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System of Financial Control and Budgeting QUESTION #5637
Question 1
Under the budgetary procedure a Ministry proposes a lump-sum provision in its Current Expenditure budget for an item not yet fully specified. What principle does this violate and what is the correct course?
  • It violates the Prudence principle; the item should be deferred to the next year
  • Lump-sum provisions in Current Expenditure are prohibited except in exceptional circumstances and must require the concurrence of the Financial Adviser when made✔️
  • It violates the Purpose principle; the item should be separately itemized without Financial Adviser involvement
  • It is acceptable practice as long as PAO certifies the amount
Correct Answer Explanation
Lump-sum provision in the budget shall not be proposed or made except in exceptional circumstances (such as lump provision for late NIS late receipt of directives). Where such provision is made expenditure sanction shall be given with the concurrence of the Financial Adviser.