Non-expiring expenses

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.

Types of non-expiring expenses

Non-expiring expenses, also known as permanent expenses, refer to budget expenditures that do not expire at the end of the financial year and are carried over to the next year. These types of expenses are typically established by local governments as a way to ensure that certain essential services or obligations are continuously provided, despite the expiration of the annual spending limit.

Examples of non-expiring expenses include:

• Debt service: payments related to the repayment of loans or bonds that have been issued by the local government.
• Pension and other post-employment benefits: expenses related to the payment of pensions and other benefits to retired employees.
• Legal settlements and judgments: expenses related to the settlement of legal disputes or judgments against the local government.
• Capital projects: expenses related to the construction or acquisition of long-term assets such as buildings, infrastructure, or equipment.
• Maintenance and repairs: expenses related to the maintenance and repair of long-term assets such as buildings, infrastructure, or equipment.
• Lease payments: payments for the lease of equipment, facilities or land.
• Investment in infrastructure: expenses related to the investment in infrastructure such as roads, bridges, or utilities.
• Contracts with vendors: expenses related to contracts with vendors for services such as waste management, security, or information technology.

The list of non-expiring expenses may vary according to the authority of the local government, these are few examples of the types of expenses that may be considered as non-expiring expenses.

Non-expiring expenses — recommended articles

Working interests — Budget expenditure of the local government — Preliminary expenses — Budgetary resolution — Full service leasing — Modified gross lease — Patronage Dividend — Service lease — Residual payment

References

• 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.