BUDGET Decree 1040/95

Bs. As., 29/12/95

VISTO Draft Law No. 24,624 on the Budget of the National Customs for the Exercise of 1996, sanctioned by the HONORABLE CONGRESS OF NATION on 28 December 1995, and

CONSIDERING:

That the above-mentioned Bill constitutes a fundamental element of the fiscal and economic policy of the National Government and that the principle of budgetary balance estimated in its article 4° acquires the character of a priority objective that will govern the management of the National Public Sector during the year 1996.

The intention of the NATIONAL EXECUTIVE PODER to comply with that objective is to observe certain rules of the Bill.

Article 16, in its part in fine, states that any debt cancellation for residual entities and already privatized companies shall be carried out exclusively through the delivery of Weight Consolidation Bonuses.

That such determination modifies the criterion under Article 7 of Law No. 23.982 which establishes the priority order to pay the consolidated cash debts.

That the application of the above-mentioned authority represents for creditors of such entities and companies, the coercive imposition of the procedure for obtaining their claims, which is contrary to the provisions of Act No. 23,982, which is why their observation is deemed necessary.

While the second paragraph of article 19 of the Project contemplates the original wording of the one sent by the NATIONAL EXECUTIVE PODER, it has been noted that the enumeration of jurisdictions and entities included in the draft article 19 is already contemplated in the first paragraph of article 19 of the Project and that the mention of the MUNICIPALITY of the CIUDAD DE BUENOS AIRES, attentive to its autonomy, should not be incorporated. On the basis of the above, it is considered necessary to observe the second paragraph of article 19 of the Project.

Article 22 of the Project states that the cancellation of consolidated debts referred to in article 7 (d), (e), (f), (g) and (h) of Act No. 23,982 shall be effected solely by the delivery of US pesos or dollars.

That also the mentioned article 22 of the Project provides that the SECRETARIAT OF HACIENDA will only give way to the requests for the cancellation in cash of Consolidated Debt provided for in subparagraphs (b) and (c) of Article 7 of the aforementioned Law, for up to an amount of UN MIL QUINIENTS SESENTA PESOS ($ l.560) and DIEZ MIL PESOS $ 10,000, respectively, being paid in case of surplus

Notwithstanding the fact that article 22 was included by the NATIONAL EXECUTIVE POWER in the Draft Budget sent to the HONORABLE CONGRESS OF NATION, it has been noted that its provisions modify the criterion under Act No. 23,982 which gives the creditor the option to receive its cash accretions in accordance with the priority order set out in article 7 of the Code. It is advisable to observe this article.

Article 31 of the Project determines that the sums collected for the Special Tobacco Fund shall be distributed in full between the tobacco producing provinces in proportion to the value of the respective provincial productions, and the social works Ostra and Ospid in the percentage of 0.35 % in accordance with Law 19.800 and modifiers.

That Act No. 24.291 restored the validity of Act No. 19,800 and certain amendments thereto. These provisions state that out of the total amount collected 80% is distributed between the tobacco-producing provinces and the remaining 20% for the financing of plans or actions listed in article 29 of Act No. 19.800 as amended by section 3 of Act No. 24.291.

That, on the basis of the above, and in view of the fact that it is appropriate to maintain the substantive legislation relating to the tobacco activities of the country, it is necessary to observe article 31 of the Project.

That article 49 of the Project modifies various budget items 1996. In the in fine part of the Subparagraph (e) the transfer of PESOS MILLONES ($ 2,000,000) to the University of La Plata, Area Health and in subparagraph (g) the sum of UN MILLON QUINIENTOS MIL PESOS ($ 1,500,000) for the Subparagraph 3 of the Decentralized Agency 001 Auditoria General de la Nación, with the 91 credits of the Jurisdiction

That the lack of precision in relation to the financing of the transfers agreed upon by the failure to determine the programmatic category or the respective budget lines of Jurisdiction 91 that should be affected, violates the provisions of article 28 of Law No. 24.156, and therefore observes the in fine part of Subparagraph (e) and Subparagraph (g); of Article 49 of the Project.

That article 51 of the Draft Reestablishes for the Exercise of 1996, the regimes laid down by the Nros Acts. 22.021, 22.702, 22.973 and its modifications for the approval of new non-industrial projects in the provinces of Rioja, Catamarca and San Juan.

That the aforementioned article 51 of the Project also incorporates into the regime of Law No. 22.021 the province of San Luis and some departments of the province of Mendoza in an amount of UN MILLON DOSCIENTA MIL PESOS ($ 1.250.000) for each. In addition, forest projects provide promotional benefits to the province of Tucumán, the provinces of NAO and the province of La Pampa for a total amount of SIETE MILLONES DOSCIENTOS MIL PESOS ($ 7,200,000).

That while the restoration of non-industrial promotion regimes for the Provinces of Catamarca and La Rioja were included in a supplementary message sent to the HONORABLE CONGRESS OF NATION by the NATIONAL EXECUTIVE PODER, the addition of the Province of San Juan can be based on the need to maintain an equal treatment for those provinces reached by the Historical Reparation.

That the incorporation of the Province of San Luis, of some departments of the Province of Mendoza, of the Province of Tucumán, of the Provinces of NOA and of the Province of La Pampa, referred to in fine part of the first paragraph and the second paragraph of Article 51 of the Project, will lead to a decrease in the estimated tax resources for 1996, which will force the NACIONAL EXECUTIVE PODER to obtain alternative sources of financing for a given non-budgetary purpose. Based on the above, it is necessary to observe the in fine part of the first paragraph and the second paragraph of article 51 of the Project.

That article 52 of the Project provides that the amount of public credit operations referred to in article 31 of Act No. 24.307 and article 7 of Act No. 24.447 on the re-equipment of the Armed and Security Forces, which was not effected as at 31 December 1995, shall be considered as an authorized amount for its completion during the period 1996. The NATIONAL EXECUTIVE PODER is also authorized to access the Public Credit until the sum of NOVENTA and CINCO MILLONES TRESCIENTA AND CINCO MIL PESOS ($ 95,365,000) with the same destination, in detail in the annexed table of the article.

The same article empowers the Armed Forces ' General Staff with regard to the mobility of their civilian personnel ' s structures and civilian teaching staff hours, and to maintain an annual level not exceeding the 15,000 military personnel, 3,000 for the Navy and 2,000 for the Air Force.

In addition, article 52 of the Project authorizes, within the jurisdiction 45 - Subjurisdiction 23 - Programme 18 (supporting national air activity), to transfer to paragraphs 2 and 3 the funds provided for in paragraph 4 to the extent and opportunity that best serve the service.

That the authorization to access public credit and to use the remaining amount approved by article 31 of Law No. 24.307 and 7 of Law No. 24.447 for the re-equipment of the Armed and Security Forces alters the principle of budgetary balance set out in article 4 of the Project.

That the authority granted to transfer credits in paragraph 4 - Goods of Use to Current Expenditures under Program 18 of Jurisdiction 45 - Subjurisdiction 23 violates the provisions of Act No. 24.156 on the prohibition of transferring Capital Expenditures to Current Expenditures. Two priority projects such as Iguazú and Bariloche airports covered by Programme 18 Support for national air activity could also be discontinued.

On the other hand, the authorization to the General Staff of the Armed Forces to give mobility to the structure of the civil staff positions and teaching staff chair hours, and to maintain an annual level not exceeding 20,000 actual volunteer soldiers, sets a precedent not compatible with the criterion that is the HONORABLE CONGRESS of the NATION that determines the staff and chair hours of all the National Entities.

On the basis of the above grounds, it is considered necessary to observe article 52 of the Draft.

Article 54 of the Draft provides that the integration of the monthly minimum contribution guaranteed by article 3 of Decree 292 of 14 August 1995 as amended by Decree 492 of 22 September 1995 shall be automatically effected through the ANSSAL, with information provided by the DGI, to that end.

That the legislation in force provides that the integration of the guaranteed minimum monthly quote is automatically effected through the Bank of the Argentine Nation under the ANSSAL headings with the information provided by the DGI for this purpose. This instrumentation allows to expedite the transfer of funds to the beneficiaries through a banking entity with the experience of such procedures.

On the basis of the above grounds, it is considered necessary to observe article 52 of the Draft.

Article 54 of the Draft provides that the integration of the monthly minimum contribution guaranteed by article 3 of Decree 292 of 14 August 1995 as amended by Decree 492 of 22 September 1995 shall be automatically effected through the ANSSAL, with information provided by the DGI, to that end.

That the legislation in force provides that the integration of the guaranteed minimum monthly quote is automatically effected through the Bank of the Argentine Nation under the ANSSAL headings with the information provided by the DGI for this purpose. This instrumentation allows to expedite the transfer of funds to the beneficiaries through a banking entity with the experience of such procedures.

On the basis of the above considerations, it is considered appropriate to observe article 54 of the Draft.

That article 55 of the Project determines that the value of the monthly contribution guaranteed under article 3 of Decree 492 of 22 September 1995 is set at CUARENTA PESOS ($ 40) per worker, which may be amended according to the provisions of the National Budget.

That Decree 492/95 already establishes the worker ' s guarantee referred to in article 54 of the draft.

On the other hand, the current procedure for modifying this amount is reserved for joint resolution between the MINISTERIES OF ECONOMY, ARTWS AND PUBLIC SERVICES, HEALTH and SOCIAL ACTION, and WORK AND SOCIAL SECURITY.

Article 55 of the Project establishes a new criterion for the modification of the value of the monthly quote by reserving it to the scope of the National Budget.

That the proposed amendment would detract from the flexibility of future modifications that are proposed, which advises the observation of article 55 of the Project.

That article 59 of the Project, in its final part, incorporates into Law No. 11.672, COMPLEMENTARY PERMANENT OF BUDGET (t. o.1995) articles 39, 42, 45 and 46 of Law No. 24.447 (General Budget of the National Administration for 1995).

That articles 39, 45 and 46 proposed for incorporation refer to provisions in force exclusively for the 1995 Exercise, and article 42 amends the Nros Acts. 18,904 and 2,080 are already added to the laws of origin. Based on the above, it is estimated that the incorporation of the articles of Act No. 24,447 listed above should be observed.

That the measures proposed do not alter the spirit or unity of the Project sanctioned by the HONORABLE CONGRESS OF NATION.

That the NATIONAL EXECUTIVE PODER has competence for the dictation of the present pursuant to article 80 of the NATIONAL CONSTITUTION.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION IN GENERAL AGREEMENT OF MINISTERS

RIGHT:

Article 1 la Note the in fine part of the last paragraph of Article 16 of the Law Bill registered under No. 24.624, which reads: "All debt cancellation will be made exclusively by the delivery of Weight Consolidation Bonuses".

Art. 2° el Please note the second paragraph of Article 19 of the Draft Law registered under No. 24,624, which states: "The provisions of this article are applicable to any kind of account or registration on behalf of the National State or any of its agencies or units of the LEGISLATIVE PODER, JUDICIAL PODER, EXECUTIVE PODER, THE GENERAL AUDITORY OF THE NATION, THE DEFENSORY OF THE PUBLMINATION and the MINATION NATIONAL centralized and decentralised, autarchical entities and MUNICIPALITY OF THE CIUDAD OF GOOD AIRES".

Art. 3rd . Note in full article 22 of the Bill registered under e1 No. 24.624.

Art. 4° . Note in full article 31 of the Bill registered under No. 24,624.

Art. 5° ". Note the in fine part of Article 49(e) of the Bill registered under No. 24.624, which reads: "DOS MILLONES DE PESOS ($2,000.000) to the University of La Plata, Area Health".

Art. 6° ". Note Article 49(g) of the Bill registered under No. 24,624, which reads: "Transfer from Jurisdiction 91 the sum of UN MILLON QUINIENTS MIL PESOS ($ 1,500,000) to paragraph 3 of the Decentralized Agency 001."

Art. 7° el Note in the first paragraph and the second paragraph of Article 51 of the Draft Law registered under No. 24,624 that say: "Incorporate the Regime of Law No. 22,021 and its amendments in the terms and with the same scope exclusively to the arid areas of 105 departments Lavalle, Santa Rosa and La Paz of the Province of Mendoza, corresponding to the sum of UN MILLON DOSCIENTOS. It is incorporated in the same conditions and amounts established for the departments of Mendoza to the Province of San Luis in investments in tourist activities exclusively".

"Enter into the same conditions and for the following amounts, for forest activities exclusively to the Province of Tucumán in the sum of TRES MILLONES DE PESOS ($ 3 000.000), to the remaining provinces of the NOA, distributed equally, the sum of THREE MILLONES OF PESOS ($ 3,000.000); and to the Province of La Pampa in the sum of UN MIOSLLON 1.

Art. 8° . Note in its entirety article 52 of the Bill registered under No. 24,624.

Art. 9° . Note in full article 54 of the Bill registered under No. 24,624.

Art. 10. . Note in full article 55 of the Bill registered under No. 24,624.

Art. 11. ". Note in article 59 of the Bill registered under No. 24,624: "and articles 39, 42, 45 and 46 of Law 24,447."

Art. 12. . With the salvedades set out in the preceding articles, please fill in, promute and tengase by National Law the Bill registered with No. 24,624.

Art. 13. . Note the HONORABLE CONGRESS OF NATION.

Art. 14. . Communicate, publish, give to the National Directorate of the Official Register and archvese. . MENEM. . Eduardo Bauzá. . Domingo F. Cavallo. . Alberto J. Mazza. Guido Di Tella. . Oscar H. Camilión. Rodolfo C. Barra. . Carlos V. Corach. . Jorge A. Rodriguez. . José A. Caro Figueroa.