The Ministry of Finance has exceptionally authorized the use of the 2026 budget to settle unpaid mission and travel expenses from the past fiscal year, opening the door for thousands of employees and public servants to recover pending financial dues. This significant decision allows for the inclusion of outstanding compensation claims within the 2026 fiscal plan, addressing a long-standing administrative challenge. The Minister of Finance formally approved this authorization on May 10, 2026. Following this approval, a joint circular detailing this measure was subsequently issued by the Directorate General of the Budget and the Directorate General of the Treasury and Accounting on July 6, 2026, outlining the precise process and conditions for settling these expenses against the upcoming budget.
Exceptional Measure Explained
This exceptional measure is anticipated to alleviate significant difficulties faced by numerous public administrations and institutions in settling employee dues, particularly for missions completed late in the fiscal year. The Ministry of Finance received multiple requests from various ministerial sectors, local authorities, and public institutions. These requests specifically sought authorization to cover mission and travel expenses from the previous fiscal year, especially after budget execution deadlines had passed, leaving many employees with unsettled claims.
Under the new directive, expenses for missions and travel completed after December 20 of the prior fiscal year are now authorized for coverage by the current fiscal year's budget, provided all relevant regulatory provisions are respected. This flexibility is key for ensuring that public servants are not financially disadvantaged by bureaucratic timelines. However, the circular also clarifies that if legal deadlines for commitments, payment orders, and transfers are extended, these expenses will, in principle, remain borne by the relevant fiscal year in which they were incurred. This careful framework aims to address outstanding financial obligations while simultaneously maintaining essential budgetary discipline and ensuring accountability. The measure is expected to alleviate problems faced by many public administrations and institutions in settling their employees' dues, especially for missions completed at the end of the fiscal year, thereby streamlining administrative processes.
Exclusions and Limitations
Financial advance files are explicitly excluded from this exceptional measure and remain subject to settlement against the original fiscal year's appropriations. The settlement of financial advances, typically taken by employees before travel commences, is only permissible against the appropriations of the fiscal year related to the mission. This requirement aligns strictly with Article 10 of Executive Decree No. 24-79, dated February 8, 2024, which governs financial procedures. Consequently, the exceptional authorization granted for settling late expenses does not cover financial advances. This clear distinction ensures that while certain past fiscal year expenses can be covered by the 2026 budget, pre-travel financial advances must strictly adhere to their initial budgetary allocations and the fiscal year in which the mission occurred. Financial advances are not covered by the exceptional authorization granted for settling late expenses, showing the specific scope of this new directive.
Background and Rationale
The Ministry of Finance’s decision seeks fundamentally to protect the acquired rights of employees and ensure the smooth functioning of public services across the country. This authorization is designed to safeguard the entitlements of employees and public servants, preventing the forfeiture of their financial dues that might otherwise occur due to the strict close of the fiscal year. This exceptional measure aims to safeguard the acquired rights of employees and public servants and prevent the loss of their financial dues due to the end of the fiscal year. The measure aims to address a long-standing issue where mission and travel expenses incurred late in a fiscal year often remained unsettled because budget execution deadlines had passed, creating financial hardship for individuals and administrative burdens for departments. By allowing these outstanding claims to be covered by the subsequent year's budget, the Ministry intends to resolve a significant administrative bottleneck that has affected numerous public administrations and institutions. This pragmatic approach facilitates the timely reimbursement of personnel, thereby supporting operational continuity and morale across various government sectors and ensuring that public services can continue to operate effectively without undue financial strain on their workforce.
