Master Management finance Public

Matter Financial and legal terms in English

Temps normale

Student:

o Hanan nait youssef

o 1414886498 Professor : EL OUARDI EL ABASS

Universal year : 2021-2022

In fact, the traditional financial theory worked on generating general principles that
must be observed by the government and parliament in the various stages of the
budget process, starting from preparation to implementation through the execution
stage.These principles are summed up as follows, the annual rule, the budget unit, the
inclusiveness rule, the specialization of credits rule, and finally the honesty and
.credibility rule

The Moroccan Constitution of 2011 confirms these principles through a set of

chapters, perhaps the most important of which are Articles 76, 75 and 77, in addition
.to the organizational law related to finance No. 113.11

The general budget of each institution is one of the most important constants.
Actually it is considered the basis for creating projects in most fields and each step
should be attributed with the the budget. The budget has a set of principles that must
.be present in every project or conception

 The first principle or premise refers to the Annual principle, this principle aims
to oblige the government to appear before Parliament on a regular basis to
confirm the licenses granted to it regarding the disposal of public funds or to
present the outcome of the achievements.

As for the the fiscal year, it begins on January 1st and ends on December 31th of the
.same year

 Concerning the second principle, it is about the Unity principle, the principle of
budget unity is based on the legislature's supervision and attention to have a
single document that includes all incomes and all expenditures, to enable it to
have a comprehensive and integrated view of the state of public finances.
  As regards the principle of inclusiveness,in addition to including all
expenditures and incomes in one document, the principle of inclusiveness
requires that both groups be accounted for and presented separately. And there
is no set-off between income and expenditures. This principle also results in the
non-allocation of income to expenses, as it is not permissible to use certain
incomes to cover specific expenses. Therfore, the total income is used to cover
the total expenses.

This principle requires that the general budget of the State include all
expenditures and revenues, so that revenues appear in aggregate without deducting
any kind of expenses related to their collection. Expenses are to be disbursed only
within the limits of budgetary allocations, which is known as a rule: Non-allocation of
.income and expenditure

 Moreover, the principle of specialization of credits, this principle stems from

Parliament's apprehension about granting the government an absolute license,
allowing it to dispose of open funds with complete freedom. Parliamentary
licensing is limited to allocating funds (the subject of licensing) to cover
specific expenses.

Eventually, we have the Principle of honesty, this principle is associated with

.budgetary credibility and accounting credibility

 As for the final principle it is about balance and it refers to the fact that the
toatal general revenues is equal to the total general expenses. Thus in case the
expenses surpass the revenues the the rule or the principle of balance is
broken. This results in what is called balance deficit. Wheareas if it's vice versa,
that is to say the total expenses surpasses the total general revenues, then the
rule as well is broken as this refers to budget surplus.