Both Messrs. Van de Ven and Wolfson are graduates of the University of Amsterdam and economists in the African Department. Currently, Mr. Van de Ven is the resident representative of the Fund in Somalia and Mr. Wolfson is the resident representative in Liberia.
Algeria, Cameroon, Central African Republic, Chad, Congo (Brazzaville), Dahomey, Gabon, Guinea, Ivory Coast, Malagasy Republic, Mali, Mauritania, Morocco, Niger, Senegal, Togo, Tunisia, and Upper Volta. Though the financial systems of Burundi, Democratic Republic of Congo, and Rwanda show certain similarities to those of the other French-speaking African countries, they are not fully comparable.
The authors have prepared an Appendix to this article containing a model of the format of treasury accounts in the countries under review, followed by an analytical presentation of these accounts. This Appendix is available in typescript to any interested reader on application to the African Department, International Monetary Fund, 19th and H Streets, N.W., Washington, D.C., 20431 U.S.A.
The economic and functional budget classifications as developed by the United Nations have hitherto not been widely used in the countries under review. For details on these classification systems, see United Nations, Department of Economic Affairs, Budgetary Structure and Classification of Government Accounts (New York, 1951).
In addition, there is a number of special accounts that serve as bookkeeping devices for the recording of certain financial operations of the treasury.
See also United Nations, Department of Economic Affairs, Government Accounting and Budget Execution (New York, 1952), pp. 29-31.
Hence, all budgetary expenditure records show, in fact, pay orders approved by the treasury.
See Décret No 55-1487 du 14 novembre 1955 pris en exécution de l’article 11, alinéa 1er, de la loi No 53-611 du 11 juillet 1953 et portant application du système de la gestion, Journal Officiel de la République Française (Paris), November 18, 1955; Ordonnance No 59-2 du 2 Janvier portant loi organique relative aux lois des finances, Journal Officiel de la République Française (Paris), January 2/3, 1959; and François Bloch-Lainé and Pierre de Vogüé, Le Trésor Public et le Mouvement Général des Fonds (Paris, 1960), Chapitre II, pp. 49-71. In France, the recording of revenues on a cash basis had already been introduced in 1934.
Postal operations, when executed under the ordinary budget or an annexed budget, may be excluded from the consolidated budgetary operations if separate treasury data are not available on the revenues and expenditures of the postal service proper and on the change in deposits with the postal checking service. In that case, it seems most useful to consider postal operations as a whole under treasury financing, since by far the larger part of the balance kept by the post office with the treasury represents postal checking deposits.
However, some of these agencies may maintain small working balances with the banking system.
This practice finds its origin in the French system, where historically these operations formed a source of income for the Treasurer, who was personally responsible for the repayment of these loans. Most treasuries traditionally have also granted to civil service employees personal loans which are amortized through paycheck deductions, but these operations are at present of relatively minor importance.
Transit accounts are maintained for recording operations awaiting classification, the vast bulk of which usually pertains to central government operations of a budgetary nature.
For a discussion of the conceptual difference between a state bank forming part of the central government and a central bank (Elat banquier contre Banquier de l’Etat), see Bloch-Lainé and de Vogüé, op. cit., pp. 4 if.
In the financial system under review, the deferment of payments to the private sector may occur in two forms. Bills may be accumulated before the pay order is issued, or at the stage where the actual payment is made. As only the last step of the process takes place in the treasury, treasury records will not reflect an accumulation of unpaid obligations at the earlier stage.
For details on this concept of monetary neutrality and its various definitions and consequences, see Bloch-Lainé and de Vogüé, op. cit., pp. 328 ff.