Federal Constitution

In 05 of October of 1988 the Country received its seventh constitution that innovated when demanding the elaboration of the plurianual plan, the law of budgetary lines of direction and the budgets of investments of the state expenditures, in the same year the Federal Constitution. THE CONSTITUTION OF THE LAW THE 4,320/64 AND ITS PRINCIPLES Law 4,320 of 17 of March of 1964 establishes general norms of financial right for the elaboration and control of the Budgets and Rockings of the Union, the States, the Cities and the Federal District. Law 4,320/64 makes use on the subject establishes that the alterations of the patrimonial liquid situation that encloses the results of the budgetary execution, as well as the independent variations of this execution and the active and passive supervenience and insubsistncia, that will constitute elements of the patrimonial account. These accounts have a heading of active variations, when originated of increase of active values, (good and rights) or the reduction of passive values (obligations), and of passive variations, when originated of reduction of active values (good and rights) or increases of passive values (obligations). Art. 34 of Law 4,320/64 establishes that the fiscal year will coincide with the calendar year, that is, starts in 1 of January and if it locks up in 31 of December, making with that it has compatibility with the beginning of the budgetary annuity, of financial and patrimonial form that can be elaborated demonstrative simultaneous on the budgetary execution, in the same date, that is in the end of each year. Profit and loss accounts are considered the ones that can be budgetary or extra-budgetary, as: pblic revenue (representing the rise of the Asset for the entrance of financial resources in Bank) and decurrent budgetary active maintenances of the execution of some budgetary expenditures that provoke increase of asset or reduction of liabilities.


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