BUDGET AND FINANCES Decree 1014/95 Permanent Forum on Budget and Finance Directorates of the Argentine Republic. Adher to the objectives stated in its constituent rules of procedure.

Bs. As., 7/7/95

VISTO, the constitution of the PERMANENT FORUM OF BUDGET DIRECTIONS AND FINANCIALS OF THE REPUBLIC ARGENTINA as an area of inter-jurisdictional budgetary coordination, and

CONSIDERING:

That strengthening this area of inter-jurisdictional fiscal coordination contributes to raising the quality of the financial administration and, in particular, budgetary management across the Argentine Public Sector.

That the economic stability achieved is mainly based on fiscal balance, and this is part of efficient budgetary management.

It is necessary to improve the effectiveness and efficiency of public spending.

That the objectives formulated by the PERMANENT FORUM OF BUDGET DIRECTIONS AND FINANCIALS OF THE REPUBLIC ARGENTINA are consistent with the Financial Management Systems Reform promoted by National Authorities.

That the Fiscal Federalism entails a necessary exchange of information that allows for the coordination, mutual assistance and complementarity of public policies.

That the present decree is issued in accordance with the Financial Administration Act No. 24.156 in its Article 17(i) and in the use of the powers conferred by Article 99(1) of the National Constitution.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 . Adher to the objectives stated in the rules of procedure for the PERMANENT FORUM OF BUDGET DIRECTIONS AND FINANCIALS OF THE ARGENTINA REPUBLIC, which is incorporated as an Annex to this decree in authenticated photocopy.

Art. 2o . Authorize the organic participation of the SECRETARIAT OF HACIENDA under the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES through the National Budget Office and the National Fiscal Coordination Directorate with the Provinces in the said agency.

Art. 3o . Facusltase the SECRETARIAT OF HACIENDA of the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES to provide the necessary means to make this participation effective.

Art. 4o . Communicate, publish, give to the National Directorate of the Official Register and archvese. . MENEM. . Domingo F. Cavallo. . José A. Caro Figueroa.

Annex

REGULATION OF THE PERMANENT FORUM OF BUDGET DIRECTIONS AND FINANCIALS OF THE ARGENTINA REPUBLIC

ARTICLE 1: The Permanent Forum of Budget and Finance Directions is an association formed by the Directorates of Budget and Finance of the Provinces and the Municipality of the City of Buenos Aires or the technical agencies that do their times, by the National Budget Office and the National Directorate of Fiscal Coordination with the Provinces as founding members.

ARTICLE 2: The municipalities of the provinces may form part of the Forum referred to in these regulations as adhering members, in the form and conditions established by the Executive Committee of the same.

ARTICLE 3: The Permanent Forum on Budget and Finance Directions aims to:

1. To establish the scope of research and dissemination of technical knowledge in the field of Public Budget.

2. Promote the hierarchy of the budget system, revaluing its use as a management tool and as a means of promoting the administrative reform of the state.

3. Promote a fluid link between the areas of Budget and Finance with those of Public Policy Planning and Control.

4. Promote the development and implementation of the most appropriate budgetary techniques for the implementation of policies and action plans, defining public management goals and indicators.

5. Promote effective monitoring and evaluation of budget implementation through tools such as efficiency indicators and decision-making reports.

6. To promote the consolidation of fiscal information and its articulation with that of an economic and social nature, in order to integrate them into managerial analytical reports.

7. To promote a fluid fiscal relationship between the Provinces and the Municipality of the City of Buenos Aires and those with the Nation, ensuring the exchange of general guidelines, criteria and methodologies used in the different stages of the budget process.

8. Promote effective fiscal coordination between municipalities and municipalities with the Provincial State, supporting the financial reform of the sector and the improvement of community information systems.

9. Promote actions to raise awareness at all levels of the public administration on the need for the implementation of the objectives and targets set out in the budget.

10. To promote the dissemination and knowledge of the importance of the Public Budget in the different stages of the State and in the general public.

11. To promote the technical and computer development of financial management systems, as well as the training of agents who are part of them; in order to ensure the proper implementation and development of technical reforms related to the area.

12. Promote a smooth interrelationship with public financial administration agencies and systems.

ARTICLE 4: Natural representatives to the Permanent Forum on Budget and Finance Directorates are the holders of the agencies established in Article 1 who may expressly delegate their representation.

ARTICLE 5o: The administrative headquarters of the Forum shall be established annually in the Province, or in its case the City of Buenos Aires, in which the President of the Executive Committee exercises his functions.

ARTICLE 6: The Permanent Forum has the following powers and obligations:

1. Approve annual memory.

2. Designate the Executive Committee Authorities.

3. Adopt guidelines and work guidelines to achieve the objectives of the Forum.

4. To meet at least twice in regular form in the annual period and appoint a president and a secretary to preside over the deliberations.

5. Adopt the constitution and modifications of areas or regions.

6. Self-convoke at least eight (8) members.

7. Authorize the Executive Committee to conclude agreements with public and private agencies and/or entities, prior to expressing conformity with the absolute majority of the members.

ARTICLE 7: The Permanent Forum, in its capacity as a sovereign organ, will validly session with half plus one of the representatives defined in Article 4o and will resolve by absolute majority of the present, corresponding one vote for each representative and, in the event of a tie, the president of the Forum will have double vote.

ARTICLE 8: The Permanent Forum shall meet at the time when it is determined by the Executive Committee or at the request of a minimum of eight (8) members that integrate it, in each case indicating place, date, time and order of the day for the respective meeting.

ARTICLE 9: The executive body of the Forum will be in charge of an Executive Committee consisting of a chairman, a vice president, a secretary and five members. If the number of areas or regions is changed, the number of vowels will be adjusted.

The same will validly session with half plus one of its components and resolve by absolute majority of the present, corresponding one vote for each member and, in case of tie, the president will have double vote.

ARTICLE 10: The coordinators of each of the six regions referred to in Article 11 and the representatives of the National Budget Office and the National Tax Coordination Directorate with the Provinces will be natural members of the Executive Committee.

ARTICLE 11: For the purposes of the application of these regulations are the following regions, with the integration indicated in each case:

Northwest region: Jujuy, Salta, Tucumán, Catamarca, Córdoba.

Northeast region: Formosa, Chaco, Santiago del Estero, Santa Fe.

Mesopotámica region: Missions, Corrientes, Entre Ríos.

Region of Cuyo: San Luis, San Juan, La Rioja, Mendoza.

Patagonica Region: Tierra del Fuego, Santa Cruz, Chubut, Río Negro, Neuquén.

Pampeana Region: City of Buenos Aires, La Pampa, Buenos Aires.

Article 12: The Executive Committee has the following powers and obligations:

(a) Dictate your internal operating regulations and establish areas of work.

(b) To execute the acts entrusted by the Permanent Forum.

(c) To coordinate with the authorities of the last plenary the dissemination of the resolutions, recommendations and communications thereof.

(d) Convening meetings of the Permanent Forum.

(e) Make the decisions taken.

(f) Exercising their representation in all the actions entrusted to public agencies and private entities.

(g) To resolve cases of urgency, ad referendum of the Plenary.

(h) Coordinate relations with universities, national or foreign agencies, representatives of the Public Power and organizations in the areas of the Financial Management System.

(i) To consider the work programmes of the members.

(j) Prepare all backgrounds and information for the realization of the General Plenarys by coordinating the task with the participating members.

(k) To inform the members of the decisions taken in all that were of interest to them.

(l) Develop the annual memory.

(m) Implement the publication and dissemination of research, technical information and any other of general interest, linked to the budgetary system.

(n) Develop the necessary background and information to facilitate the organization of the various budget and finance directorates.

(o) Collect and order the recommendations and presentations adopted by the different Plenarys of Budget and Finance Directions.

(p) Maintain a permanent archive of documentary research relating to the scope of their actions, for consultation and dissemination among its members.

(q) Recept, classify and disseminate internal or external information documentation on the subject. To this end, the Budget and Finance Directorates will proceed to submit their opinions, resolutions, interpretations, presentations, case law, informative reviews, etc. that transcend the purely local sphere.

ARTICLE 13: Each region shall designate by a simple majority of votes its Regional Coordinator, who shall be part of the Executive Committee referred to in Article 9o.

ARTICLE 14: The members of the Executive Committee shall occupy the positions referred to in article 9 according to the election made in a plenary of the representatives corresponding to the provisions of articles 1o, 4o and 7o.

ARTICLE 15o: The Regional Coordinators and the members of the Executive Committee shall last one year in their functions, starting from May 1 of the corresponding year, and may be re-elected. The election of the Regional Coordinators provided for in article 13 and the integration of the Executive Committee shall be made with the members present during the conduct of a plenary convened for the purpose by 15 April of each year.

Article 16: Regional Coordinators have the following powers and obligations:

(a) To inform the Provinces and the Municipality of the City of Buenos Aires, members of each Region, the decisions adopted by the Executive Committee.

(b) Centralize the proposals sent by the Provinces and the Municipality of the City of Buenos Aires as members of each Region.

(c) To agree with the Provinces and the Municipality of the City of Buenos Aires, members of each Region, the topics to be raised for consideration by the Permanent Forum, through the Executive Committee.

(d) Disseminate internal or external information documentation on the budget system.

(e) Carry out the other tasks entrusted to it by the Forum or the Executive Committee.

TRANSITORY CLAUSULATIONS

ARTICLE 17o: The first exercise for the Permanent Forum on Budget and Finance Directorates of the Argentine Republic concludes on 30 April 1995, with the following representatives appointed as Regional Coordinators:

Northwest region: Representative by Cordoba.

Northeast region: Representative by Santa Fe.

Mesopotámica Region: Representative of Entre Ríos.

Region of Cuyo: Representative by Mendoza.

Patagonica Region: Representative by Río Negro.

Pampeana Region: Representative for Buenos Aires.

Article 18: The Executive Committee is empowered to initiate the relevant procedures for the achievement of the Forum ' s Legal Personary and to propose to the Plenary the adequacies of this constituent act that may be necessary to that end.

ARTICLE 19o: The Forum will promote in the field of each Province, the Municipality of the City of Buenos Aires and the National Government the support for the operation of this agency through the corresponding legal standard.