State Treasury: The guardian of public funds

Thèmes abordés

State Treasury

Résumé du document

The birth of State Treasury facilitated the creation of better conditions and possibilities for the organization of cash register execution accountancy of consolidated general budget components, especially regarding the collecting incomes, a better control on payments and also to increase effectiveness and the accuracy of received information. The treasury must become a leading institution in the financial line, through which it can administrate and manage the public funds better.

The concept of public treasury is an old concept, having its genealogy in antiquity, when, in order to fulfill diversified public needs, there were formed and administrated funds within special institutions and these institutions have become with time what we call today, the treasury.

Public treasury, as a concept in its evolution regarding organization, running and attributions in different phases of its history, has closely followed the development course of the socio-economic society. That is why the level of development and the complexity of financial operations that are performed by the public treasuries in different countries of the world depend on the level of development for that country's economy, the ratio of state's intervention in that economy and the abundance or the poorness of resources in public finances that they have to manage.

The evolution of State Treasury in Romania:
The organization of State Treasury in Romania, started in 1993, was based on the background of profound transformations in political, economic and social layouts, determined by the transition of Romanian economy towards the competitive market economy.

According to the Government Emergency Ordinance no 146 of November 2002, State Treasury is defined as being "an unitary and integrated system through which the state assures the execution of collections and payments regarding public funds, including the ones regarding public debt, and for other operations of the state, in safety conditions in accordance with the effectual legal dispositions".

In modern economy, respecting the autonomy and organizational unification principles, and the liability of operations through the detachment of rights and responsibilities for credit's sequencers and the accountants, during the process of diversifying the function and attributions of the Treasury, the state has entrusted to it duties and particular actions regarding its intervention in the economy.

According to Ordinance no 1235 of September 19th 2003, "public institutions, regardless the financing and subordination, perform the operations of collections and payments through State Treasury units where they are fiscally registered". Accordingly, for local and central public institutions, the State Treasury effectuates operations of offsets with and without cash in the case of constitutional and use of public resources.

Extraits

[...] In order to carry out the equilibrium conditions of public sector expenditures, the public institutions have the obligation to program its payments through transfer or cash, (according to the methodological norms approved by order of the Minister of Public Finance). Within three months from the date of entry into force of this ordinance, the payment terms associated with the closed legal commitments are correlated with the payment terms set out above. Although the making of the payments is in the credit's sequencer's responsibility, treasuries operative bodies are obliged to exercise preventively a financial control on these, meaning they can not accept for pay the payment orders that have as object of payment material expenses forbidden to be made in the Government Emergency Ordinance 34/2009. [...]

[...] For the performed operations, State Treasury units issue statements for accountant holders, to which they will attach copies of the transfer notes made by tax authorities, afferent for the extinguishing operations of tax debt. The sums that remain unused in the account “Available from loans granted from privatization incomes according to Government Emergency Ordinance no 51/2010”, opened on the name of administrative-territorial units will be refunded by State Treasury units in the 30th day from collection, in account “Deductions in the account of Central Treasury own operations”, opened on the name of Ministry of Public Finances at the Central Operative Treasury, encoded with the fiscal identity code of the administrative-territorial unit, with the purpose of privatization incomes reconstitution from the general current account of State Treasury. [...]

[...] The evolution of State Treasury in Romania: The organization of State Treasury in Romania, starting in 1993, was based on the background of profound transformations in political, economical and social layouts, determined by the transition of Romanian economy towards the competitive market economy. According to Government Emergency Ordinance no 146 from November 2002, State Treasury is defined as being unitary and integrated system through which the state assures the execution of collections and payments regarding public funds, including the ones regarding public debt, and for other operations of the state, in safety conditions in accordance with the effectual legal dispositions”. [...]

[...] Regarding the making of the payments, the public institutions, regardless of their financing system and subordination are obliged to present to the State Treasury where they have opened the accounts, the approved income and expenses budget, distributed in trimesters under law conditions. In deducting the sums cash or through transfer from the public institution's accounts for effectuating the expenses, State Treasury units verify the existence of income and expenses budget for that certain institution and the list of investments, approved under law condition, following the honoring of open or divided budgetary credits limits or of the funds availability, as is by case, and their destination, like some other objectives settled through methodological norms by the Ministry of Public Finances. [...]

[...] The features of fiscal policy: Taking into account the current international context, the main features of fiscal policy in the period ahead, which will be subordinated to the objectives of sustaining economic growth and reduce inflation and achieve a budget deficit at a level correlated with macroeconomic objectives, regarding to the opinions and recommendations of European Commission and international financial organizations, regarding the reducing of public expenses for the purpose of diminishing current administration expenditures and the priority allocation of the resources towards projects with multiplying effect in economy that represents the main way of limiting the economical decrease rhythm and for partial compensation of activity reduction from the private sector, for maintaining the budgetary balances, there are necessary some measures meant to reduce the volume of budgetary expenditures to a level that permits the honoring of internal and international commitments assumed by Romania's Government, including the ones regarding the level of budgetary deficit. According to Government Emergency Ordinance no 34/2009, the authorities and public institutions are prohibited from purchasing, leasing or rental of: cars, as defined in par. of art of Government Emergency Ordinance no. 109/2005 regarding road transport, approved with amendments by Law no. [...]