Credit authorization
Credit authorization is a term of the German budget law , which in general government by the budget law certain authorize the opening of credit both for coverage of issues as to maintain an orderly cash economy (strengthening cash or cash advances called).
State subdivisions
Credit authorizations are available on all state breakdowns. In the federal budget , the authorization is contained in Section 2 Paragraph 1 of the Federal Budget Act (Germany) , in the Länder in Section 2 Paragraph 2 LHO and for the municipal level in the municipal regulations (e.g. Section 86 Paragraph 2 GemO NRW) Municipalities anchored in the budget statutes. A special credit authorization for the Federal Minister of Finance results from the bank rescue. According to § 9 FMStFG, up to 70 billion euros can be taken out as a loan for the purpose of bank rescue.
In the budget law / statute it is precisely determined in what amount the budgetary authority may take out loans. The wording in the law is always the same: "... is authorized to cover expenses for the financial year ... to take out loans up to the amount of ..." In addition, there are repayments for the loans that become due in the same financial year (Section 2 (2) LHO), provided that these cannot be financed from regular income. This authorization is generally valid until the end of the budget year. As an exception, it also extends to the following year if the budget law for the next budget year was not promulgated in good time (Section 18 (3) LHO).
scope
Credit authorizations from the budget law or statute do not represent an obligation to borrow. Therefore, an existing credit authorization does not have to be (fully) used if the planned budget situation is actually more favorable. The credit authorization includes both the coverage of expenses (Section 18 (2) No. 1 LHO) and the taking out of cash boosting loans (cash loans; Section 18 (2) No. 2 LHO). The amount of the authorization to take out loans to cover expenses results from the respective budget law (§ 2 LHO) from the net loan authorization plus the income from loans from public budgets (regional authorities, special funds and municipal associations ). This credit line may increase. a. the amounts for the repayment of loans due in the respective budget year that have not been budgeted in accordance with Section 12 (1) HGrG and Section 17 (4) LHO . Up until 2011, borrowing and thus also the credit authorization was limited to the amount of investment expenditure in accordance with Art. 115 GG (and in the corresponding state constitutions; cf. § 83 LV NRW). An exception was only possible if the macroeconomic equilibrium was disrupted.
So that investment projects can be carried out quickly, unused credit authorizations may be transferred according to § 22 GemHVO. After this, credit authorizations for withdrawals for investments remain available for their purpose until the final payment is due. In budget practice, it happens that a credit authorization cannot be used in the current year because an investment has to be postponed to the next year due to unforeseeable events (e.g. reasons under public procurement law). In the case of construction work, however, a credit authorization applies for a maximum of 2 years after the end of the budget year in which the investment is used significantly (Section 19 (1) KommHVO).
According to § 82 para. 2 GemO NRW, credit authorizations for provisional budget management are permitted up to 25% of the amount of the last budget statute for investments; they are to be approved by the local authority. Municipalities with an emergency budget draw up an annual priority list according to which loan authorizations are issued by the municipal supervisory authority. The principle derived from § 82 GemO NRW of a maximum credit line that can be approved in the amount of a net borrowing of zero for unprofitable investment services by municipalities in the provisional budget economy has proven itself in practice.
Individual evidence
- ↑ Jörg Henkes, The annual financial statements of local authorities , 2008, p. 488
- ^ German Association of Towns and Municipalities, NRW Communication 525/2007 of August 9, 2007