Budget expenditure of the local government

From CEOpedia | Management online
Budget expenditure of the local government
See also

The expenditure budget of the local government, is a category of public financial resources at the disposal of the local government unit.


They are providing the resources for the implementation of public tasks of local government units, and other financial transactions, i.e.: management of resources, financing borrowing needs and debt management. The expenditure budget of the unit of local self-government can be seen as providing the means for performing public tasks, in accordance with the law.

Form of expenditures

The expenditure budget of the unit of local self-government take a different shape:

  • current expenses
  • capital expenses

Current expenses are:

  • subsidies
  • wages and costs derived from wages,
  • other payments to individuals (i.e. allowances and subsidies),
  • purchases of goods and services,
  • expenses related to the operation of the local budgetary units and.

Capital expenses includes: investment costs, specific grants for financing or co-financing the cost of achieving specific investment and the cost of the acquisition and distribution of shares and the making of contributions in commercial companies.

The basis for the implementation of expenditure spending plan, which follows from the budget resolution, and which positions represent a hard limit. In case of adoption of the budget (not longer than until 31 March of the fiscal year), it is base for borrowing liabilities and transaction costs within limits set in project of budget.

The limits of the budget expenditures have, as a rule, the nature of the annual limits. The exception to the above, represents the adoption of limits on spending many years and the so-called non-expiring expenses.