Budget charter

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The budget statute is a term from budget law that describes the legal basis for the implementation of the budget in the local administration and is decided by the local council (council or city council) or the district council in public session. In contrast, there is a budget law at the state and federal level .


The procedure from drawing up the budget to the legal effectiveness of the budget statute is precisely defined in the municipal ordinances (e.g. § 80 GemO NRW). Then the draft of the budget charter with its annexes is drawn up by the treasurer and submitted to the mayor for approval. The latter forwards the draft approved by him to the council. The draft budget charter and its annexes will then be announced; In the public announcement, a period of at least fourteen days is to be specified in which citizens or taxpayers can raise objections to the draft. The deadline for raising objections is to be set in such a way that the Council can decide on the budget statute and its annexes in public before it takes a decision. The draft budget charter with its annexes is discussed and decided by the council in public session.

The budget charter adopted by the council is to be reported to the local authority . The notification should be made no later than one month before the start of the budget year. The budget charter may be made public at the earliest one month after notification to the supervisory authority. In the case of a cameralistic budget statute, it lists the total amounts of income and expenditure, broken down into administrative budget and asset budget . In the case of a double budget statute , the total amounts of the income and expenses of the profit plan as well as the total amounts of the payments and payments of the finance plan are determined. This is followed by the total amount of loans, which is already included as income in the asset budget, but is explicitly emphasized again due to its explosive nature for municipal finances and, as a credit authorization, gives the administration the authority to take out loans of a certain amount. This is followed by the total amount of the commitment authorizations , which are not expenditure funds for the current year but are only due in the following three years. This is followed by the maximum amount of cash advances that are intended to secure short-term liquidity. And then the set will be real control - assessment rates known, so for property tax A and B, as well as the business tax in circles according to the county levy . In addition, the municipalities are free to include other decisions that are important for budgetary management in the budget charter.


The budget charter applies to a specific financial year , during which a new budget must be drawn up.

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