After analyzing the occupational structure as of December 1998, we can see coverage of 96.07% of the positions authorized by the National Administration's Budgetary Law for fiscal year 1998. It is to mention that 99,773 of the positions, 35.75% of the labor force occupied in the National Administration pertain to the Ministry of Defense. In order of importance, follows the Ministry of Domestic Affairs (65,950 positions, 23.63%) and the Ministry of Economy (40,968 positions, 14.68%). Apart from the Ministry of Defense and the Ministry of Domestic Affairs, the Federal Administration of Public Income is the institution that gathers the largest number of positions with 20,931 occupied positions.
As regards the authorized teaching hours, the "Jefatura de Gabinete de Ministros", absorbs through the National Institute of Public Administration, which carries out the staff training of public officers, the 62.76%, which means a total of 219,760 hours. In this case, the Ministry of Defense incidence is also important, as it occupies the 19.38% of the total assigned teaching hours.
The current budget system operates with a wide approach, which means the double responsibility of being regulator of the financial guideline, with the simultaneous assurance of the planning and control of the objectives and goals of the services in charge of the National Administration.
The process of identification of objectives and goals in relation to the results, that is, the accomplishment expected and achieved during the production of goods and services in various programs, has been initiated in 1993. A quarterly control system of the programs and projects goals was implemented during fiscal year 1994. This was in order to have the available elements to measure the efficiency and effectiveness of the public management.
The methodology of control is maintained since 1995, enlarging the coverage of programs and improving, as possible, the quality of information.
The control system was able to cover 205 programs out of a total of 268, depending on the possibility of identification of goals according to the nature of the service. The fact that the 76.5% of the programs of the National Administration's Budget is incorporated to the control system, indicates the existence of a dynamic that tends to consolidate the concept of measuring the results of the public administration.
Control Coverage according to the Institutional Level
as of 12/31/98
|
INSTITUTIONAL LEVEL |
PROGRAMS |
UNDER CONTROL |
CONTROL % |
|
Central Administration |
175 |
128 |
73.1 |
|
Descentralized Bodies |
85 |
70 |
82.4 |
|
Social Security Institutions |
8 |
7 |
87.5 |
|
Total National Administration |
268 |
205 |
76.5 |
The information's quality for the analysis has not been leveled yet in this universe of programs under control. In order to be able to present a representative summary of the production of goods and/or services of each program, the criteria of identification of the measurement and quantification of goals must be controlled in most cases. There are still certain cases, in which the goal of the final product offered to the users or recipients is not properly differentiated from the volumes of work or magnitude of partial tasks. It is also necessary to continue with the control of the program's openings so that they correctly express the processes of production and include the necessary real and financial resources in order to achieve the programmed results. Nevertheless, the control offers some useful references in order to comprehend the scope of each service area.
The in 1998 express the following magnitudes pursuant to the institutional level, in occupational and financial terms:
as of 12/31/98 (in thousands of $)
|
Institutional Level |
Quantity of programs |
Occupied Positions |
Final Credit |
Accrued Expenditure |
% |
|
Central Administration |
128 |
156,128 |
8,135,258 |
7,938,697 |
97.6 |
|
Descentralized Bodies |
70 |
38,589 |
2,312,154 |
2,208,890 |
95.5 |
|
Social Security Institutions |
7 |
529 |
18,996,580 |
17,716,141 |
93.3 |
|
Total National Administration |
205 |
195,246 |
29,443,992 |
27,863,728 |
94.6 |
The programs, which are physically controlled, are included in the attached tables. Such control may refer to the program's rendering of services or to the investment's projects.
As regards to the financial information, the budgetary credit (authorization to spend) assigned to the program contemplates the sum of current expenditures and capital other than the expenses in projects. In those cases where there are projects in the program, the corresponding credit is exposed in the adjacent line.
The attached tables in this chapter present the most important programs under control ordered by the institutional level (Central Administration - Table A - Decentralized Agencies - Table B - and Social Security Institutions - Table C-) and within each level, by Jurisdiction, Subjurisdiction, Entity and Executor Unit.
The selection of the programs included in this summary has been carried out according to its financial incidence. The original and final credit, the accrued expenditure, the execution's percentage and the number of occupied positions; and relevant physical information: type of product, measure unit, final programmed and executed goal, and percentage of execution are assigned for each program.
In accordance with article 95 of Law 24.156 and following its order, the above mentioned statement was included in the Public Account of the Statement of Changes and Status of the Treasury of the Central Administration.
This statement, which has a similar structure and content to the one presented in previous fiscal years, presents the development of the account's balances which composes the quick assets of the Treasury, with the details of the balances available at the beginning of the period, revenues and expenditures classified according to the origin of the transactions, and the balances of the different accounts involved at the end of the period. Consequently, this comes up to the total of financial flows registered in the period between January 1 and December 31, 1998, and the assigned balances coincide with those resulting from the financial statements. This statement also shows that the quick assets of the Treasury as of December 31 reached the amount of $3,390 million, which means that the final balance of 1997 increased 50.34%.
The presented data comes up from the financial statements and auxiliaries generated by the accounting system, based on the transactions of the accounts that compose the entry quick assets pursuant to the Account's Plan in force.
Taking into account the information provided by the system, the transactions that motivated debts and credits in the aforementioned accounts have been classified, consolidating the transactions among them.
Nevertheless, it is important to point out that, income and payment transactions, either they involve funds transactions or not, must go through the Banks Account since the implementation of the SIDIF and due to certain aspects related to computers. Such method causes an over-dimension of the transactions, which imply debts or credits in the account, due to the fact that those accounting adjustments must be registered in this way, even though the balances may not be affected. The situation above-mentioned, which appears in the Statement of the Treasury, has not been reverted yet. Nevertheless, measures have been implemented in order to mend the system's limitations.
Due to the functioning of the System of the Unique Account of the Treasury (C.U.T.), the Banks' Account's Balance at the end of the period includes the balances in the C.U.T. of the treasury accounts of the Decentralized Agencies that integrate such account at the end of fiscal year 1998. Such balances, with funds belonging to said bodies, are registered as a current liability of the Central Administration in the account Third Parties Funds in the C.U.T. The total amount of such funds reached $368.7 million as of December 31, 1998.
CENTRAL ADMINISTRATION
FISCAL YEAR 1998
STATEMENT OF CHANGES AND STATUS OF THE TREASURY
|
CONCEPT |
BUDGETARY |
ACCOUNT |
TOTAL |
||
|
I Balances at the beginng of period |
. |
2,255 |
2,255 |
||
|
Quick Assets |
. |
2,225 |
2,225 |
||
|
Cash |
. |
. |
. |
||
|
Banks |
. |
2,189 |
2,189 |
||
|
Revolving Fund |
. |
66 |
66 |
||
|
II Incomes |
50,414 |
77,681 |
128,095 |
||
|
Resources |
22,823 |
282 |
23,105 |
||
|
Current |
22,672 |
. |
22,672 |
||
|
Capital |
151 |
. |
151 |
||
|
To be credited |
. |
. |
. |
||
|
Non Financial |
. |
282 |
282 |
||
|
Figurative Contributions |
1,505 |
. |
1,505 |
||
|
Financial Sources |
26,086 |
77,399 |
103,485 |
||
|
Liabilities Increase |
23,826 |
35,559 |
59,385 |
||
|
Assets Decrease |
2,244 |
41,819 |
44,063 |
||
|
Increase Patrimony |
16 |
21 |
37 |
||
|
III Outcomes |
45,583 |
81,377 |
126,960 |
||
|
Expenditures |
21,164 |
. |
21,164 |
||
|
Current |
18,210 |
. |
18,210 |
||
|
Capital |
2,954 |
. |
2,954 |
||
|
Non Financial |
. |
. |
7,140 |
||
|
Figurative expenditures |
7,140 |
. |
7,140 |
||
|
Financial Applications |
17,279 |
81,377 |
98,656 |
||
|
Assets Increase |
2,682 |
76,493 |
79,175 |
||
|
Liabilities Decrease |
14,597 |
4,884 |
19,481 |
||
|
Patrimoy Decrease |
. |
. |
. |
||
|
IV Final Balances (I+II+III) |
. |
3,390 |
3,390 |
||
|
Quick Assets |
. |
3,390 |
3,390 |
||
|
Cash |
. |
. |
. |
||
|
Banks |
. |
3,322 |
3,322 |
||
|
Revolving Fund |
. |
68 |
68 |
||
STATEMENT OF CHANGES IN THE PUBLIC DEBT
This chapter's aim is to present the Statement of the Public Debt as of December 31, 1998, both direct and indirect, in a summarized way and enlarged by the general concepts which are part thereof.
The data registered in the different clarifying tables that will be presented in this extract were taken from the accounting registration in the SIDIF (Integrated System of Financial Information), pursuant to the balances contained in the financial statement.
The interests accrued but not payable at the end of fiscal year were not included in the amounts of each entry.
Direct Debt
The direct debt is the one the Law 24.156 defines in its article 58, as the debt assumed by the Central Administration as principal debtor.
The following tables present the quantity and the elements of the direct debt of the Central Administration at the end of the fiscal year:
In millons of $
|
CONSOLIDATED PUBLIC DEBT |
AMOUNT |
% |
|
Bonds |
81,399 |
76.60% |
|
Loans |
22,352 |
21.04% |
|
Comercial |
142 |
0.13% |
|
Documents Payable |
2,366 |
2.23% |
|
Total Consolidated Public Debt |
106,259 |
100.00% |
Changes in the direct public debt
The two following tables present the deposits and retirements of the fiscal year and are exposed in order to show the changes in the direct debt:
In millons of $
|
INCREASE IN FISCAL YEAR |
AMOUNT |
% |
|
Bonds |
23,442 |
77.53% |
|
Loans |
4,069 |
13.46% |
|
Comercial |
1 |
0.00% |
|
Documents Payable |
2,725 |
9.01% |
|
Total Increase of Fiscal Year |
30,237 |
100.00% |
In millons of $
|
DECREASE IN FISCAL YEAR |
AMOUNT |
% |
|
Bonds |
3,615 |
73.46% |
|
Bilateral Loans |
638 |
12.96% |
|
Private Bank |
641 |
13.03% |
|
Comercial |
27 |
0.55% |
|
Total Rest of the Public Sector |
4,921 |
100.00% |
The indirect debt is the one the Financial Administration and Control Systems of the National Public Sector Law defines in its article 58 as the debt of individuals and legal entities, private or public other than the Central Administration, but that has an indorsement or any guarantee.
The following table presents the quantity and elements of the indirect debt of the Central Administration at the end of the fiscal year segregated by type of creditor:
In millons of $
|
CONSOLIDATED PUBLIC DEBT |
AMOUNT |
% |
|
Multilateral Loans |
3,615 |
73.46% |
|
Bilateral Loans |
638 |
12.96% |
|
Private Bank |
641 |
13.03% |
|
Comercial |
27 |
0.55% |
|
Total of the rest of the Public Sector |
4,921 |
100.00% |
Changes in the indirect public debt
The following two tables, showing the deposits and retirements of the fiscal year, are presented with the same criteria used to expose the changes in the direct public debt:
In millons of $
|
INCREASE IN FISCAL YEAR |
AMOUNT |
% |
|
Multilateral Loans |
583 |
70.67% |
|
Bilateral Loans |
8 |
0.97% |
|
Private Bank |
234 |
28.36% |
|
Total of the rest of Increase in Fiscal Year |
825 |
100.00% |
In millons of $
|
DECREASE IN FISCAL YEAR |
AMOUNT |
% |
|
Multilateral Loans |
196 |
13.86% |
|
Bilateral Loans |
85 |
6.01% |
|
Private Bank |
1,121 |
79.28% |
|
Comercial |
12 |
0.85% |
|
Total of Decrease in Fiscal Year |
1,414 |
100.00% |
FINANCIAL STATEMENTS OF THE CENTRAL ADMINISTRATION
The financial statements of the Central Administration, which is a unique accounting body, must be included among the statements that integrate the Public Account, as it is provided by article 95 of Law 24,156.
For the first time in the National Public Sector, and as a result of the Law of Financial Administration and Control Systems of the aforementioned Sector, the Public Account of fiscal year 1998 includes all the Financial Statements of the Central Administration, to which the following are attached: Net Positions of the Decentralized Agencies, Social Security Institutions, National Universities, Public Societies and State-Owned Enterprises.
The Accounting Law presented the limitation of a law composed by separated and independent branches, with no registration system able to integrate such branches in cases where the budget's execution, cash flow, property, were registered.
Therefore, the lack of an integrated system made it impossible to obtain timely and accurate information, with no available accounting data useful for an appropriate decision-making.
The current government's accounting is carried out pursuant to the accounting theory guideline and applying the General Accepted Accounting Principles of the National Public Sector, assuring the system's competence. Two of the most important methodological changes introduced in the administration of the accounting system are the followings:
method of registration for the system of double entry.
the transactions are accounted and affect the patrimony at the moment they are accrued.
The appropriate use of the aforementioned rules entails the correct implantation of the Government's Accounting System and the assurance of its operability over an integrated information basis.
As regards the possible incorporation of the Financial Statements to the Public Account, it is important to point out that, even though the Law 24.156 is in force since January 1, 1993, and its article 133 provides that "... the National Executive Branch must establish the temporary chronograms and goals that allow a complete use of the budgetary systems, public credit, treasury, accounting and domestic control provided by this law...", various rules have been delaying its implementation.
In relation to the aforementioned, Resolution 853/96 of the Ministry of Economy and the article 45 of Law 24,938 (General Budget of Resources and Expenditures of the National Administration for fiscal year 1998) determined a chronogram of activities for the final presentation of the Financial Statements provided by article 95 of Law 24,156.
The opportunity of the presentation of these statements was due to, among other things, the complexity of the gathering of accurate information, from the different jurisdictions of the Central Administration and other bodies, and the actualization of the procedures of registration resulting from the deep methodological change caused by the implementation of an accounting integrated system of double entry.
The presentation, executed for the first time, involves tasks as control and analysis of the consistence carried out by the National Accounting Office aimed at the improvement of the exposure and integrity of the information included in the Financial Statements under their responsibility.
Finally, it is important to point out that, as it is the first time the National Accounting Office executes and presents the Financial Statements, the current accounts' plan and the design of the basic Statements produced by the aforementioned National Accounting Office have been changed through Disposition N° 20/99 C.G.N., related to the accounts and tables approved by Resolution N° 1,397/93 MEYOSP, modified by Resolution N° 473/96 S.H. This change has taken place so that the Financial Statements comply, in a more appropriate way, with the information's objectives assigned by the Financial Administration's reform.
