Law of the budget for the financial year 1998, since the General Council at its session of November 13, 1997, has approved the following: law on the budget for the financial year 1998 chapter. The credits and their amendments Article 1 Scope of the budget of the State 1. In the State budget for the year 1998 are included: a) the budget of the general administration.

b) the budgets of the parapublic entities: Caixa Andorrana de Seguretat Social, National Centre for Informatics of Andorra Forces Elèctriques d'Andorra Andorra Andorran National Institute of Finance Body of radio and television of Andorra Residence Sola d'enclar Andorran health care Service of Telecommunication Service in Andorra, Article 2 State of income and expenses 1. In the State expenses of the general administration are granted credits to meet ordinary expenses for a total amount of 36,150,651,536 pesetas and credit to cope with the exigibilitat of financial liabilities by an amount of 2 million pesetas.

The expenditure budget of the general administration is financed: in) economic rights envisaged settle during the financial year, as specified in the State of ordinary income, estimated at a total of 35,582,676,000 pesetas.

b) With the amount of the indebtedness which is drawn to article 18 of this law.

2. The budgets of the parapublic entities referred to in paragraph b) of the preceding article are approved with the following breakdown: In the budget of the Caixa Andorrana de Seguretat Social are granted credits to meet all of its obligations for a total of 10,710,622,954 pesetas. The resources provided during the financial year are encrypted at 17,709,083,467 pesetas.

In the budget of the National Center of computer science of Andorra are granted credits to meet all of its obligations for a total of 251,754,000 pesetas. The resources provided during the financial year are encrypted at 251,754,000 pesetas.

In the budget of the Forces Elèctriques d'Andorra will grant credits to meet all of its obligations for a total of 5,554,067,604 pesetas. The resources provided during the financial year are encrypted at 5,826,757,830 pesetas.

In the budget of the Institut Nacional Andorrà de Finances are granted credits to meet all of its obligations for a total of 238,854,355 pesetas. The resources provided during the financial year are encrypted at 279,200,000 pesetas.

In the budget of the organisation of radio and television of Andorra are granted credits to meet all of its obligations for a total of 382,052,000 pesetas. The resources provided during the financial year are encrypted at 382,052,000 pesetas.

In the budget of the residence Sola d'enclar are granted credits to meet all of its obligations for a total of 123,813,110 pesetas. The resources provided during the financial year are encrypted at 123,813,110 pesetas.

In the budget of the Andorran Health Care Service are granted credits to meet all of its obligations for a total of 2,889,899,000 pesetas.

The resources provided during the financial year are encrypted at 2,889,899,000 pesetas.

In the budget of the Andorran telecommunications service are granted credits to meet all of its obligations for a total of 9,468,042,000 pesetas. The resources provided during the financial year are encrypted at 9,619,158,000 pesetas.

Article 3 credit transfers 1. For the purposes of articles 23 and 24 of the general law of public finance, not considered extraordinary credits, or credit transfers credit supplements current expenditure in current spending also initially equipped with items in the budget, but provided at the level of concept in the relevant section.

2. The provision of credits by the creation of budgetary concepts that are coming from; in the event that in the execution of the budget needs arise that there have been collected specifically for this purpose, they have to make credit transfers necessary to compensate for the new provision for an amount equal to the funding of the new concepts.

3. The Minister of finance may, on the proposal of the respective Minister, authorize transfers between credits within the same program for current expenses.

4. The Government may, at the proposal of the respective Minister, authorize credit transfers within the same program to the cost of capital.

5. The Government may, at the proposal of the respective Minister, authorize credit transfers within the same program, between the chapters called "current transfers" and "capital transfers".

Article 4 credits can be extended in any case, in application of article 25 of the general law of public finance, they have character of expandable up to a sum equal to the obligations you need to engage, subject to compliance with the rules in force, the following credits: 1. it is intended to interest payments and depreciation and to the return of warranty.

2. The credits concerned the payment of the proportional part of the sanctions imposed by the police service and the body of Policemen, or any other body that for legal specification you have as well, and back towards the staff of the fingers services.

3. The credits destined to meet, by judicial ruling firm, the responsibilities of the Government or pecuniary parapublic entities.

4. The credits destined to meet other expenses resulting from legal requirements and directly linked to the revenue of the State.

5. credits for expenses arising from obligations to the Administration a diseased and beyond the performance of the same Administration following the administrative process relevant to the expandable credits.

6. The following items, of all government departments: a) 100 concept, called "bonus Expenses".

b) 110 concept, called "basic Salaries and other remuneration of permanent staff" with the exception of 110.80 subconcepte called "new hires".

c) concept 120, called "basic Salaries and other remuneration of contractual personnel" with the exception of 120.80 subconcepte called "new hires".

d) 140 concept, called "other staff".

e 160) concept, called "social security Fees".

f) 161 concept, called "social benefits".

7. The following items, within the Department of health and Wellness: a) 482-50, called "non-contributory old age Pensions".

b) 482-60, so-called "Pensions for adults with disabilities."

c) 482-55, called "Pensions for charity".

Article 5 Fund Advances


1. In the event of extreme urgency, the Government, subject to a report of the auditor general, may authorize the head of the Government for the grant of advances of funds for obligations not contained in the current budget, or with insufficient budget, with a maximum limit of 5% of the credits allowed by the budget of the financial year.

2. These advances must be subject to subsequent ratification with approval of special credits or credit supplements.

3. If the Council does not approve the laws of extraordinary credits or supplements of credits, advances of funds will URcancel.len in charge of credits recently granted by the Government.

Article 6 Powers of the head of Government the head of Government, at the proposal of the affected ministries, you can authorize the transfer of budgetary credits that are necessary as a result of possible administrative reorganisation affecting one or more ministries.

These operations may not imply, in any case, increase of credit within the budget.

Second chapter. The budget management and public expenditure Article 7 contracting of works the Administration may hire, by way of allocation of direct purchase, the costs corresponding to the works of recognised urgency, for a maximum amount of 5 million pesetas.

In the case of expenses for ordinary works, the maximum amount of the expenses that you can contract directly with the Administration is 2,500,000 pesetas.

Article 8 supply contracts Have the character of smaller supplies, supplies of goods or supplies of easy damage to the use, the amount of which does not exceed the 400,000 pesetas. In these contracts the corresponding invoice has to replace the contractual document and record of compliance.

Cannot be desagregar those supplies that, being of the same nature, acquired in the same month of each budgetary exercise.

Article 9 publication of the Awards The definitive, agreed by the Government or the boards of Directors of the semi-public entities, corresponding to contracts for works, supplies or management of public services, when the amount exceeds 1.000.000 pesetas, will make public official Gazette of the Principality of Andorra, where you have to specify the form of concession, the type of contract, the identity of the successful tenderer , the name of the budgetary and the true price of the contract.

Article 10 Approval of the authorization of the expenditure is the responsibility of: a) the Government or the boards of Directors of parapublic institutions, for the expenses over 1.000.000 pesetas.

b) the head of Government, Government Ministers and the directors of the parapublic entities for the cost less than or equal to 1.000.000 pesetas.

Article 11 sanctions Authorisation in application of article 65 of the law on the bases of the Tax Ordinance of 19 December 1996, establishes that the fines, understood as a form of sanction, which exceed 500,000 pesetas must be agreed and imposed by the Government.

Article 12 Commitments of expenditure charged to future budgets The Government may prescribe long-term spending trends for supplies, leasing, provision of services and technical assistance. The amount of the commitments corresponding to each one of the future exercises may not exceed the following limits, that have been applied to the amount of each one of the chapters of the State budget of expenses approved initially by the General Council: In the year immediately following, 40% in the second year, 30% in the third year, 25% Article 13 Exceptions to the audit procedure in accordance with articles 33.1 and 37.3 of the general law of public finance the prior audit procedure, excepts or critique the records relating to the following expenses: 1. The costs over 400,000 pesetas of Chapter 2 – consumption of goods and services which need to be regulated in the liquidation phase.

2. The costs over 400,000 pesetas of the game 163-00, called training and improvement of personnel, which must also be regulated in the liquidation phase.

3. The costs involved to justify payment orders, which must be regulated in the authorisation phase and in the mandatory justification later.

4. With regard to the costs considered in section 1 and 2, are not allowed to desagregar those invoices that correspond to expenses of the same nature and acquire in the same month of each budgetary exercise.

Article 14 transfer concession 1. Requited nominatives in subconcepte according to the classification of the economic budget, delivered on a quarterly basis and to the extent that the affected entities the request.

Once approved the settlement of accounts of the beneficiaries of wire transfers and nominatives provided that has not been committed in its entirety the budgeted expenditure, these agencies have to return to the Government the income obtained from the transfer and not used during the budget exercise.

2. Aid and grants charged to the budget credits initials that have no registered assignment must be granted, whenever possible, in accordance with the criteria of advertising, competition and objectivity. These grants can be: 2.1. Current grants: the Ministry conferred by the subsidy must be set prior to the adoption of the concessionary agreements, the regulatory bases of the concession; at least you have to fix what is the activity or the program grant object and what is the form of justification that the beneficiaries must be presented to prove the fulfilment of the purpose for which it has been granted the subsidy.

These grants are to deal with operating costs that involve a payment; under no circumstances will subsidize costs of depreciation or amortisation for the year.

2.2. capital Subsidies: the Ministry conferred by the subsidy must approve the investments to be made. The settlement of this grant only becomes effective with the presentation of the corresponding invoice or supporting documents.

3. capital transfers in the Commons are carried out in accordance with the terms established by the law of transfer in the Commons.

4. The Government must publish on a quarterly basis in the official bulletin of the Principality of Andorra all subsidies granted. In the case of grants nominatives in the initial budget and subsidies for the Department of welfare, budget concept 482.90,


you do not need the publicity.

5. In application of article 14.1 of the law on creation of the Chamber of Commerce, industry and services of Andorra, on 3 September 1993, and of the additional provisions of the second and third of the law on the register of holders of economic activities, the 20th of December, 1995, establishes that 27% of the funds generated by the tax on the register of holders of economic activities is transferred to the Chamber of Commerce , Industry and services of Andorra to finance their activities.

The payments of contributions are made on a quarterly basis, for quarters and are calculated by applying the 27% of revenue, in fact, raised in the concept of the rate of holders of economic activities, during the budget year corresponding to the year 1997. At the end of the budget year of 1998 and approved the settlement of accounts, and it regularizes the outstanding balance to liquidate that may exist, depending on the difference of income effectively raised between the two budgetary exercises.

Article 15 Update of the taxes on the possession of vehicles With effect from the entry into force of this law, the tax payments related to the article 5 of the law on the tax on vehicle ownership, of 5 April 1994, the increase in the same percentage that the annual increases in the minimum wages periodically dictated by the Government, about the amount required in 1997; the amounts of the fees are rounded to the nearest hundred higher.

Article 16 of the Update on the game of bingo with effect from the entry into force of this law, in application of article 17 and the first additional provision of the law of the game of bingo, from the 28th of November 1996, establishes the payment of tax on the game of bingo in a 12% of the tax base.

Article 17 new hires-temporary staff to proceed to the new recruitment of temporary staff required a favourable report of the Department of public service and human resources, and the Department of finance.

The Government and parapublic entities can temporarily hire temporary staff to provide services. In the case of non-existing budgetary availability, these contracts must be offset by reducing by the same amount of other budgetary concepts of current expenses.

Under no circumstances shall these operations may not lead to an increase of credit within the budget.

Third chapter. Article 18 financial operations borrowing Operations 1. Authorises the Government to, at the proposal of the Minister of finance, confront the borrowing operations the following: a) Issue public debt or make credit transactions to a maximum amount of 567,975,536 pesetas, to finance the deficit planned box.

b) Issue public debt or make credit operations in order to refinance or replace live debt as of December 31, 1997.

c) Make credit operations up to an amount of 500 million pesetas for needs of Treasury.

2. The indebtedness authorized in 1997 and not formalized on December 31 of this year will be deferred in 1998, in order to finance the credits committed expenses that have not been able to perform during the same exercise and that it must be incorporated in the budget for the year 1998, in application of article 15.4 of the general law on public finance.

Additional provision until 31 December 1998 the legal interest rest set at 4%.

Repealing provision abolishes all the above rules on what versus offline.

First final provision authorized expenditures charged to the budget credits have been extended to impute to the credits allowed by this law. If the budget does not include any extended the same concept that in the budget for 1998, the Ministry of finance must determine the budget concept that should be charging the expense authorized Second this law shall enter into force on 1 January 1998.

Casa de la Vall, 13 November 1997 Francesc Areny Casal Syndic General Us the co-princes the sancionem and promulguem and let's get the publication in the official bulletin of the Principality of Andorra.

Jacques Chirac Joan Martí Alanis, President of the French Republic the Bishop of Urgell Co-prince of Andorra Co-prince of Andorra