In Mexico City, the budget is a planning tool which allows the government to make an advanced estimate of its expenditure and it is also use ful to program the accomplishment of its plans and functions. In order to obtain the budget resources, there are compulsory tax laws. In the budgeting process, the city’s government delivers to the local Congress “Mexico City’s Expenditure Budget - Presupuesto de Egresos del Distrito Federal”. Congress discusses it and authorizes by the end of year and publishes it in the Expenditure Budget Decree which comes into effect on the first day of the New Year. The budget analysis is classified in four areas which allow us to know who spends said resources, what for and what is expected as a result.
Administrative Classification
Administrative classification defines the executor or direct administrator of public resources, i.e. it tells, us who spends these resources. This classification allows us to identify all expenditure executors, as it shows how much is allocated to the different institutions, organs and businesses that conform the government.
Economic Classification
The Economic Classification identifies the areas of expenditure where public resources are used, i.e. it defines what the direct executors spend their budget on qué gastan el presupuesto los ejecutores directos. This type of classification is divided into running expenditure and capital expenditure and it is possible to know how much is spent in the government’s operation through salaries payment and purchase of materials and supplies for all the government offices management, and how much is transferred to the people through public works and investment projects.
Functional Classification
This classification defines the objectives for which resources are spent. In other words, it integrates the functions, programs, activities and projects for which budget is spent. It defines the government’s priority functions, the impact it seeks to generate through the different programs aimed towards strategic areas, such as social development, public safety and productive activities.
Classification by Results
This classification lets us know the results to which expenditure aims; what we expect to obtain from the budget.
