Public Finance and Organic Law 18-15 Reform Flashcards

Vocabulary flashcards covering public finance concepts, historical stages, public spending, revenue types, taxation rules, and modern Algerian budgetary reform under Organic Law 18-15.

Public Finance (Traditional Definition)

According to Gaston Jèze and classic authors, the set of rules that governments and public bodies must apply to determine public expenses and secure necessary resources to meet them, while distributing their burdens among citizens.

Public Finance (Modern Definition)

The science that studies the rules organizing the financial activity carried out by public entities to acquire the necessary resources for expenditure in order to satisfy public needs.

Guardian State (Neutral State)

A state concept prevalent in the 17th and 18th centuries under classical economic theory, where economic activity was left to individuals without state intervention, restricting the state's role to security, justice, defense, and maintaining public utilities.

Intervening State

A state model that emerged following the Great Depression of $1929$, where the state intervenes in economic and social life to adjust economic performance, reduce unemployment, achieve full employment, and redistribute national income.

Functional Finance

A financial principle adopted during the Intervening State era that replaced financial neutrality, establishing that public expenditure must be determined primarily to achieve economic and social objectives beyond mere financial balance.

Organic Law 18-15 (LOLF)

The Algerian organic law dated September 2, $2018$, relating to finance laws, designed to modernize public management, introduce performance-based budgeting, and enhance parliamentary oversight.

Law 84-17

The Algerian law dated July 7, $1984$, relating to finance laws, which governed Algeria's public finance system for $34$ years prior to the reform under Organic Law $18-15$.

Corruption Perceptions Index (CPI)

An international index issued by Transparency International that ranks countries on a scale from $0$ (highly corrupt) to $100$ (very clean) regarding public sector corruption.

Open Budget Index

An index established by the International Budget Partnership (IBP) that measures budget transparency and public access to budget information around the world on a scale of $0$ to $100$.

Public Expenditure

A sum of money spent by a public entity (such as the government, local authorities, or public institutions) with the objective of achieving a public benefit.

Real Expenditures

Direct public expenditures aimed at acquiring goods and services that directly increase national production and national income, such as wages and procurement of materials.

Transfer Expenditures

Indirect public expenditures, such as economic subsidies and social grants, aimed at redistributing national income and increasing aggregate demand without directly acquiring goods or services.

Ordinary Expenditures

Public expenses that recur regularly and periodically in the state's annual budget, such as civil service salaries.

Extraordinary Expenditures

Non-recurring public expenses that do not repeat on a regular annual basis, often arising during emergencies or natural disasters.

Principle of Maximum Benefit

A public spending rule requiring that public money only be spent after ensuring through prior studies and priority setting that it will achieve its specified objectives and yield maximum public utility.

Public Procurement (Public Tender)

Written contracts concluded for consideration between a contracting public authority and an economic operator to meet public needs regarding works, supplies, services, or studies.

Tax

A compulsory, final monetary deduction levied by the state or local authorities without direct equivalent consideration, aimed at covering public expenditures and achieving economic and social goals.

Betterment Levy (Étawa)

A financial deduction imposed by the state on specific individuals or property owners who gain direct financial value or appreciation from nearby public works or infrastructure projects.

Tax Evasion

The legal reduction or escape from tax obligations by taking advantage of legal gaps or ambiguities without violating statutory laws.

Tax Fraud

An illegal, intentional action taken by a taxpayer to evade tax liability through deceptive methods, such as false declarations, concealing taxable assets, or smuggling goods.

Laffer Curve Principle

An economic concept demonstrating that excessive increases in tax rates lead to lower total tax revenues due to increased tax fraud, tax evasion, or reduced economic activity.

General State Budget

An annual document approved by parliament that estimates and authorizes state expenditures and revenues for the upcoming calendar year to achieve socio-economic balance.

Medium-Term Budgetary Framework (CBMT)

A multi-year rolling programming tool spanning $3$ years ($N$, $N+1$, $N+2$) that provides macro-level estimates of state revenues, expenditures, and fiscal balances based on macroeconomic projections.

Medium-Term Expenditure Framework (CDMT)

A $3$-year multi-year expenditure planning framework established per ministerial portfolio to detail program priorities and recurring operational costs.

Expenditure Commitment Plan (PED)

A document prepared by a minister or institution head setting monthly or quarterly commitment levels for budgeted expenditures during fiscal year execution.

Program Portfolio

A collection of programs contributing to the execution of a specific public policy placed under the responsibility of a minister or head of a public institution.

Authorizing Officer (Ordonnateur)

A qualified official empowered to execute public financial operations, specifically committing, liquidating, and ordering the payment of public expenses or the collection of public revenues.

Public Accountant (Comptable Public)

A public officer responsible for collecting state revenues, paying authorized public expenses, maintaining official accounts, and handling public funds.

Budget Settlement Law

An annual law approved by parliament that records and establishes the final actual amounts of revenues collected and expenditures executed during a past fiscal year.