I. No public servant of the entities falling within the scope of Articles 3, 4 and 5 of Law No 1178 of Government Administration and Control, whatever their institutional typology, may receive a monthly remuneration equal to or greater than that approved for the President of the Republic.

II. Irrespective of the source of funding, the maximum remuneration of the levels for a Minister of State, Deputy Minister and Director General, including the Old and Other Bonus, may not exceed the approved monthly remuneration. for the President of the Republic.

III. In decentralised, deconcentrated entities, public undertakings, and autarchic entities forming part of the Executive Branch, the remuneration limit of its maximum hierarchical level shall not be equal to or greater than that of a Minister of State, respecting the emerging rights by bonus of seniority, border bonus and other bonuses if they correspond, the overall sum of which must not equal or exceed the level of remuneration fixed for the President of the Republic.

IV. For the maximum executive authorities of the Office of the Prosecutor General of the Republic, National Electoral Court, Comptroller General of the Republic, Ombudsman, and Prefectures of the Department, the respective remuneration that includes the sum of their Bonds and other collateral shall not be equal to or greater than that set for the President of the Republic.

V. In the Central Bank of Bolivia and the Superintendence of Banks and Financial Entities, the respective remuneration of the maximum executive authorities, including the sum of their bonds and other collateral, shall not be equal to or greater than the fixed for the President of the Republic.

VI. In all public entities, remuneration scales will be applied in direct relation to the hierarchy of charges and within the budget ceiling approved for the institution, corresponding to the Maximum Executive Authority remuneration.

ARTICLE 4 (General Budget of the Nation Management 2006). To the date of the enactment of this Law, the General Budget of the Nation for the Management of 2006, modified by application of the Law of the Organization of the Executive branch and its Regulatory Decree, it must not exceed the financial limits of the budget in force. ARTICLE 5 (Adjustments to the General Budget of the Nation 2006). The Executive Branch is empowered, through the Ministry of Finance, to make the necessary adjustments to the General Budget of the Management Nation 2006, in all its sources financing in order to comply with the powers and powers laid down in the Law of the Organization of the Executive Branch. ARTICLE 6 (Repeal of Article 10, Law No. 3239). 10 of Law No 3239 of 15 November 2005 is repealed in order to comply with the provisions of the Law of the Organization of the Executive Branch. ARTICLE 7 (Amendment to the Financial Management Act 2006). Article 11 of Law No. 3302 of the General Budget of the Nation is amended, being worded as follows:? The Prefects of the Department are authorized to approve by way of the Prefectural Resolution, the budgetary transfers of the Partida 57100? Increase Box and Banks? and the Partida 75200? Capital transfers for the Private Sector without Profit? to finance the investment projects detailed in Annex C of the PGN 2006 and other public investment projects, when in both cases, comply with the requirements established by the National Public Investment System (SNIP) and have the Prior approval of the Departmental Council?. ARTICLE 8 (Information). All public entities connected to the SIGMA must present their information through this system to all government agencies. Those entities that are not incorporated into SIGMA will be able to present their information through the means they currently use. ARTICLE 9 (Prohibition of Payment of Declared Expenses not Eligible for International Cooperation). In programs and projects, the payment with the TGN resources of those expenses that have been executed outside the international cooperation agreement and have been declared ineligible by the Financing Agency is prohibited, if necessary to be approved by a Supreme Decree, with its processing being entrusted to the corresponding bodies. ARTICLE 10 (Exceptional Holiday Payment). To ensure the normal development of the activities of public entities and to avoid labor conflicts that may cause higher expenses to the State, in cases that are dispensed with public servants due to the readjustment of the Executive Branch or by decision of the Maximum Executive Authority, the executives responsible for the public entities are authorized, on an exceptional basis, to proceed with the total monetary payment for holidays and other benefits, whatever the source of funding and level

hierarchical of the public server, according to the current legal regulations. ARTICLE 11 (Automatic Debit, Compliance with Competences). In order to comply with the provisions of Supreme Decree 28421 of 21 October 2005, and Article 10 of Law No 3302 of 16 December 2005, the Ministry of Finance is authorized to carry out the automatic debits corresponding to the the benefit of the beneficiary entities or implementing entities of the programmes, where they so request. ARTICLE 12 (Consulting with External Donation). The increases in spending items 25200? Studies and Research?, 25800? Studies and Research for Investment Projects? and 46000? Studies and Projects for Investment? whose source of financing is external donation, will not require approval by Supreme Decree. ARTICLE 13 (Reserved Expenses). I. Is heading 26100 left? Specific expenditure of the Central Administration? (Reserved Expenses) with the Monto that is

executed until January 23, 2006. The Executive Branch is authorized, through the Ministry of Finance to transfer the existing balances of the item 26100? Specific expenditure of the Central Administration? to item 71600 of the Treasury General of the Nation, as a forecast to allow the transfer to other items of expenditure in order to make it transparent to those expenses that were financed by imputing this item, and in addition to allow the State, address the sectoral needs that are required in this management and cannot be addressed within its institutional budget.

II. The balances existing in item 26100? Specific expenditure of the Central Administration? With different sources to the TGN, whose administration is responsible for the Ministry of Government, they must be transferred to the departure 71600? Current Transfers for Subsidies and Donations to Private Institutions without Profit? The Ministry of Foreign Affairs of the Ministry of Foreign Affairs of the Ministry of Foreign Affairs of the Ministry of Foreign Affairs of the Ministry of Foreign Affairs of the Ministry of Foreign Affairs of the Ministry of Foreign Affairs of the Ministry of Foreign Affairs of the Ministry of Foreign Affairs of the Ministry of Foreign Affairs of the Ministry of Foreign Affairs of

Ministry of Finance must present a monthly report on the implementation of the economic resources mentioned in paragraphs I and II to the Finance Committees of the Upper and Lower House. These resources should be allocated within the corresponding expenditure items, prior to the presentation of the General Budget of the Reformulated Nation of Management 2006 to the National Congress of the Republic.

ARTICLE 14 (Budget Replenishment for the Honorable National Senate). In consideration of the austerity policy of the Supreme Government, the Resolution of the House of Senators N ° 013/2006 and the Resolution of the Directive of the Honorable National Senate N ° 029/2006, the budget ceiling of Bs is approved. 57.203,904.-(Fifty-Seven Million Two hundred and three thousand nine hundred and four 00/100 Bolivians), generating the reduction of Bs. 8.370.678.-(Eight Million Three hundred and seventy thousand six hundred and seventy-eight thousand Bolivianos), which will be transferred to the General Treasury of the Nation through the Ministry of Finance for the creation of education and health items. ARTICLE 15 (Remuneration for the Judiciary). I. The Judiciary, as one of the bodies that makes up the State base, enjoys economic autonomy and

administrative, in this context in accordance with the Law of the Council of the Judiciary and through the Ministerial Resolution 013 of 16 January 2006 of the Ministry of Finance, it is authorized to apply to its current Salarial Scale, only for the months of March and April of the current year, and must approve in due time a new salary scale consistent with the National Policy of Austerity and Economic Balance undertaken by the National Government.

II. Public Sector Austerity, from May 2006, no public authority or official of the Judicial Branch, will be able to receive a monthly remuneration equal to or greater than the amount established for the President of the Republic, subject to the scope of Law No 1178 and other related provisions. The savings generated from the TGN's funded resources will be devoted to the creation of education and health items.

III. The savings generated by the application of paragraph II with different resources to the TGN, the Judiciary will be able to finance its institutional needs.

ARTICLE 16 (Repeal and Opening). Article 2 of Law No 3302, and all provisions contrary to this Law shall be repealed and abrogated. Refer to the Executive Branch, for constitutional purposes. It is given in the Session Room of the Honorable National Congress, four days of the month of May two thousand six years.

Fdo. Santos Ramirez Valverde, Edmundo Novillo Aguilar, Jorge Aguilera Bejarano, Felix Rojas Gutierrez, Oscar Chirinos Alanoca, Alex Cerrogrande Acarapi. Therefore, it was enacted so that it has and will comply with the law of the Republic. Palace of Government of the city of La Paz, ten days of the month of May of two thousand six years. FDO. ALVARO MARCELO GARCIA LINERA INTERIM PRESIDENT OF THE REPUBLIC, Juan Ramón Quintana Taborga, Carlos Villegas Quiroga, Luis Alberto Arce Catacora.