Understanding Public Accounting, Finance Acts, and Budget Legality
Key Aspects of National Public Accounting
The nation’s public accounting is characterized as an integrated, unique, and uniform accounting system. It’s integrated because it reflects all resources and bonds. It’s unique because it’s singular, not allowing other accounting systems. It’s uniform because all similar economic facts should be registered the same way.
The Finance Act
The government budget is a legal reserve established by law. The Budget Act is a periodic law approving the government’s revenue estimate and the purposes for which they are allocated for a fixed period of one year. It is characterized in that:
- It is the sole initiative of the President.
- It has a preset chamber of origin.
- It restricts the jurisdiction of Congress itself.
- The presidential veto has its own characteristics.
- It has a date for its presentation and delivery.
- Its effect is annual.
- It is a framework law.
- The quorum is a simple law.
Tribute (Taxes)
Tribute refers to the pecuniary obligations imposed by the state to finance its subjects. According to Carlos Giuliani Fonrouge, as quoted by Angela Radovic, “the tribute is a mandatory provision, usually in money, to the State, in exercising its power to rule a need, in order to have resources for its purposes.” Taxes are characterized by being a coercive government revenue (punishable). Taxes are classified as taxes, contributions, and fees.
Principle of Legality in the Nation’s Budget
Legality means that public spending should be included as such in the Budget Law. The principle of legality in the national budget manifests that the Government can only make public expenditures authorized by law, included as such in the Budget Law.
Office of the Comptroller General
The Office of the Comptroller General is comprehensive, single, and uniform, intended to systematize and streamline the accounting and reporting of individual transactions or economic events of the Nation, based on rules and instructions. It is up to the Comptroller General of the Republic, among other functions, to manage the general bookkeeping of the Nation.
The Financial Control System
The financial control system includes all precautionary actions to oversee the proper administration of state resources, to verify compliance with the purposes, compliance with laws and regulations, and obtaining the goals of the scheduled services comprising the public sector.
Powers of the Comptroller General of the Republic
The Comptroller General is responsible for the general bookkeeping of the Nation. They must maintain the accounting of all public debt, monitor compliance with applicable laws and regulations related to the administration of state resources, and the consideration and adjudication of accounts. To exercise its oversight role, they will examine, verify, and monitor everything that constitutes an income for the Treasury. They should keep a permanent and accurate accounting of all revenue referred to in governmental laws and regulations that relate to fiscal resources. In the exercise of control of expenditure, they are required to consider, verify, and oversee the proper allocation of tax expenditures and review the documents relating to these expenditures.
Any staff, or use of any person or entity to receive, store, manage, or pay funds of the Treasury, municipalities, public welfare, and other services determined by law, must deliver to the Comptroller General the audited accounts of its management. Any official having charge of public funds or property is responsible for its use and therefore must answer for their abuse or illegal use and for any loss or damage they occur, due to fault or negligence.