What reform of the organic law relating to the finance law?

What reform of the organic law relating to the finance law?
What reform of the organic law relating to the finance law?

Eight years after the entry into force of organic law 13.130 relating to the finance law, practice has highlighted the importance of introducing amendments to some of its provisions in order to strengthen the governance of public finance management.

These amendments aim in particular, according to the Minister Delegate for the Budget, Faouzi Lekjaa, to broaden the scope of application of organic law 13.130 to public establishments not exercising a commercial activity, to strengthen the sustainability of public finances and to strengthen the role of Parliament in the preparation and execution of finance laws.

Mr. Lakjaa, who spoke on Wednesday, July 3, before the Finance and Economic Development Committee of the House of Representatives to present the government’s vision regarding the reform of Law 13,130, explained that the extension of the scope of this law to public establishments not carrying out a commercial activity was justified by the fact that these establishments (around 200) are an extension of the State and should therefore be subject to parliamentary control, in accordance with international practices.

This will make it possible, on the one hand, to forecast all income and expenditure and to adopt provisional budgets for these establishments and, on the other hand, to be able to open additional credits during the year beyond the maximum authorised income thresholds.

Compared to the “execution efficiency” approach, the proposed reform of Law 13.130 will, according to the Minister, allow for the adoption of results-based management of the budgets of these establishments, for segmentation based on programs, for harmonizing the programs of these establishments with sectoral strategies and for linking responsibility to accountability.

With regard to strengthening the sustainability of public finances, the proposed reform aims to extend the scope of parliamentary authorization in order to consolidate transparency in the management of public finances, and to rationalize the management of allocated revenues through better collection and exemplary use of these revenues.

Finally, with regard to strengthening the role of Parliament in the preparation and implementation of finance laws, the proposed reform aims to insert new provisions relating to the liquidation law. This involves reducing the time limits for submitting the liquidation bill to Parliament and the time limits for examination and voting on this bill by Parliament.

What measures are necessary to implement this reform?

As for the measures necessary for the implementation of this reform, the government stresses the need to update the legislative and regulatory texts to take into account the laws relating to the portfolios of public institutions to be included in the framework of the organic law relating to the finance law, as well as the two internal regulations of the two Chambers of Parliament, the royal decree on the general regulations of public accounting and law no. 62-99 forming the code of financial jurisdictions.

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