Financial Policy and Administrative Reform
| Date | 01 March 1974 |
| Published date | 01 March 1974 |
| DOI | 10.1177/002085237404000115 |
| Author | G. Petricioli |
| Subject Matter | Articles |
IV
reveals
and
evaluates
the
results
of
previously
adopted
expenditure
decisions.
The
pro-
gramme
budget
is
undoubtedly
the
best
answer
to
the
different
problems
of
public
expenditure
administration
and
an
important
part
of
admin-
istrative
reform.
One
of
its
significant
contri-
butions
is
to
ensure
that
the
programmes
of
the
various
administrations
that
are
implemented
on
the
regional
level
are
complementary.
This
regional
orientation
provides
for
a
balanced
development
and
supports
the
policy
of
admin-
istrative
and
economic
decentralization.
Special
importance
is
attached
by
the
Sec-
retariat
of
Finance
to
administrative
decentral-
ization.
It
has
been
carried
out
on
a
regional
basis for
taxes
and
also
covers
the
admin-
istration
and
control
of
expenditure
to
guarantee
the
expedient
use
of
funds,
whether
for
current
expenditure
or
investment,
and
to
avoid
un-
justifiable
delays
in
the
execution
of
orders
for
payment
and
other
aspects
of
expenditure
control
necessary
to
assure
the
public
that
the
use
of
public
funds
is
honestly
and
efficient-
ly
supervised.
The
management
of
the
Budget
for
1974
will
be
of
very
great
importance.
In
the
present
period
of
inflation,
it
is
essential
that
the
total
amount
of
expenditure
should
not
exceed
budget
estimates.
In
certain
circum-
stances,
it
may
be
necessary
to
make
transfers
from
one
programme
to
another.
In
order
to
fight
against
the
causes
of
inflation,
it
will
also
be
necessary
that
expenditure
for
sectoral
priorities
of
a
productive
nature,
approved
by
the
Budget,
should
be
made
in
such
a
way
that
the
estimated
additional
production
will
result.
Because
of
the
new
methods
employed,
the
estimates
in
the
Budget
for
1974
are
expected
not
only
to
be
sound
but
also
suffi-
ciently
flexible
to
meet
unforeseen
demands.
During
1974,
the
administrative
reform
being
carried
out
in
the
Secretariat
of
Finance
and
Public
Banking
will
make
great
improvements
possible
in
the
preparation
of
the
Budget
for
1975.
In
cooperation
with
the
Secretariats
of
the
Presidency
and
of
National
Property
and
with
the
help
of
the
existing
machinery
for
coordination
and
for
the
control
of
public
expenditure,
an
improvement
will
be
made
in.
the
use
of
programme
budgeting,
the
im-
portance
of
which
has
been
mentioned
above.
An
instrument
that
will
be
more
flexible
and
more
adjustable
to
the
present
position
will
thus
be
available.
Financial
Policy
and
Administrative
Reform
G.
PETRICIOLI
A
country’s
taxation
system
ought
to
be
part
of
the
economic
and
social
policy;
the
planning
of
its
objectives
is
therefore
of
capital
importance.
In
the
case
of
a
developing
country
like
Mexico,
the
financial
policy
is
placed
at
the
service
of
development
and aims
to
ensure
a
fair
redistribution
of
wealth,
fa-
cilitate
the
best
use
of
the
labour
force,
sti-
mulate
exports,
etc.
It
is,
in that
event,
an
instrument
of
progress
and
of
social
justice.
The
Mexican
Government
follows
a
policy
of
receipts
and
expenditure
which
ensures
both
economic
growth
and
the
improvement
of
the
welfare
of
all
the
citizens.
The
distribution
of
income
is,
however,
not
very
satisfactory
espe-
cially
in
the
rural
sector,
but
efforts
are
being
made
to
fill
the
existing
gaps
so
as
to
achieve
a
better
balance.
The
financial
policy
has
to
be
implemented
by
a
suitable
administration,
particularly
as
regards
procedure
and
ensuring
zeal
and
honesty.
It
is
consequently
an
important
field
of
administrative
reform
considered
as
a
continuing
and
realistic
process
of
improve-
ment
of
the
administration.
In
fact,
the
entire
financial
administration,
as
regards
receipts
and
expenditure
as
well
as
budgeting
and
taxation,
~
is
involved.
I
The
purpose
of
financial
administration
is
,
obviously
to
ensure
the
collection
of
the
essen-
’
tial
funds
and
their
appropriate
use
in
a
spirit
of
equilibrium
which
will
not
disturb
the
,
economy.
Budgeting
is
an
essential
means
to
that
end,
and
its
role
in
support
of
govern-
mental
policy
is
well
known.
The
taxation
policy,
however,
is
not
solely
intended
to
obtain
the
necessary
resources.
It
also
has
an
important
economic
and
social
role,
so
that
the
budgetary
and
the
taxation
policies
are
closely
connected.
Any
administrative
re-
form
therefore
arises
as
a
consequence
of
both
of
them
and
aims
at
making
available
the
means
for
their
materialization.
The
administrative
reform,
in
the
field
con-
sidered,
is
prompted
by
concern
for
improving
and
perfecting
financial
administration
so
as
’,
to
adjust
it
to
the
needs
of
development
and
j
pursues
the
following
objectives :
.
j
1.
Definition
of
objectives
and
methods
in
j
terms
of
local
possibilities
as
well
as
require-
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