The budget represent the estimate revenue and expenditure for a certain period of time, usually one year. The Government draws up the budget proposal and submits it to Parliament for approval. Following approval, the budget becomes law, the implementation of which is mandatory, as well as any other law of the country.
The budget has five important features:
- Annuity: Every year a draft budget is drawn up covering a period of one year; It is voted every year; And its execution takes place over a year.
- Unit: Revenue and expenditure, as well as deficit financing, need to be analyzed together in order to set annual budgetary targets. The budget must cover all ministries, agencies and other institutions that carry out government operations.
- Monetary unit: Revenue and expenditure must be expressed in national currency.
- Universality: All resources must be directed to a common fund, which will be allocated and used for spending according to the current priorities of the Government.
- Balance: The budget must be balanced. Budgetary expenditure must be equal to revenue, plus sources of funding for the deficit.
Law no. 181 of 25 July 2014 on public finance and fiscal responsibility guides the budget preparation, approval, execution, control and audit processes.