Article 1.　The purpose of this Law is to make clear the responsibility of the budget executing officer and to prevent the disbursement, etc. from being contrary to the provisions of laws and orders or the budget, and to improve the execution of the budget of the State.

Article 2.　The "budget executing officer" as used in this Law shall mean officers prescribed as follows:

2　The "laws and orders" as used in this Law shall mean the Finance Law (Law No.34 of 1947), the Accounts Law and other laws and orders for managing the affairs related to the accounting of the State.

3　The "disbursement, etc." as used in this Law shall mean the contract and other acts which cause the incurring of liabilities of the State, the certification of acts to incur obligation (meaning "the endorsement of acts to incur disbursements" under the provision of Article 13-(2) of the Accounts Law), the disbursement, the payment and the order for diversion under the provision of Article 20 of the Accounts Law, and such acts taken in relation to the budget execution of the State as the custody of checks, checknotes and seal-impressions, the entry in books, and the reports, etc.(excluding the acts that is to be the object of responsibility for indemnity under the provision of Article 41 paragraph 1 of the Accounts Law).

Article 3.　The budget executing officer shall make the disbursement, etc. according to each duty, on the basis of laws and orders and in accordance with the budget.

2　In case the budget executing officer has caused a loss to the State on the disbursement, etc. through violation of the provision of the preceding paragraph by intent or grave negligence, he shall be liable for indemnity thereof.

3　In the case of the preceding paragraph, when the loss is arisen from the disbursement, etc. under the preceding paragraph taken by two or more budget executing officers, the budget executing officer concerned shall be liable for indemnity thereof, according to each duty and according to the degree of each act influenced on the arisen loss concerned.

Article 4.　In case the Board of Audit deems the budget executing officer to have caused a loss to the State on the disbursement, etc. through violation of the provision of paragraph 1 of the preceding Article by intent or grave negligence, it shall decide whether he is liable for indemnity or not and the amount of indemnity after inspecting whether there exists the said fact or not;provided, that this shall not apply to the case when three years have elapsed after the said fact occurred.

2　In case the Board of Audit decided that the budget executing officer is liable for indemnity, the officer who is authorized to appoint him (it means the officer authorized to appoint under the provision of Article 55 paragraph 1 of the National Public Service Law (Law No.120 of 1947), and in case the budget executing officer concerned is the employees of To, Do, Fu or prefecture or special city, it is the chief of To, Do, Fu or prefecture or special city;hereinafter the same) shall order the indemnity thereof in accordance with the said decision.

3　The chief of respective Ministries and Government agencies (meaning the head of respective Ministries and Government agencies prescribed in Article 20 paragraph 2 of the Finance Law;hereinafter the same) may order the budget executing officer the indemnity even before the decision by the Board of Audit, if he deems that the budget executing officer to have caused a loss to the State on the disbursement, etc. through violation of the provision of paragraph 1 of the preceding Article by intent or grave negligence.

4　In case the chief of respective Ministries and Government agencies deems the budget executing officer to have done the disbursement, etc. through violation of the provision of paragraph 1 of the preceding Article, he shall notice it to the Minister of Finance and the Board of Audit without delay.

5　In the case of paragraph 3, the chief of respective Ministries and Government agencies shall return the indemnity already paid immediately, when the Board of Audit decides that the budget executing officer is not liable for indemnity.

6　The indemnity to be returned in accordance with the provision of the preceding paragraph shall be added with the amount equivalent to the amount obtained by multiplying the amount of indemnity by the rate decided by the Minister of Finance taking into consideration of the general interestrate on loans by banks in the period from the time of payment till the time of return in proportion to the term from the time of payment till the time of return.

Article 5.　After the decision of the responsibility for indemnity of the budget executing officer under the provision of paragraph 1 of the preceding Article, when the Board of Audit discovered that the decision was undue or when the chief of respective Ministries and Government agencies or the budget executing officer believes that there exists any reason for being released from responsibility, and requires retrial, preparing the document showing the reason thereof and the statement, submitting them together with the documentary evidence, the Board of Audit shall make redecision for each time;provided, that in case the redecision is to be made basing on the request, this shall not apply to the case when the request concerned is made after the day when five years have elapsed since the decision was made.

2　In the case of the trial for the redecision under the provision of the preceding paragraph, the Board of Audit shall make the oral trial, when the chief of respective Ministries and Government agencies or the budget executing officer required to do so. The oral trial shall be made in public, if required by the officer concerned.

3　The chief of respective Ministries and Government agencies or his deputy officer and the budget executing officer may be present at all oral trials, elect the advocate as his deputy, make declaration, make the witness attend, and submit the document, the statement and all other suitable facts and data.

4　The persons other than those mentioned in the preceding paragraph may submit all facts and data related to the case concerned, to the Board of Audit.

5　The provisions of the main clause of paragraph 1 of the preceding Article, paragraphs 2, 5 and 6 of the same Article shall apply mutatis mutandis to the case of paragraph 1. In this case, "In the case of paragraph 3, the chief of respective Ministries and Government agencies" mentioned in paragraph 5 of the preceding Article, shall read "The chief of respective Ministries and Government agencies" .

Article 6.　In case the Board of Audit deems the budget executing officer to have caused a loss to the State on the disbursement, etc. through violation of the provision of Article 3 paragraph 1 by intent or negligence, or in case it deems him to have done the disbursement, etc. through violation of the provision of the same paragraph by intent or grave negligence, though he has not caused a loss to the State, as the result of examination or decision (including the redecision under the provision of paragraph 1 of the preceding Article), it may demand the disciplinary action against the budget executing officer concerned of the officer who is authorized to appoint him. In this case, the Board of Audit shall show the species and the contents of the disciplinary action deemed proper for reference.

2　In case the Board of Audit demands the disciplinary action according to the provision of the preceding paragraph, it shall give notice to the effect to the National Personnel Authority.

3　Upon demand of the disciplinary action under the provision of paragraph 1, the officer who is authorized to appoint the budget executing officer shall inspect whether it is proper or not to take the disciplinary action against the officer concerned and take measures therefor immediately and shall notice the result of this measures to the Board of Audit and the National Personnel Authority.

4　After the demand of disciplinary action against the budget executing officer under the provision of paragraph 1, the Board of Audit shall, in case the Board of Audit discovered the said demand was undue, retract it, or, shall, in case the officer who is authorized to appoint the budget executing officer concerned required the retrial because the said demand was undue, inspect the actual situation and, if it becomes clear that the said demand was undue, retract it, immediately.

5　The provision concerning the notice to the National Personnel Authority in paragraphs 2 and 3 shall not apply to the case when the budget executing officer is an employee of To, Do, Fu or prefecture or special city.

Article 7.　The responsibility for indemnity under the provision of the main clause of Article 4 paragraph 1 (including the case where it applies mutatis mutandis in Article 5 paragraph 5) shall not be decreased or released unless approved by the Diet.

Article 8.　In case the budget executing officer received from his superior a request for the disbursement, etc. which he deems to be contrary to the provision of Article 3 paragraph 1, he shall express the opinion that the said disbursement, etc. cannot be made, to the officer who is authorized to appoint him through the superior concerned (when the superior concerned is the officer who is authorized to appoint him, (excluding the chief of external office), the officer who is authorized to appoint him directly;and when the superior concerned is the chief of external office and is the officer who is authorized to appoint him, the chief of respective Ministries and Government agencies), showing reasons therefor in writing;provided, that the budget executing officer prescribed in Article 2 paragraph 1 item (7) shall express the opinion that the disbursement, etc. cannot be made, to the chief of respective Ministries and Government agencies entrusted these affairs, directly, and those who are prescribed in item (8) of the same paragraph and are the employees of To, Do, Fu or prefecture or special city, shall express such opinion to the officer who ordered them to manage a part of affairs thereof.

2　In case the superior (in the case of the proviso to the preceding paragraph, the chiefs of respective ministries and Government agencies who entrusted with affairs thereof or the officer who ordered to manage a part of affairs thereof.) requires the same disbursement, etc. again, in spite of the opinion shown by the budget executing officer under the provision of the preceding paragraph, the responsibility for indemnity resulting from the disbursement, etc. concerned shall be transferred to the superior who made the said request.

3　The provisions of Article 4 paragraphs 1 and 2, Article 5 and the preceding Article shall apply mutatis mutandis to the case of the preceding paragraph.

Article 9.　Those who are appointed by the President, chief-director, chairman or speaker (hereinafter referred to as "the chief of Kodans, etc." ) of Kodans under laws and orders, the Japanese Government Corporation for Housing of Allied Personnel, the Japan Monopoly Corporation, the Japanese National Railways, the Reconversion Finance Bank, the People's Finance Corporation, the Housing Loan Corporation, the Civil Merchant Marine Committee, the Holding Company Liquidation Commission, the Closed Institutions Liquidation Commission and the Securities Coordinating Liquidation Commission (hereinafter referred to as "the Kodan, etc." ), as those charged with duty of budget execution of the Kodan, etc.(hereinafter referred to as "the budget executing officer of Kodan, etc." ), shall make the act which is taken by the Kodan, etc. and is equivalent to the disbursement, etc.(hereinafter referred to as "the disbursement, etc. of Kodan, etc." according to each duty, on the basis of the provisions of laws and orders for managing the affairs concerning the accounting of the Kodan, etc., the articles of incorporation of the Kodan, etc. and the regulations concerning the accounting of the Kodan, etc.(hereinafter referred to as "the laws and orders concerning Kodan, etc." ) and in accordance with the budget.

2　The provision of Article 3 paragraphs 2 and 3 as well as Articles 4 to the preceding Article inclusive shall apply mutatis mutandis to the budget executing officer of Kodan, etc. under the preceding paragraph;provided, that, as to the provision concerning the notice to the National Personnel Authority in Article 6 paragraphs 2 and 3, this shall not apply to the budget executing officer of Kodan, etc. to whom the provisions of the National Public Service Law does not apply.

3　In the case of the preceding paragraph, in the provisions to be applied mutatis mutandis prescribed in the same paragraph, "the budget executing officer" shall read "the budget executing officer of Kodan, etc." , "laws and orders" shall read "laws and orders concerning the Kodan, etc." , "the State" shall read "the Kodan, etc." , "the disbursement, etc." shall read "the disbursement, etc. of Kodan, etc." , "the chief of respective Ministries and Government agencies" shall read "the chief of Kodan, etc." , "the officer who is authoriezd to appoint the budget executing officer" shall read "the chief of Kodan, etc. or the officer who is authorized to appoint the employees of the Kodan, etc." , "the disciplinary action" shall, as to the budget executing officer of Kodan, etc. other than those to whom the provisions concerning the disciplinary action shall apply according to the National Public Service Law and other laws, read "the action equivalent to the disciplinary action taken by the Chief of Kodan, etc." , and, in Article 4 paragraph 4, "the Minister of Finance" shall read "the competent Minister, the Minister of Finance."

4　In case the chief of Kodan, etc. appoints the budget executing officer of Kodans, etc. under the provision of paragraph 1, he shall notice it to the competent Minister, the Minister of Finance and the Board of Audit without delay.

5　In case the budget executing officer of Kodan, etc. requests for an opinion of the Board of Audit on the questionable matters on the execution of his duties, the Board of Audit shall express its opinion upon this.

Article 10.　In the Kodan, etc.(excluding the Japanese National Railways;hereinafter the same in this Article), the official who is ordered by the chief of Kodan, etc.(excluding the President of the Japanese National Railways;hereinafter the same in this Article) or those entrusted by him to manage the receipt, disbursement and custody of cash or goods (hereinafter referred to as "the accounting official of Kodan, etc." ), shall disburse, receive and have the custody of cash or goods as prescribed by the laws and orders concerning the Kodan, etc.

2　In case the accounting official of Kodan, etc. lost or damaged cash or goods under his custody, he shall be liable for the indemnity thereof, to the Kodan, etc., if he had neglected the good custodian's attention;provided, that when he proves that he had not neglected the regulation superintendence as to the lost or damage on goods which are offered for the use of the employees of the Kodan, etc. according to laws and orders concerning the Kodan, etc., he is not liable therefor.

3　The Provision of Article 41 paragraph 2, Articles 42 and 43 of the Accounts Law and Article 32 of the Board of Audit Law shall apply mutatis mutandis to the case of the preceding paragraph. In this case, in these provisions, "the chief of respective Ministries and Government agencies" shall read "the chief of Kodans, etc." , "the Minister of Finance" shall read "the competent Minister, the Minister of Finance" , "the State" shall read "the Kodan, etc." , and "the competent superior" shall read "the chief of Kodan, etc."