Public Finance and Budgeting Review

These flashcards cover vocabulary and key concepts from the lecture notes regarding the state budget, Romaninan fiscal law, budgetary execution stages, modern planning methods, and public debt management.

State Budget

A legal act of projections through which the executive power is authorized by the legislative power to spend and perceive revenues in accordance with legal provisions, often operating with a deficit or surplus.

Principle of Budgetary Annuality

A principle referring to the specific period (usually one year) in which the execution of state budget revenues and expenditures takes place.

Public Budget Components

Includes the state budget, local budgets, the state social insurance budget, and special fund budgets.

Consolidated General Budget

The aggregate of resources and expenditures of the state budget, social insurance, special funds, local budgets, and other autonomous public institutions, cumulatively calculated at the national level while eliminating inter-budgetary transfers.

Budgetary Principles

The set of rules including universality, unity, annuality, specialization, balance, and publicity that govern the preparation and execution of budgets.

Tertiary Budgetary Authorizers (Ordonatori terțiari de credite)

Officials responsible for the integrity of assets entrusted to their unit and who use budgetary credits solely for the specific units they lead.

Budgetary Commitment (Angajament bugetar)

Any act by which a competent authority assigns public funds to a specific destination within the limits of approved budgetary credits.

Budgetary Process

A cyclical activity carried out by public institutions and ministries involving the preparation, approval, execution, and reporting of the state budget and other public budgets.

Revenue Execution Stages

The sequence involving assessment ($\text{așezarea}$), liquidation ($\text{lichidarea}$), issuance of the perception title, and actual perception ($\text{perceperea propriu-zisǎ}$).

Expenditure Execution Stages

The sequence involving commitment ($\text{angajarea}$), liquidation ($\text{lichidarea}$), authorization/ordering ($\text{ordonanțarea}$), and payment ($\text{plata}$).

M.F.P. (Ministry of Public Finance)

The body responsible for the actual drafting of the state budget project based on economic analyses and government objectives.

Court of Accounts (Curtea de Conturi)

The body that exercises jurisdictional control over the execution of the public budget.

Management System (Sistemul de gestiune)

An accounting method where the budget year closes automatically on December 31st, recording only the revenues actually collected and expenditures actually made.

P.P.B.S. (Planning, Programming, Budgeting System)

A modern budgeting method that involves defining objectives and identifying means to reach them, though it faces technical limits in calculating indirect costs.

Zero-Base Budgeting (Z.B.B.)

A budgeting method that identifies the present value of alternative programs and ranks them based on the cost/advantage ratio or net present benefit.

R.C.B. (Rationalization of Budgetary Options)

A method emphasizing capacity for adaptability and self-regulation through the definition of objectives, confrontation, analysis, and selection.

Minimax Regret Criterion

An evaluation rule where the project is chosen for which the maximum regret ($\text{the difference between the best possible advantage and the chosen project's advantage}$) is the smallest.

Sensitivity Analysis

A method for incorporating risk by calculating project rankings based on their sensitivity to variations in assumed numeric values and system parameters.

Cost-Effectiveness Criterion

A technique designed to allocate limited resources by maximizing results for a specific cost level or achieving effects with minimum costs, even without monetary evaluation of benefits.

Public Loan Characteristics

A financial instrument that is contractual, generally repayable, and involves negotiations between creditors and the state.

State Guarantee

An indirect obligation of the state or government executed if the loan beneficiary fails to meet contractual obligations regarding repayment and interest.

Par Value ($\text{Al Pari}$)

A term used when the market rate or price of a public bond or security is exactly $100\%$.

Debt Conversion

The process of exchanging an old loan security with a high interest rate for a new one with a lower interest rate, or extending the maturity date.

Consolidated Public Debt

The total public debt consisting of obligations with medium and long-term maturities.

Floating Public Debt

Short-term public debt obligations.

Public Debt Service

The total annual amount required to pay principal installments ($\text{ratele scadente}$), interest, and related commissions.

Indebtedness Ratio (Gradul de ȋndatorare)

A metric determined by relating the total balance of public debt to the Gross Domestic Product ($\text{PIB}$).

Net External Debt

The difference between the public and private assets held by residents abroad and the assets held by foreign residents within the country.