SECTION 412

(1) The appropriations opened in the budget of the local authority to cover each of its expenditure shall comprise commitment authorizations and payment appropriations. (2) Commitment authorizations shall constitute the upper limit of expenditure that may be committed during a financial year and whose payment may, where appropriate, be spread over several years within the medium-term budget framework. (3) Payment appropriations shall constitute the upper limit of expenditure that may be paid during the year to cover commitments made under commitment authorizations. ------------------ (4) Regarding operating expenditure, the amount of commitment authorizations opened shall be equal to the amount of payment appropriations opened. (5) For investment expenditure committed during a financial year, the amount of commitment authorizations opened shall be equal to the amount of payment appropriations opened.