Establishes A Mechanism To Compensate Lower Municipal Revenues, On The Occasion Of A New Determination Of The Coefficients Of The Common Municipal Fund Distribution

Original Language Title: ESTABLECE UN MECANISMO PARA COMPENSAR LOS MENORES INGRESOS MUNICIPALES, CON OCASION DE UNA NUEVA DETERMINACION DE LOS COEFICIENTES DE DISTRIBUCION DEL FONDO COMUN MUNICIPAL

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"Sole article.-the municipalities that by applying the new coefficients of distribution of certain Fund in 2002, to be applied during the 2003-2005 triennium, join together reduced their participation in the Municipal pool, will be compensated by the own Fund in the way established in the following paragraphs.

Municipal compensation applies during the years 2003 and 2004, covering 100 per cent of the reduction in income in real terms. The aforementioned reduction shall be calculated considering the municipal resources perceived by each municipality by the Fund during the year 2002, according to information provided by the service of treasuries, in relation to resources to receive from the year 2003 for implementation of new distribution coefficients.

By Supreme Decree issued through the Ministry of the Interior, which will be also the signature of the Minister of finance, is determined the amount of the compensation for the years 2003 and 2004, to receive for each municipality that their participation in the Fund as provided for in the preceding subparagraph viere reduced in those years.

The compensation will be financed by the common Municipal Fund, intended for this purpose, prior to the distribution of the Fund in accordance with the legal provisions permanent, the sum of up to 19 billion pesos both in 2003 and in 2004.

Resources for compensation will be distributed to the respective municipalities for the service of treasuries, in four equal installments, in the months of may, July, October and December of 2003 and 2004. "."