Technical Notes and Manuals

Managing Budgetary Virements

By Sandeep Saxena, Sami Yläoutinen

April 18, 2016

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Sandeep Saxena, and Sami Yläoutinen. Managing Budgetary Virements, (USA: International Monetary Fund, 2016) accessed September 18, 2024

Disclaimer: This Technical Guidance Note should not be reported as representing the views of the IMF. The views expressed in this Note are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Virements are useful instruments of budget flexibility. If carried out transparently and within accepted limits, virements can promote expenditure efficiency. Large, unregulated virements can undermine budget credibility and the budget’s relevance as principal policy and financial planning instrument. This note defines virements, clarifies their purpose, and specifies what general and country-specific considerations should guide the design of a virement framework. The note argues that countries should design virement policies maintaining balance between their budget flexibility and accountability needs, and keeping in view the legal-cultural environment and the state of development of their public financial management.

Subject: Budget execution and treasury management, Budget planning and preparation, Capital spending, Expenditure, Expenditure control, Public financial management (PFM)

Keywords: Africa, Budget, Budget execution, Budget execution and treasury management, Budget planning and preparation, Budget reserves, Budgetary appropriations, Budgetary reallocation, Budgetary virements, Capital spending, Country, Expenditure control, Government, Number virement order, TNM, Virement, Virement policy, Virement power, Virement proposal, Virement regime, Virement rule

Publication Details

  • Pages:

    24

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Technical Notes and Manuals No. 2016/004

  • Stock No:

    TNMEA2016004

  • ISBN:

    9781513509051

  • ISSN:

    2075-8669

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