The document discusses key aspects of public sector budget execution including: 1) Spending units must be authorized by the Ministry of Finance to make expenditures through warrants and sub-warrants. 2) Ministries can then delegate spending units to commit funds and make payment requests. 3) The spending process involves spending units making commitments through orders, contracts, and multi-year contracts authorized by legislation.

1. Public sector budget execution
Dr Alberto Asquer

2. Managing revenue
Managing expenditures
Managing cash flow
Managing capital revenue
Managing capital expenditures
Medium-term
budgeting
Short-term
budgeting
Strategic
planning
Programming Financial
reporting
Auditing
Compliance auditing
Performance auditing

3. • Spending units must be authorized to make
expenditure transactions
• A Ministry of Finance may issue ‘warrants’ to
spending units, like for example other
departments (which may issue sub-warrants to
sub-units)
• Ministries may then ‘delegate’ other spending
units to commit funds and make requests for
payment
Executing budgets

4. • The spending process then takes place
• Spending units make commitments: a future
obligation to pay arises through
• Orders
• Contracts
• Multi-year contracts
• Legislative provisions
Executing budgets

5. Executing budgets

6. There are different payment systems
• Funds may be transferred from the Ministry of
Finance or Treasury to the bank accounts of
spending units
• Payments may be made directly by the Treasury
Single Account (TSA)
• In the ‘imprest system’, a cash advance is
provided to spending units and replenished
periodically
Executing budgets

7. The end