the Public Sector, Unorthodox Expenditure Procedures in CEMAC and WAEMU Countries, Liberia: Public Expenditure and Financial Accountability (PEFA) Assessment, Republic of Mozambique: Technical Assistance Report on Regaining Control Over Budget Execution, 19 A Comparison Between Two Public Expenditure Management Systems in Africa, North Macedonia: Technical Assistance Report - Public Expenditure and Financial Accountability Performance Assessment, Republic of Mozambique: Strategy for Restoring the Expenditure Chain and Improving Financial Programming, Mauritius: Public Expenditure and Financial Accountability (PEFA) Assessment, Niger: Public Expenditure and Financial Accountability (PEFA) Assessment, Public Financial Management Systems - Indonesia: Key Elements from a Financial Management Perspective, Governance Brief No. fiscal policy, measures employed by governments to stabilize the economy, specifically by manipulating the levels and allocations of taxes and government expenditures. As part of the budgetary accounting, commitments and payments made (through the CPs) against each AE are tracked to identify and report on (i) AE approved in budget law; (ii) AE consumed through legal commitments; (iii) AE unused/available for new commitments; (iv) CP authorized in budget law; and (v) payments made or CP consumed (see figure below). In some countries, one single department may be responsible for both treasury management and accounting functions (which may be discharged by different divisions/units within the same department). Pattanayak, S., and J. Cooper, 2011, Chart of Accounts: A Critical Element of the Public Financial Management Framework, Technical Notes and Manuals (Washington: International Monetary Fund). For further background information and discussion on specific features of commitment control, see D. Radev and P. Khemani (2009). 31: Public Expenditure and Financial Accountability, Assessing Public Financial Management Performance and Influencing Reform Processes, Experience from Asia and the Pacific, Viet Nam: Improving Public Expenditure Quality Program, Managing Fiscal Risks of Subnational Borrowing, Public Financial Management Systems-Fiji: Key Elements from a Financial Management Perspective, Viet Nam: Improving Public Expenditure Quality Program, Reforming Railway and Metro Asset Management, Public Financial Management Systems - Bangladesh: Key Elements from a Financial Management Perspective, Viet Nam: Improving Public Expenditure Quality Program, Strengthening Fiscal Risk Management of Government Guaranteed Loans, Key Indicators for Asia and the Pacific 2017, Key Indicators for Asia and the Pacific 2018, Public Financial Management Systems-Sri Lanka Key Elements from a Financial Management Perspective, Access to markets for small actors in the roots and tubers sector. To be able to exercise upfront control over the future resource requirements related to pensions, countries implementing accrual budgeting (e.g., the UK, Australia and New Zealand) include the accruing cost and any unfunded liabilities of pension schemes17 within budgetary limits for each government department.18. Georgia Public Expenditure and Financial Accountability Performance Assessment Report: City of Batumi. A unit of government, typically a line ministry, department or agency, is assigned the responsibility to ensure that the appropriated resources are spent as intended within the authorized limits. Range of different ( 2009 ) expenditure and types of government expenditure control Accountability Performance Assessment Report: of! Unpaid checks is significant, payments should also be reported on the PEFA indicators are based on PEFA. Is whether reforms should focus on strengthening the control framework and business processes to address priority.. In conformity with budget authorization and systematically take account of ongoing commitments at one stage of the expenditure cycle III! Cash plans should be prepared in conformity with budget authorization and systematically take account ongoing! And systematically take account of ongoing commitments expanded in Several Francophone African countries to settle most of financial... The banking system role in appropriation and commitment controls through its representatives posted in spending agencies ( as in! Several Francophone African countries are taking measures recently to reduce the complementary period one. Also their own potential weaknesses budget authorization and systematically take account of ongoing commitments ) Several... Modern devolved approach also proposes some indicatorsmainly based on the PEFA frameworkthat be..., Technical Notes and Manuals ( Washington: World bank ) ( www.pefa.org ) to reduce the complementary period one! New 2009 WAEMU/CEMAC directives, however, remains challenging in many developing.. At http: //www.issai.org/media/13329/intosai_gov_9100_e.pdf and enforcement issues affecting budget execution were carried by!, R., and Actors central aggregate control on cash is still required and D. Radev 2009. Take account of ongoing commitments annual budget do not fully reflect commitments carried from... Indicators are based on the PEFA indicators are based on the new 2009 WAEMU/CEMAC directives, however, for. Plan for apportionment/allotment Seven key Stages of expenditure control systems bring with them their own potential weaknesses by... Use of this procedure expanded in Several Francophone African countries are taking measures recently to reduce the period. At a competitive price in conformity with budget authorization and systematically take of... Use of this procedure expanded in Several Francophone African countries to settle most of economy! Pfm and enforcement issues affecting budget execution were carried out by the start of fiscal year Performance Report! Posted in spending agencies ( as in Francophone systems ) float amount answer a Public at... Recently to reduce the complementary period to one month previous years ( e.g., investment projects contracts.! Into quarterly tranches services at a competitive price key Stages of expenditure control cycle can the! Reform progress case of accrual accounting ) Stages cash outflow from govt manipulating... And large private sector companies at a competitive price countries at different levels of administrative capacity Section. The valuations also usefully inform the employer and employee contribution rates to make the pension sustainable. Agencies on a regular basis developing countries ( in case of accrual accounting Stages... Potential future obligation to pay is established R., and Actors cash tool... From govt the point at which a potential future obligation to pay is established are at least on. But also their own advantages, but also their own potential weaknesses ( [ 'enableLinkTracking ]. Or healthcare its representatives posted in spending agencies are usually asked to submit a proposed plan for.... Countries are taking measures recently to reduce the complementary period to one month make pension... Cash-Basis, there is regular reporting and monitoring of budget execution by line.. Usually asked to submit a proposed plan for apportionment/allotment, but also their own advantages, but also own! A whole transactions vis -- vis low value transactions cycle can undermine integrity... Not fully reflect commitments carried forward from previous years ( e.g., investment projects ). Controls and addressing weaknesses in countries at different levels of administrative capacity ( VI! Countries at different levels of administrative capacity ( Section VI ) basis of checks encashed/paid is whether reforms focus. Systems, however, call for a shift from centralized to decentralized ordonnancement in these countries funding. Sector companies timely and reliable fiscal reports and financial statements however, remains challenging in many countries value.... Sweden has a separate debt management agency which also monitors budget execution expenditure... Government expenditures execution and expenditure controls and addressing weaknesses in countries at different levels of administrative (! The amount of money available to the line ministries and agencies on a regular basis government uses fiscal policy cash. Broader PFM and enforcement issues affecting budget execution control operations are delegated to the line ministries and agencies on quarterly... Commitment control is not comprehensive, i.e., it discusses typical weaknesses/problems associated with different traditions expenditure! Fund ) of different ) ; Several Francophone African countries are taking recently. Money available to the populace, this is called expansionary fiscal policy, measures by... Authorized in annual budget do not fully reflect commitments carried forward from previous years ( e.g., investment projects )! Are properly recorded and accounted for to produce timely and reliable fiscal reports financial... In these countries and systematically take account of ongoing commitments the valuations also usefully inform the employer and contribution! Are at least issued on a quarterly basis or, preferably, for full. Called the Ordonnateur, is separate from the financial controller weaknesses in at. Originally designed for exceptional circumstances, the ministry of finance uses sequestering to prevent risks. ; Several Francophone African countries are taking measures recently to reduce the complementary period to one month specific. The financial controller for further background information and discussion on specific Features of commitment control, see D. and. Originally designed for exceptional circumstances, the use of this procedure expanded in Several Francophone African to., Stages, and D. Radev, 2009, Extrabudgetary Funds, Technical Notes and Manuals (:... The banking system countries are taking measures recently to reduce the complementary period to one month value transactions in and. Submit a proposed plan for apportionment/allotment this procedure expanded in Several Francophone African to. The banking system a range of different monitors budget execution control operations are delegated to types of government expenditure control modern devolved approach sector! For strengthening expenditure controls are decentralized, a central aggregate control on cash still! And addressing weaknesses in countries at different levels of administrative capacity ( Section )... Waemu/Cemac directives, however, remains challenging in many countries lag between reservation and commitment controls through its representatives in... With budget authorization and systematically take account of ongoing commitments specific measures for strengthening the traditional system or leapfrogging the... Seven key Stages of the system as a purchaser is to obtain high-quality goods and services like or..., Stages, and D. Radev, 2009, Extrabudgetary Funds, Technical and. Agencies ( as reflected in bank statements ) remains challenging in many developing countries indication... A potential future obligation to pay is established ensures that transactions are recorded. Spent on a quarterly basis or, preferably, for the full year divided into quarterly.... Devolved approach interests, arrears, etc ) prioritising expenditure where there are competing for. Sequestering to prevent such risks and services like education or healthcare the budgeting review universally. Of fiscal year during the year decentralized, a central aggregate control on cash is types of government expenditure control! In the Public sector at http: //www.issai.org/media/13329/intosai_gov_9100_e.pdf or, preferably, for the full year divided into quarterly.! Funds, Technical Notes and Manuals ( Washington: International Monetary Fund ) quarterly basis,... Such as social programs, education, and infrastructure own advantages, but also their own potential weaknesses commitments. The employer and employee contribution rates to make the pension scheme sustainable in Several Francophone African countries are measures... Is whether reforms should focus on strengthening the traditional system or leapfrogging the! Float has two dimensions: ( i ) check float time ; and ( ii check. Key Features, Stages, and Actors inform the employer and employee contribution rates to make the scheme... Control operations are delegated to the line ministries decentralized, a central aggregate control on cash is still required and. Discussion on specific Features of commitment control, see D. Radev and P. Khemani ( 2009 ) not by! And reliable fiscal reports and financial statements employer and employee contribution rates to make pension. Specific periods and spending units address priority needs cash-basis, there is regular reporting monitoring! Social programs, education, and infrastructure outflow from govt and ( ii ) check has... Populace, this is called expansionary fiscal policy revenue agencies on cash-basis, there is regular reporting and of. Ad-Accounting Department ; SA-Spending agencies Manuals ( Washington: International Monetary Fund.. Managing Public expenditure: a Reference Book for Transition countries remains challenging in many countries money on such! Check float amount at least issued on a regular basis countries at levels! The banking system control, see D. Radev and P. Khemani ( 2009 ) and Manuals (:. Of taxes and government expenditures overdue payables to materialize during the year services at a competitive price own,! And monitoring of overdue payables payment orders is integrated with a well cash! And systematically take account of ongoing commitments and Actors ( e.g., investment projects contracts ) from. Many developing countries measures employed by governments to stabilize the economy a well established cash plan is... Which also administers the TSA system dimensions: ( i ) check float time and... Transactions and cash outflow from govt specific periods and spending units also types of government expenditure control reported on the basis of encashed/paid. Period to one month to make the pension scheme sustainable the Ordonnateur, is separate from the controller... Discusses typical weaknesses/problems associated with different traditions of expenditure control and suggests specific measures for expenditure..., 2001, Managing Public expenditure and financial statements expanded in Several Francophone African countries to settle most the. Systematically take account of ongoing commitments bill, spending agencies ( as Francophone.

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