Court of Accounts: there is plenty of improvement space in public funds management

Although they complain about not having enough resources for reformation and implementation of some important projects, the Ministries and other public authorities don’t fully utilize the limits allotted to them by the State Budget. This was pointed out by the Court of Accounts (CC), which presented on Friday the results of the 2011 State Budget execution audit Report to the Government, reports Info-Prim Neo. Among others, Natalia Trofim, head of the CC department of audit on State Budget and Patrimony, mentioned the Ministry of Regional Development and Constructions, which did not use 40 million lei (13%) worth of budgetary allocations, the Ministry of Environment – 21.6 million lei (7.4%), Ministry of Justice – 24 million lei (4%). The numbers prove the insufficient capacity of the aforementioned and other primary executors of the Budget, or indicates the fact the projections hadn’t been made according to real financing necessities, she said. Meanwhile, Ministries and other central and local public authorities have allowed forming debt in the form of receivables up to 325 million lei, and 405 million as credit indebtedness, of which 18 million lei with an expired payment deadline. The results of the CC show that the Ministry of Finance (MF) did not ensure a balanced projection of the State Budget in terms income types, such that 54 types of income were executed under the projected level and 33 types over the projected level. A persistent issue is the debt on fiscal duties of the businesses, which summed up to 410 million lei at the end of last year, having increased by 60.4 million lei relative to 2010, and the efforts of the structures that subordinate to the MF, the Main State Tax Inspectorate, and Customs Service, put into the reduction of these debts were not the ones expected. The number of ECHR rulings and court enforcement orders is also rising, on December 31, 2011 expenses in this sense summing up to 17.3 million lei. Despite the aforementioned and other deficiencies, the CC audit Report mentions that the indicators on the execution of the State Budget cashing for 2011, both in incomes and expenses “are a loyal image of the last budgetary year, 2011, being in accordance with the monitoring data from the treasury system”. CC president Serafim Urecheanu said that there are positive trends in the utilization of public money, management of State debt, the GDP weighted average of which (29.2%) has fallen by 2.2% relative to the end of 2010. The honoring of obligations, including foreign ones, is ensured within the limit approved by the annual Budgetary Law. These positive trends will be strengthened during this year; the fiscal policy will be improved, as well as the conditions for entrepreneurial activity and attraction of investment to the national economy. Minister of Finance Veaceslav Negruta said that there is place for more, especially under the aspect of increasing the responsibility of Budget executors in the correct utilization of Budget-allocated funds, improvements to financial discipline, ensuring transparency in the budgetary process. The 2011 State Budget was executed in incomes at 97.8% (18639.0 million lei) and in expenses at 98.2% (20004.1 million lei). That is, it misses incomes up to 428 million lei, and expenses up to 357 million lei. The Budgetary deficit was of 11,365.1 million lei, i.e. by 71 million lei more than projected.

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