Expenses associated with the budget units of local government that have the character of the annual limit. Constitute authority to incur obligations and make payments until the end of the financial year. The exception to the expiration of the principle of annual spending limits, it is possible to establish the so-called. non-expiring expenditures. According to the authority of a local government may establish a list of budget expenditure, which will become permanent expenses and determine the following year, to which must incur the related commitments and make these expenditures.
After establishing such a list, at the end of the year, these expenses are an independent plan. At the end of the year in order to finance these expenditures, resources are protected by transferring funds from the core budget bill into separate sub-account maintained for such expenditure. Non-expiring expenditure are valid in parallel to the annual budget.
As non-expiring expense one can be consider virtually any expense in budget. Very often as a result of decisions of the authority, annual limits on investment costs can be considered as non-expiring expenses.
- Brown, T. L., Potoski, M., & Van Slyke, D. M. (2006). Managing public service contracts: Aligning values, institutions, and markets. Public Administration Review, 66(3), 323-331.
- Rhodes, R. A. (2000). Governance and public administration. Debating governance: authority, steering and democracy. Oxford: Oxford University Press.