National Public Administration Reduction Of Expenditure - Updated Standard

Original Language Title: ADMINISTRACION PUBLICA NACIONAL REDUCCION DEL GASTO - Texto actualizado de la norma

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image inicio sitio infoleg MInisterio de Justicia y Derechos Humanos

Decree 290/95

Reduction of public spending. Reforms to the Organic Charter of the Central Bank of the Argentine Republic. Monitoring and communication to Congress.

Bs. As., 27/2/95



That the financial situation of NATIONAL PUBLIC ADMINISTRATION stemming from the local impact of the crisis unleashed at the end of 1994 on international financial markets makes it necessary to adopt severe measures of exceptional application and immediate results in order to achieve its correction.

In order to act with extreme urgency not only on the situation but on its effects in the medium term, it is necessary to deepen and complete the scope of the measures taken in a timely manner in the area of control and reduction of public spending, including preventive measures.

In addition, in compliance with the general economic policy guidelines for the Public Sector, staff spending adjustment actions are required in order to provide efficient responses with the allocation of available resources, which requires modifications to the salary allocations of public sector staff in line with that purpose.

That in order to the stated situation, it is observed that, as a measure of transitory scope and of exception, a reduction in certain levels of remuneration of the staff of the Public Sector, ordered by virtue of the increased income they receive.

That the basic principles of equity and social justice require that the sacrifices implicit in the provisions of this rule be attained and uniform for all the powers of the State, including all staff recruited under any contractual typology used to formalize their relationship with the State.

It is essential to guarantee the public sector workers the perception of a decent wage that will enable them to respond to their basic requirements, which is why those wage groups of lesser amounts are exempted from this decree.

In the context of such austerity and cost reduction policy in the administration, it is advisable to produce a reduction in the provision for operating and investment costs of jurisdictions and entities.

That within the university principle of the budget enshrined in the provisions of Law No. 24,156, and in the framework of measures to control the expenditure and reordering of the Public Sector it is essential to contemplate the financial functioning of the "Cooperative entities" incorporating their resources and expenses to the General BUDGET OF NATIONAL ADMINISTRATION.

The need, as an essential measure to pave the situation, to reduce the erogations for extraordinary services when they are not required and financed by third parties, is noted.

Within the framework of the measures imposed by the present Decree, it is considered appropriate to reduce compensation for higher costs for officials covered by Decree No. 1840 of 10 October 1986.

In addition to reforms to reduce public sector expenditures to meet income forecasts, reforms needed to restore the normal functioning of the financial system should be addressed with similar urgency.

That according to Article 4(a) and (b) of its Organic Charter the BANCO CENTRAL OF THE ARGENTINA REPUBLIC must "regulate the amount of money and observe the evolution of credit in the economy", as well as "to avoid the good functioning of the financial market".

To that end, in the present circumstances, it must have the appropriate policy instruments to address the liquidity situation experienced by some financial entities due to the local impact of the crisis unleashed at the end of 1994 on international financial markets.

That a strict interpretation of the terms of articles 17 and 19 of its Organic Charter would lead to the conclusion that the governing body in monetary matters has inadequate limitations to restore the liquidity of the affected entities, as well as to facilitate the transfer of lender capacity among the entities of the system, in order to fully restore credit in the economy.

That is why it is urgent and necessary to take appropriate measures to increase and facilitate the flow of credit to the economy, in order to do so to give the BANCO CENTRAL OF THE ARGENTINA REPUBLIC of the tools leading to that end.

It would not be possible to expect in the present circumstances that the necessary regulatory amendments would be made following the regular procedures provided by the National Constitution for the sanction of the laws.

That the present measure is determined in general agreement of ministers, following the procedure set out in article 99 (3) of the National Constitution.





Reduction of public expenditure

Article 1
(Article derogated by art. 1 Decree No. 1421/97 B.O. 30/12/1997 from 1/1/1998. Note: By art. 1 Decree No. 1/98 B.O. 6/1/1998 excludes from the provisions of Decree No. 1421/97 officials with ranks not less than Assistant Secretary and the Higher Authorities of the Decentralized Agencies, who continue to be reached by article 4 of Decree No. 1085/96.) .

Art. 2o
(Article derogated by art. 1 Decree No. 1421/97 B.O. 30/12/1997 from 1/1/1998. Note: By art. 1 Decree No. 1/98 B.O. 6/1/1998 excludes from the provisions of Decree No. 1421/97 officials with ranks not less than Assistant Secretary and the Higher Authorities of the Decentralized Agencies, who continue to be reached by article 4 of Decree No. 1085/96.)

Art. 3o
. The application of the reductions referred to in the previous article shall in no case imply that the total retribution resulting from the agent is less than the minimum amount of the section in which it is understood.

Art. 4o
. A period of expiry of TREINTA (30) working judicial days will begin to run from the perception of reduced retribution in accordance with articles 1 and 2, so that public sector workers exercise judicially their rights. Any action or right against what is established in the present and its particular acts of execution shall be extinguished.

Provide for the irrecurribility of administrative headquarters by any means, of all acts that are taken or carried out as a result of the provisions of this decree.

(Article replaced by art. 1
Decree No. 398/1995 B.O. 27/3/1995).

Art. 5o
Las Retributions of staff recruited under the Decree No. 92 of 19 January 1995 or any other recruitment regime, as well as those of staff engaged in projects or technical cooperation programmes with bilateral and multilateral financing, shall be reduced in the same terms and with the scope provided for in Article 92. 2nd of the present decree.

In the event that the contract does not accept the reduction set within TEN (10) days, the contract will be terminated without further delay in the terms provided for in the contract, and this staff may not be recruited for the remainder of this fiscal year.

Also, those agents to whom the respective contract for reasons of any nature has been terminated may not be re-employed during the present period for a remuneration exceeding that set out in the contract terminated.

Art. 6o
El The current amount resulting from the application of the emerging provisions of art. 5th of Decree No. 1840 of 10 October 1986, shall be reduced by TEN per SCIENTI (10 %), with equal validity as provided for in Article 2 of this Decree.

Art. 7o
. Please note that the savings generated in the liquidation of the assets of the staff of the companies and companies of the State and of the official banking entities, as a result of the application of the reduction of the remuneration provided by articles 1 and 2o, shall be transferred to the NATIONAL TESORO on the same date on which the respective assets are paid to the staff.

Art. 8o
. Redeem the amount of the current credit for the main heading Transfers to national universities, of the MINISTERY OF CULTURA and EDUCATION in a DOS/CIENTO (2 %).

Facultase the MINISTERY OF CULTURE AND EDUCATION to modify the amounts of the credit distribution plan to national universities, approved by article 18 of Law No. 24,447, as a result of this reduction.

National universities should reduce from the liquidation of assets of the month of March 1995, the staff remuneration of their dependence to the amount resulting from the reduction.

Art. 9o
. The current provision under main heading 13 - Extraordinary services, in paragraph 1 - Staff costs, shall be reduced by a CINCUENTA BY CIENTO (50 %) except for the amounts charged to that provision for services required by third parties and whose financing is provided by them.

Please note from 1 March 1995, that those agents whose monthly, normal, regular and permanent gross retribution, excluding family allowances, exceeds the amount of SHIFT SHIRTS ($ 750) may not perform extraordinary services, except for services required by third parties.

(Note Infoleg: by art. 3° Decree No. 767/2016 B.O. 10/06/2016 it is established that the monthly, normal, regular and permanent gross retribution of the agents authorized to perform extraordinary services, with the exception of the services required by third parties, shall not exceed the amount of DOCE MIL OCHOCIENTS SESENTA AND DOS ($ 12.862), PESOS CATORCE MIL SENTA AND SEIS ($ 14.06QUIN) In order to determine this retribution the extraordinary degrees that could correspond to each affected agent, as well as the value of the Compensation by Zone, of the Added by Tramo in the cases and level of Tram that corresponds to the Transitory Compensations agreed by Act of the Negotiating Commission of the Collective Labour Convention of the National Public Employment System (SINEP) of January 29, 2011, approved by the Transitional DecreePrevious changes in the amount: Decree No. 811/2014 B.O. 19/6/2014; Decree No. 687/2013 B.O. 7/6/2013;Decree No. 923/2012 B.O. 22/6/2012; art. 3o Decree No. 836/2011 B.O. 22/06/2011; art. 3° Decree No. 1224/2010 B.O. 3/9/2010; art. 1st Decree No. 1042/2009 B.O. 10/08/2009; art. 1 Decree No. 115/2009 B.O. 19/2/2009; art. 1 Decree No. 1425/2008 B.O. 10/09/2008; art. 1 Decree No. 1244/2007 B.O. 19/9/2007; Decree No. 973/2006 B.O. 3/8/2006; art. 1 Decree No. 1213/2005 B.O. 29/9/2005; art. 3° Decree No. 1993/2004 B.O. 4/1/2005; art. 1 Decree No. 977/2004 B.O. 2/8/2004; and art. 1 Decree No. 704/97 B.O. 4/8/1997)

(Note Infoleg: exceptions to the limitations contained in the second paragraph of this article, See:
Decree No. 1058/95 B.O.13/2/1996; Decree No. 1061/95 B.O. 6/3/1996; Decree No. 408/97 B.O. 13/5/1997; Decree No. 646/97 B.O. 23/7/1997; Decree No. 605/98 B.O.28/5/1998.)

Art. 10.
. Please provide a reduction of the NATIONAL ADMINISTRATION ONCE (1%) on the existing provisions of the jurisdictions and entities of the NATIONAL ADMINISTRATION for the main headings 115 and 124 - Other staff costs in sub-paragraph 1 - Staff costs.

Art. 11.
. Current provisions in subparagraphs 2 - Consumer Goods and 3 - Non-Personal Services will be reduced by TEN per cent (10 per cent), and an additional 20 per cent (20 per cent) reduction in the current credit of the main heading 37 - passages and roads, with the exception of those corresponding to the IMPOSTITIVE GENERAL DIRECTION and NATIONAL ADMINISTRATION OF ADUANAS.

Art. 12.
. Disposed a reduction of the TREINTA BY SCIENTO (30 %) on the current credits of the main heading 43 - Machinery and equipment of subsection 4 - Goods of use.

Art. 13.
. Recover in a SIETE with CENTIFY CENTER (7.50 %) the current credits for subparagraph 5 - Transfers. Such a reduction may not affect the transfers detailed in the table annexed to this article.

Art. 14.
El The current provision of part 638 - Long-term loan to Multinational Public Enterprises, of Subparagraph 6 - Financial assets, of Jurisdiction 91 - OBLIGATIONS TO CARGO DEL TESORO ( loan to the Ente Binacional Yacyretá), must be reduced in the amount of USD 40,000.

Art. 15.
. Commend the SECRETARY-GENERAL of the NATIONAL PRESIDENCE, the elaboration of a proposal for the reduction of budgetary provisions, additional to those set out in the present decree, for a CINCUENTA CINCUENTA MILLONES DE PESOS ($ 150,000), which will originate in the decrease of operational costs resulting from the organizational restructuring of the PRESIDENCIA DE LA Such a plan should be submitted to the National Executive before 20 May 1995 for implementation as of 1 June 1995.

Art. 16.
. The surpluses of funds collected and to collect that occur as a result of the credits arranged, corresponding to the sources of financing 12 - Resources own and 13 - Resources with specific impact will enter the NATIONAL TESORO in NEW (9) monthly and consecutive fees, with maturity on the last working day of each month.

Art. 17.
. Let it be established that any increase in budgetary credits for the NATIONAL YACYRETA ENTER will be conditioned on the income of resources from the privatization or concession of the Yacyretá dam.

Art. 18.
. Please note that the resources and expenses of agreements concluded with "Eth Partners" shall be incorporated in all cases in the present fiscal year to the General BUDGET OF NATIONAL ADMINISTRATION. To that end, the MINISTERY OF JUSTICE will elevate to the SUBSECRETARIA DE BUDGETARY of the SECRETARIAT OF HACIENDA of the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES, within the TREINTA (30) days of the date of this decree, the relevant information for its concretion.

Art. 19.
. Let it be established that the authorization granted to the NATIONAL EXECUTIVE POWER by art. 7th Law No. 24,447, relating to public credit operations for the equipment of the Armed Forces and the Security Forces, may be specified only to the extent that such operations are financed by the credits of suppliers and/or financial entities to the satisfaction of the NATIONAL OF PUBLIC CREDITO, which do not imply the placement of negotiable public debt instruments or instruments in the capital market.

Art. 20.
de Suspense, from the date of publication of this decree, the subscription of financial assistance agreements to the provinces when they originate cash transfers from the General Treasury of the SECRETARIAT OF HACIENDA of the MINISTERY OF ECONOMY AND ARTWS AND SERVICES PUBLICS or the placement of bonds of the public debt of the National Treasury.

(Note Infoleg: for
Resolution No. 251/1995 of the Ministry of Finance B.O. 12/6/1995, it is clarified that the payment of the repayments of the bonds for the creation of private employment (bocep) created by Decrees No. 676/93 and 1499/94, issued from the 19th series, are not reached by the provisions of Article 20 of Decree No. 290/95, which provides that such payment shall be made with the funds financed by the provincial authorities.

Art. 21.
Las The authorities of the agencies responsible for administering the existing retirement and pension systems should establish, by 1 June 1995, the technical-administrative mechanisms necessary to avoid the execution of egresses outside the framework of existing legislation, especially for payments to deceased beneficiaries or multiple pensions or retirements.

From that date, such authorities shall be personally responsible under article 131 of Act No. 24,156, for failing to comply with these measures.

Art. 22.
. The holders of the administrative-financial services or the officials who do their times shall be directly responsible, within their competence, for strict compliance with the provisions contained in the present decree, subject to the expectation of considering them incorrectly and of having the instruction of administrative summary, with automatic suspension of office, giving intervention to the PROCURATION OF THE TESORO OF NATION if the hierarchy of the responsible so requires.

Art. 23.
La The General SINDICATURA OF THE NATION shall be responsible for the financial and fiscal provisions set out in this decree and shall report to the NATIONAL EXECUTIVE PODER on a monthly basis on the implementation of these provisions. The General Assembly of the Nation is also instructed to hear compliance with articles 7 and 16 and above.

Cases of non-compliance shall originate, by the NATIONAL SINDICATURA, the initiation of administrative or legal actions and the application of the penalties provided for in article 30 of Act No. 24,447 where appropriate.

Art. 24.
La HACIENDA SECRETARIAT OF THE MINISTERY OF ECONOMY AND ARTWORKS AND SERVICES PUBLICOS shall be the authority to implement the provisions of this decree and shall be entitled to make the appropriate adjustments in the budgets of the jurisdictions and entities of the NATIONAL ADMINISTRATION, up to the percentages and/or the amounts of reductions established and to dictate the corresponding clarification, interpretation and supplementary rules.

Art. 25.
. Facultase the NATIONAL EXECUTIVE POWER to leave the provisions of this decree completely or partially to the extent that they exceed the grounds that have given rise to the adoption of these measures.


Reforms to the Organic Charter of


Art. 26.
(Article repealed by Article 6 of the Act No. 24.485 B.O. 18/04/1995)

Art. 27.
(Article repealed by Article 6 of the Act No. 24.485 B.O. 18/04/1995)

Art. 28.
(Article repealed by Article 6 of the Act No. 24.485 B.O. 18/04/1995)

Art. 29.
(Article repealed by Article 6 of the Act No. 24.485 B.O. 18/04/1995)


Monitoring and communication to Congress

Art. 30.
. Defrost any provision that opposes the provisions of the present.

Art. 31.
El This decree of necessity and urgency will enter into force on the same day of its publication in the Official Gazette.

Art. 32.
. Note the HONORABLE CONGRESS OF NATION pursuant to article 99, paragraph 3 of the National Constitution.

Art. 33.
. Comuníques, Publíquese, give to the National Directorate of the Official Register and archívese. . MENEM. . Domingo F. Cavallo. . José A. Caro Figueroa. Guido Di Tella. . Jorge A. Rodrígez. . Carlos V. Corach. . Alberto J. Mazza. Rodolfo C. Barra.

(Note Infoleg: Decree ratified by art. 18 of the
Act No. 24624 Budget year 29/12/1995)



Current transfers

Conourbano and Provinces Fund (income tax)

Contributions to education (assets tax)

Contributions to the Federal Capital and Tierra del Fuego

Contributions to EMSA and Santa Cruz (Law No. 22.938 and 23.681)

Ministerio del Interior - Aportes A.T.N.

Ministry of the Interior - Election grant

Tobacco Special Fund

National Energy Fund

Contributions to national universities

Retirement and pension support

Gas grant

Convention with the Province of Tierra del Fuego

National Health Insurance Administration (ANSSAL)

National Social Security Administration (ANSeS)

Instituto Nacional de Servicios Sociales para Jubilados y Pensionados




















Capital transfers

Conourban Fund and Provinces (Income Tax)

National Housing Fund (FONAVI)

Road development in provinces (fuels tax)

Unified Fund (HIDRONOR)

Special Fund for Internal Electrical Development (FEDEI)

National Health Insurance Administration (ANSSAL)

Contributions to road dealers