Ley 47/2003 General Presupuestaria - 8a parte - Modif Presu - Creditos extraordinarios y suplementos

Understanding Budget Modifications

Overview of Extraordinary Credits and Credit Supplements

• The video discusses budget modifications, specifically focusing on extraordinary credits and credit supplements. Article 55 states these credits are necessary when expenses cannot be postponed to the next fiscal year due to inadequate or insufficient funding.

• An extraordinary credit is created when there is no existing budget line or when it has been depleted. This credit generates all necessary economic capital for immediate expenses.

• A credit supplement occurs when a budget line exists but is insufficient to cover total costs. In this case, the budget line is supplemented with the required additional funds.

Sources of Funding for Credits

• Funding sources vary: if from a non-financial chapter (1-7), money comes from contingency funds or other non-financial budget lines; if financial, it derives from public debt or reductions in other financial credits.

Competencies Related to Budget Modifications

Role of General Courts and Council of Ministers

• The General Courts have three distinct competencies regarding extraordinary credits:

• Obligations from previous years without annulled credits.

• Operations financed by other credits within the current fiscal year.

• Financial operations under chapters 8 and 9 of the budget.

• The Council of Ministers has one key competency: managing obligations from previous years where the original credit was annulled, funded through contingency resources.

Autonomous Organizations' Competencies

• In autonomous organizations, three competent authorities manage budgets:

• The president/director handles budgets not exceeding €500,000 or up to a 10% increase.

• The Minister of Finance oversees increases between €500,000 and €1 million or up to a 20% increase.

• If increases exceed these thresholds (20% or €1 million), the Council of Ministers takes charge. Additionally, for Social Security ministries, any increase over 2% requires government oversight.

Treasury Advances

Conditions for Treasury Advances

• Treasury advances provide upfront funding for extraordinary credits and supplements with a maximum limit set at 1% of authorized state credits in general budgets.

• Two scenarios allow treasury advances:

• Initiation of processing for supplementary credits with favorable reports from the State Council.

• Promulgation of laws necessitating extraordinary credit grants.

Summary Recap

Budget Modifications and Credit Supplements

Overview of Budget Adjustments

• The discussion revolves around exercises related to credit reductions and financing through contingency funds, highlighting the importance of understanding these processes.

• Autonomous organizations are mentioned, with specific financial limits set: up to 10% or half a million euros for directors, and up to 20% or one million euros for the Minister of Finance.

• Beyond these thresholds, decisions require approval from the Council of Ministers, indicating a structured approach to budgetary governance.

Treasury Advances and Credit Authorizations

• A treasury advance is discussed, which allows for 1% of authorized credits in state budgets (PG), emphasizing its role in managing cash flow.

• The speaker prepares for exam questions regarding states and credit supplements, suggesting an educational context where these concepts are critical for understanding public finance.