Law No. 11/011Du 13 July 2011 Relating To Public Finances

Original Language Title: LOI N° 11/011DU 13 JUILLET 2011 RELATIVE AUX FINANCES PUBLIQUES

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Read the untranslated law here: http://www.leganet.cd/Legislation/Droit%20Public/compta/Loi.11.011.13.07.2011.htm

Presidency of the Republic Act No. 11/011 of 13 July 2011 RELATIVE to the finance public statement of reasons first part: title 1 General provisions: the object, scope and definitions title II: principles budget title III: DE LA policy budget part II: provisions in the laws of finance title 1: object, the field and the PRESENTATION of the laws of finance title II : RESOURCES AND LOADS OF POWER CENTRAL TITLE III: THE DEVELOPMENT OF THE LAWS OF FINANCE AND DOCUMENTS IN THE APPENDIX TITLE IV: DEPOSITION AND THE PROCEDURE FOR THE ADOPTION OF THE LAWS OF FINANCE TITLE V: MANAGEMENT OF THE FINANCES OF THE CENTRAL TITLE VI POWER: CONTROL OVER THE FINANCES OF THE CENTRAL TITLE VII POWER: OF THE REGIME OF SANCTIONS THIRD PARTY : THE PROVISIONS RELATING TO THE EDICTS AND DECISIONS BUDGETARY TITLE 1: OBJECT, FIELD, THE PRESENTATION OF THE BUDGET ARTICLE EDITS AND DECISIONS BUDGETARY TITLE II: RESOURCES AND LOADS OF PROVINCIAL AND TERRITORIAL LOCAL TITLE III ENTITIES. DEVELOPMENT OF EDICTS BUDGET, BUDGETARY DECISIONS AND DOCUMENTS IN THE APPENDIX TITLE IV: THE DEPOSIT AND THE PROCEDURE FOR THE ADOPTION OF THE BUDGET ARTICLE EDITS OR BUDGETARY DECISIONS. Title V: Management of FINANCES of the PROVINCES and the territorial title VI decentralised entities: control on FINANCES of the PROVINCES and the territorial title VII decentralised entities: of the REGIME of SANCTIONS fourth part: of the relationships between the CENTRAL power, the PROVINCES and the territorial title 1 decentralised entities: the relationship between the CENTRAL authority and provincial title II : Reports between the PROVINCES and the entities territorial decentralised fifth part: of provisions transitional and final statement of reasons the Congolese public finance management is underway in a legal and institutional framework totally inappropriate in the context of the Constitution of 18 February 2006, including advocating the free provincial administration and decentralization.
Under the provisions of the Finance Act No. 83-003 February 23, 1983, such as amended and supplemented by Ordinance - Law No. 87 - 004 January 10, 1987, this management is more in phase with the said financial law while taking into account some innovations induced by the reforms implemented by the Government since 2002, mainly in what concerns the stakeholders in the chain of the expenditure the carry-over of appropriations from one year to another and budgetary bills of revenue and expenditure.
Thus, it is necessary to modernize the legislation on public finances to take account of the requirements of the Constitution, to formalize the reforms initiated and to consider all perspectives of modern public finance management.
This Act is characterized by major innovations below:-the Organization in a single text, the laws of finance, the budgets of provinces and decentralised territorial entities;
-budgeting based on a logic of results through programme budgets;
-the multiannual budgetary approach;
-taking into account the principles of the free administration of provinces and decentralisation;
-redefinition of the related budgets and the establishment of special accounts;
-the unit of cash and the cash unit.
Indeed, this Act organizes, in a single text, the laws of finance, the provinces and the decentralized territorial entities budgets by setting rules for the management of public finances and fiscal policy framework.
It advocates a practice oriented towards an obligation of results for the achievement of the development goals with those of growth and poverty reduction. So, looking for a better performance in terms of effectiveness and efficiency are at the centre of the action of the State, it is necessary to review the terms of budget management through budgets programmes where the allocation of budgetary resources is made in favour of actions under the public policy. This leads to increased accountability of the actors.
The Ministers responsible for finance and the Budget have, each in relation to a specific role in the system of management of public finances.
The role of the first is the management of cash and the Organization of the Treasury departments, assignees of the levels of spending requirements of ministries and institutions. That of the second is planning, the commitment of expenditure and the supervision of budgetary control.
The status of authorising officer is conferred to Ministers and officials of institutions whose roles and responsibilities are reinforced in the development and implementation of programs to run under their authority, and results to be achieved in accordance with the objectives and committed resources.
The annual instalment becomes this law introduced multi-year budgetary approach which allows to translate the vision of the Government for the next three years, by a budgetary framing behind the development of the framework of medium-term departments and institutions and budgeted expenditures.
It also allows for continuity in the management of the programmes by advocating multi-year commitment authorization passed in all the first year of their prediction, the corresponding payment appropriations are reduced in the budget year.
The law reaffirms the distinction of Finance of the central Government, the provinces and decentralised territorial entities. It fixes the modalities of allocation of revenue to national character between each level. It reiterates the principle of legality of taxes, taxes, fees and levies.
It defines the terms of consolidation of the budget of the central Government with those of the provinces and the rules of integration of budgets of the territorial entities decentralised in those provinces. To this end, this Act proposes a budgetary timetable harmonized with the constitutional constraints.
It redefines the annexed budgets and provides two categories of special accounts: trust accounts and financial accounts.
It allows to create a genuine unit of Fund and cash by a centralization of the public funds of the central Government on the general treasury account opened at the cashier of the State.
Furthermore, it obliges each province and each district entity decentralized to have a single account opened in their name to the Central Bank of the Congo.
It is articulated in five following parts:-General provisions;
-provisions relating to the laws of finance;
-provisions relating to budgetary edicts and budgetary decisions;
-relationships between the central Government, the provinces and the decentralized territorial entities;
-transitional and final provisions.
This is the general economy of the Act.
Act the National Assembly and the Senate have adopted;
The President of the Republic enacts the law whose content follows: first part: title 1 General provisions: the object, scope and definitions Chapter 1: object and scope Article 1 er: this Act fixed, in accordance with article 122 item 3 of the Constitution, the rules on public finances.
It also sets specific rules posting resources and loads, the development, presentation, the adoption and enforcement of the laws of finance, budgetary edicts and budgetary decisions.
It also determines the rules for control over public finances, to the determination of responsibilities and sanctions resulting therefrom as well as relations between the central Government and the provinces and between provinces and decentralized territorial entities.
Article 2 this Act applies to the finances of the State, namely central Government finances, those of the provinces, as well as territorial entities and decentralized and their auxiliary organizations.
Chapter 2: Definitions Article 3 for the purposes of this Act, means: 1. action: a component of a program created for the provision of services and activities subordinate. It specifies the destination of the expenditure;
2 commitment authority: permission to sign on the year one or more contracts for a maximum total amount but whose execution can occur on several fiscal years according to a schedule of payments. It allows to distinguish in the payment of the year, the payment of prior commitment and payment in respect of new commitments. It enables to improve the management of the leftovers to pay which are more rehired each year;
3 Annex budget: a document containing the estimates of the income and expenditures of an auxiliary service of the State whose activity mainly tends to produce goods or to provide services giving rise to a payment in the form of royalties.
 4. budget of the State: a document containing the estimates of the income and expenditures of the central Government consolidated with those of the provinces;

5 provincial budget: a document containing the estimates of the income and expenditure of decentralised territorial entities incorporated in those of the province;
6. budget of the province: a document containing estimates of revenue and expenditure of the province;
7 multi-annual budget: a document containing estimates of revenue and expenditure over several years and whose objective is to secure the trajectory of public finances and to give a better visibility to managers on the means available to them. It is appreciated on the duration of an economic cycle of long duration and is based on two fundamental objectives: an objective of balance and an objective of sustainability;
8 medium-term budgetary framework: the framework for integration of fiscal policy and medium-term budgeting in which estimates of budgetary aggregates is linked to a rigorous process for the establishment of budget estimates in the medium term broken down by Department and based on the policy of public authorities. The term expenditure estimates become the basis for the negotiations of the budget of the following exercises and they are close to the final results in the budget reports. The medium-term budgetary framework is the primary means of operationalization of the growth and poverty reduction strategy paper. It determines budgetary aggregates consistent with the macroeconomic framework, strategies and directions in growth and poverty reduction strategy paper. The medium-term budgetary framework presents the macroeconomic framework from which the budgetary programming revenue and expenditure is carried out. It determines the sectoral global strategies policies and of measures envisaged in the various sectors;
9. the medium term expenditure framework: an iterative decision-making process to secure macroeconomic duress and planning sectoral policies. It is a coherent set of strategic objectives and programmes of public expenditure which defines the framework within which ministries can make decisions for the allocation and use of resources;
10 budget accounting: a technique which traces the execution of the budget and necessarily following the budget presentation. It is held on a dual basis for expenditure, namely the consumptions of authorizations of commitment and payment and credits based on a receipt for the recipes. The balance is calculated from the consumption of payment appropriations and revenue collected;
11. General accounts of the State: a technique aimed at giving an accurate picture of heritage and the financial situation of the State and describe its revenues and its expenses by nature. It was held in entitlements to trace a patrimonial vision of the State. It describes what the State control, must or may have to pay in the future;
12 accounting for materials: a technique of recording of the transactions relating to the description of the stocks and of movements for goods, supplies, waste, semi-finished products, finished products, commercial packaging, equipment and movable objects, registered, bearer or order and the values belonging or entrusted to public bodies as well as the objects handed in deposit formulas, securities, tickets, stamps, and thumbnails for show and sale;
13 special accounts: accounts which retrace budgetary transactions funded from special recipes in direct connection with the expenditure concerned or of the loans and advances by the State to a natural or legal person such as financial accounts.
14 evaluation credits: them are included in the programme of the finance laws lacking the character limit but simple assessment that can be exceeded without prior approval of the legislature;
15 instalment credits: amounts intended to cover the expenditure related to the events whose occurrence does not depend on the will of the administration, and as such benefit extensively credits during the year, such as expenditure relating to natural disasters, to the reception of foreign dignitaries, the elections or maintenance of the inmates of the prison service
16 limiting credits: the capped amounts entered in the draft finance law that Governments may not exceed during the period of implementation of the budget such expenditures of staff or operation;
17 payment appropriations: the amounts constituting the upper limit of expenditure that can be sequenced or paid during the year for the cover of the commitments made in the context of the commitment authorization;
18 budget decision: the Act by which are planned and authorized by the legislative organs of the decentralized territorial entities, resources and local charges of a financial year. It determines, in respect of I balance budgetary and financial nature, the amount and the allocation. It is the annual financial translation of the programme of action for development of entity;
budget 19.Edit: the Act by which are planned and authorized by the Provincial Assembly, resources and provincial offices of a financial year. It determines, in respect of the budgetary and financial balance, the nature, the amount and the allocation. It is the annual financial translation of the programme of action of the province's development;
20 edit of budgetary integration: the Act by which is presented the provincial budget, obtained by the integration of the budgets of the decentralized territorial entities in that province.
21 balanced budgets: a State budget whose revenues are equal to expenditure;
22 State finances: all revenue and expenditure of entities the State i.e. the central power, the provinces and decentralised territorial entities;
23 central Government Finance: all revenue and expenditure of the central Government;
24 the province's finances: all revenue and expenditure of the province. The recipes include own resources, national income deducted at source, the resources of the National Fund for equalization, other transfers from the central Government as well as external resources;
25 Finance of the decentralized territorial entity: all revenue and expenditure of the decentralized territorial entity. These revenues include own resources, revenues to national character from the province, resources from the share of taxes and provincial of common interest, other transfers from the central Government and the province so that external resources;
26 function: a set of programs that contribute to the achievement of a defined public policy. It can be departmental or interdepartmental;
27 aid Fund: funds to non-tax paid by physical or legal persons to compete for expenditures of public interest or products of bequests and donations allocated to the State;
28 fungibility of credits: the Faculty for the Manager to define the destination and nature of expenditures during the implementation of the programme to optimize the implementation. Fungibility is asymmetrical with respect to personnel credits that can be used for other natures of expenditure, namely, the functioning, intervention and investment while the reverse is forbidden;
29.Loi of budgetary consolidation: the Act whereby the Parliament votes the budget of the State including the consolidation of the Finance Bill with the edicts of integration of provincial budgets.
30 Finance Act of the year: the Act by which are planned and authorized, Parliament, resources and loads from the central Government for a financial year given. The Act determines, in respect of the budgetary and financial balance, the nature, the amount and the allocation. It is the annual financial translation of the programme of action of the Government of the Republic;
31 fiscal policy: all measures taken by the public authorities, relating to expenditures and revenues of the State, aimed at achieving some balance and macroeconomic objectives;
32 public policy: all decisions and concrete measures taken by a public authority duly authorized defining goals and objectives to be achieved, embodied in a general action framework and a prescriptive context. These decisions are authoritarian in nature and cater to individuals, groups or organizations whose situation is affected by the policy;
33 principle of budgetary annuality: budget rule requiring the annual vote on the budget by the legislature;
34 principle of unity of the budget: the budget rule, which requires that the forecast revenue and expenditure should be presented in a single document;
35 principle of universality: the fiscal rule of gross product which prohibits services compensation, upstream between revenue and expenditure. It requires to be included in the Budget all recipes and not only the balance or the net proceeds;

36 principle of speciality: budget rule requiring that should, in detail, the budgetary authority expenditure and revenue. It specifies the objects and destinations through appropriations;
37 principle of sincerity: the fiscal rule that prohibits the State underestimate or overestimate costs and resources that he presents in the Finance Bill, the budget edict and the budgetary decision;
38 programme: a coherent set of actions which includes the appropriations for the same Department. The amount of the appropriations for the programme is limiting. Associated with a strategy, specific objectives and results expected;
39 withholding: the banking operation which is to credit the account of a generating province of revenue, to a proportion of 40% on the total amount recovered in respect of revenue to national character when the leveling for the benefit of the general treasury account of all mobilized recipes in the province;
40. fiscal sustainability: the ability of the State to maintain adequate margins of budgetary manoeuvre to fulfil its commitments and remain solvent.
41 title or nature of expenditure: the economic classification of expenditures according to the budget nomenclature.
Title II: Budget section 4 principles of the State Budget is based on the following principles: 1) principle of annuality;
(2) principle of unity;
(3) principle of universality;
(4) principle of the speciality;
(5) the principle of legality of revenue and expenditure;
(6) principle of sincerity.
Chapter 1: of annuality Article 5 fiscal year covers a calendar year from 1 January to 31 December. However, credits y related are the result of a multi-year budgeting to provide revenues, costs and the financing of the operations of the central Government, provincial and territorial entities decentralized over a time horizon of three years. This multiannual budgetary framing includes the medium term expenditure framework.
Chapter 2: The unit Article 6 the central power, the province or the decentralised territorial entity presents, each in relation to and in a single document, all the resources and all the costs relating to a year.
The budget of the decentralised territorial entity is integrated in revenue and expenditure in the budget of the province to meet the provincial budget. Provincial budgets were consolidated with the budget of the central Government to meet the Budget of the State.
Chapter 3: Of universality Article 7 the full amount products is saved without contraction between revenue and expenditures and, consequently, between the debts and receivables. All recipes ensures that all expenses without any assignment of their product to specific expenditures.
Chapter 4: The Article 8 specialty credits are specialized by great nature of expenditures or specified as titles in article 37 of this Act and by source of funding. FPS are grouped by program. Programs can be grouped by function. The specialty and retail credits must comply with the budgetary nomenclature of expenditure into force. Under a budget program, the presentation of the credits by subdivision of the budget nomenclature, chapter, article and littera is indicative.
Chapter 5: the principle of legality of revenue and expenses Article 9 there cannot be established tax only by the law.
It cannot be established for exemption or tax relief under the Act.
The law establishes the nomenclature of other local revenues and their distribution.
In accordance with article 122 item 10 of the Constitution, the rules relating to the base, the rate and the procedures for recovery of charges of any nature are established by law.
The provincial assemblies, the legislative bodies of the decentralized territorial entities can create or tax, or tax, or fee or royalty. However, under the conditions provided by this Act, the National Assembly and the Senate may, in accordance with paragraph 2 of article 205 of the Constitution, empowered by a law, the provincial assemblies and the legislative organs of decentralized territorial entities to establish, edit budget or budgetary decision the rate and/or the procedures for recovery of some provincial and local taxes.
Article 10 no expenditure may be performed:-if it does not fit within the powers of the central Government, provinces or such decentralised territorial entities as defined in the Constitution and the law;
-If it has not been defined by a text regularly adopted and published by the competent authority; the financial obligations created by any law, edict, decision, order, regulation or contract become certain and definitive with the appropriations corresponding to the budget of the central Government, the province or territorial entity decentralized;
-If the necessary funds are not available in the budget;
-If it corresponds to operations financed in whole or in part on external resources for which the mobilisation of the Fund y related is not effective.
Chapter 6: the principle of sincerity Article 11 the budget of the central Government, the province or the decentralised territorial entity provides sincere all of their resources and their loads. Sincerity is assessed taking into account available information and forecasts resulting therefrom.
Any project of Act, edit, decision, order or regulations having a financial impact must be accompanied by an annex specifying consequences in respect of the budget for the year of entry into force and the following year.
Accounts of central power, the province and the decentralized territorial entity must be regular, sincere and reflect an accurate picture of their financial and property situation.
Title III: The policy budgetary chapter 1: the definition of policy budget Article 12 budgetary policy is set by the central Government in a program approved by the National Assembly.
The Government's programme is implemented by the central Government, the province and the decentralized territorial entity.
Chapter 2: The framework for budgetary policy Article 13 the Minister of the central Government in charge of the Budget establishes, each year, a 3-year medium-term budgetary framework based on macroeconomic assumptions previously defined by the Ministry in charge of the plan.
This framework presents a forecast of the evolution of all expenditure and all of the revenue of the central Government, the provinces and the decentralized territorial entities, the balance that comes out as well as the evolution of the debt.
Adopted by the Council of Ministers no later than June 1, this document is passed to Parliament during the budget session that debate before the vote of the budget of the central Government.
Management measures contained in a letter, at the initiative of the Prime Minister, adopted by the Council of Ministers, on a proposal by the Minister having the Budget in charge, arising from the above. The budget of the central Government, provinces and decentralised territorial entities is established on the basis of macroeconomic assumptions contained in that letter and referred to in paragraph (t)"of this article.
Chapter 3: The balance of the budget Article 14 the budget of the central Government, the province or the decentralised territorial entity is presented in balance.
It provides the amount of donations, fixed the ceilings of borrowing and determines the allocation of resources to the budgetary and financial balance.
Chapter 4: Sustainability budget Article 15 the central Government, the province and the decentralized territorial entity plan and execute their budgets by balancing their running costs through internal resources, excluding the product of domestic loans, donations and bequests interiors projects, repayment of loans and advances, and, where appropriate, grants allocated to specific activities or projects , but including external resources from donations and common legacy.
They can borrow, annually, an amount exceeding the amount of their investments.
They can borrow only from non-bank financial national institutions.
No loan may be made in currencies, either directly or indirectly, except, where appropriate, of those subscribed by the central power for himself or for the province or the decentralised territorial entity.
Article 16 the use of advances from the Central Bank of Congo is prohibited both the central authority for the province and the decentralized territorial entity.
SECOND part: provisions related to the laws of finance title 1: object, the field and the PRESENTATION of the laws of finance Chapter 1: the object and the scope of the laws of finance Article 17 finance laws determine, for an exercise, the nature, the amount and the allocation of resources and the charges of the State with regard to economic and financial balance that they define.
They take into account Government priorities in its programme of economic and social development, under the conditions laid down in article 20 of this Act.

Article 18 have the character of finance law:-the law of Finance of the year;
-corrective finance laws;
-the law on accountability;
-the interim appropriations Act.
Article 19 finance laws affect the finances of the central power. They deal with the provisions relating to the provinces in accordance with section 9 of this Act.
Chapter 2: The presentation of the laws of finance 1st Section: the contents of the Finance Act of the year Article 20 the Finance of the year Bill contains, for a calendar year, all resources and loads of the central Government who translate, through a single document called the central Government budget, the plan of actions of the Government, as well as its evaluation in terms of objectives and expected results.
The central Government budget includes the general budget, related budgets and special accounts as defined in articles 55 and 62 of this Act.
Article 21 the law of Finance of the year contains provisions relating to the collection of revenues of any kind in accordance with articles 34 and 35 of this Act and those relating to resources that affect the budgetary balance.
It includes also all provisions relating to the assignment of revenue within the budget of the central Government.
It includes the evaluation of each nature of budgetary revenues.
Article 22 the Finance Act of the year sets for the general budget, by Department or institution and program, the amount of the annual and multiannual commitment authorization and payment appropriations.
It fixes, by Department or institution and annex budget jobs permissions ceilings.
Annex budget and special account, it fixes the amount of authorizations of commitment and open payments or credits exceptionally overdrafts authorised in accordance with article 65 of this Act.
Article 23 the year Finance Act authorizes the granting of State guarantees and establishes conditions.
It allows the central Government to take over the debts of third parties, constitute any other commitment corresponding to a unilateral recognition of debts, and lays down the arrangements of this support or commitment.
Article 24 the Finance Act of the year sets the ceilings of the general budget and loads of each budget, the ceilings of charges for each category of special accounts as well as the ceiling for authorization of jobs paid by the central Government.
It stops the General data of the balanced budget and overall fixed the allocation of 40 per cent of national income allocated to the provinces in accordance with the Constitution.
It establishes the allocation of revenues to national character in accordance with articles 219 to 221 of this Act.
Article 25 the Finance Act of the year may, as appropriate:-include provisions directly affecting the budgetary expenditures of the year;