Ley 47/2003, General Presupuestaria - 5a parte - Modificaciones Presupuestarias - Transferencias
Understanding Budget Modifications
Introduction to Budget Modifications
- The video series focuses on budget modifications regulated by articles 51 to 60 and competencies from articles 61 to 63 of the General Budget Law.
- There are six types of budget modifications: credit transfers, generations, extensions, extraordinary credits, credit supplements, and incorporations.
Definition of Budget Modification
- A budget modification occurs when unanticipated expenses arise or exceed expected amounts that need addressing.
- It involves reallocating total or partial amounts from one budget application to another within established limits and procedures.
Administrative Procedures for Modifications
- Budget modifications require an administrative procedure as outlined by a Ministry of Finance order.
- A necessary accounting document is the "M&C" (Modification of Credit).
Types of Transfers in Budget Modifications
Credit Transfers Explained
- According to article 51, a transfer is defined as the reallocation of funds between different credits without altering the overall credit amount.
- If a transfer requires moving funds across different budget specifications (e.g., chapter or concept), it breaks the level of linkage.
Practical Example of Credit Transfer
- In practice, if a section faces insufficient funds, one must seek money from another application without breaking linkage.
- The competent authority for normal transfers typically includes ministers managing their respective ministries.
Restrictions on Credit Transfers
Key Restrictions Overview
- Transfers cannot occur from financial credits to other types nor from capital to current expenditures; however, current can fund capital and financial credits.
Specific Restrictions
- Sectional Limitations:
- No transfers between distinct budget sections unless approved by the government upon proposal from the Ministry of Finance.
- Extraordinary Credits:
- Extraordinary credits cannot be reduced during an exercise unless specific conditions are met.
Social Security Credits and Public Debt Restrictions
Overview of Financial Restrictions
- The fourth restriction states that within social security, expandable credits cannot be reduced unless they are used to finance other expandable credits.
- The fifth restriction, referenced in Article 52, indicates that transfers cannot be made for creating or increasing existing nominative subsidies unless specified by the subsidy law (Law 38/2003).
- These restrictions do not apply to administrative reorganizations or transfers between autonomous communities, which can lead to confusion regarding their application.
Transfer Authorizations
- Article 62 clarifies that non-reserved transfers are authorized by the Council of Ministers, emphasizing the importance of ministerial competencies in managing these transfers.
- Transfers regulated in the annual state budgets are primarily managed by the Minister of Finance; other remaining transfers fall under this ministry's jurisdiction.
Key Characteristics of Transfers
- Transfers represent movements between credits and do not affect the total budget amount; their accounting document is referred to as "m ce."
- The main responsibility for these transfers lies with ministers within their respective ministries, while administrative organizations are overseen by the government.
Administrative Restrictions on Transfers
- Two primary restrictions must be noted:
- Transfers cannot move funds from financial to capital or current accounts but can go from current accounts to capital and financial accounts.
Practical Application Exercise
- An exercise is presented where participants must determine if specific fund movements qualify as valid transfers based on previously discussed restrictions.
- Example: Moving funds from account 12.02.123 to account 631 does not constitute a transfer since it does not break the level of linkage required for budget modifications.
Further Examples and Clarifications
- Another example shows a proposed modification between accounts that would violate restrictions due to upward movement in budget levels.