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The Amendments To The "law On Budget And Financial Management"

Original Language Title: Grozījumi "Likumā par budžetu un finansu vadību"

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The Saeima has adopted and the President promulgated the following laws: the law on budget and "financial management" to do "in the law on budget and financial management" (Latvian Saeima and the Cabinet of Ministers rapporteur, 1994, no. 8; 1996; 1997, no. 24, no. 21; 1998, nr. 9; 1999, no. 24) as follows: 1. the preamble to the text be supplemented by the following: "this law rules also apply to State and local government agencies."
2. Chapter I: make the term "appropriation" of the following explanation: "appropriation-public law powers granted to certain extent, allowing the Treasury to reassign and make payments for specific purposes from the State budget revenue, or a local Government Council (Council) decision to make payments to municipal purposes from the municipal budget revenue.";
to make the term "budget-funded institutions" explanation as follows: "budget-funded institutions: the budget authorities, State and local agencies, all entirely or partially financed from the budget directly to undertakings (companies) and organisations.";
to make the term "budgetary authority" explanation as follows: "the budgetary authority — the State or municipal authority with laws and granted certain public mandate to carry out public functions, and are totally financed from the State or municipality budget.";
make the use of the term "proceeds" of the following explanation: "revenue, in accordance with the law or the tax revenue received tax, State and local taxes and other payments, as well as budgetary spending authorities revenue from fees for services provided to them and other revenue earmarked revenue, assets sales net income, received interest payments and dividends, foreign financial assistance, donations and gifts in cash or in kind (with tracking money).";
to make the use of the term "special budget" explanation as follows: "special budget: the budget part of earmarked revenue, revenue from fees and other revenue, foreign financial assistance, donations and gifts in cash or in kind (with tracking money) and that means spending on these revenue.";
Supplement section in alphabetical order with the following terms and their explanations of the following: "foreign financial help — all non-refundable financial assistance received from foreign Governments, international organizations or other foreign donors."
"Straight from the budget-funded enterprises (company) — the Ministry and other Central Government institutions held by the company (the company) that, in accordance with the annual national budget appropriations Act receives funding from the State budget according to the Minister of finance in accordance with the procedure laid down in the approved financial plan, or from ministries or other Central Government institutions as a means of security for specific government functions."
"Medium-term national budget planning: the process is definitely available resources for five years and to ensure the appropriate use of these resources to the priorities of the Government."
turn off the term "powers of the future" and the explanation;
turn off the term "resort" and its explanation.
3. Add to article 2 of the fourth subparagraph by the following: "(4) the cabinet shall determine the State budget process, enforcement procedures, except in article 11 of this law, article 12, article 13, third paragraph article 24, second and third subparagraphs of article 34, second and third subparagraphs of article 36, first and third subparagraphs, and article 37, second paragraph, under certain circumstances."
4. Put article 5 by the following: "article 5. State budget (1) all payments under the Act or other legislation or contract should include the State budget revenue, is the State budget, which, according to the annual State budget Act appropriation can be apropriē the public purpose.
(2) the national budget funds are also paying for the national capital, which are carried out each year in State enterprises as well as companies that are part of the national capital. The Cabinet of Ministers shall determine the amount and the order in which payments for the State capital are made and credited to the State budget.
(3) the national budget can give or receive only with annual State budget appropriations provided for in the law.
(4) the national budget expenditure consists of appropriations set out in the specific national needs in accordance with the annual State budget law.
(5) the State budget revenue and expenditure forecast difference is the financial surplus (if the proceeds are greater than expenses) or budget financial deficit (if expenditures are greater than revenues).
(6) the State budget loans means the funds made available to the entities and create rights and obligations to dispose them to give up the loan, as well as receive loans taken over from the national budget commitments entered into, if the borrower owes the country left.
(7) the State budget consists of loan repayment pay off all loans.
(8) financial surplus in the State budget or financial deficit (financial balance) and net lending margins form the State budget fiscal deficits or fiscal surplus (fiscal balance). "
5. in article 6: express first and second subparagraph by the following: "(1) the municipal budget for each financial year, includes all of the municipalities (local government bodies) collected or received income and loans, which in local municipal appropriations.
(2) a municipal budget funds may be granted or the municipal authorities receive adequate Council (Council) in the approved budget for the intended purpose and amount. ";
turn off the fourth.
6. To make article 7, first paragraph (1) of the following: "1) all State and local government revenues, which are intended to cover expenditure, excluding earmarked revenue, gifts and donations."
7. To turn off the second part of article 8.
8. in article 9: turn off in the fourth paragraph, the word "permanent";
express the sixth follows:

"(6) the authorities of the State budget revenues from fees and other revenue, the same foreign financial aid in excess of the annual State budget act in the ministries and other central public authorities, as well as a certain amount of 27 of this law in accordance with the procedure laid down in article estimated revenue balances at the beginning of the financial year with the permission of the Minister of finance can divert budget funding of supplementary expenses."
9. Express article 12 the following: ' article 12. Funds for contingencies means for contingencies and national measures are of particular interest included as part of the Ministry of Finance held by the State general appropriation. Ministries, other Central Government institutions and local authorities prepare the required feature request the Minister of finance. Minister of finance quarterly reports to Parliament on the use of such appropriations. "
10. Add to article 14 and the third subparagraph by the following: "(3) to inform the public of the institution's operational objectives and results, as well as of the national budget allocated to the use of funds in the previous year, the ministries and other Central Government institutions, all under the authority of, and the monitoring of the budget under-funded institutions and the local authorities until next July 1, prepare an annual public report and not later than one month after preparation shall be published in at least one local newspaper or in a separate Edition to the public. The Cabinet of Ministers shall determine the annual public report content and preparation. "
11. Express article 17, the first paragraph by the following: "(1) the Minister of Finance issued the drafting instructions budget request and inform the ministries and other Central Government institutions about the medium-term expenditure planning guidelines and medium-term forecasts of the economic situation."
12. Express article 18, first paragraph (1) of the following: "1) indicate the objectives actually used amount of money last year, the estimated amount of funds for the current year and medium-term Finance Minister under a specific classification;".
13. Article 19: make the first paragraph by the following: "(1) the Cabinet of Ministers, in consultation with the Bank of Latvia and taking into account the macroeconomic development trends, determine the financial strategy for medium-term national budget request and the State budget law, project development. The Minister of finance determines the overall budget revenue and spending the country can plan in the medium term, the country's long-term commitment to future years and types, as well as the assessed deficit level. ";
to make a fifth by the following: "(5) Cabinet of Ministers accepts each Ministry and other central public authorities the maximum budget amount of medium-term expenditure. The Cabinet has the right to include in the State budget without budget request funds for contingencies. "
14. Article 20: make the first, second, third and fourth subparagraph by the following: "(1) all ministries and other Central Government institutions receive State budget law project (budget package) and in two weeks time to the Minister of finance may submit reasoned objections against this project.
(2) the Minister of Finance shall endeavour to reach agreement with the relevant ministries and other central public authorities ' leaders. If no agreement is reached, he submitted to the Cabinet of Ministers of the draft law to the State budget (the budget bill in the package), the statement of objections on which agreement has been reached.
(3) the Minister of Finance shall submit to the Cabinet a draft law on State budget (budgetary package), the explanatory notes and medium-term macroeconomic development and fiscal policy guidelines.
(4) issues not resolved in the public enquiry process, ministries and other central public authorities, managers can put to the Cabinet for decision. ";
to supplement the article with the sixth part as follows: "(6) the Cabinet will accept a medium-term macroeconomic development and fiscal policy framework and submit it to the Parliament."
15. in article 21: the name of the article be expressed as follows: "article 21. The annual State budget act in the project (the budget bill in the package) and the amendment to the annual State budget act in the submission;
Add to the first paragraph, after the word "clarification" with the words "as well as medium-term macroeconomic development and fiscal policy framework";
to make the second part of paragraph 9 by the following: "9) financing costs Government borrowing, proposed an explanation for the liabilities and borrowings in the previous and the current year, as well as medium-term liabilities and loans;";
to supplement the article with the fourth and fifth by the following: "(4) the Cabinet of Ministers submitted to the Saeima for adoption of the amendments to the annual State budget act in the current financial year, proposals for amendments to the laws to comply with the amendments to the annual State budget Act and the amendment to the State budget law explanation.
(5) the amendment to the State budget law explanation include: 1) for information on the changes and analysis of revenue for those types of revenue expected changes;
2 information on the expenditure change);
3) with new measures for expenditure justification;
4) information on changes in the public investment programme, indicating the sources of financing;
5) information on changes in the loans of the country;
6) information about changes to the country's long-term liabilities;
7) information on changes in foreign financial aid volumes;
8) proposals for amendments to be made by law to these laws comply with the amendments to the national budget law. "
16. Article 22: turn off the second part of paragraph 3;
make the second subparagraph of paragraph 4 by the following: "4) national long-term liabilities according to the classification of expenditure in the budget;"
to complement the second part with point 6 and 7 by the following: "6) foreign financial assistance, the total resources of ministries and other central public authorities;
7) State funded pension scheme contributions rate and amount of contribution. "
17. Article 27 of the expression as follows: "article 27. Account opening and closing (1) State budget-funded institutions accounts can only be opened in the country.

(2) the State Treasury each year on December 31 of the current financial year closing all open accounts. State general funds account to open the State budget-funded institutions in the next financial year, in accordance with the plans for financing the appropriations. At the end of the year the authorities general government accounts in the balance of the resources derived from the proceeds of the fee for other services and the same revenue, foreign financial assistance, if this balance does not exceed the revenue during the year, the amount of funds actually received, remains the State budget authorities and can be used in the next year. State special budget account shall be opened in the next financial year, including all those balances from the previous year.
(3) at the end of the year, State and local agencies on the current balance incurred from State and local agencies of all types, with the exception of State revenue budget grant from the general revenue, if this balance does not exceed the revenue during the year, the amount of funds actually received, remain a national or local government agency and can be spent in the next year.
(4) local governments and enterprises (companies) that invest in State or local Government of the capital, may open accounts in the Treasury. "
18. Make the article 29 the second part as follows: "(2) the contractor, subject to the Budget Cabinet approved asset depreciation rules and conditions of use, as well as the Treasury rules, registered accounts and accounting records, these records are matched with Treasury's accounting records."
19. Make article 31 point 8 of the second paragraph the following wording: "8) municipal budget execution summary and consolidated report on the implementation of the general budget;".
20. Supplement article 34 with the third subparagraph by the following: "(3) the State budget to the performer in respect of the special budget is entitled to conclude an agreement with the Treasury about the special budget of investment deposit, and invest the balance in the Latvian state securities in the order of the Minister of finance."
21. Make 36 and 37 of the article as follows: "article 36. Borrowing or lending authority (1) the Minister of finance may Only sort state borrowing or lending things at the annual State budget act in the framework. Minister of Finance: 1) represents the State in all borrowing or lending agreements or on the basis of the decision of the Cabinet of Ministers shall authorise another person to sign these contracts;
2) authorizes the institution responsible to keep the original documents and the conclusion, on behalf of all State debt and loan agreement and the guarantee given on behalf of the State of registry, as well as unforeseen circumstances cause the debt obligations register;
3) determines the lending and servicing arrangements;
4) shall communicate periodically to the public on behalf of the State for contracts concluded in the rules on borrowing the money or capital market.
(2) the State budget-funded institutions do not have the right to take loans and to enter into leasing contracts with credit institutions or other agencies without coordination with the Finance Minister.
(3) the public budget for the special bailiff budget can take loans short-term financial management purposes in the order of the Minister of finance through borrowing repayments within the framework of the financial year in which the loan taken.
37. article. Guarantees (1) to the Minister of finance is Only right on behalf of the State's annual State budget as part of the law to provide guarantees, binding public funds, provided that: 1) he has received and reviewed to provide the required guarantee and obligations related to proposed or existing guarantees;
2) expenditure incurred in connection with this guarantee, are applied to the national debt.
(2) a procedure for the provision of the guarantee shall be determined by the Cabinet of Ministers, but the bonding order of service — the Minister of finance. The Cabinet of Ministers draft rules prepared by the Ministry of Finance.
(3) the Minister of finance does not give a guarantee if: 1) is not submitted to provide the required guarantee reasoning;
2) there is an increased risk of repayment of the loan;
3) State guarantees the beneficiary does not comply with certain guarantee and servicing arrangements;
4) companies and companies do not guarantee security.
(4) the provision of guarantee be refused Finance Minister guarantees the applicant provides the motivation for the refusal. "
22. Turn off article 40.
23. Supplement article 41 with the fifth and sixth the following: "(5) local authorities have the right to take loans and give guarantees only the annual State budget law for the total allowable amount of the increase. Municipal borrowing and guarantee delivery takes place in the Cabinet.
(6) in order to ensure the preparation of the consolidated general budget, local Government not later than three months after the annual State budget law shall be submitted to the Ministry of finance information on approved budgets. "
24. Article 44: make the name of the article as follows: "article 44. Grants and budgets of local mērķdotācij ";
Add to the first and second subparagraph following the words "budget allocation" (fold) with the words "and mērķdotācij" (fold).
25. Article 47: off in the second paragraph, the words "to impose administrative penalties in the event of persons";
to make the third part of the introductory paragraph as follows: "(3) if there is a breach of the financial management rules, including financial plans, in accordance with this Act, the Minister of finance, as well as Treasury Manager, and ministries and other central public authorities in relation to the budget Manager for performers to whom they have granted the appropriations may take the following measures:";
to supplement the article with a fifth by the following: "(5) for a fixed period without the payment of State capital will be calculated and recovered late in the first part of this article in particular."
26. the transitional provisions: 1. turn off the point;
transitional provisions be supplemented with 4, 5 and 6 of paragraph by the following: "4. This law, article 22, paragraph 7 of the second paragraph is valid until January 1, 2010.
5. Article 20 of this law, in the third and sixth part, as well as article 21 referred to in the first paragraph of the medium-term macroeconomic development and fiscal policy framework developed and accepted by the Cabinet and submitted to Parliament, starting with the 2002 national budget law project (budgetary package).

6. in the preamble to this law, the term "of chapter I of the budget-funded institutions" explanation, as well as article 27 in the third subparagraph of that provision in relation to State and local agencies enter into force simultaneously with the law on Agency for entry into force. "
The law shall enter into force on 1 January 2001.
The Parliament adopted the law on 23 November 2000.
State v. President Vaira Vīķe-Freiberga in Riga 2000 December 12