Financial programming is a process whose result is the proposal of different possible estimated scenarios, based on different hypotheses, about the future flow of funds, identifying the seasonality of the resources and expenses established in the budget law and other unforeseen events that impact on cash, for the different Subperiods that make up the fiscal year "
Scheduling of financial execution
Why is financial programming necessary and important?
Generation of timely information scenarios for decision-making in financial management, in the following aspects:
- Monitoring of the policy objectives or results to be obtained, estimated result of the year (surplus or deficit) How it is financed / in which said result is applied: identify the gap to be financed or the cash surplus, seasonal or at the close of the period.
Conceptual scheme
Savings account - investment -
Cash-based financing - $ m
Period concept
I current income
Ii current expenses
Iii saving / dissaving economic result (i-ii)
Iv capital resources
V capital expenditures
Vi financial res. Before contributions (iii + iv-v)
Total resources (i + iv)
Total expenses (ii + v)
Vii figurative contributions viii figurative expenses
Ix financial result (vi + vii-viii)
X financial sources
Xi financial applications
Primary result and financial result
- programming of resources programming of primary expenses (*) obtaining the primary result programming interest on public debt obtaining the financial result
(*) primary expenses: current expenses (excluding interest on public debt) + capital expenses.
The stages of the process
- scheduling of resources scheduling of expenditures estimation of financial sources estimation of financial applications
