FACULTY OF BUSINESS

ACCOUNTING SCHOOL

ACADEMIC REPORT
THE NATIONAL BUDGET SYSTEM
COURSE:
PUBLIC AND PRIVATE MANAGEMENT SYSTEM

AUTHOR:
Dávila Mendoza, Laura Gabriela

TEACHER:
Mg. Bautista Fasabi, Jhon

Tarapoto - Perú

(2024)
 ÍNDICE

INTRODUCCIÓN ……………………………………………………………. 03
DEVELOPMENT ……………………………………………………………. 04-06
CONCLUSION …………………………………………………………..……. 07

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I. INTRODUCCIÓN

The National Budget System is a set of rules, procedures and tools that
regulate the preparation, execution, monitoring and control of the public budget
in a country. This system is fundamental for the financial management of the
State and its main objective is to guarantee transparency, efficiency and
effectiveness in the management of public resources.
The national budget process encompasses the formulation of fiscal policies, the
preparation of annual budgets, the allocation of resources to the various
government programs and projects, the execution of the budget throughout the
fiscal year, and the evaluation of the results obtained.
The National Budget System is usually composed of different stages, such as
the preparation of the budget proposal by the Executive Branch, the discussion
and approval of the budget by the Legislative Branch, the execution of the
budget by the State bodies and entities, and the control and evaluation of
budget management.
The National Budget System may include accountability mechanisms, internal
and external audits, financial information systems and periodic reports to inform
citizens about the use of public resources.

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II. DEVELOPMENT
DEFINITION:
The National Budget System is defined as the set of principles, standards,
procedures and organizations that govern the programming, formulation,
approval, execution, monitoring, control and evaluation of the public
budget.
Its fundamental objectives include:
Efficiency in Resource Allocation
Ensure that public resources are allocated efficiently and effectively,
prioritizing the most pressing needs and projects with the greatest social
and economic impact.
Transparency and Fiscal Responsibility
Promote transparency in the management of public resources and ensure
accountability on the part of those responsible for public spending.
Financial Sustainability
Ensure the stability and sustainability of public finances in the long term,
avoiding fiscal imbalances that could compromise the national economy.
Improvement in the Provision of Public Services
Optimize the use of resources to improve the quality and coverage of
public services, benefiting citizens.
COMPONENTS OF THE NATIONAL BUDGET SYSTEM
The National Budget System is made up of several key elements that
interact to guarantee comprehensive and coherent management of public
resources:
Legal and Regulatory Framework
Set of laws, regulations and regulations that establish the rules and
procedures for budget management. This includes the Budget Law, the
Fiscal Responsibility Law and other specific regulations.
Responsible Institutions and Organizations
Various government entities in charge of budget formulation, execution
and control. This includes the Ministry of Economy and Finance,
Congress, executing agencies and fiscal control entities.

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Budget Process
The phases and activities that make up the budget cycle, from planning
and formulation of the budget, through its legislative approval, to its
execution and evaluation. This process is iterative and is carried out
annually.
Information and Control Systems
Tools and information systems that allow the tracking and monitoring of
public spending, as well as internal control and audit mechanisms to
guarantee the correct use of resources.
PUBLIC BUDGET CYCLE
The public budget cycle includes several stages and they are:
Budget Formulation
Phase in which spending priorities are defined and the budget project is
prepared. This process includes consultation and coordination with
different sectors and levels of government.
Budget Approval
The budget project is reviewed and approved by Congress or the
corresponding legislative entity, where the proposed resources and
expenses are discussed and authorized.
Budget Execution
Implementation of budgeted plans and programs. It includes the allocation
of funds to the different entities and the realization of planned expenses.
Monitoring and evaluation
Continuous monitoring of budget execution and evaluation of the results
obtained. This stage is crucial to identify deviations and take timely
corrective measures.
Control and Audit
Implementation of internal control and external audit mechanisms to verify
the legality, efficiency and effectiveness of public spending.

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IMPORTANCE OF THE NATIONAL BUDGET SYSTEM
The National Budget System is fundamental for the governance and
economic management of a country. It provides a structured framework for
the administration of public resources, ensuring that they are used
efficiently and transparently. In addition, it promotes fiscal discipline and
financial sustainability, contributing to the economic and social
development of the country.

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III. CONCLUSION
• The National Budget System is an essential component of the
financial management of the State, which establishes the rules and
procedures for the planning, allocation, execution and control of
public resources in a country. Its correct implementation is essential
to guarantee transparency, efficiency and effectiveness in the use of
public funds, as well as to promote accountability and responsibility
in budget management.
• Through the National Budget System, we seek to ensure that public
resources are allocated equitably and efficiently, in accordance with
the priorities and objectives of the government, and that they are
used responsibly for the benefit of society as a whole. . In addition,
this system facilitates informed decision-making, evaluation of
results, and compliance with the goals and objectives established in
the national budget.

• The effective implementation of the National Budget System requires

the coordinated participation of the different powers of the State, as
well as collaboration between government bodies, public entities and
civil society. Likewise, it is important to have control and supervision
mechanisms that guarantee integrity and legality in the management
of public resources.

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IV. REFERENCIAS BIBLIOGRÁFICAS

Musgrave, R. A., & Musgrave, P. B. (1989). Public Finance in Theory

and Practice. McGraw-Hill.

Este libro ofrece una visión integral sobre la teoría y la práctica de las
finanzas públicas, incluyendo la gestión del presupuesto público.

Premchand, A. (1983). Government Budgeting and Expenditure

Controls: Theory and Practice. International Monetary Fund.

Un análisis detallado de los sistemas de presupuesto gubernamentales y

los controles de gasto, con ejemplos de diversas prácticas
internacionales.

Shah, A. (2007). Budgeting and Budgetary Institutions. The World Bank.

Este libro examina diferentes enfoques y prácticas en la gestión

presupuestaria a nivel institucional, proporcionando una visión
comparativa de varios sistemas nacionales.