The State Financial Administration
Abstract
It is a pleasure to present the first edition of the Cuban Magazine of Finance and Prices of Volume No. 4 corresponding to the year 2020, on this occasion with a synthesis of the Annual Work Balance of the organization corresponding to the period 2019. From this moment on, this space will be dedicated to the presentation of financial and accounting elements with the purpose of contributing to the dissemination and study of the issues. The State Financial Administration Since the early 1990s, Cuba has been involved in a process of economic transformation, both structural and institutional, imposed by a succession of events, mainly of an external nature, especially the impact of the disappearance of the socialist camp. As one of the most important steps in ordering public finances, in April 1999, Decree-Law No. 192, On the State Financial Administration, was approved, whose main objective is to achieve a greater degree of transparency, order and of organization to the entire process of planning, execution and control of public financial resources, based on the goals and policies outlined by the State. Components The State Financial Administration is defined as the set of principles, rules, systems, institutions and administrative procedures that make it possible to obtain public resources and apply them to state objectives, seeking to satisfy the collective needs of society and is composed of the following systems[1]: Budgetary Tax Treasury Public Credit Of State Patrimony Government AccountingThe Budgetary System is integrated by the processes of elaboration, execution and control of the State Budget at all budgetary levels and, at present, it presents advances as it has as a precedent a culture developed in this matter inherited from the application of the previous Organic Law of the State Budget System.
The Tax System is not expressly regulated by Decree-Law 192, but in special legislation. Until 2012 it is governed by Law No. 73 of the Tax System, dated August 4, 1994, which is the general tax regime; measure adopted as part of the strategy to reverse the deep financial imbalance that the Cuban economy was going through. As of January 2013, it is governed by Law 113, which summarizes previous experiences and includes the tax treatment of the transformations that take place in the economy.
The Treasury System comprises the set of principles, rules, resources, agencies and procedures involved in the process of collecting and depositing financial resources, as well as their channeling towards the payment of State obligations.
Regarding this system, it should be noted that its implementation has been driven not only by the need for efficient financial administration, which includes the flow of funds, but also by the reform of the country's banking system, which has forced it to work rapidly in the application of certain treasury principles, which are the foundations of the Treasury System applied in the country.
The Public Credit System, understood as the set of principles, rules, institutions and procedures that allow the State to borrow in order to cover its resource needs, is in its infancy and studies continue in this regard.
The State Heritage System is regulated by Decree Law No. 227 on State Heritage and defines it as the set of goods and rights subject to the socialist state property regime of the entire people and those acquired, built or created by the State.
The Government Accounting System is in charge of the compilation, valuation, processing and presentation of the economic-financial events that take place both in the budget, treasury, public credit, and equity systems, as well as in the companies and budgeted units.
All these systems are in improvement derived from the guidelines of the congresses of the Communist Party of Cuba and the conceptualization of the Cuban economic model.
Dr.Cs. Jose Carlos del Toro Rios
References
del Toro Ríos, J. C., Morales Fonseca, M. G., Reyes Hernández, C. M., & Reyes Galiano, A. C. (2013). Contabilidad del sector gobierno a nivel municipal. La Habana: Félix Varela.
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