LEGISLATTIVE ASSEMBLY - REPUBLIC _____________________________________________________________________________________

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DECEMBER No. 528

THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF THE SALVADOR,

CONSIDERING:

I.- That in harmony with the General Convention for Economic and Technical Assistance and for Related Purposes between the Government of El Salvador and the Government of the United States of America, which was ratified in all its parts by the Military Civic Directory of El Salvador, by Decree No. 515, dated 27 December 1961, published in the Official Journal No. 239, Volume No. 193, of the same date, on 16 March 2010

II.- That through Letters of Implementation Nos. 7, 8 and 9, dated 11 September 2012, 24 May and 6 June 2013, respectively, the United States Agency for International Development (USAID), authorized the extension of the Convention before quoted until 31 December 2013; in addition, increased the initial allocations to finance the PATI program to $23,764,545 and reduced the original amount for Weddings in Education to $2,528,666.

III.- That through Legislative Decree No. 114, dated September 10, 2009, published in Official Gazette No. 185, Volume No. 385, of October 6 of the same year, the Contract of Canje de Deuda BMZ No. 2009 70129, signed between the Government of the Federal Republic of Germany, through the Kreditanstalt für Wiederaufbau (KFW) and the Salvadoran Government of the Federal Republic,

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the amount of $480,000 has been generated for banking interests, totaling a availability of $1,737,565, which is necessary to incorporate into the current Budget Law of 2013, to complement the implementation of Project No. 4996 “Programme for the Care of Citizen Participation (FISDL V)”.

IV.- IV, Legislative Decree No. 525, dated 20 December 2007, published in Official Gazette No. 238, Volume No. 377, of the same date, approved in all its parts the Contract of Loan and Execution of the Programme BMZ No. 2003- 65- 718, signed between the Government of the Republic of El Salvador and the Kreditanstalt für Wiederaufbau (KfW),

V.- That by Legislative Decree No. 405, dated 1 July 2010, published in Official Gazette No. 133, Volume No. 388, of 15 of the same month and year, the Executive Body was authorized in the Taxation Branch, so that by means of its owner or official that it designs, it would sign up on behalf of the State and Government of the Republic of El Salvador, the Convention of Taxation No. 7811-SV,

VI.- That through Legislative Decree No. 755, dated June 16, 2011, published in Official Gazette No. 113, Volume No. 391, of the 17th of the same month and year, the Executive Body was authorized in the Treasury Ramo, to use by means of its owner or official that it designates, to subscribe on behalf of the State and Government of the Republic of El Salvador, the Contract of Préstamus No. 2525/OC-ES,

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VII.- That for the purpose that the Social Investment Fund for Local Development of El Salvador may have the budgetary provision to supplement the implementation of the previously related Investment Projects, it is necessary to reform the Budget Law approved by Legislative Decree No. 182, dated 8 November 2012, published in Official Gazette No. 228, Volume No. 397, of 5 December of the same year, incorporating the relevant reforms in the amount of Ingress and Expenses of that Law,

TANTO,

in the use of its constitutional powers and at the initiative of the President of the Republic, through the Minister of Finance,

RIGHT:

Art. 1.- The current Budget Act, Section - General Budget BUDGET, introduces the following modifications:

A) In paragraph II - INGRESOS, in the following headings, insert the specific sources, with the amounts indicated:

In item 15 Financial and Other Income, Account 157 Other Unclassified Income, enter the specific source 15703 Bank Account Income, with the amount of: 480,000

In the heading 22 Capital Transfers, Account 224 Capital Transfers of the External Sector, create the specific source 22403 Governmental Governments and agencies, as follows:

Convention on the Granting of Limited Reach, Activity No. 519-0462 Economic Growth for the 21st Century (CRECER 21), covered by the General Convention for Economic and Technical Assistance and Related Purposes between the Government of El Salvador and the Government of the United States of America, ratified by Decree No. 515 of 27 December 1961, published in Official Gazette No. 239, Volume No. 193, of the same date (Ram 7, 8 and 9 of 11 September 2012, 24 May and 6 June 2013, respectively. 4,920,820

Debt exchange contract, signed between the Federal Republic of Germany, through the Kreditanstalt Für Wiederaufbau (KFW) and the Republic of El Salvador, entitled “Programme for Attention to the

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Poverty with Citizen Participation FISDL V”, ratified in all its parts by Legislative Decree No. 114, dated 10 September 2009, published in Official Gazette No. 185, Volume No. 385, of 6 October 2009 (Ramo de Hacienda/Fondo de Inversión Social para el Desarrollo Local). 1,257,565

In category 31 Public Indebtedness, counts 314 Recruitment of External Entrepreneurships, specify the specific sources:

31403 Governmental Governments and agencies:

Contract for Loan and Execution of the Program signed between the Republic of El Salvador and the Kreditanstalt Für Wiederaufbau (KFW), to finance the implementation of the Program “Fomento del Desarrollo Local y Gobernanza-FISDL IV”, approved by Legislative Decree No. 525, dated 20 December 2007, published in Official Gazette No. 238, Volume No. 377, of the same date (Rando Social Development). 1,924,443

31404 Of Multilateral Agencies, as follows:

Loan No. 7811-SV, signed with the International Bank for Reconstruction and Development (BIRF), resources to finance the Project “Protection of Income and Employability”, approved by Legislative Decree No. 439, dated 12 August 2010, published in Official Gazette No. 15720, Volume No. 388, of 25 of the same month and year (Presidency of the Republic US$985, 1,241,715

Loan No. 2525/OC-ES, negotiated with the Inter-American Development Bank (IDB), resources to be used to finance the “Woman City Project”. Approved by Legislative Decree No. 779, dated 7 July 2011, published in Official Gazette No. 130, Volume No. 392, of 12 of the same month and year (Ramo de Hacienda/Fondo de Inversión Social para el Desarrollo Local US$2,628,000 y Presidencia de la República US$2,291,000). 627.905

B) In section III - GASTOS, in the portion of the Treasury Ramo, verbatim B. Assignment of Resources, in numeral 3. Appropriations with Assigned Resources, in the Budget Unit 17 Financing for Rural, Urban and Local Development Community Programs, Modify Purposes and Increase Cost Allocations as follows:

3. Purpose ratio with Assigned Resources

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Budget Unit and Cost Purpose Work Line

17 F Inanciamiento a Programa de C omunidades Solidarias

Rural, Urban and Local Development

01 Rural Solidarity Communities Programs

02 Urban Solidarity Community Program

03 A poyo al Desarrollo Local

T ransferir resources to finance social strengthening programmes to improve the living conditions of communities and families in poverty,

strengthen human capital and partner l and improve the technical capacities and governance of the municipalities and finance an operation of the Common Program Support Fund (FOCAP) related to the “Programme of Support for Solidary Communities in El Salv ador (PACSES)”.

Transfer resources to finance programmes related to assistance and permanence in the classrooms of children and young people living in municipalities of extreme poverty in the urban area, as well as forging action

aimed at protecting the temporary income of the most vulnerable population residing in municipalities of extreme poverty and financing an operation of the Common Program Support Fund (FOCAP) related to the “Programme Solidaria Communities in El Salv ador”.

Transfer resources to finance the reconstruction and rehabilitation of infrastructure damaged by storm IDA and protection of temporary income of residents in affected municipalities and other municipalities

urban areas, strengthening the supply of basic services and providing support to the municipal governments to implement strategic projects that contribute to improving the quality of the road.

10,452,448

3,662,008

2,363,080

4,427,360

Total 10,452,448

4. Budget allocation by Rubro de Agrupación, Fuente de Financiamiento y Destination Económico

Budget and C ifrado Budgeting Working Line 62

C apital transfers

1 F Inanciamiento a Programa de Comunidades Solidarias

7 Rural, Urban and Local Development 2013-0700-3-17-01-22-1 General Fund

3 External Loans

5 Donations 20 12-0505- 02-22-3 External Loans

5 Donations 03-22-3External loans

5 Donations

Rural Solidarity Communities Programs

Urban Solidarity Community Program

Support for Local Development

10,452,448

480,000

1,924,443

1,257,565 1,241,715

1,121,365 627,905

3,799,455

Total 10,452,448

Art. 2.- In Section B- SPECIAL BUDGETS, B.1- Non-Business Decentralized Institutions, subsection II- Expenses, add the specific source of income and expenditure allocations indicated below, with the amounts indicated below:

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0505 Social Investment Fund for Local Development

B. INCOME

Apital C Income 22 Apital C Transfers

222 Public Sector Apital Transfers 2220700 Treasury Ramo 10,452,448

10,452,448

Total 10,452,448

C. RESOURCES ASIGNATION

In the Budget Unit 03 Programme Rural Solidarity Communities, increase the allocations of the Work Lines 02 Promotion of Local Development and Governance (KfW IV) and 03 Programme for the Care of the Population with Citizen Participation (KfW V); in the Budget Unit 04

3. Purpose ratio with Assigned Resources

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Budget Unit and Cost Purpose Work Line

03 Programme Rural Solidarity Communities

02 Promotion of Local Development and Governance (KfW IV )

03 Poverty-Assuring Program with Iudadana C Articipation (KfW V )

04 P rogram Urban Solidary Communities

01 Bonuses / Scholarships for Education

02 Programme Temporary Income Support

05 A poyo al Desarrollo Local

01 IDA Early Income Support Program

05 C onstruction and Adequacy of the C Entros de C iudad Mujer

Promote local development and improve the living conditions of communities and families in situations of extreme poverty in the rural sector through the strengthening of their human and social capital, as well as the technical capacities and governance of their municipalities, in support of

Solidarity Communities Program.

Promote local development and improve living conditions for rural communities and families in situations of extreme poverty

through the strengthening of its human capital and partner l, as well as the technical capacities and governance of its municipalities, in support of the Community Solidarity Program.

Incentiv ar assistance and stay in classes of children and young people living in precarious urban settlements, through the delivery of bonds/beccas in USA ID education.

Strengthen actions aimed at protecting temporary income

of the most vulnerable population residing in 25 municipalities of extreme poverty, through participation in community projects, BIRF.

Strengthen actions aimed at protecting the temporary income of the most vulnerable population residing in 11 municipalities affected by the IDA storm and 7 municipalities in the urban area, through participation in community projects, USA ID.

To contribute to the improvement of the living conditions of women living in the Amazon, through the facilitation of the servs that meet their essential needs through the Strategically located Integral Tension Centers in the country, known as CCM.

3,662,008

1,924,443

1,737,565

2,363,080

1,121,365

1,241,715

4,427,360

3,799,455

627.905

Total 10,452,448

4. Budget allocation by Rubro de Agrupación, Fuente de Financiamiento y Destination Económico

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Budget and C ifrado Budgeting Working Line 54

Procurement

Goods and Serv icios

55 Expenditure

F uncertaines and O tros

61 Investments

Activ os F ijos

62 Transfers

C apital

Expenditure

Capital

03 Program Rural Solidarity Communities 2013-0505-3-03-02-22-3 External Loans

03-22-1 General Fund

5 Donations

04 Programme Urban Solidarity Communities 2013-0505-3-04-01-22-5 Donations

202-22-3 External Loans

05 A poyo al Desarrollo Local

2013-0505-3-05-01-22-5 Donations

5-22-3 External Loans

Promotion of Local Development and Governance (KfW IV )

Poverty Awareness Program with Involvement C iudadana (KfW V )

Bonuses / Scholarships for Education Program Temporary Income Support

IDA Early Income Support

Construction and Adequacy of Centres of C iudad Mujer

253,128

192,358

60.770

976,200

976,200 872,179

872,179

100.877 100.877

332,464

314,176

18.288

68.470

68.470 609,617

609,617

3,408,880

1,732,085

419.230

1,257,565

1,217,533 1.020,488

197,045

2,613,100

2,613,100

3,662,008

1,924,443

480,000

1,257,565

2,363,080 1,121,365 1,241,715

4,427,360

3,799,455

627.905

Total 2,101,507 433,341 678,087 7,239,513 10,452,448

5. List of Public Investment Projects

Investment projects are strengthened Codes Nos. 4460, 4996, 5628, 5629 and 5630, with the amounts of $1,924,443, $1,737,565, $627,905, $5,041,170 and $1,121,365 respectively, remaining the amounts of them as follows:

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Code Project Source

F inanciamiento Meta F ísica Location

Geographical Date

F Inalización Monto del Proyecto

4460

4996

5630

5629

5629

5628

03 Programme Rural Solidarity Communities

02 Promotion of Local Development and Governance (KfW IV )

Promotion of Local Development and Governance (FISDL/KFW IV )

03 Poverty Awareness Program with Participation C iudadana (KfW V )

Poverty Awareness Program (FISDL V)

04 Urban Solidarity Community Program

01 Bonuses / Scholarships for Education

Urban Solidarity Communities, Bonus in Education

02 Programme Temporary Income Support

Temporary Income and Employability Support Programme

05 A poyo al Desarrollo Local

01 IDA Early Income Support Program

Temporary Income and Employability Support Programme

05 Construction and Adequacy of Centres of C iudad Mujer

Construction and Adequacy of the C Entros de C iudad Mujer

Loans

External

General Fund

Donations

External loans

Donations

External loans

Donations

26 Projects

16

8,003

Beneficiaries

12,868 Beneficiaries

12,955

Beneficiaries

2 Projects

A Niv National

A Niv National

A Niv National

A Niv National

A Niv National

A Niv National

Dec./2013

Dec. / 2013

Dec. / 2013

Dec. / 2013

Dec. / 2013

Dec. / 2013

12,393,328

8.154,823

8.154,823

4,238,505

4,238,505

480,000 3.758,505

11,383,340

1,888,265

1,888,265

9,495,075

9,495,075

15,256,210

9,900,305

9,900,305

5,355,905

5,355,905

3,255,905

2.100,000

Total 39,032,878

Resources from External Donations and Loans that are incorporated by this Legislative Decree shall be applied to the following Sources of Resources: $4,920,820a the 2 Agency for International Development (USAID); $627,905 to the 8 Inter-American Development Bank (IDB); $1,241,715 to the 9 International Bank for Reconstruction and Development (BIRF) and $3,182,800.

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

DADO en EL SALON AZUL DEL PALACIO LEGISLATIVE: San Salvador, at the thirty-one days of the month October of the year two thousand thirteen.

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OTHON SIGFRIDO MORALES, PRESIDENT.

ALBERTO ROMERO RODRIGUEZ, GUILLERMO ANTONIO GALLEGOS NAVARRETE, FIRST VICEPRESIDENT. SECOND VICEPRESIDENT.

JOSE FRANCISCO MERINO LOPEZ, FRANCISCO ROBERTO LORENZANA DURAN, TERCER VICEPRESIDENT. VICEPRESIDENT FOURTH.

ROBERTO JOSE d’AUBUISSON MUNGUIA, QUINTO VICEPRESIDENT.

LORENA GUADALUPE PEÑA MENDOZA, CARMEN ELENA CALDERON SOL DE ESCALON, FIRST SECRETARIAT. SECOND SECRETARIAT.

SANDRA MARLENE SALGADO GARCIA, JOSE RAFAEL MACHUCA ZELAYA, TERCERA SECRETARIA. SECRETARY FOURTH.

IRMA LOURDES PALACIOS VASQUEZ, MARGARITA ESCOBAR, QUINTA SECRETARIA. SECRETARY SIX.

FRANCISCO JOSE ZABLAH SAFIE, REYNALDO ANTONIO LOPEZ CARDOZA, SEPTIMO SECRETARIO. OCTAVO SECRETARY.

CASA PRESIDENCIAL: San Salvador, on the 13th day of November of the year two thousand thirteen.

PUBLIQUESE,

Carlos Mauricio Funes Cartagena, President of the Republic.

Juan Ramón Carlos Enrique Cáceres Chávez, Minister of Finance.

D. O. No. 213 Volume No. 401 Date: November 14, 2013

FNM/geg 10-12-2013

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