Public Expenditure: Classification, Phases, and Contracting

Posted on Feb 2, 2025 in Law & Jurisprudence

Classification of Public Expenditures at the UN

General Administration

  • General Services: Defense costs, justice, and police expenses.
  • Common Services: Costs of roads, water supply, sanitation, and fire services.
  • Other Services

Social Services

  • Education
  • Health
  • Social Security
  • Other Social Services

Economic Services

  • Agriculture and Mineral Resources
  • Fuel and Energy
  • Mineral Resources, Construction, and Manufacturing Industries
  • Economic Expenses

Other Services Not Classifiable

Phases of Public Spending

  • Authorization: The act under which the ministry or the competent authority agrees to carry out an expense.
  • Expenditure Proposal: The amount of expenditure.
  • Certificate of Existence of the Claim: Sent by the service or accounting after spending control delegated by the intervention.
  • Commitment: Provision or act which agrees to hire the completion of work, service, or purchase of goods.
  • Recognition of the Obligation: The act for which the administration assumes the obligation to charge the amount, once warranted by the individual’s realization of the corresponding benefit.
  • Offering to Pay: The representative of the management center who has acknowledged the existence of an obligation to pay, asks the Director General of the Treasury, as general computer payment, in accordance with current regulations, to order payment.

Classification of Public Expenditure

  • Current Expenditure
  • Economic Criterion: Special, capital
  • Expenditure Criterion: Incidence, royal, transfers
  • UN Criterion: General services, common services, social services, economic services
  • Expenditure Not Classifiable

Causes of Contractor Disqualification

  • Conviction of the crime of forgery.
  • Requested to be declared bankrupt or having been declared insolvent in any proceeding.
  • Having been convicted.
  • Being disciplined with a strong character for grave infringement of market discipline.
  • Being a guilty physical person (senior general of the state administration and staff serving the public administration).
  • Proof of sufficient economic solvency.
  • Sanctioned by administrative offense for grants.

Differences Between Auction and Tender

  • Auction: An amount expressed in money is awarded to the tenderer who bids the lowest price.
  • Tender: The award shall be given to the bidder who, as a whole, submits the most advantageous offer.

Documents Required for Contract Award

  • Accredited legal personality.
  • Financial solvency.
  • Safeguarding the guarantee in advance.
  • For foreign companies, the statement submitted to the Spanish courts.
  • Documents evidencing payment and familiarity with the HP and the SS.

Common Forms of Service Contracts

  • Granting the employer’s administration of the service at your own risk.
  • Management Interesada: Venture with the administration involved is in the proportion specified in the contract.
  • Concierto: The natural or legal person performs similar forms of public service.
  • Constitution of mixed capital companies to provide services.

Obligations of the Service Contractor

Scheme:

  • Care service
  • Provide the service
  • Damage to third parties
  • Keep international agreements

Classification of Public Works

  • Construction of First Establishment, Alteration, or Major Repairs: Result in the creation of a good. Reform which covers all the expansion work, the better.
  • Repairs: To correct the deterioration in real estate for accidental or incidental causes.
  • Conservation and Maintenance: Damage occurs by the passage of time.
  • Demolition: Object with the demolition or destruction.