By a budget one understands the confrontation in the financial science about incomes and expenditures about public bodies such as municipality, country or federation. With the list of budgets steer the parliaments, city, circle and local councils of the regional administrative bodies (federation, countries, municipalities, municipality federations) as well as the special estates finances of their body.

In bodies of the public right one speaks of a municipal budget, a Land budget or a national budget. For municipalities experiments run to provide the household in coordination with the citizens (community centre stop).

Characteristics

Budgets on national level have the rank of a formal law in all rule as budgetary law, are however no laws in the material sense, since they do not unfold external effect. At the municipalities the budget possesses the rank of a statute. Budgets give the goal sizes for the incomes and expenditures for the respective long-range planning period (this is usually one calendar year). In particular the expenditures are strongly differentiated regarding their intended purpose. The definitions in the budget are obligatory on the implementing administration. Thus is the budget for the decision-authorized committee (e.g. Parliament or local council) the most important instrument for the controlling of the finances of the state. Household principles so mentioned (see below) are to be considered. With each agency is a representative for the household to order ("§ 9 BHO).

Federal Budget plan in Germany

Law basis

The Federal Budget plan is decided in accordance with article 110 Basic Law as plant to the Federal Budget law annually or two-annually (double household) by the German Bundestag for the coming financial year or the coming two financial years and arranges the incomes and expenditures of the federation according to departments and drop's groups. ("§"§ 1-4 BHO)

Task

The budget serves for to the statement and covering of the prospective financial requirement of the federation ("§ 2 BHO). It represents thus the attempt to close from the past on the future and is thus inevitably only one prognosis of future actual conditions. This explains an emerging of budget gaps, since for the current expenditures incomes must be gained for covering. Smaller tax and administrative incomes become frequent by additional new indebtedness balanced.

The planning of the household and the production of a budget draft are important instruments in the financial policy. The debate is traditional around the household of the federation the hour of a larger exchange between the Federal Government and the opposition in the Bundestag. In particular with the discussion around the budget for the chancellorship it can be observed that the debates serve more of the verbal attack on the political opponent the actual thing.

The budget authorizes to carry the Federal Government expenditures and be received for obligations out ("§ 3 exp. 1 BHO). It unfolds thus no direct external effect, which made third possible it, requirements from the Federal Budget plan to derive ("§ 3 exp. 2 BHO). Requirements leave themselves only from the appropriate laws with external effect (e.g. Social legislation) derive.

It exists for each kind of expenditures and incomes of each federal agency its own household place in the budget. In the budget is fixed, which amount in the course of the financial year is to be paid maximally debited to this household place or how highly the expected incomes will fail.

Thus can be determined easily, how much money is e.g. to the Federal Department of Health in the current financial year for the new acquisition of office materials etc. at the disposal.

A household place is a ten-digit number, which is separate by a hyphen according to the fourth place. The tenth place is a check digit and in the budget not as is indicated. The first two places represent the single diagramme, the first four places (chapters) to the household place code the authority and the following five places (title) the kind of the expenditures and/or incomes. Household places leave themselves from the Bewirtschafter (specialist or department, who manages this household place) at will into objects partition. Thus the costs of office materials can be e.g. divided still into "paper ", "pins "etc. This partitioning is not noted in the budget.

Each Bewirtschafter has its own Bewirtschafternummer and from Bewirtschafternummer and household place arises the respective general ledger account. It is quite possible that several Bewirtschafter manage a household place. They get then in each case partial amounts made available.

Thus can be read off theoretically consumption of ball-point pens for each department from the budget (only theoretically, in practice office materials are central procured!).

Budget principles

For the production of the budget the budget principles (or household principles) are to be considered. These are:

1. Principle of the completeness: All incomes and expenditures are to be represented in the budget. It may take place as in principle no accounting of incomes with expenditures.
2. Principle of the clarity: The plan must be clearly arranged. An arrangement has to take place after the Ministerial and according to the functional principle.
3. Principle of the unit: All incomes and expenditures must be represented in a budget.
4. Principle of the accuracy:
The incomes and expenditures must be estimated with the prospective values. Around manipulations by the government the estimations of the working group will prevent tax estimation made.
5. Principle of the previousness: The budget must step before the beginning of the budget period into force. If this is not possible can for provisional housekeeping
   1. the Progorationssystem to be used, which means that the previous budget remains valid or
   2. the method provisional twelfth which the expenditures of the last budget linear on the months distributes
6. Principle of the tax speciality: The expenditures may only for the foreseen purposes, in which before-given height and within the foreseen period are transacted. This principle is made flexible however by some easements.
7. Principle of the public: In principle the budgetary debates and the budget are public. Certain expenditures may be seen and controlled however only by the president of the Federal Audit Office.

Land budget plan in Rhineland-Palatinate

Law basis

The household is regulated in Rhineland-Palatinate in the Land budget order (LHO).

Bases

In article 28 exp. 2 sentence 1 GG and article 49 exp. 3 sentence 1 national condition Rhineland-Palatinate as well as in "§ 2 GemO (Gemeindeordnung) is embodied the local autonomy warranty.

The core article of the local household nature is fulfilling tasks. These tasks are derived from the autonomy warranty. Among the elementary rights of the autonomy warranty for the municipalities the financial autonomy and the delivery sovereignty rank.

Austria

To that extent the Federal Ministry for finances can regulate in agreement with the audit office the form and the arrangement of the estimates and the statements of account of the regional administrative bodies (federation, countries, municipalities), when this is necessary for the standardization. The estimate and statement of account regulation (VRV) the beginning and post listing was to be used for the first time for the financial year 1976 and regulates. With the post listing a regulation is intended after the principles of the doppischen bookkeeping (Austrian unit system of accounts of the Kuratoriums for economy).

See also

• Household balance
• Administrative household
• Fortune household
• National debt
• Federal Budget order
• Budgetary planning system

Related links

• Introduction to the system of the public households (pdf)
• Household system of the Federal Republic of Germany (pdf)
• Emergence of a Federal Budget
• Financial data to the Federal Budget

Articles in category "Budget"

We found here 3 articles.