FACULTY OF ECONOMIC SCIENCES

PUBLIC ACCOUNTING
BUDGETS AND PUBLIC FINANCES
SIXTH SEMESTER

BUDGET
ELEMENTS
JULIANA SOFIA CENDALES MONROY
YENNY CAROLINA RODRIGUEZ CARRANZA
 ¿WHAT IS PUBLIC
BUDGET?
It is a fundamental tool for
the decisión making of all the
territorial government
through which the
government programs can be
fulfilled in the development
plans and in order to promote
the satisfaction of basic needs
of the population and the
development of the
territories, hence the
importance of having
knowledge of the subject for
those who will have a
relationship with the public 2
 IMPORTANCE OF THE
PUBLIC BUDGET
• Redistribution of income
• Tax equity
• Define sources of financing
• Combating poverty
• Help in competitiveness
• Meet goals of the plan development and
government program
• Meet the basic needs of the population
 BUDGET SYSTEM
DECREE 111 – 1996 compiles law 38 of 1989, Law
179 of 1994, Law 225 of 1995
 BUDGET SYSTTEM
DECREE 111 – 1996 compiiles Law 38 of 1989, Law
179 of 1994, Law 225 of 1995

Budget System: the colombian Budget system is

conceived as a system that articulates four essential
elements: the Medium term fiscal framework established
in Law 819 of 2003, the fundamental component of
which is the financial plan, the anual operating plan for
investments and the Budget, whose execution is based
on the Annual Monthly Cash Plan.

• Article 3° Budget System. It is contituted by a

financial plan with two or more years of term, by an
Annual Operating Plan of investments and by the
Annual Budget of the Nation.
 LAW 819 OF 2003
By which organic norms are dictated in matter of
Budget, responsibility and fiscal transparency and other
dispositions are dictated.

Article 1º. Medium-term fiscal framework. Before june

15 of each fiscal period, the National Government will
present to the Economic Comissions of the Senate and
the House of Representatives,
 FINANCIAL PLAN
Law 38 of 1989. By which the Organic Statute of
the General Budget of the Nation is created.

• Article 4° It is an instrument of planning and

médium-term financial management of the public
sector, which is based on effective operations entities
whose Exchange, monetary and fiscal effect is of such
magnitude that it merits inlusion of the Plan. It will
take into consideration the forecasts of income,
expenses, deficits and their financing compatible with
the Annual Cash Program and the Foreign Exchange
and Monetary Polices.
 RESPONSIBLE FOR THE
ELABORATION OF THE
FINANCIAL PLAN
• Secretary of the treasury, in coordination with the
Plannig Secretariat who prepare it.

• Council of Government or Council of economic and

social policy, who gives de go-ahead.

• Finance Committee or the Fiscal Policy Council, Who

approves, modifies and evaluates the Financial Plan
and orders the measures for fulfillment.
CONTENT OF THE
FINANCIAL PLAN
 ANNUAL INVESTMENTS
OPERATION PLAN -
Law 179 of 1994 AIOP
Article 2° The article 5° of the Law 38 of 1989 will
remain as follows:
“The Annual Investments Operation Plan will indicate the
investment Projects classified by sectors, bodies and
programs. This plan will be in accordance with the Natiolan
Investment Plan. The National Planning Department will
prepare a regional and department investment Budget
report for discussion in the Economic Commissions of the
Senate and House of Representatives”.
 ADVANTAGES OF AIOP
• It allows adapting the Multiyear investment Plan to the
conditions and the own characteristics of each fiscal
period.

• It promotes the efficiency and transparency in the use of

public resources.

• It promotes the efficiency in the fulfillment of the

missionary object of each dependency of the
Administration, since once the Budget of Revenue and
Expenses has been approved.
 CONTENT OF AIOP

1. Strategic Part: it should be elaborated taking into

account the structure of the Indicative Plan, of the Territorial
Development Plan, identifying the objectives and goals that
the Aministration established for the respective fiscal
period.

2. Registered investment projects: they must be those

that are registered in the Bank of territorial investment
Programs and Projects and that are programmed for the
fiscal period.
 CONTENT OF AIOP
3. Appropiation: for each Project it must be identify,
based on the information contained in Bank of Territorial
Investments Programs and Projects, the resources
required for its execution, in accordance with the cost
study carried out.

4. Responsible Dependency: In accordance with the

specialization principle, the unit responsible for each Project
must be identified, not without first reviewing the object
and functions of each of them.
 ANUAL BUDGET
• Article 6° The Annual Law about General Budget of
the Nation is an instrument for the fulfilled of plans,
programs of the economic and social development.
 CONTENT OF ANNUAL
BUDGET
• The Budget of income and capital resources, which contains
the estimation of current income, parafiscal contributions ,
the capital resources, special funds and income of public
stablishnment of the municipal order.

• The Budget of Expenditures or Agreements of appropiations,

which is broken down by sections and public establishments
and for expenditure items.

• The general provitions, understood as the complementary

rules contained in the Budget to guarantee its correct
execution.
 BIBLIOGRAPHY
• (https://www.youtube.com/watch?v=XVHlvEW79rw
ESAPTELECONFERENCIAS)
• (http://www.esap.edu.co/portal/wp-content/uploads/2017/10/5-
Presupuesto-Publico.pdf)
• (http://secretariajuridica.gov.co/transparencia/marco-
legal/normatividad/ley-38-1989, SECRETARIA JURIDICA)
• (https://colaboracion.dnp.gov.co/CDT/Desarrollo%20Territorial/Instrumentos
%20gesti%C3%B3n%20resultados.pdf, DPN)
• (https://www.alcaldiabogota.gov.co/sisjur/normas/Norma1.jsp?i=13712,
SECRETARIA JURIDICA)

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THANKS
FOR YOUR
ATTENTIO
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