General Budget Of The National Administration Period 1999 - Its Approval - Promulgation - Full Text Of The Norm


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image inicio sitio infoleg MInisterio de Justicia y Derechos Humanos
BUDGET Decree 1507/98

Bs. As., 24/12/98

VISTO Draft Law No. 25.064 on the Budget of the National Administration for the Exercise of 1999, sanctioned by the HONORABLE CONGRESS OF NATION on 7 December 1998 and


That the aforementioned Bill constitutes one of the fundamental instruments of the economic and fiscal policy of the NATIONAL GOVERNMENT.

That in the formulation of the 1999 Budget Project, more efficiency has been envisaged in the allocation of resources applied to meet the needs of society within a context of containment of public expenditure, reduction of fiscal deficit and fulfilment of the obligations assumed by the Nation.

That special consideration has also been given to the impact of the crisis on international markets whose consequences have an impact on the perception of planned resources.

As the intention of the NATIONAL EXECUTIVE PODER to comply with what was expressed in the previous considerations, it is appropriate to observe certain rules of the Bill that depart from those basic premises.

That article 1, second paragraph, provides for a reinforcement of the provisions set by that article for the jurisdictions and entities detailed in Table No. 23, annexed thereto. These reassignments include a reinforcement of CIEN MILLONES OF PESOS ($ 100,000.000) for National Universities funded with a similar reduction in the credits of the MINISTERY OF CULTURE and EDUCATION.

In the light of the reduction of the budgetary provisions of the Ministry, the aforementioned Planilla No. 23 determines that the same should be carried out without affecting the provisions for Programmes 29, 33 and 37 of that jurisdiction.

That the amount of these Programs reaches almost CIENTA (40 per cent) of the total credit allocated to MINISTERY OF CULTURE and EDUCATION, which would prevent the appropriate reassignment without affecting other activities of significant importance for the development of the functions and the fulfilment of the objectives of that Ministry.

On the basis of the above, it is necessary to observe the non-involvement provided for in Table No. 23 annexed to article 1, cont. of the Draft Law in the part of the MINISTERY OF CULTURE AND EDUCATION.

Article 13 in its second paragraph assigns the sum of PESOS MILLIONS ($2,000.000) for the operation of the National School of Nauticals, the National Fluvial School and the National Fisheries School, providing that this amount is funded by the compensation of the credits for the MINISTERIO DEFENSA.

Notwithstanding the appropriate reasons that have justified the budgetary reinforcement for such establishments, in the absence of any additional financing for such destination, their attention through the redistribution of the credits of the DEFENSA MINISTERIO would affect their operational functioning and the investment projects evaluated as a priority within a framework of the defence policy for 1999, which is why the observation of the second paragraph of Article 13 of the Project is deemed necessary.

That article 28 of the Project, referring to the allocation of grants to the area distributors in order to apply the differential rates to the residential consumers of gas, in their different forms, of the provinces located in the Patagonian region, states in the last paragraph that the credits for these subsidies should be increased by the NATIONAL EXECUTIVE PODER to the extent necessary to maintain the tariff level resulting from the provisions.

That the additional amount to maintain the tariff level is undetermined and is not included within the totals approved by Article 1 of the Bill, which would result in an increase in the estimated deficit not compatible with the political decision to keep it unchangeable.

That the provisions of art. 29 would increase the negative financial result, estimated in Art. 4 of the Project, in approximately CUARENTA AND DOS MILLONES OF PESOS ($ 42,000.000).

Article 36 of the Project establishes the extension until 31 December 1999 of the regimes established in the Nros Acts. 22.021, 22.702 and 22,973 and their amendments to approve new non-industrial projects in the Provinces of La Rioja, Catamarca, San Juan and San Luis. It also incorporates into the regime of Law No. 22.021 some departments of the Province of Mendoza, the Provinces of Santiago del Estero, Formosa, Salta, Jujuy, Tucumán, Chaco, Corrientes, Misiones and some departments of the Province of Córdoba, for a total amount of SIETE MILLONES DE PESOS ($ 70,000).

That the granting of non-industrial promotion regimes for the Provinces of Catamarca, La Rioja, San Juan and San Luis included in the NATIONAL EXECUTIVE PODER project sent to the HONORABLE CONGRESS OF NATION by Message of the JEFE OF GABINETE DE MINISTROS, was sustained in the treatment given to those provinces reached by the Historical Reparation.

That the incorporation of other Provinces and some departments of the Provinces of Córdoba and Mendoza as well as the amount of UN MILLON DE PESOS ($ 1,000,000) for regions of different provinces of the country with high poverty index, lower relative development and greater distance from the major consumption centers, will lead to a significant decrease in the estimated tax resources for the year 1999, as well as a similar effect in the future financial periods, which will require the PODER On the basis of the above, it is necessary to comment on the fourth, fifth, sixth and tenth paragraphs of article 36 of the draft.

That article 38 of the Project sets the annual quota referred to in article 3 of Law No. 22,317, establishing its administration in equal and independent parts by the MINISTERIES OF CULTURE AND EDUCATION, WORKING AND SOCIAL SECURITY, and by the SECRETARIAT OF THE SMALL AND MEDIA EMPRESS OF NATION PRESIDENCE.

That the aforementioned article incorporates as a third paragraph the transfer for the year 1999 of the annual quota allocated to the aforementioned Secretariat for 1998 by article 35 of Act No. 24,938, also providing for the replacement of article 4 of Act No. 22,317.

That the determination of tax quotas is of an annual nature because it is included in the provisions of the respective Budget Laws which are valid for such a period of time, setting a surplus not advisable from the point of view of a healthy fiscal policy, the transfer of unused quotas.

The same article also includes the substitution of article 4 of Act No. 22,317 which was already replaced by article 35 of Act No. 24,938, establishing a mechanism of allocation based on the costs of approved courses that are intended to train the Small and Medium-sized Enterprise and to determine a ceiling of the OCHO per SCIENTO (8%) of the total sum of salaries and remuneration generally paid to the staff of small establishments. This substitution replaces the percentage determined in Act No. 24,938 of the OCHO POR MIL (8%), establishing a special treatment for such companies that is incompatible with the rest of those covered by the Law. At the same time, the 1998 and 1999 replacement exercises would be nominated, which would not correspond to a law that determines the procedure for tax credit schemes for implementing business establishments for the duration of their application. Based on the above considerations, it is considered appropriate to note the third and fourth paragraphs of article 38 of the Draft.

Article 46 of the Project provides that within the provisions approved by Article 1 there shall be OCHO MILLONES OF PESOS ($8,000.000) for the payment of the assets for the year 1999 of the beneficiaries of Law No. 24,892.

That the Schedule No. 23 annexed to Article 1 also determines, within the increases to the budget provisions, a reinforcement of the same amount and with the same destination as that provided for in Article 46 of the Project.

It is considered necessary to observe article 46 of the Project in order to avoid duplication of the reinforcement.

That article 58 of the Project on the fate of the sale of movable and immovable property belonging to the private domain of the Nation, assigned in use to the Armed Forces, provides for that purpose the annual sum of PESOS MILLONES ($ 200,000) during the 1999-2003 period.

That the determination of the above amount for the entire quinquennium creates a situation of rigidity in the formulation of the budgets for the periods of that period which may be incompatible with the fiscal goals set for them, which is why it is considered appropriate to observe the phrase "for the period 1999-2003" referred to by the In-fine part of the first paragraph of this article.

Article 65 of the Project provides for increases in budgetary provisions, with contributions from the NATIONAL TESORO to attend to various Programs by the jurisdictions and entities of the National Administration, for a total amount of DIECINUEVE MILLONES CINCUENTA MIL PESOS ($ 19.050,000).

That the incorporation of this amount will increase the negative financial result provided for in Article 4 of the Project by determining that its attention will be made with inputs from the NATIONAL TESORO, or otherwise it will bring an equivalent defundation to other parts of the budget for the year 1999.

On the other hand, article 38 of Act No. 24.156 provides that any Act authorizing expenses not provided for in the General Budget shall specify the sources of resources to be used for its financing.

While Article 65 of the Project states that the expected increase will be met with contributions from the NATIONAL TESORO, these are fully allocated to meet the costs approved by Article 1 of the Project with that source of financing.

That the statement has also been reaffirmed by Act No. 24,629, which stipulates in article 5, that any law which authorizes or provides expenses shall expressly provide for the financing of the same, and its execution is suspended until the corresponding provisions are included in the budget.

The observation of article 65 of the Bill is advisable on the basis of the above considerations.

That the second paragraph of Article 66 of the Project provides for a transfer of VEINTE MILLONES DE PESOS ($ 20,000) to Subjurisdiction 20-08 - with an equal impact on the rest of the credits of Jurisdiction 20 - Presidency of the Nation, which will prevent the fulfillment of the objectives and goals of each of the budget programs in the remaining subjurisdictions of the area, for the second paragraph.

That article 68 of the Project extends the scope of article 25 of the same to the contracting of the works indicated in the grid annexed to that article.

That according to the amounts projected to accrue in the 1999-2001 triennium, which in its entirety reach only OCHENTA MIL PESOS ($ 80,000) it is inferred that the works included will have just the beginning of the year 2002, which would be conditional on the formulation of the budget of that year in significant amounts without taking into account the resources that should be affected for their financing.

That the principle of prudence in the budget administration is advisable to consider the feasibility of these works in an opportunity to analyse the allocation of resources for the budget. Based on the above, it is necessary to observe article 68.

That article 71 of the Project empowers the National Gas Regulatory Entity (ENARGAS) to create delegations in different cities of the National Territory, authorizing it to increase the corresponding items in an amount of up to NOVTA MIL PESOS ($ 490,000).

That article 15 of the Bill determines the powers to provide for extensions in budgetary credits financed with increases in the resources of its own, which is why article 71 of the Project would be redundant.

The observation of article 71 of the Project is advisable.

That article 72 of the Project establishes a reallocation of the budget of the SECRETARIAT OF CULTURE of the NATION PRESIDENCE in the amount of THREE MILLONES TREINTA MIL PESOS ($ 3,030.000) to finance different programmes by the SUBSECRETARIA DE CULTURA under the aforementioned Secretariat.

That the budget of the SECRETARIAT OF CULTURA was prepared within the framework of the Federal Council, in accordance with the requirements of the provinces through its cultural authorities and in absolute concordance and budgetary restriction set for the National Civil Service, so any reduction in the provinces would imply the impossibility of meeting the budget targets set.

On the other hand, the reassignment of the budgetary credits provided for in this article, while adhering to the framework of cultural activities of no doubt, involves the simultaneous and proportional disfinancing of the actions and programmes carried out by the SECRETARIA DE CULTURA, which merited at their time a thoughtful prioritization from the point of view of the cultural policy considered at the time of the preparation of the budget, is advisable.

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.




Article 1 - Note in Table No. 23, annexed to article 1, cont. of the Bill registered under No. 25.064, the reference: "(*) (Without affecting the headings for Prog. 29, 33 and 37 of the Ministry of Culture and Education)". Art. 2° - Note the second paragraph of Article 13 of the Bill registered under No. 25.064. Art. 3° - Note article 28, paragraph 3, of the Bill registered under paragraph 25.064. Art. 4° - Please note the fourth, fifth, sixth and tenth paragraphs of article 36 of the Bill registered under paragraph 25.064. Art. 5° - Note the third and fourth paragraphs of article 38 of the Bill registered under No. 25.064. Art. 6° - Please note articles 29 and 46 of Bill No. 25.064. Art. 7° - Note in the In-fine part of the first paragraph of Article 58 the phrase "for the five-year period 1999-2003". Art. 8° - Note in full the articles Nros. 65, 68, 71 and 72 and the second paragraph of article 66 of the Bill registered under No. 25.064. Art. 9° - With the salvedades set out in the preceding articles, please fill in, promute and tengase by the National Act the Bill registered under No. 25.064. Art. 10. - Note the HONORABLE CONGRESS OF NATION. Art. 11. - Contact, post, give to the National Directorate of the Official Register and archvese. - MENEM. - Jorge A. Rodriguez. - Roque B. Fernández. - Jorge M. R. Domínguez. - Raúl E. Granillo Ocampo. - Alberto J. Mazza. - Guido J. Di Tella. - Susana B. Decibe. - Antonio E. González.