Fiscal Responsibility

To plan, to control, systemize and to adjust the future expenses consist in sufficiently sensible prerogative are for a family, a company or for the public area. This everything can be made by means of the budget. In the budget the forecasts of expenses and prescriptions are inserted all that will go to occur, generally, in the period of one year. Many people appeal the spread sheets of control of expenses, the immense majority of the averages and great companies is used systematically of the budget to control its prescriptions and its expenses and all the public beings obligatorily must carry through its great expenses in accordance with what inserted and it was approved in the budget in the previous year. The physical people and the private companies are not obliged to have budget, but the public beings are. In reason of the expenses of the public sector to be deriving of the income of the people and the companies, has the necessity of all the expenses of the city halls, state governments, of respective the Federal District and the federal government previously to be approved by the legislative ones that are representatives of the society, that is the owner of the resources to be expenses. Thus, the budgetary process becomes basic element in the measure where the forecast of expenses and prescriptions must be next possible to what it will go to occur in the following year. The process of public budget has its norms regulated since the first decades of the passed century, however, of sufficiently rudimentary form.

In 1964 with Law 4320/64 it only is that a stronger severity in the verification of the planning and the execution of the public budget was had. After this law had occurred some improvements in this area. In the present time, all the public budgetary process is conducted by law 4320/64, for Decree 200/67 (that among others things, mentions the state-owned companies to it), for the Constitution of 1988, notadamente its articles 165 and 169 and for Law 101/2000 (the call Law of Fiscal Responsibility).