THE PUBLIC BUDGET The public budgets a political instrument, economic and administrative containing the governments financial

plan. The word budgets composed of two Latin roots "pre" meaning before or a head of, and "supposed" fact way the budget in its most general form, can be defined as the accounting document or numerically logan financial plan financial projections for a given economic agent. Following is the classification of budget revenues and expenditures STRUCTURES OF THE REVENUE BUDGET OF THE MUNICIPALITY IN COLOMBIA 1. CURRENT INCOME 1.1. Tax Predial Industry and trade Traffic and circulation 1.2. Nontax Rates Fines Rights Services Contractual income 2. TRANSFERS AND HOLDINGS Health sector Education sector Water sector General purpose sector Royalties

2.1. 2.2. 2.3. 2.4. 2.5.

3. CAPITAL INCOME 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. Credit resources Resource balance Portfolio recovery Financial returns Sale of assets Donations

STRUCTURE OF EXPENDITURE IN THE COLOMBIAN TOWN Lease 1. OPERATING EXPENSES TrainingDEBT SERVICE 1.1. Personal Services Linked salaries Temporary salaries Technical services remuneration Fee Overtime and holidays Christmas bonus Premium services Holiday bonus Transport assistance 1.2. Overheads Maintenance and insurance Representation expenses Communication and transportation Public services Material and supplies Forms and publications 1.3. Transfers Pension Social welfare I.C.B.F SENA EPS ESAP Retirement -Amortization -Interests -Fees and charges 3. Investment. 3.1-Administration. -Forniture and fixtures -Vehicles and machinery -Real estate 3.2-Physical. -Construction and/or maintenance of public assets. -Any other investment that increases public weath. 3.3-Social. -Health programs, education, attention to vulnerable groups. -Any other program that increase social wealth.

REVENUE CURRENT INCOME: They are incomes received the State for the normal development of their activities and that has to attend to their routine activities. TAX: They are the current revenues which are constituted and supported tax. INDUSTRY AND TRADE: Tax that taxed all commercial, industrial or service activities. NOTICES AND BOARDS: Gravel placement of notices to the subjects of trade and industry MUNICIPAL CADASTRE: Tax that levied the municipal real estate. OUTDOOR ADVERTISING: advertisements in public. Gravel placement of billboards or

PUBLIC SPECTACLES: Tax charged to the organizers of these activities URBANDELINEATION: Mounting of the Municipal Planning Office of the line that defines the boundary between a building and areas for public use. NOTAX: There arent established and supported in taxes. FEES: There are economics contributions made by users of a service provided by the state. CONTRACTREVENUE: Income received as consideration in the development of a contract or agreement entered into with government entities. PENALTIES: Penalties for pecuniary imposed on those who have not fulfilled their tax obligations. CAPITAL INCOME: Income is not unusual on the contrary are sporadic, erratic. FINANCIALRESOURCES: These are cash balance sat the close of each fiscal period. CREDITRESOURCES: The resources obtained through national and international credits.

FINANCIALPERFORMANCE: Revenues received by the funds deposited in financial institutions. LOANREPAYMENTS: Income received as payment of loans. SALE OFPERSONAL PROPERTYAND REAL ESTATE: Proceeds from sale of property, plant and equipment. DONATIONS: Resources received in cash or kind from third parties.

EXPENSES OPERATING EXPENSES: Expenditures necessary for the normal functioning of the municipality PERSONAL SERVICES: Expenses incurred by the local authority for payment of personal services, through all forms of existing links. OVERHEADS: These are payments made to meet the operating expenses that are not personal services. TRANSFERS: Payments made by the municipality to third parties without involving compensation. DEBT SERVICE: Payment required for the payment of credits earned. CAPITAL: Expenditures for the repayment of loans. INTEREST: Payment of interest on credits earned. FEES: Disbursements made to pay for other costs associated with credit. Escuchar INVESTMENT: Expenditures which may cause returns or have body from using durable goods. ADMINISTRATION: Acquisition of movable property in general and for administrative use only. PHYSICS: Payments for construction and maintenance of roads, bridges, parks, among others. PBLIC EXPENSES SOCIALS: Expenditures seeking to raise the living standards of the community in the municipality and to protect vulnerable groups .