General Law of public finance since the General Council at its session of 19 December 1996 has approved the following: General Law on public finance preamble i. the course of time from approval, on December 2, 1983, of the general law of public finance has highlighted the convenience , and even the need, to adjust some of its rules to new regulatory constraints that have arisen during its validity and to the results of an experience of more than ten years.

Therefore, the objectives that this law seeks to in general can be summarized as follows: a) to update the text of the general law of the public finances, of December 2, 1983, taking into account the relevant rules of the Constitution, of the rules of procedure of the General Council of 3 September 1993, of the regulation on the organisation and functioning of the Constitutional Court of 16 December 1994 and other regulatory texts with emphasis on the law in force.

b) Get a systematization as uncluttered and a judgment on the content of the law.

c) to improve the effectiveness of the rules concerning public expenditure and its control.

d) to determine the application of the general law of public finance in the public or parapublic entities, in the Commons and in public companies.

On the other hand the need to proceed to a control of the management of the public flows by the different organs of the State, encouraged the creation of a Court of accounts so that an independent and technical way to monitor for compliance with the legal regulations in financial matters and in particular the obligations arising out of the present law.

II. With regard to the General provisions (chapter I), it is necessary to make attention to the statement of the case of reservation of law. Certainly, the regulation of the law, in both absolute and relative, corresponds to the constitutional text.

However, given that the Constitution does not contain norms that define and pinpoint this book, it seems important to their materialisation in a text of legal range.

Clear is the prevalence of the rules of the general law of public finance on the particular rules or parapublic entities of public law-including also, therefore, the Caixa Andorrana de Seguretat Social.

III. With respect to the rights and the obligations of public finance (chapter II), it should be noted, first of all, the anticipation of the new category of public prices, segregated fees. On the other hand, regulates in more detail the prescription, investing the criterion regulating current of the effects of the discontinuation, in the sense most favourable to the administered.

IV. The matter of the budget (chapter III) regulates with the aim to achieve maximum clarity rules. Envisaged possible desenrotllaments of the budgets of public or semi-public entities, so that it won't be discordant with the budget structure of the general administration.

On the other hand, it specifies the classification for economic nature of the expenses in order to achieve a standardization of criteria applicable also to the communal budget in accordance with the second additional provision. This approval, which refers only to a formal aspect of budgets, should not produce any decrease of the principle of self-government of Commons established in article 79 of the Constitution.

V. with regard to chapters IV and V, are described and specified the functions of the General intervention, in accordance with the criteria of promoting a key element in achieving transparency in the execution of the expenses to what has been previously alluded to.

Vi. This law also amends the regulation of debt (Chapter VI). They introduce new types of public debt that did not have in mind the text until now in force, such as the delivery of bills of Exchange, promissory notes and similar documents.

VII. Finally, not including any substantial innovation, with respect to the text in force, on matters concerning to the Treasury and to the responsibilities, the present Law completes the normative content with three additional provisions, two transitional provisions, a repealing and final provision.

Chapter i. General provisions Article 1 Rules applicable to the system of public finance 1. The system of public finance concernint the general administration, or parapublic entities of public law and public societies participated by the general administration is governed by this law and by other laws and regulatory provisions pertaining to resources, costs and budgets.

2. Have extra character in common law.

3. The rules of the text articulated from the law's annual general budget specified and allow to run for each budgetary year the applicable precepts.

Article 2-law must be approved by law reserve: a) general budget and its modifications in the cases provided for by this law.

b) the establishment, modification and deletion of taxation and the regulation of their essential elements.

c) the scheme of the indebtedness and fixing, for each budget year, the maximum amount of debt and the provision of guarantees by guarantee.

d) The statutory creation, modification and extinction of parapublic bodies or public law and with the participation of the general administration.

e) the acquisition and alienation of shares that involve the acquisition or loss of control in these companies.

f) the regime of heritage and of public procurement.

g) the rest of the rules regarding public finance in the cases established by the Constitution and the laws that the deployed.

Semi-public Bodies or public law article 3 1. Or parapublic entities of public law are governed by their particular rules as long as they are not contrary to this law or other regulations with the rank of law.

2. These organizations have to act in coordination with the general administration.

3. La Caixa Andorrana de Seguretat Social is, for the purposes of the present law, an entity company.

Article 4 Public Companies 1. Public companies are companies, participation in the share capital of which on the part of the Andorran State constitutive entities, whether it is general or mainstream enough for parish or have the control.

2. The performance of public companies is carried out in accordance with the rules of private law, without prejudice to remain subject to financial control in the terms established by the 39 articles and concordant of the present law.


Chapter II. Rights and obligations of the public finance Section 1a. Economic rights of public finance Article 5 economic rights Are economic rights of public finance credits arising from the application of the following resources: a) taxes.

b) transfers from the outside to which entitled the State of Andorra.

c) rents from the private domain goods or assets.

of) The public prices.

e) the proceeds of the debt.

f) compensation, in favor of the public finances, of damages.

g) pecuniary sanctions.

h.) the remaining resources that belong legally to the Government and parapublic entities or public law.

Article 6 economic rights management Management of public finance is, depending on the case: a) to the Minister of finance.

b) to the head of Government by reason of the services that depend on it directly and can result in income, and the remaining Ministers in the same event.

c) The Chairmen of the boards of directors or parapublic entities of public law, without prejudice to the possibility of delegation, in general terms, or specifically for certain economic rights, in their respective directors.

Article 7 Limitations 1. Saved that other laws establish, prescribe the three years: a) The ability of the Administration to settle tax debts and other income of public law. The period of limitation starts from the fact generator or of the birth of the correlative obligation.

b) the right to demand the payment of debts cleared. The period of limitation starts from the notification of the settlement.

c) the authority to impose pecuniary sanctions. The period of limitation is calculated from the day on which the infringement committed.

2. The prescription is interrupted if the debtor recognizes the debt for evidence before the administration or whether this requires the payment, also of reliable form. In the event of interruption of the prescription the debtor does not lose the time elapsed before the interruption.

3. The prescription of the economic rights applies ex officio by decision of the competent body.

Section 2a. Financial obligations of the public finance Article 8 Birth of obligations 1. Expenditure obligations born of the laws, legal business of all kinds and of the acts or facts which, according to the legal system, also generate the aforementioned obligations.

2. The obligations of payment are born of the execution of the respective budget, by virtue of the payment of the corresponding expenses, and court ruling or administrative resolution firm.

Article 9 Management 1. The management of expenditure obligations correspond to the Government, to: (a)) Government and Ministers according to the respective budget section, with regard to the budget of the general administration, without prejudice to the possibility of total or partial delegation, in senior positions.

b) The Chairmen of the boards of directors or parapublic entities of public law, with regard to the respective budgets, without prejudice to the possibility of total or partial delegation, in the respective directors.

2. Correlatively, the payment obligations of the sort: a) the Ministry of finance, regarding the budget of the general administration.

b) the Chairmen of the boards of directors or parapublic entities of public law, without prejudice to the possibility of total or partial delegation, in the respective directors.

Article 10 compliance with 1. If the Administration does not pay to the creditor of the public finance in the period of three months from the date of the acknowledgement of the obligation or of the notification to the interested party of the Court ruling or administrative resolution firm, paid him the legal interest on the amount due from the day that should have made payment, upon claim by the creditor.

2. The legal interest will be fixed annually by the law of the general budget.

Article 11 Limitations 1. Saved that other laws establish three prescribed years: a) in general, the obligations of expenditure and payment.

The prescription periods begin, in the first case, from the date of submission of the documents attesting to the effectiveness of the expenditure, and, in the second case, from the date of notification of the payment of the cost or the order of payment.

b) in particular, the right to repayment of undue. The prescription period starts on the day of the payment.

2. The right to claim damages prescribed within three years from the date on which occurs the fact, action or omission that motivates.

3. The prescription is interrupted if the Administration acknowledges the debt, with formal notification to the creditor, or if it requires the payment, also of reliable form. In the event of interruption of the prescription of Administration does not lose the time elapsed before the interruption.

4. Prescribing economic obligations apply ex officio by decision of the competent body.

Chapter III. General budget Section 1a. Budgetary principles Article 12 principle of unit 1. The general budget is the expression code, jointly and systematically the obligations that, at most, can recognize the Government and parapublic entities or public law, and the rights that they expect to settle during the financial year in question.

2. The general budget is made up of: a) the budget of the general administration.

b) the budgets of each public or parapublic entities.

c) forecasts of the programmes of action of the societies affiliated to the general public.

3. The Ministry of finance must prepare a consolidated general budget with informative purposes.

Article 13 principle of universality 1. The budget includes all income and expenses must be referred to agencies that contains: a) the United States, which comprise income estimates of the various economic rights to liquidate during the year.

b) the States of expenses that relate the credits required for the fulfillment of the obligations.

c) the States of resources and allocations, with the corresponding estimates and assessment of needs for the year, operating both as capital, or parapublic entities of public law and of the societies affiliated to the general public.

2. The income they have to apply to the respective budgets for the full amount of building rights, so it cannot meet obligations by


reduction in the rights, except for returns of undue.

Article 14 the beginning of year 1. The general budget is approved every year, before 31 December, to govern during the next year, without prejudice to the provisions of article 22.

2. The budget exercise coincides with the calendar year and you are charged: A) to the State of income: a) the rights cleared for the same, whatever the period of that derived.

b) until January 31, charged rights next, although it's been bumped off in previous years.

B) to the State of expenses: a) the obligations cleared off during that same year, although authorized expenses come in previous exercises.

b) the duties paid until January 31st next, as long as they correspond to expenses cleared off before the end of the budget year.

3. The remnants of budgetary credits are void in the end of the budget year, saved the provisions of article 15.4.

Article 15 principle of speciality (qualitative, quantitative and temporal) 1. Each credit is intended exclusively to the expenditure specified in the respective budget, with the exception of the modifications that can be approved in accordance with article 23.

2. The credits entered in the United States costs, saved the case of supplements of credits and credit extended pursuant to articles 24 and 25 respectively, have a limited scope and binding in terms of concept for government expenditures, and at the level of program for investment costs, although there are sponsors, and, as a result , you cannot authorize spending the amount of which exceeds the budgetary credits in accordance with the respective link.

3. The rules with rank less than the law and the administrative acts which violate the provisions in the two previous sections is null in its own right, without prejudice to the corresponding responsibilities.

4. In charge of credits entered in the respective budget can only be contract obligations to liquidate during the budget exercise. However: A) apply to the credits of the current budget, at the time of issue of payment orders, the following obligations: a) The resulting from the settlement of arrears in favour of staff included in the payroll of the general budget.

b) derived from previous years and cleared off during the period in question and that they should have been charged to expandable credits.

B) are incorporated in the budget for the following financial year, following the agreement of the Government or of the respective boards of Directors, depending on the case.

extraordinary credits) in the credit supplements and transfers of appropriations approved during the last quarter of the budgetary exercise and not cleared, completely or partially, during that same year.

b) credits for long-term expenses and not cleared, completely or partially, during the budgetary exercise.

c) the credits for real investment not committed until December 31, multi-annual.

of The current spending commitments credits) emparin specific and that, for reasons justified, are not able to perform during the exercise.

e improper refunds of payments) and the contributions of entities completed during the last quarter of the budget exercise.

Article 16 non-affectation of income the income of public finance are destined to satisfy either the set of its obligations, except for special contributions or have established by law the destination or the affectation to certain purposes.

Section 2a. Article 17 budgetary structure general rule 1. The general budget is adjusted to the structures that approves the Government at the proposal of the Minister of finance.

2. The development, if necessary, of the structure relative to public or parapublic entities is done in accordance with the Ministry of finance.

Article 18 States of income and expenses 1. The State of income is divided into the Group of direct taxes, indirect taxes, fees and other income, property income, transfer of real investments, financial assets and financial liabilities.

2. The State of expenses is presented with two administrative, economic and functional classifications: a) The administrative classification groups the credits according to the different organs in charge of the management of the expenditure.

b) economic classification caters for nature of expenses within the administrative classification differentiated in capital expenditure costs, trends and variation in financial assets and liabilities. Ordinary expenses comprise the personnel, consumption of goods and services, interest and other financial costs, and current transfers, the costs of capital are real investments aimed at the creation of new physical capital or their renewal and transfers of capital in order to make real investments are made by third parties, changes of financial assets and financial liabilities variations reflect changes in financial operations.

The credits are sorted by chapters, articles, concepts and subconceptes, without prejudice to the provisions of the functional classification.

c) functional classification takes into consideration the purpose of expenses and includes the areas of action.

The credits are sorted in groups, in functions, in subfuncions, in programmes and projects. Responds to a system of objectives that serves as a framework for the budget management and provides information on their performance.

d) Every real investment project requires the completion of a tile or computer record that Word and relates the following data: da) justification of the investment objective or objectives to attain with the completion of the project.

DB) calculation System used to evaluate the project.

DC) estimate of the expense of real investment for the whole project.

DD) number of physical units, depending on the nature of the real investment that should create or on which must rest for the project.

of the Project Location), if applicable.

DF) estimation of the amount of expenditure trends that result in the operation of each project once.

Sun) specification of whether this is real investment new or replacement investment.

DH) Specification if it is multi-annual expenditure and, where appropriate, the degree of implementation of the investment.

Section 3a. Elaboration and approval Article 19 formation of the draft. Ancillary documentation 1. The Government approves each year, before 15 July, the guidelines must inform the project budget of the Government and parapublic entities or public law.


2. The Minister of finance, in accordance with these guidelines, formulated relevant instructions below and the links to the different ministries and the head of Government and in the public or parapublic entities.

3. The Minister of finance prepares the draft budget of the general administration with proposals made by different governing bodies.

4. The preliminary budget of the general administration contains the text articulated proposal of the general budget bill and the United States of income and expenses; attached, in addition, the following documents: a) An explanatory notes to justify the most important changes compared to the previous budget and, especially, if this is the case, the need for new borrowing, specifying the possible features and modes.

b) a report on the need of the credits for capital movements and transfers.

c) Any other information the Government deems appropriate.

5. the boards of Directors of public or parapublic entities approve their draft budgets containing the proposal of bases and the United States of facilities and resources; and must submit, in addition to the documentation provided for in the preceding paragraph 4, as follows: trading account, account of commercial transactions, financing Panel, variation of working capital and investment plan in five years. These projects are transferred to the Government through the Ministry of Finance before September 20.

6. the boards of Directors of public companies participated by the general administration approve their draft programmes, investments and financing and are reported to the Government through the Ministry of Finance before September 20.

Article 20 approval of the project 1. The Government is deliberating on the draft budgets and, if applicable, the approved.

2. The Government may not modify the draft budgets or parapublic entities of public law or action programmes, investments and financing of public companies it invests in to the general administration. You can, however, make observations and reparaments so that their respective boards of Directors the take into consideration, especially with regard to the need for coordination, both formal material, with the draft budget of the general administration.

3. The approval of the draft by the Government involves their conversion in general budget bill, to be sent to the Audit Office before November 1.

Article 21 Procedure of the project and approval of the general budget law 1. The general budget bill conforms to the legislative procedure established in the rules of procedure of the General Council. Without prejudice to the need for a global approval of the project, including the integrated text of the law and the different conditions of execution, the General Council approves the States of expenses and allocations at the level of concept, program and in the case of investment expenses.

2. The general budget must be approved so that the States of expenses and income statements are balanced.

Article 22 Overtime budget 1. If before the end of the year the General Council does not approve the general budget law are carried over automatically by dotzaves parts the budgets of the previous year in terms of their current costs, as well as ultimate credits the text articulated from the law and the various rules of execution.

2. The extension does not affect the credits for expenses corresponding to these patients who have completed during the year of the extended budget.

3. The head of Government, subject to agreement by the Government: a) can put into effect the cost of planned investment in the project of the budget for the general administration pending approval and that had already been approved with the character of long-term costs.

b) can make effective transfers in the Commons.

4. The Chairmen of the boards of Directors, with the prior agreement of these same tips, or parapublic entities of public law and public societies participated by the general administration, also have the right mentioned in paragraph a) of the previous paragraph 3.

Section 4a. Modification and extension of the budgetary credits Article 23 qualitative Modification: extraordinary credits 1. When you need to contract obligations that involve expenses not included in the budget and that, due to their need and urgency, cannot be or not appropriate to defer to the next exercise, the Government or the relevant Board of Directors can agree to the presentation of a bill of special credit for their approval by the General Council.

2. The project should include the determination of the specific revenue intended to finance the extraordinary credit, and that can be expected with respect to the revenue collection: major; transfer of other credits that you love reduïbles; application of special contributions; new indebtedness; decrease of the Treasury, or selling real property. The project must be accompanied by an explanatory report to justify the necessity and the urgency of carrying out the work or provide the service in question.

3. extraordinary credits cannot be approved by the fact of having contracted obligations without budget except in cases of advances of funds referred to in article 28.

4. Is not considered extraordinary credit funding, through credit transfer is regulated by article 26, of ordinary expenses not included in the budget but provided formally and in terms of generic concept in the budgetary structure.

Article 24 quantitative Changes: (I) credit supplements 1. When required the provision of contract obligations that involve costs which is insufficient to satisfy them and that, due to their need and urgency, cannot be or not appropriate to defer to the next exercise, the Government or the Board of Administration may agree to the presentation of a bill credit supplement for their approval by the General Council , being applied the rules of paragraph 2 of the preceding article 23.

2. credit supplements cannot be approved by the fact of having contracted obligations with insufficient budget except in cases of advances of funds referred to in article 28.

3. It is not considered credit supplement complementary funding, through credit transfer is regulated by article 26, of ordinary expenses already included in the budget.

Article 25 quantitative Modification: (II) expandable Credits


Have the open-ended character, up to a sum equal to the amount of the obligations you need to compromise, the credits for which you set the text expressly articulated and taxativa of the general budget law and that they are in one of the two following cases: a) the amount of Expenses which, due to their nature, it is difficult to forecast at the time of approving the budget.

b) publicly funded Expenses the affectation of income determined in accordance with article 16.

Article 26 quantitative Modification: (III) credit transfers 1. Concernint transfers capital expenditure is disbursed as the extraordinary credits and the credits, pursuant to articles 23 and 24.

2. The ordinary costs concernint transfers, with the purposes expressed in article 23.4 and in article 24.3, may be agreed by the Government or the relevant Board of Directors with the following limitations: a) can refer only to the credits included in the same Ministry.

b) cannot affect the credits for remuneration of staff, nor the financial costs, nor the credits approved by laws of extraordinary credits or credit supplements.

c) cannot reduce credits for expenses for grants nominatives or augmented by additional charges or credit transfers.

d) cannot diminish expandable credits.

3. The Government may delegate the authority provided in the previous sections on the head of Government and the Ministers.

4. In all cases, the transfers must be reported to the Ministry of finance for the purposes of accounting.

Article 27 generation of credits or extension of credits will be able to generate credits, or if it is the case of extension credits within the State budget expenditure of the revenue arising from the following operations: a) contributions of natural or legal persons required in accordance with the legislation in force, to finance expenses together with the Government and parapublic entities.

b) disposal of real government or parapublic entities.

c) provision of services.

d) Reimbursement of loans.

Article 28 advance Use of credits: advances of funds 1. In cases of extreme urgency the Government can authorize the Minister to grant advances of funds in order to finance expenditure not equipped or with insufficient endowment and up to a maximum limit of 5 to 100 of the State expenses.

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

3. If the Council does not approve the laws of extraordinary credit or credit supplement, advances of funds must be URcancel.lar by the credits of the respective Ministry, semi-public companies or public law, the reduction of which results in less disturbance to public service.

Article 29 a temporary Extension of the credits: multi-annual expenditure 1. The long-term costs can be spread over a maximum of five years and can refer to both ordinary expenses as capital expenses.

2. The multi-annual expenditure must be approved by the General Council in the annual general budget bill or in separate law and at the proposal of the Government, accompanied by an explanatory report.

3. However the Government may prescribe long-term expenditure trends for supplies, leasing of movable property and buildings, provision of services and technical assistance provided, however, that the general budget law established otherwise under the circumstances and the maximum amount for the year.

4. The multi-annual spending approved during the year are paid on the basis of their inclusion in the budget for the following financial year. However, when the relevant law you specify, you can start the projects and actions referred to if there are anticipated enough credits in the current budget.

Any modification of the budgetary credits as a result of the inclusion of multi-annual expenditure must conform to the provisions of articles 23 to 26 inclusive.

5. The existence of laws of multi-annual expenditure obligate you to include the credits in the next budget if they have planned execution times and annual involvement of amounts. Otherwise the Government must determine the amount attributed to each exercise in drawing up the budget.

6. do not follow the standard of the previous section the Government has to justify it in the report attached to the draft general budget.

7. The rule of section 5 is of general application though vary the technical conditions set out in the multi-annual expenditure administrative laws. These changes have been included, such as proof of expenses other than those foreseen in the report mentioned in the previous section.

Section 5a. Enforcement of the State of income Article 30 administrative procedure of the implementation of economic rights: the execution phases of each economic law must conform to the relevant regulations.

Section 6a. Enforcement of the State of expenses Article 31 Administrative Procedure of execution expenses: phases 1. The administrative procedure of the expenses coincided, as a general rule, in the following stages: a) the proposal of spending, which is the internal Act of the administration of preparatory character stating the purpose of carrying out a particular expense. The audit of compliance a conditional booking of credit for the amount proposed.

b) authorisation, by virtue of which the competent body agrees to or decides to carry out the purpose of the proposal. Without the formalization of the authorization cannot start the booking procedure, except for the provisions of paragraph 2 of this article.

c) commitment, that budget is the reflection of the agreement or the decision to comply with a voluntary obligation. The commitment is concerned, if this is the case, in the final award. The audit of compliance of a firm booking for credit for the amount committed.

d) settlement, which aims to verify the reality of the financial obligation and the fixing of the definitive amount of the expense. The liquidation is performed by the corresponding body of a legal obligation in accordance with the Manager or, in the case of voluntary obligations, when the creditor of the Administration has fulfilled or guaranteed their correlative obligation. The audit of compliance produces the credit crunch for the amount cleared.

e) payment Proposal, which is the internal preparatory character Act that States the purpose of making the payment of the obligations cleared off.

f) Ordering the payment, under which has to pay cash or material of an obligation


liquidated, according to the availability of Treasury.

g) Payment cash or material, with which ends the procedure.

2. The procedure starts directly in the phase of payment with respect to the costs determined by the text articulated from the law of the general budget.

3. The procedure starts directly in the engagement phase with respect to the legal obligations.

Article 32 of expenses 1. The corresponding organs of the general managers have to submit their proposals for spending on the Ministry of finance, for the purposes of audit and accounting.

2. The right to issue proposals for spending corresponds: to the person responsible for the service if appropriate) the authorization is the competence of the head of Government, Ministers or directors or parapublic entities of public law.

b) at the head of the Government, Ministers or the directors or parapublic entities of public law if the authorization is the competence of the Government or of the Board of Directors, respectively.

3. The proposal of spending gives rise to the opening of a computer registry or specify at least the object and the estimated amount of the expenditure, budgetary application and the availability of credit. In the cases of the preceding article 31.2 and 3 the tab opens in the stage of liquidation or of commitment, respectively.

4. The competence to authorize expenditure corresponds: to the Government, and the head of Government) Ministers to the quantitative limits that determine each year in the general budget Act articulated text.

b) The boards of Directors and managers of public or semi-public entities, depending on how you have agreed.

5. The relevant bodies of the general managers have to submit their spending commitments to the Ministry of finance, for the purposes of audit and accountancy, accompanied by the appropriate documentation or the demonstration of compliance with the regulations of the contract.

6. The relevant bodies of the general managers have to send their expenditure payments to the Ministry of finance, for the purposes of audit and accountancy, accompanied by a certificate of work, invoice or document attesting to the analogous, including the Declaration of the person responsible in the sense of having executed the work, provided the service or received the supply or acquisition of compliance.

7. public or parapublic entities must agree on a procedure substantially similar to that set forth in paragraphs 5 and 6 above.

8. The Government can approve the models of documents required for the implementation of administrative procedure of expenses, in accordance with the criteria of maximum simplification and least bureaucratic cost.

Article 33 of payments: payments in firm and to justify 1. Once you have paid the expenses, the head of Government or the Minister shall propose the payment of an obligation. Excepts of the prerequisite of liquidation: a) urgent payments, which, however, need in any case under an authorization or an expenditure commitment and resolution of the head of Government, communicated to the Ministry of finance.

b) to justify payments to which it refers in paragraph 5 of this article, and they require, however, the prior authorization of the corresponding expense.

2. The ordering of payments corresponds to the Minister of finance, which can devolve into a high charge of the Ministry. However, if the Minister of finance considers that the issue to which the payment refers have sufficient importance to justify the procedure may take it to deliberation and agreement of the Government. In any case, the head of Government may evoke for yourself the ordering of certain types of payments or of specific payments.

3. The payment orders are extended on behalf of the creditor directly, except in cases of payments to justify and cases of endorsement, in which they are to name the endossatari making it appear the endorsers.

4. The organization of payments is in strong as a general rule, and to justify when it cannot be accompanied by supporting documentation at the time of its issue. The text of the articles of the law of the general budget must indicate the cases in which are allowable are payments to justify.

5. the recipients of the payments to justify are required to submit the settlement, with the timely documentary checks, the amounts received, within a period of three months and, in any case, before the 15th of January of the following year. After this period and a further month without having it actually incoarà file against those responsible.

6. The amounts resulting from payments to justify must enter, in the cases determined by the text articulated from the law of the general budget, in a bank account designated by the Minister of finance and under the control of the General intervention.

7. Payment must be material, head down, the signature of the Minister of finance or his delegate, a high charge of the Ministry, and the auditor-general or deputy auditor.

8. The payment can be made in cash, by means of URmetàl.lic documents proving the payment, cheques, bank transfers or, if the interested party expressly asks for it in writing, through compensation with economic rights of public finances against the same creditor.

9. public or parapublic entities must agree on a regulation similar to that established in the present article.

10. The payments corresponding to the budget allocations of the Constitutional Court and of the General Council are handed out in firm for quarters, within the first fifteen days of each term natural in the Presidency of the Court or to the Audit Office, respectively, to enter in the accounts that these bodies appoint.

Section 7a. Liquidation of the general budget budgetary Settlement Article 34: form and scope 1. The liquidation of the general budget is carried out separately with respect to the budgets of the general administration and of each of the public and parapublic entities, taking into account the provisions of articles 14 and 15.4 of this law. The settlement has been finalizing before 1 April of the following year.

2. The settlement of the budget and, in general, the General accounts require, prior to the final presentation to the General Council, an external audit contracted by the Audit Office.

Article 35 closing Operations The Minister of finance, with the prior agreement of the Government, can dictate every year, before 1 December, the timely instructions relating to the closing of budgets, particularly for the purpose of facilitating and


approved in compliance with the provisions of articles 14 and 15.4.

Section 8. Budgetary control Article 36 purpose and modalities 1. The budgetary control has the purpose to check and verify if the execution of the budget is adjusted to the rules and principles, legal or of another nature, which govern, the objectives that are intended to and in the economicitat and efficiency of public spending.

2. The budgetary control adopts the modalities of control of legality, control of economic opportunity, financial control, control of efficiency and political control.

Article 37 of legality Control 1. The control of legality aims to ensure compliance with the law through the investigation of all acts, documents and files of the general administration, or parapublic entities of public law and public societies participated by the general administration with impact on the public finances, which determined the settlement of rights and obligations of economic content, as well as the income and payments that may arise and the collection and application of flow.

2. To this end, the rule of law extends to check and verify, by means of the audit of the phases of administrative procedures that relate to articles 30 and 31, in the manner specified by the regulations, the execution of the rights and the obligations and the application of the funds are met and developed in accordance with the law, and that the budgetary expenses apply to organs and to the services that corresponds as well as the inspection of budgets or parapublic entities of public law and of the accounting documents of the direct beneficiaries of the transfer costs.

3. The costs of inventariable material and the periodic or repeating do not require previous investigation once it has been audited for the initial expense of the Act or contract that derive or its modifications.

4. In any case, control is exercised especially regarding the acquisition and leasing of real estate, in the public contracting, in the recruitment of personnel and to the events concernint heritage.

Article 38 Control of economic opportunity 1. Control of economic opportunity has purpose: to) Determine both quantitative as qualitatively, the consequences of the realisation of certain expenses would have for the public finances and the normal execution of the general budget and, in particular, the estimate of new expenses that foreseeably would result which is object of control.

b) the incidence of a particular expenditure on the national economy and the short-term situation.

2. This type of control takes place as a result of the proposed expenditure and is formalised, when necessary, by means of a report in each case of the General intervention, without prejudice to the periodic reports that global considers appropriate.

Article 39 Financial Control 1. The financial control is to check the economic and financial operation of parapublic institutions or public law of industrial, commercial, financial or similar, public societies participated by the Government and private entities that receive grants, loans, guarantees and other financial support by the general budget.

2. The financial control is managed by the General intervention at least once a year, by means of audit procedures that replaced the previous audit of the corresponding operations and consequently to the checking of the income and payments made, check the stock material and the verification of accounting books, balance sheets and operating accounts and other accounts, and the United States that are mandatory.

Article 40 Control of efficiency of control effectiveness is to elaborate a study related to the analysis of the costs of operation and of the performance or the use of services, works and acquisitions, as well as the fulfilment of the objectives of the programmes included in the budget of the preceding financial year.

Article 41 political Control 1. Political control is exercised by the General Council on the implementation of the general budget and the compliance with provisions of budgetary nature.

2. Political control during the implementation of the general budget can be carried out: a) Through Government facilities continue to be and inquiries & questions, motions of censure and Commission survey.

b) by means of the examination of the status of implementation of the general budget and their modifications, as well as of the movements and the situation of the Treasury.

3. Political control after the liquidation of the general budget is carried out with the examination and approval, if appropriate, of the General accounts within the six months following their presentation.

Chapter IV. Article 42 procedure nature and scope the General intervention is the Center: a) Director of the administrative accounting.

b) Owner of the controls of legality, of economic and financial opportunity.

c) responsible for the functions of study, report and advise that, in accordance with the law, assigned to it.

Article 43 Organization 1. The intervention is organically attached to the Ministry of finance and its structure should be set up, at the proposal of the auditor general, by the Government, with the prior approval of the Minister of finance.

2. The auditor general is the head of the General intervention. Is appointed by the head of Government at the proposal of the Minister of finance, for indefinite period, without prejudice to the possibility of resignation or termination.

3. The head of Government, at the proposal of the inspector general, and with the prior approval of the Minister of finance, may appoint auditors delegates in the various ministries and services dependent on the head of Government and in the public or parapublic entities that by their nature require it, as long as it is necessary for the exercise of the auditory function. In any case there has to be a Deputy Controller in the Caixa Andorrana de Seguretat Social.

Article 44 Functions 1. The General intervention has, for the exercise of its functions, in full autonomy with regard to authorisations and the management of institutions which monitor and both the auditor general and the Auditors delegates need to be taken care of, to any organ of the Administration whom it alone. requests, in the well-founded demands to make of data, reports or documentation.

2. The General intervention, as a director of the administrative accounting, the exercise of the following functions: a) to review the records of income and accounting


expenses in all its phases, which reflect the movements of public Treasury flows eventually.

b) Form and write the General accounts, preparing them for their presentation to the General Council.

c) Submit to the Government the general plan of public accounting to determine the structure, the justification, the processing and the accountability of all accounts that have to be submitted to the approval of the General Council.

d) Inspect the accounting or parapublic entities of public law and public societies participated by the general administration, as well as to verify the accounts of the entities obliged to present the fact of receiving budgetary subsidies.

e) elaborate the economic accounts of the public sector depends on the General Administration.

3. The General intervention, as the owner of the controls of legality, of economic and financial opportunity the following functions: to) Monitor the acts, the documents and the files of the general administration, or parapublic entities of public law and public societies participated by the general administration with impact on public finance, in accordance with article 36.

b) Reported to the Government, where appropriate, on the economic opportunity costs, in the terms established in article 38.

c) Conduct audits that are carried out for the purposes of financial control is regulated by article 39.

4. the functions of the General Intervention study, report and advise the following: A) with regard to the general budget and its management: a) to collaborate in the preparation of the draft and the project if it is required for this purpose.

b) verify and authorize the settlement of budgets.

c) Reported borrowing proposals, the government clearances of advances of funds and the projects of special credits, credit transfers and supplements.

d) Lodged appeals against acts relating to public revenue management.

e) settle for previously acts, the documents or the resources that produce obligations and movement of public flows, and especially the return of undue and prescribing rights and obligations and, in general, protecting the economic interests of the Government dependent on the General Council.

f) inform the appeals presented to the Government, and that refer to matters of economic-financial nature.

B) in relation to the contracting of works and services, supplies and acquisitions: a) Ruled the projects of contracts, tender terms and budgets of works, services and acquisitions of all kinds.

b) form part of the tables of recruitment.

c) Inform the motions of contracts.

d) observations or reparaments to records and checking services, works and acquisitions.

C) With respect to staff: to) inform the competitions of access to public and personal contracts.

b) Monitor the personnel payroll.

D) in relation to the heritage: a) directed the training and updating of the patrimonial inventory and license the inventories of all kinds.

b) Inform the proposed alienation of property and rights of any nature.

E) the remaining functions and advice that, being compatible with the previous ones, entrusted the Government.

Chapter v. public accounting Article 45 general principle 1. The Government and parapublic entities or public law are subject to the regime of public accounting in the terms provided for in this law and in the regulatory provisions that set forth.

2. subject to the regime of public accounting entails the obligation to pay the respective operations, whatever their nature, to the General Council.

Article 46 Purpose the purposes of the public accounting are: a) to record the execution of the general budget.

b) determine the movements and the situation of the Treasury.

c) Reflect the composition, the variations and the situation of heritage.

d) Provide the necessary data for the training and the accountability of the General accounts.

e) Provide the information necessary for the preparation of the accounts of public sector economic dependent of the General Council, are embodied in the general plan of public accounting.

f) Offer economic and financial information necessary for the adoption of political and administrative decisions.

Article 47 Organization 1. The Organization of the public accounting corresponds to the Ministry of finance.

2. This organization may establish that the maintenance service does not depend on the General intervention, assuming the functions related to the paragraph 2 of the article 44.

Article 48 of the management accounting: special accounts and general accounts 1. Accounting management diversifies as follows: a) Accounting Management of income, for the stages of liquidation and payment, as a result of which forms the income account, divided into two parts, one of the State's management of income and the other rights of the Treasury.

b) management accounting expenses, referring to the authorization phases, commitment, settlement, arrangement of payments and payments effective, as a result of which form the account of expenses, divided into two parts, a State management of costs, and the other of situation of the payment orders pending.

c) Accounting Management of Treasury, referring to the operations of collections and payments, both as budgetary extra-budget, as a result of which form the Treasury account, divided into three parts: collections and payments to the budget;

extra-budget operations, and balance or existence of Treasury.

of Accounting Management of heritage, referred to the goods) of the assets at the start of the year, to the acquisitions and divestitures made during your course and to the situation existing property at the end of the period, as a result of which form the account of heritage.

e) management accounting debt, referred to the situation of the debt at the beginning and at the end of the year, as a result of which form the account of indebtedness.

2. The previous special accounts come together and rehash in general accounts, of which it will draw up three each year: the general administration; the public or parapublic entities, differentiating the administrative character of the of a commercial, industrial, financial or similar, and the participating public companies by the Government.

Article 49 accounting information The Minister of finance must send to the Council


General, on a quarterly basis and within the next quarter, a report explaining the execution of the budget of the general administration and their modifications, as well as the movements and the situation of the Treasury. The same task they have to perform the directors of public or parapublic entities with respect to their respective budgets.

Chapter VI. Article 50 debt definition and methods 1. The second, flows to the Government and parapublic entities or public law constitute the public debt.

2. The public debt includes: a) Loan, through the issuance of public debt.

b) Contracting loans, lines of credit and financial operations with banks and savings banks, with so much radiation in Andorra as abroad.

c) Treasury Operations.

d) Conversion or replacement, total or partial, of existing operations.

Article 51 the income Target of debt must be used, as a general rule, to the financing of investments and, where appropriate, to transfers of capital. However this income can be allocated to the financing of expenses in the following cases: a) Treasury Operations.

b the amount of the Loan) which will serve to cover the remaining negative cash flow resulting from the settlement of the budget.

c) delivery of bills of Exchange, promissory notes and similar documents.

Article 52 Borrowings, loans, lines of credit and financial operations 1. The public debt, and the procurement of loans, credit lines and financial operations must be authorised by the General Council in approving the annual general budget law or the laws of extraordinary credit or credit charge.

2. The General Council determines the regime and the maximum limit of these types of indebtedness for the exercise and the Government manages the specific characteristics.

Article 53 1 Treasury operations. The annual general budget Act determines the maximum debt to cope with cash requirements during the year in question.

2. Within the specified limit the Government, at the proposal of the Minister of finance, may issue debt and contract loans, lines of credit and financial operations, even though in the short term, to fund maturity differences between provisionally rights and obligations during the year.

Article 54 conversion or total or partial replacement of pre-existing operations converting or replacing, in whole or in part, of pre-existing indebtedness must meet the following requirements: a) Be voluntary for the forks of the debt or the current lenders, so that if they do not accept the conversion or replacement, the Government must repay the corresponding capital according to the provisions for loan , the loan, line of credit or financial operation.

b) the year of debt converted or replaced by depreciation, interest and financial charges may not exceed the sum of the years of the existing operations.

Chapter VII. Treasury Article 55 Composition 1. Are the Treasury monetary and financial assets of the Constitutional Court, General Council, general administration and parapublic entities or public law.

2. monetary and financial resources of the Treasury and the variations that experience are subject to audit and must be recorded according to the rules of public accounting.

56 article Organization and functions 1. The Organization of the Treasury corresponds to the Government, at the proposal of the Minister of finance. However, the Constitutional Court and the General Council have their own tresoreries, well coordinated with the Ministry of finance.

2. Within the organization approved by each entity company or public law must establish the regime of its Treasury in a co-ordinated with the general administration.

3. The functions assigned to it in the Treasury: a) Raise revenue and pay the obligations of the public finances.

b) Centralize all flow for bookkeeping purposes and values generated by budget and extra-budget operations, without prejudice to the existence of material auxiliary boxes.

c) the remaining that derived from the mentioned in the preceding paragraphs, or that there are reliable sources.

4. The functions of the public Treasury can be made through the Institut Nacional Andorrà de Finances or credit institutions and savings if you agree to the General Council on the proposal of the Government.

Chapter VIII. Responsibilities Article 57 Kinds of liability 1. The actions and omissions, both as directed culposes, resulting, directly or indirectly, economic damage to public finances determine the requirement of civil, criminal and administrative liability, depending on the case.

2. The civil responsibility is a duty to compensate the public finances by reason of the damage caused by the actions or omissions.

3. criminal responsibility is derived from the Commission of major or minor crimes or contravencions classified in the Penal Code and to the detriment of public finance. Criminal liability entails always civil.

4. The administrative responsibility was born from the realization, on the part of the people at the service of the public administrations, of actions and omissions classified as faults in the regulations of the public function and, in particular, in chapters V and VI of the code of the administration.

5. Are excluded from this chapter tax offences regulated in other laws, without prejudice, where appropriate, standards of criminal responsibility if, during the tax infringement, committed a felony or lesser or contravention as typified in the criminal code.

6. Liability in the case of multiple managers is joint, except in cases of cheating or fraud, in what is solidarity.

Article 58 actions and omissions producers of special civil liability and administrative courts Are actions and omissions that constitute civil liability and administrative special towards public finance: a) the discovered of accounts or embezzlement that affects the having to public finance.

b) the non-compliance, on the part of political offices or civil servants or hired, of the regulations for the management, inspection, collection and revenue in the Treasury of the product of economic of public finance.

c) the authorisation, the obligation or the payment of costs and the ordering or making payments without budgetary credit or insufficient credit, or infringing of any way the regulations of


administrative procedures of planning of expenses and payments.

of improper payments provocation).

e) the lack of justification, within the deadlines set, of the funds of the public finances.

f) The inobservànça, by the auditor or auditors ' delegates, through grief, guilt, negligence or inexcusable ignorance, the duty to save their performance in the respective file with comment written on the illegality or the disagreement of the object of the audit.

g) any other acts or omissions that involve non-compliance with the norms of this law and of the provisions that the reglamenten or deployed.

Article 59 record of responsibility 1. The liability arising from the actions and omissions referred to in the previous article and the code of the administration you have to elucidate or clarify through administrative records, handled with hearing of the interested parties and in accordance with the rules of the code of the administration.

2. The agreement of opening and the decision of the administrative file, as well as the appointment of instructor, is up to the Government, if the person is female staff member or hired by this company or entity of public law; the Minister of finance, if the person is described or contracted in the general administration, and the organ that determined by the common Council, with respect to personnel at the service of the common.

Article 60 damages 1. The decision of the administrative file, even in cases where it is processed prior to the requirement of criminal liability, it should pronounce on the damages and harm caused to the public finances, and the managers have the obligation to indemnify under the terms established in the code of the administration.

2. The resolutions of administrative records can be appealed.

First additional provision general plan of public accounting authorises the Government to set up a general plan of public accounting and approve the measures necessary in order that all entities of Administration conform the respective accounting to the general plan.

Second additional provision application of this law in the common law of common financial accounting to the general scheme will adapt the public established in this law, proceeding to specific development that is appropriate to its mission through the subsequent budgetary and financial regulations.

Third additional provision application of this law to the law of or parapublic entities of public law or public law, parapublic entities must submit a proposal for the adaptation of their legislation specific to this law, saved in that in which the uniqueness of each entity does not require a different regulation.

First transitional provision Are common in the period of 12 months from the entry into force of the present law, will have to adapt their laws to the same homogeneous and create the appropriate figures in order to ensure the control functions provided for in this law.

However, for the elaboration of projects of communal budget for the financial year 1998 and in case of not approved the Ordinances mentioned in the previous paragraph, the Commons must conform to the following procedure: 1. the plenary of the Common Council discusses and approves the budget.

2. The draft budgets of the budget Decree proposal articulated contains text and the United States of income and expenses that will be adjusted to the economic classification defined in article 18 of this law.

3. With the presentation of the draft budget were also attached the following documents: A report explaining that justify the most important changes compared to the previous budget and especially if this is the case, the need for new borrowing, specifying the characteristics and modalities.

Any other information deemed convenient second transitional provision all the facts, acts or procedures that are in course of realization on the day of entry into force of this law shall be governed by the previous legislation.

Excepts the rules of this law relating to prescription and on sanctions in all that is more favorable to administered.

Repealing only abolishes the general law on public finance, approved by the General Council on December 2, 1983 and, in general, with the rank of law or rules that are opposed to the contents of the present law.

Single final provision this law shall enter into force on the day of its publication in the official bulletin of the Principality of Andorra.

Casa de la Vall, 19 December 1996 Josep Dallerès Codina, General Syndic 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