State Financial Management: Taxation, Expenditure, and Public Debt

Expenditure reserved to those who are empowered to make certain state agencies fulfill their public duties related to internal or external security and public order in the country and the duties attached to the head of state of a nature reserve or require secret.
Government financial management and processes involved in the procurement and management of monetary resources in the public sector and its further distribution and control according to the needs of public obligations.
Power to tax is the power of the State or legal means to require contributions and today is a manifestation of the Empire State.
Principle of equal distribution of taxes the tax has to be equal with equal ability to pay, tax equality is an equality of sacrifice.
Principle of non-assignment of taxes The constitutional principle is that the taxes that are collected entering the Nation’s heritage and can not be assigned to a given destination.
Implementation and enforcement of tax legislation the Internal Revenue Service corresponds to the control, interpretation and application of tax legislation. The only exception are taxes charged by municipalities.
Public Credit means the State’s power to obtain resources by issuing bonds.
The public loan contract public loan is a special contract under public law which the state obtains resources are to be reimbursed according to the conditions established for the measure.
Balanced budget means the situation where total government revenues are equal to their total expenditure for a particular tax year.

This principle of tax equity principle means that everyone should contribute according to their ability to pay, so that equality is manifested as equality of sacrifice.
Exceptions to the principle of non-assignment of taxes:

1. The taxes earmarked for a certain place, in the Constitution came into force on 11 March 1980 remain in effect while not expressly repealed the provisions that set, so provides seventh transitional provision.
2. The law may authorize certain taxes may be affected aims of the national defense.
3. The law may authorize certain taxes, a clear regional identity may be affected to finance development projects. This tax should be implemented by regional authorities.
4. The law may authorize certain taxes, clear identification of potentially affected local funding for development works. This tax should be applied by local authorities.

The public debt consists of future payment obligations assumed by the State following a credit transaction. She can be direct or indirect.
A) The public debt is direct when the Treasury has undertaken directly.
B) The public debt is indirect when the Treasury or any public sector body has given a guarantee or endorsement by an obligation of a legal person in private sector.
The conversion of debt conversion is the replacement of one or more public debt bonds by one or other representative of the new debt capital, changing the financial terms and other conditions of service.
Consolidation of debt consolidation is the transformation of one or more parts of the domestic public debt in the medium or short term long-term debt, changing financial conditions of their service.