CHAPTER I: Budgets and accounts

Within a period of two months prior to the examination of the budget, a debate is held in the Territorial Council on the budget guidelines for the financial year and on the multiannual commitments envisaged. The draft budget is prepared and presented by the President of the Territorial Council, who is required to communicate it to the members of the Territorial Council, together with the corresponding reports, at least twelve…

The budget documents are accompanied by the following appendices: 1° Summary data on the financial situation of the local authority; 2° A list of assistance granted by the local authority to associations in the form of benefits in kind and subsidies; 3° A consolidated presentation of the results for the last known financial year of the local authority’s main budget and ancillary budgets; 4° A certified balance sheet for the…

In the event that the local authority’s budget has not been adopted before 1 January of the financial year to which it applies, the president of the territorial council is entitled, until the adoption of this budget, to levy revenue and to commit, liquidate and mandate expenditure in the operating section within the limit of that entered in the budget for the previous year. It is entitled to mandate expenditure…

If the budget is not adopted before 31 March of the financial year to which it applies, or before 15 April of the year of the renewal of the Territorial Council, the State representative immediately refers the matter to the Territorial Audit Chamber which, within one month and by means of a public opinion, makes proposals for the settlement of the budget. The State representative settles the budget and makes…

The local authority’s budget is in real balance when the operating section and the investment section are respectively voted in balance, the revenue and expenditure having been evaluated sincerely, and when the deduction from the revenue of the operating section for the benefit of the investment section, added to the own revenue of this section excluding the proceeds of borrowings and, where applicable, to the allocations to the depreciation and…

Where the budget is not voted in real balance, the territorial audit chamber, seized by the representative of the State within thirty days of the transmission provided for in article LO 6451-1, establishes this, proposes to the local authority, within thirty days of the referral, the measures necessary to re-establish a balanced budget and asks the territorial council for a new deliberation. The new deliberation, rectifying the initial budget, must…

However, for the application of article LO 6471-7, a budget is not considered to be out of balance if its operating section includes or recovers a surplus and its investment section is in real balance, after recapture for each of the sections of the results shown in the administrative account for the previous financial year.

The local authority’s initial budget is sent to the State representative no later than fifteen days after the deadline set for its adoption by articles LO 6471-5 and LO 6471-10 Failing this, the provisions of article LO 6471-5 shall apply.

As from the referral to the territorial audit chamber and until the end of the procedure provided for in article LO 6471-7, the Territorial Council may not vote on budgetary matters, except for the deliberation provided for in the second paragraph of the same Article LO 6471-7 and for the application of Article LO 6471-13. When the local authority’s budget has been settled and made enforceable by the representative of…