Administrative budget

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In cameralistics, the administrative budget (VwH) is part of the municipal or state budget in addition to the property budget .

The administrative budget can also be referred to as the core or compulsory budget and, according to the municipal budget ordinance (Section 1, Paragraph 2 of the GemHVO), includes all income and expenses that cannot be allocated to the property budget. These are income and expenses that do not increase or decrease wealth. This includes the annually recurring income (taxes, allocations from other public authorities not used to finance investments, fees) and ongoing expenses ( personnel and material costs , energy costs , insurance contributions, levies, interest on loans from the asset and administrative budget).

Administrative budget revenue

The tax revenue of the administrative budget initially includes the taxes levied at the municipal level in accordance with Art. 105 Para. 2a GG , u. a.

  • Property tax (levied on all property, building and apartment owners)
  • Trade tax (is levied by all businesses from the trade income)
  • Dog tax (from the dog owners)
  • Horse tax (from the horse owners)
  • Amusement tax (mainly from slot machine operators)

In addition, certain shares of community taxes and sales tax revenue are received in the administrative budget from the financial equalization. In addition, municipalities receive allocations from the financial equalization fund, taking into account their tax strength . Municipalities with high tax rates receive lower allocations, lower-tax municipalities receive higher allocations. These allocations are booked in the administrative budget.

Administrative budget expenditure

In addition to the items listed above, expenditure on social assistance is one of the most important items in the administrative budget. In normal times, it is assumed that the ongoing annual income of a municipality can initially be used to finance ongoing expenses and then an amount remains as interest and repayment components for investments in the asset budget. This amount, by which the current income is higher than the ongoing expenditure, is transferred to the asset budget as an addition rate and acts as an expenditure in the administrative budget. According to § 18 GemHVO, the expenditures in the administrative budget are mutually coverable , additional expenditures of a budget title can therefore be covered by reduced expenditures of another title.

The income of the administrative budget must cover its expenses. The cover may not be financed with loans in order to prevent ongoing expenses from being financed by debt. However, if there are time delays in the receipt of income and expenses are tied to deadlines (personnel expenses), this liquidity bottleneck may be bridged by cash loans in order to ensure the constant solvency of the municipality.