Reforming The Law Of Budget, In The Part That Corresponds To The Social Investment Fund For Local Development Of El Salvador, By $2,224,460.

Original Language Title: REFÓRMASE LA LEY DE PRESUPUESTO, EN LA PARTE QUE CORRESPONDE AL FONDO DE INVERSIÓN SOCIAL PARA EL DESARROLLO LOCAL DE EL SALVADOR, POR $2,224,460.

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LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

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DECREE NO 3

THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,

CONSIDERING:

I.-That by Legislative Decree No. 525, dated December 20, 2007, published in Official Journal No. 238, Volume No. 377, of the same date, the

Legislative Assembly approved in all its parts the Contract of Loan and Implementation of the BMZ Programme N ° 2003 65 718, signed between the Government of the Republic of Salvador and the Kreditanstalt für Wiederaufbau (KfW), for an amount

of EUR 13,994,257.02 equivalent to US$ 18,574,840, for the implementation of the Program "Development of Local Development and Governance FISDL IV", with the date of availability of US$ 410,000, which the Social Investment Fund

for the Local Development of El Salvador (FISDL) has determined that it is necessary to incorporate in the current Budget Law of 2015, in order to complement the execution of Project No. 4460 "Promotion of Local Development and Governance

(FISDL/KFW IV)".

II. Legislative Decree No. 114, dated September 10, 2009, published in Official Journal No. 185, Volume No. 385, of October 6 of the same

year, the Legislative Assembly ratified in all its parts the Contract of the Exchange of Debt BMZ N ° 2009 70129, signed between the Government of the Federal Republic of Germany, through the Kreditanstalt für Wiederaufbau (KfW) and the Government of

the Republic of El Salvador, for EUR 10,000,000 equivalent to US$ 14,012,794, to implement the " Program of Attention to Poverty with Citizen Participation FFISL V ", in those Municipalities identified as de extreme poverty,

of which there is a remnant of US$ 80,435; and in addition, the handling of the account of the said Convention has generated the amount of US$ 29,445 in the interest of banking, totaling a US$ 109.880 that

also the FISDL has determined to incorporate into the Law of the Current Budget 2015, to complement the execution of the Project N ° 4996 "Program of Attention to Poverty with Citizen Participation (FISDL V)".

III. by letter dated 16 December 2014 the Kreditanstalt für Wiederaufbau extended the period of For the implementation of the Programs

Development of Local Development and Governance-FISDL IV "and the" Attention to Poverty with Citizen Participation-FFISDL V ", until June 30, 2015.

IV.-That by Legislative Decree No. 439, dated August 12, 2010, published in Official Journal No. 157, Volume No. 388, of the 25th of the same month and year,

the Legislative Assembly approved in all its parts the Convention of Loan No. 7811-SV, signed between the International Bank for Reconstruction and Development (IBRD) and the Government of the Republic of El Salvador, in the amount of US$ 50,000,000, to finance the Project " Income Protection and

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Employability, " whose implementing institutions are the Technical and Planning Secretariat of the Presidency, the Social Investment Fund for Development

Local of El Salvador (FFISL) and the Ministry of Labor and Social Welfare; which in Article III-Project, of the aforementioned Loan Convention, is established that the FISDL will be responsible for the execution of Part A: Support for Design and

Implementation of the Temporary Support Program for Income (PATI), in the amount of US$ 37,200,000.

V.-That the International Bank for Reconstruction and Development, by Amendment No 3, dated August 2, 2013 authorized the redistribution of the amounts of the categories of the aforementioned Loan Agreement, increasing the

Category A allocations up to the amount of US$ 40,660,000, which was assigned to the Social Investment Fund for Local Development of El Salvador, to implement the Public Investment Project Code 5629 " Support Program

Temporary to Income and Employability "; and by letter dated July 16, 2014, extended the period of validity of the referred to in the Convention until 31 December 2015.

VI.-That of the total resources allocated to the Investment Project Code 5629 in reference to US$ 40,660,000, has been accrued from the fiscal year 2011 to the end of 2014 the amount of US$ 36,363,290, registering a

availability of US$ 4,296,710, of which the value of US$ 2,592,130 is programmed in the current 2015 Budget Law, with a balance remaining to be used for US$ 1,704,580; the amount that the FISDL requires

incorporate into their existing budget allocations to complement the implementation of the Investment.

VII.-That with the purpose that the Social Investment Fund for Local Development of El Salvador, can have the budget credit to complement the implementation of the Investment Projects before related, is made necessary

to reform the existing Law of Budget, voted by Legislative Decree No. 866, dated November 20, 2014, published in the Official Journal No. 229, Volume No. 405, of December 8 of that same year, incorporating the reforms

relevant to Section II-Revenue and Section III-Expenditure, in the relevant part to the Ramo de Hacienda and to the Social Investment Fund for Local Development, up to the amount of TWO HUNDRED HUNDRED

TWENTY-FOUR THOUSAND FOUR HUNDRED AND SIXTY 00/100 DOLLARS FROM THE UNITED STATES OF AMERICA (US$2,224,460).

BY TANTO,

in use of its Constitutional powers and on the initiative of the President of the Republic, by means

of the Minister of Finance.

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DECRETA:

Art. 1.-In the current Budget Law, Section -A GENERAL BUDGET OF THE STATE, the following modifications are introduced:

A) In section II-REVENUE, in the items detailed below, the specific sources with the amounts indicated:

In the item 15 Financial Income and Other, Account 157 Other Non-Classified Income, increase the specific source 15703 Rentability of Bank Accounts, with the amount of: 29,445

In the item 22 Capital Transfers, Account 224 External Sector Capital Transfers, Increase the Specific source 22403 Governments and Government Agencies, as follows:

Debt Exchange Contract, signed between the Federal Republic of Germany, through the Kreditanstalt Fur Wiederaufbau (KfW) and the

Republic of El Salvador, "Program of Attention to Poverty with Citizen Participation FISDL V", ratified in all its parts by Legislative Decree No. 114, dated September 10, 2009, published in Official Journal No. 185, Tomo No. 385, of

6 of October of the same year. 80.435

Under the heading 31 Public Indebtedness, Account 314 Contracting External Borrowings, increase the following specific sources:

1403 Governments and Government Agencies, as well:

Loan and Execution of the Program signed between the

Republic of El Salvador and the Kreditanstalt Fur Wiederaufbau (KfW), to finance the implementation of the Program "Promotion of Local Development and Governance-FFISDL IV," approved by Legislative Decree No. 525, of

dated December 20, 2007, published in Official Journal No. 238, Volume No. 377, the same date. 410,000

31404 Of Multilateral Organizations, As Well:

Loan N ° 7811-SV, subscribed to the International Bank of

Reconstruction and Development (IBRD), resources that are allocated to finance the Project " Protection of Revenue and Employability ", approved by Legislative Decree No. 439, dated August 12, 2010,

published in Official Journal No. 157, Volume No. 388 of the 25th of the same month and year. 1,704,580

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B) In section III-EXPENSES, in the part corresponding to the Ramo of Finance, literal B. Allocation of Resources, in the number 3 Relationship Purposes with Assigned Resources,

in the Budget Unit 17 Financing to Rural, Urban and Local Development Community Programs, increase expenditure allocations shown below:

3. Relationship Purposes to Assigned Resources

Budget Unit and Purpose Cost Work Line

17 F inage to Rural, Urban and Local Development Community Programs

01 Communities Programs Rural Solidarity

02 Urban Solidarity Communities Program

Transfer resources to fund social strengthening programs to improve the living conditions of communities and families in

poverty situation, strengthen human and social capital and improve the technical skills and governance of the Municipalities and financing an operation of the Common Fund for Programmatic Support (FOC A P) related to the "Support Program for Solidarity Communities in El Salv ador (PACSES)".

Transfer resources to finance programs re-funded with assistance and stay in the classrooms of children and young people living in Municipalities In addition to the extreme poverty in the urban area, as well as to strengthen the income protection-oriented actions

temporary of the most v ulnerable population residing in Municipalities of extreme poverty and financing an operation of the Common Fund of A Poyo Programatico (FOCAP) related to the "Program of Solidarity Communities in El Salv".

2,224,460

519,880

1,704,580

Total 2,224,460

4. Budget Allocation by Pool, Financing Source, and Target

Economic.

Budget Unit and Budget Encryption Line of Work 62

Transfer of

Capital

17 F infunding to Rural, Urban and Local Development Community Programs

2015 -0700-3-17-01-22-1 General Fund 3 External Loans

5 Donations 02-22-3 External Loans

Rural Solidarity Communities Programs

Urban Solidarity Communities Program

2,224,460

29,445 410,000

80,435 1,704,580

Total 2,224,460

Art. 2.-In Section B-SPECIAL BUDGETS, B. 1-Non-Business Decentralised Institutions, Section II-EXPENDITURE, increase the specific source of revenue and the expenditure allocations indicated, with the amounts below point:

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0505 SOCIAL INVESTMENT FUND FOR LOCAL DEVELOPMENT

B. Revenue

Capital Revenue 22 Capital Transfers

222 Public Sector Capital Transfers 2220700 Ramo of Finance 2,224,460

2,224,460

Total 2,224,460

C. ALLOCATION OF RESOURCES

In the Budget Unit 03 Rural Solidarity Communities Programme, add the Work Lines 05 Promotion of Local Development and Governance (KfW IV) and 06 Poverty Care Programme with Participation Citizen (KfW V); in the Budget Unit 04 Programme

Urban Solidarity Communities, increase the allocations of the Work Line 03 Temporary Support to Income Programme, with the amounts indicated; Investment projects, as follows:

3. Relationship Purposes to Assigned Resources

Budget Unit and Purpose Cost Work Line

03 Rural Solidarity Communities Program

05 Local Development and Governance Development (KfW IV)

06 Program of Intent To Poverty With Iudadana Participation (KfW V)

04 Urban Solidarity Communities Program

03 Program Temporary Support for Income

Promote local development and improve the conditions of the communities and families in extreme poverty in the rural sector, to through strengthening its human and social capital, as well as the technical capabilities and governance of its municipalities, in apoy or the

Solidarity Communities Program.

Promoting local development and improving the conditions of In the case of rural communities and families in extreme poverty, through the strengthening its human and social capital, as well as the

technical capabilities and governance of its municipalities, in support of the Solidarity Communities Program.

Strengthening actions aimed at protecting income temporary of the most vulnerable population, resident in the Municipalities of extreme poverty, through participation in community projects.

519,880

410,000

109.880

1,704,580

1,704,580

Total 2,224,460

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4. Budget Allocation by Pool, Financing and Economic Destination Source

Budget Unit and Budget Ifrate Budget 51

Remuneration 54

Acquisitions of Goods and

Serv

62 Transfers

of C apital Expenses of

Capital

03 Rural Solidarity Communities Program

2015 -0505-3-03-05-22-3 External Loans

06-22-1 General Fund

5 Donations

04 Program Urban Solidarity Communities

2015 -0505-3-04-03-22-3 External Loans

Development of Local Development and Governance (KfW IV)

Programme for the Intention to Poverty with Iudadana Participation (KfW V)

Temporary Support to Income Program

73.595

73.595

50,445

25,000

25,445

228,235

228,235

469,435

385,000

4,000

80.435

1,402,750

1,402,750

519,880

410,000

29,445

80,435

1,704,580

1,704,580

Total 73,595 278,680 1,872,185 2,224,460

5. List of Public Investment Projects

The Investment Projects Code Nos. 4460 and 4996 are incorporated with the amounts of US$ 410,000 and US$ 109,880, respectively; also, the allocations of the Investment Project Code are increased 5629 with US$ 1,704,580; according to the following detail:

Source Project Code

Physical Meta Financing

Geographic Location

End Date

Project Monto

4460

4996

5629

03 Rural Solidarity Communities 05 Promotion of Local Development and Governance (KfW IV)

Promoting Local Development and Governance (FISDL/KFW IV)

06 Program for the Attention to Poverty with Citizen Participation (KfW V)

Program for the Attention to Poverty with Citizen Participation (FISDL V)

04 Program Urban Solidarity Communities

03 Program Temporary Support for Income

Temporary Support to Income and Employability Program

External Loan

General Fund Donations

External Loan

1 Project

1 Project

100% Advance

At National Level

At National Level

A National Level

Dic/2015

Dic/2015

Dic/2015

519,880

410,000

410,000

109.880

109.880

29,445 80.435

1,704,580

1,704,580

1,704,580

Total 2.224.460

The resources from External Loans and Grants that are incorporated by this Legislative Decree must be applied as follows: US$ 1,704,580 to the Source of Resources 9 International Bank for Reconstruction and Development (BIRF) and US$ 490,435 to the Resource Source 23 Kreditanstalt

für Wiederaufbau (KfW).

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Art. 3.-This Decree shall enter into force from the day of its publication in the Official Journal.

GIVEN IN THE BLUE HALL OF THE LEGISLATIVE PALACE: San Salvador, at the nineteenth day of May of the year two thousand fifteen.

LORENA GUADALUPE PEÑA MENDOZA, PRESIDENT.

GUILLERMO ANTONIO GALLEGOS NAVARRETE, ANA VILMA ALMASEZ DE ESCOBAR, FIRST VICE-PRESIDENT SECOND VICE PRESIDENT.

JOSÉ SERAFIN ORANTES RODRÍGUEZ, NORMAN NOEL QUIJANO GONZÁLEZ, THIRD VICE-PRESIDENT. FOURTH VICE-PRESIDENT.

SANTIAGO FLORES ALFARO, FIFTH VICE PRESIDENT.

GUILLERMO FRANCISCO MATA BENNETT, DAVID ERNESTO REYES MOLINA, FIRST SECRETARY. SECOND SECRETARY.

MARIO ALBERTO TENORIO GUERRERO, REYNALDO ANTONIO LÓPEZ CARDOZA,

THIRD SECRETARY. FOURTH SECRETARY.

JACKELINE NOEMI RIVERA AVALOS, JORGE ALBERTO ESCOBAR BERNAL

FIFTH SECRETARY. SIXTH SECRETARY.

ABILIO ORESTES RODRÍGUEZ MENJÍVAR, JOSÉ FRANCISCO MERINO LÓPEZ,

SEVENTH SECRETARY EIGHTH SECRETARY.

CASA PRESIDENTIAL: San Salvador, at the twenty-one day of May of the year two thousand fifteen.

PUBESLOSE, Salvador Sánchez Cerén, President of the Republic.

Juan Ramón Carlos Enrique Cáceres Chávez, Minister of Finance.

D. O. No. 92 Took No. 407 Date: May 25, 2015

SV/pch 25-06-2015

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