Draft Law No 513 /XI/2ª

ESTABLISHES THE ZERO-BASE BUDGETING PROCESS AND

CREATES THE NATIONAL REGISTER OF STATE SERVICES AT ALL

THE ADMINISTRATIVE PUBLIC SECTOR

Exhibition of Motives

An overly indebted state

In recent years have been accumulating increasing factors of concern as to the

situation of our public finances and as to the inevitable future reflections of your

aggravation.

In effect, the situation of national public finances requires immediate measures and a

stance of accountability on the part of all. The situation of public finances

national is serious, because the Portuguese state, with a level of direct borrowing

higher than 80% of GDP, is an overly indebted state and puts the Country in a

unsustainable trajectory.

Adding that the progressive indebtedness of the country coincided temporally with the

break from the savings rate to historically low levels. In this way, the

conjugation of the increase in the External Debt with the low aggregate savings rate and the

limits to its increase in function of the conditions to which the primary sources of

savings, impose clear restrictions on the financing of economic activity,

above all at this stage where the international financial system imposes global limitations

very significant.

Thus, the current situation of public finances in Portugal cannot today cease to be

considered as a fundamental political issue, requiring simultaneously deep

institutional reforms and undeferred corrections of methods in control of expenditure

public.

The re-evaluation of the functions and tasks of the State

As a result of the unruly that has been affecting the public expenditure and the

external borrowing, the tax burden on the economy has been growing

has continued in recent years, increasing the burden of state intervention in the

economy, without it being sensitive to the improvement of the services provided, reducing the field

of effective economic freedom and sacrificing the competitiveness of the economy

Portuguese.

In this context, it is essential to have a strategic and structured thinking about the

functions and tasks of the State, as well as to determine the means necessary for the

play. And it will have to be a credible process if it intends to, in fact, put an end to the

set of imbalances in which we have come to live, conditioning the present and

destroying the chances of a future of collective prosperity.

Effectively, not only the absorption of almost half of the annual national income by the

Public spending is factor in additional taxation in the present and future, such as the State

tentacular that one has been developing in Portugal creates permanent barriers to the

efficient operation of the economy.

In this particular, recent news identifies a universe higher than 13700

organisms that depend directly on the State. In contrast, Portugal does not have

ability to scrutinize these entities, as about 90% escapes the

control of the Court of Auditors (TC) and, according to the data of 2009, the court

only received information about the expenditure of 1724 entities (12.5%) and of these only had

ability to check 418.

Although the idea that the state funds such an extended universe of organisms is

accepted by several economists and experts in this matter, the truth is that this is not

a static number and no one has the exact notion of their number.

The speed to which they are created, extinguished or fused many of the institutes, companies or

mere mission structures makes it almost impossible to determine the total of

existing bodies and makes it impossible to calculate the evolution of the number of entities that

the state has funded over the past few years.

It is therefore accurate to know with all the detail the true perimeter of the

set of the public services of the Administrative Public Sector and proceed with the

extinction, merger or restructuring of services, with or without administrative autonomy,

whose object is exhausted or the size of which is clearly unadjusted to the

budget resources annually absorbed, freeing up material and human resources

for the realization of more relevant tasks, also with a bet on the training for

specific skills, with potential to replace much of the consultancy and

advice today used and whose cost is considerably higher.

It is added that in a context of widespread disbudgeting and in the absence of a

entity that centralizes all information about the responsibilities that constitute

effectively the responsibilities of the state-as it has existed in the past-it is difficult

know with accuracy the state of Portuguese public finances.

It will therefore be of all convenience that it would become coalitions, centralised and

making available information on all financial responsibilities that, direct and

indirectly, prevent over the state (i.e. on taxpayers), in order to have

a clear idea of what is the real economic and inter-temporal impact of the

activity of the Public Sector.

The requirement for clear options in fiscal policy

Everything that went on in the 2010 transact year on budgetary policy was

contrary to the good performance of our economy. It was an inconsistent policy,

hesitant, in a state of denial and, as such, always late and with increased costs for

the Portuguese.

In place of emerging as a disclenched document, the State Budget should

constitute a clear instrument of an economic policy programme, preferably

multiannual, where, framed by the great desicrations of the national community, are

established the great options of the State's action and set the objectives more

immediate and properly hierarchized that that document should serve.

Thus, it is considered that the manner in which the State Budget is drawn up has to

change. But in order for the results of any budgetary reform to be potentiated,

it appears essential that upstream occurs an evaluation of the functions and tasks of the

State.

Concomitantly, new quantifiable budgetary rules need to be created, giving them

force of law, which promote budgetary efficiency and limit the freedom of Governments

of making growing public spending, creating difficult compromises to reverse in the future.

In this context, it is recommended that the budget process be top/down , defining the

overall expenditure limit and making after the necessary choices in the allocation of the

resources. Given the seriousness of the situation to which it has arrived, the appeal is warranted, in

certain circumstances, to the elaboration of zero-base budget, in place of the

habitual process of making budgets assented in the previous year's spending.

This option would not only contribute to putting an end to the pure incrementalism that characterizes

the current budgetary process, how it would take the Ministry of Finance to build bases

of data on the expenditures of the different services and for various purposes, which

would allow to analyse objectively and in comparative terms the costs of

operation of the various bodies of the administration, leading to the necessary

benchmarking . This is a logic that contrasts in absolute with the current situation, in

that comparisons between services are always made to justify the equiparation of the

expenses to those of the services that spend the most.

Thus, aware of the importance in the reformulation of processes, it is considered that it would be

desirable that within ten years, the generality of the bodies and entities that

integrate the public sector, be covered by zero-base budgeting, in the

however, in an option of accountability of executive decision-makers, it is recommended that

it is up to the Minister of Finance to lay down the conditions for his or her efectiveness.

Parliament should shoulder its responsibilities

It is therefore crucial for Parliament to assume in full its responsibility in

budgetary matters, effectively controlling the management of Public Finance, as

it imposes on him the democratic doctrine and the rule of law.

Failing to be corrected quickly, budgetary dysfunctions will be able to make it difficult to

future of our community and seriously aggravate expectations, with costs

unavoidable in internal trust and international relations.

The correction of budgetary dysfunctions and the shortcomings that have been registered in the

management and control of public finances, it certainly advises reforms that require the

active intervention of the various organs of sovereignty, particularly of the Assembly of the

Republic.

Thus:

In the applicable constitutional and regimental terms, the Deputies undersigned, of the

Parliamentary group of the Social Democratic Party, present the following draft law:

Chapter I

General provisions

Article 1.

Subject

1-A This Law proceeds to the fifth amendment of the budget framework law,

approved by Law No. 91/2001 of August 20, amended by the Organic Law No. 2/2002,

of August 28, by Law No. 23/2003 of July 2, by Law No. 48/2004, 24 of

August, and by Law No. 48/2010, of October 19, setting the general standards for the

zero-base budgeting process (OBZ).

2-The national register of state services of the entire public sector is created

administrative (RNSE), integrated into the Directorate-General for Budget.

Chapter II

Zero-base budgeting process (OBZ)

Article 2.

Addition to Law No. 91/2001 of August 20

They are deferred to Law No. 91/2001 of August 20, as amended by the Organic Law No. 2/2002,

of August 28, by Law No. 23/2003 of July 2, by Law No. 48/2004, 24 of

August, and by Law No. 48/2010 of October 19, Articles 15-to 15-C, with the

following wording:

" Article 15.

Zero-base budgeting (OBZ)

1-Without prejudice to the principles and constant budgetary rules in the

this Act, within the framework of the preceding Article (1), the

subsectors constituting the administrative public sector, as well as

the organisms and entities that integrate them, are periodically

subject, in the approval and execution of their budgets, to the process of

zero-base budgeting, in the terms of the following numbers.

2-A zero-base budgeting consists of the obligation of the organisms to

referred to in Article 2 (1), in justifying, assessing and revising

systematically all measures, integral to the expenditure of a

budget programme, on the basis of the results as well as the costs.

3-Compete to the Minister of Finance to define annually which

organisms and programs included in the basic budgeting process

zero, with priority for the budget programmes in a situation of

budget deficit.

Article 15-B

Zero-base budgeting process

1-In the years in which the zero-base budget is adopted, each

body should include in its predictive budget an analysis

synthesis of history and expense plans by program and measure. Must

also record in plan the following information:

a) A justification of the aims of the body and the programme

budget, taking into account the effectiveness, efficiency and equity of the

measures and activities to be developed;

b) Present, where possible, at least three alternatives of

allocation of expenditure for each of the activities to be developed and

detailed information of the respective endowment for each alternative, and

c) A list of priorities covering all activities

programmed, justified as to their effectiveness, efficiency and

equity.

2-In the years in which the zero-base budget is applicable, the Government shall

include in the proposed State Budget Act the information

relevant related to the presentation of each program subject to

this budgetary rule.

3-Without prejudice to the provisions of applicable law, it is expressly

predicted that public institutes elenced in Article 3 of the Law n.

3/2004, of January 15, and the companies of the state business sector

on the terms set out in Article 2 of the Decree-Law No. 558/99, 17 of

December, in the wording given by the Decree-Law No. 300/2007, of 23 of

August, are subject to the budgetary rules as provided in this

article.

4-Compete to the Minister of Finance and the Minister responsible for the

respective sector, which may delegate, the verification of compliance with the

guidelines provided for in the preceding paragraph, and may issue directives

for your application.

Article 15-C

Evaluation of the alternatives in the zero-base budget

1-A evaluation of the expense alternatives presented by the sub-sectors

referred to in Article 15 (1) shall be carried out by the Directorate-

General of the Budget.

2-The procedure referred to in the preceding paragraph implies the power of

budgetary correction, on the grounds of the criterion of suitability of the

means to the defined objectives.

3-Compete to the Minister of Finance, who can delegate, carry out the analysis

final of the proposals and the alternatives presented by the bodies

referred to in the previous numbers. "

Chapter III

National register of state services

Article 3.

National register of state services

National Register of State Services (RNSE) has the function of organising and managing the

central register of public services of the administrative public sector, as well as

to publicly release all information through a website (site of the

State services), to be created by the Directorate General of the Budget.

Article 4.

Scope of application

1-The present national register applies to all public services within the framework of

public administrative sector, specifically the services and funds of the administration

direct and indirect of the State, the Autonomous Regions, the municipalities and the companies

public.

2-For the effects of the previous number, public companies are the societies not

financial covered by the provisions of Article 3 of the Decree-Law No. 558/99, 17 of

December, in the wording given by the Decree-Law No. 300/2007 of August 23.

Article 5.

Duty of information

1-For the purposes of the registration referred to in Article 3, they shall owe the public services

defined in Article 4 to refer quarterly to the Directorate-General for Budget

information for budgetary implementation and heritage developments.

2-It is up to the Directorate General of the Budget to arrange the information collected for the purposes

of disclosure provided for in this Law.

3-Compete to the Minister of Finance for verification of compliance with the guidelines

provided for in the preceding paragraph, and may issue directives for its application,

specifically, ensuring the duty to provide information for the services

public to the entity tasked with organizing the present national register.

Article 6.

Principles relating to the dissemination of information

1-From the site referred to in Article 3, shall appear, in particular, financial information

historical and current of each public service, the identity and curricular elements of

all the leading members.

2-The state services website shall make clear, relevant information available and

updated on the life of the service, including in particular service obligations

public to which it is subject, its mission and information of a budgetary nature and

patrimonial of the last three exercises.

3-Access to all information made available on the State Services website shall

be free and free.

Chapter IV

Final and transitional provisions

Article 7.

Regulation

The Government shall, within 90 days, approve the regulatory legislation of this Law,

as well as the remaining measures necessary to which the budget application process

basis zero start in the economic year 2012, according to the approved criteria in the

terms of Article 3.

Article 8.

Republication

It is republished, in the annex to this Act, of which it is an integral part, Law No 91/2001,

of August 20, with the current wording.

Article 9.

Entry into force

1-A This Law shall come into force within 5 days of its publication.

2-Budget-incidence standards produce effects only from the

approval of the State Budget subsequent to the entry into force of this Law.

Palace of S. Bento, February 3, 2011

The Deputies of the PSD,

ANNEX

Republication of the State Budget framing law (Law No. 91/2001

of August 20)

Budget framework law

Title I

Object, scope and value of the law

Article 1.

Subject

This Law establishes:

a) The general and common provisions of the framework of the budgets and accounts of

the entire administrative public sector;

b) The rules and procedures relating to the organisation, elaboration, presentation,

discussion, voting, amendment and implementation of the State Budget, including the

of social security, and the corresponding surveillance and liability

budget;

c) The rules relating to the organisation, drafting, presentation, discussion and voting

of the accounts of the state, including that of social security.

Article 2.

Scope

1-A This Law applies to the State Budget, which includes the budgets of the

services that lack administrative and financial autonomy, services and

autonomous funds and social security, as well as the corresponding accounts.

2-State services that do not have administrative and financial autonomy

are designated, for the purposes of this Law, by integrated services.

3-Are services and autonomous funds those that meet, cumulatively, the following

requirements:

a) Do not have a nature and form of company, foundation or public association,

even if submitted to the regime of any of these by another degree;

b) Tenham administrative and financial autonomy;

c) They have available own revenue for coverage of their expenses, pursuant to

law.

4-Understand by system of solidarity and social security the set of the

subsystems defined in the respective law of bases, the respective sources of

funding and the bodies responsible for their management.

5-Without prejudice to the principle of budgetary independence set out in paragraph 2 of the

Article 5, shall apply to the Budgets of Autonomous Regions and authorities

places the principles and rules contained in Title II of this Law, as well as, with the

due adaptations, the provisions of Article 17, and the respective laws of

framework to contain the appropriate standards for the purpose.

Article 3.

Reinforced value

The provisions of this Law shall prevail, in accordance with Article 112 (3) of the

Constitution, on all the standards establishing private budgetary regimes

that counteract it.

Title II

Principles and budgetary rules

Article 4.

Annuality

1-The budgets of the bodies of the administrative public sector are annual.

2-A elaboration of the budgets referred to in the preceding paragraph shall be framed

in the multiannual perspective that is determined by the requirements of stability

financial and, in particular, for those resulting from the obligations referred to in Article 17.

3-The budgets of the bodies of the administrative public sector can integrate

programmes, measures and projects or activities involving multi-annual charges,

which will highlight the total expected expenditure for each, the plots of those

charges relating to the year in question and, with an indicative character, at least each

one of the following two years.

4-The economic year coincides with the calendar year.

5-The provisions of the preceding paragraph shall be without prejudice to the possibility of there being a period

supplementary to budget implementation, under the terms provided for in the law.

Article 5.

Unity and universality

1-The State Budget is unitary and comprises all the revenue and expenditure of the

integrated services, services and autonomous funds and the security system

social.

2-The Budgets of Autonomous Regions and local authorities are independent

of the State Budget and comprise all the revenue and expenditure of the

administrations, regional and local, including those of all its services and funds

autonomous.

3-The State Budget and the Budgets of Autonomous Regions and authorities

places to submit, in accordance with Article 32, the total responsibilities

financial expenses resulting from capital expendities assumed by way of commitments

multiannual, arising from the realization of investments with recourse to operations

financial whose nature impedance the direct accounting of the respective amount

total in the year in which the investments are carried out or the goods in issue have been made

provision of the State.

Article 6.

Non-compensation

1-All revenue is provided for by the full importance in which they have been assessed,

no deduction at all for charge charges or any other nature.

2-A The full importance of tax revenues corresponds to the forecast of the amounts

that, after abating the estimates of the disposals by virtue of

tax benefits and the estimated amounts for reimbursements and refunds, will

effectively charged.

3-All expenses are entered by their full importance, without deduction of

any species.

4-The provisions of the preceding paragraphs shall be without prejudice to the possibility of the flows

financial associated with direct public debt management operations are the subject

of budget enrollment, in accordance with the own rules set out in the present

diploma and in the budgetary framework laws of the Autonomous Regions or of the

local authorities.

Article 7.

Non-consignment

1-It cannot affect the product of any revenues to the coverage of certain

expenses.

2-Except for the provisions of the preceding paragraph:

a) The revenue from the reprivatizations;

b) the revenue on traditional community own resources;

c) The revenue from the social security budget allocated to the financing of the

different sub-systems;

d) The revenue that corresponds to transfers from the European Union,

of international organisations or budgets of other institutions of the sector

administrative public that is intended to finance, in whole or in part,

certain expenses;

e) The recipes that correspond to subsidies, donations or legacies of private individuals,

that, at the will of these, they should be allocated to the coverage of certain

expenses;

f) the revenue that is, for special reason, affected to certain expenses by

express statutory or contractual statutory statuition.

3-The standards that manage certain revenue for certain expenses have a character

exceptional and temporary, in terms to be defined in supplementary legislation.

Article 8.

Specification

1-The expected revenue shall be sufficiently specified in accordance with a

economic classification.

2-The expenditure shall be fixed in accordance with an organic, economic and

functional, and the most disaggregated levels of specification may appear only from the

developments, under the terms of this Law.

3-The expenses may still be structured, in whole or in part, by programs.

4-A The specification of disposable revenue by virtue of tax benefits will be

carried out in accordance with the economic classification codes of revenue.

5-In the budget of the Ministry of Finance will be entered into a provisional allocation

intended to cope with unforeseeable and unavoidable expenses.

6-Are void the budgetary credits that enable the existence of appropriations for

confidential use or for secret funds, without prejudice to the special schemes

legally provided for the use of monies that exceptionally are justified

for reasons of national security, authorized by the Assembly of the Republic, under

proposal of the Government.

7-A The structure of the codes of the economic classification of revenue and classifications

economical and functional of expenditure is defined by decree-law.

Article 9.

Balance

1-The budgets of the bodies of the administrative public sector provide for revenue

necessary to cover all expenses, without prejudice to the provisions of Articles 23,

25. and 28.

2-Autonomous Regions will not be able to indebate themselves beyond the values enrolled in the

Budget of the State, pursuant to the Finance Act of the Autonomous Regions.

3-The increase in indebtedness in violation of the previous number originates a reduction

in the same amount of the transfers of the State Budget due in the year

subsequent, in accordance with their respective funding laws.

Article 10.

Inter-generational equity

1-The State Budget subordinates itself to the principle of equity in the distribution of

benefits and costs between generations.

2-A The appreciation of the inter-generational equity will necessarily include the incidence

budget:

a) of the measures and actions included in Map XVII;

b) of public investment;

c) of the investment in human capacity-building, co-financed by the State;

d) of the charges with public debt;

e) of the financing needs of the business sector of the State;

f) of retirement pensions or other type.

Article 11.

Instruments of management

The bodies of the administrative public sector shall be subject to the Official Plan of

Public Accounting, and may still have other tools necessary for the good

management and control of the money and other public assets, under the terms provided for in the law.

Article 12.

Advertising

1-The Government ensures the publication of all the documents that are revealed

necessary to ensure the proper disclosure and transparency of the Budget of the

State and its implementation, using, where possible, the most advanced

existing means of communication at each time.

2-A The obligation laid down in the preceding paragraph shall be ensured in the Autonomous Regions and in the

local authorities by their respective regional governments and municipal chambers.

Title III

Budget of the State

CHAPTER I

Content and structure

Article 13.

Formal content and structure

1-The State Budget contains, in respect of the period to which it respects, the

expenditure appropriations and the forecasts of the revenue relating to the bodies referred to

in Article 2 (1), duly quantified as well as the estimates of the

cessation revenues by virtue of tax benefits.

2-The appropriations, forecasts and estimates referred to in the preceding paragraph shall form,

respectively, the budget of the subsector of integrated services, ahead

designated by budget of the integrated services, the budget of the subsector of the

Autonomous services and funds, including those of the various services and funds, ahead

designated by budget of the services and autonomous funds, and the budget of the

solidarity and social security system, hereinafter referred to by the budget of the

social security.

Article 14.

Harmonisation with the plans

The State Budget is developed in harmony with the great options and

too much plans drawn up in the terms and for the effects set out in Title II of Part II

of the Constitution of the Portuguese Republic, specifically upon management by

purposes referred to in the following article.

Article 15.

Management by objectives

1-The budgets and accounts of the bodies referred to in Article 2 (1) shall be

be the subject of a systematization by objectives, compatibilized with the objectives

provided for in Major Plan Options, considering the definition of the activities to

develop by each body and their cost centres and taking into account the

all the resources involved, including those of capital, aiming to substantiate the

decisions on the reorientation and control of public expenditure:

a) In the knowledge of the mission, objectives and strategy of the body;

b) On the correct articulation of each area of activity in relation to the objectives;

c) In the accountability of actors engaged in the management of activities by the

achievement of the objectives and good use of the resources that are allocated to them;

d) On the identification of redundant activities in the value chain of the organism a

justified reallocation of the resources in them consumed.

2-The budgetary developments referred to in paragraph 1 shall comply with structuring by

programs provided for in this Law.

Article 15-The

Zero-base budgeting (OBZ)

1-Without prejudice to the principles and the budgetary rules set out in this Law, in the

scope of the previous article, the sub-sectors constituting the

public administrative sector, as well as the bodies and entities that the

integrate, are periodically subject to, in the approval and execution of their

budgets, to the zero-base budgeting process, in the terms of the numbers

following.

2-A zero-base budgeting consists of the obligation of the organisms to which the

n Article 2 (1), in justifying, assessing and systematically reviewing all measures,

members of the expenditure of a budget programme, on the basis of the results,

as well as in costs.

3-Compete to the Minister of Finance to define annually which bodies and

programs included in the zero-base budgeting process, with priority to

the budget programmes in a budget deficit situation.

Article 15-B

Zero-base budgeting process

1-In the years in which the zero-base budget is adopted, each body shall

include in your forecasting budget an analysis summary of the history and plans of

expense per program and measure. It shall also appear in plan the information

following:

a) A justification of the objectives of the body and the budget programme, and

into account the effectiveness, efficiency and fairness of the measures and activities to

develop;

b) Present, where possible, at least three alternatives of endowment of

expenditure for each of the activities to be developed and detailed information of the

respective endowment for each alternative, and

c) A list of priorities covering all scheduled activities,

justified as to their effectiveness, efficiency and equity.

2-In the years in which the zero-base budget is applicable, the Government shall include in the

proposal for State Budget law the relevant information related to

the presentation of each programme subject to this budgetary rule.

3-Without prejudice to the provisions of applicable law, it is expressly provided that the

public institutes elenced in Article 3 of Law No 3/2004 of January 15 and the

companies in the business sector of the state in the terms set out in Article 2 of the

Decree-Law No. 558/99 of December 17, in the wording given by the Decree-Law n.

300/2007, of August 23, are subject to the budgetary rules, as provided for

in this article.

4-Compete to the Minister of Finance and the Minister responsible for the respective sector,

that they may delegate, the verification of compliance with the guidelines provided for in the

previous number, and may issue directives for its application.

.

Article 15-C

Evaluation of the alternatives in the zero-base budget

1-A The evaluation of the expense alternatives presented by the subsectors to which

refers to Article 15 (1)-A will be carried out by the Directorate-General for Budget.

2-The procedure referred to in the preceding paragraph implies the power of correction

budget, on the basis of the criterion of the suitability of the means to the objectives

defined.

3-Compete to the Minister of Finance, who can delegate, carry out the final analysis of the

proposals and the alternatives presented by the bodies referred to in the figures

previous.

Article 16.

Mandatory expenses

1-In the State Budget will be inscribed compulsorily:

a) the appropriations necessary for the fulfillment of the obligations arising from law

or of contract;

b) appropriations intended for the payment of charges resulting from sentences of

any courts;

c) Other appropriations determined by law.

2-The appropriations corresponding to compulsory expenditure of right amount, known

on the date of the submission of the proposed State Budget Bill, will be

duly evidenced in that proposal.

Article 17.

External linkations

The budgets that integrate the State Budget are drawn up, approved and

executed in such a way that:

a) Contain the appropriations necessary for the realization of the compulsory expenditure to

which refers to the previous article;

(b) comply with the obligations arising from the Treaty on European Union;

c) They take into account the great options in planning and the

multiannual financial programming drawn up by the Government.

SECTION I

Budget by programs

Article 18.

Regime

1-Without prejudice to its specification in accordance with the organic classifications,

functional and economic, the expenditure entered in the budgets that integrate the

State budget may be structured, in whole or in part, by programmes, in the

terms set out in this Law.

2-With the aim of streamlining preparedness and strengthening the control of management and

budget implementation, the budget shall be structured by programmes, measures and

projects or activities.

3-A structuring by programmes shall apply to the following expenses:

a) Investment expenditure and development of the services budget

integrated and the budgets of autonomous services and funds and the budget

of social security, with the exception of those with respect to liabilities

financial;

b) Investment expenditure co-financed by community funds;

c) Expenditure corresponding to military programming laws or any other

programming laws;

d) Expenditure corresponding to contracts for the provision of services in a scheme of

private funding or other form of partnership of the public sectors and

private.

Article 19.

Budget programmes

1-The budget programme includes the expenditure corresponding to a set of

multi-annual measures that compete, in an articulated and complementary manner,

for the realization of one or several specific objectives, relating to one or more

public policies, of it by necessarily forming an integral part of

indicators that allow to assess the economy, efficiency and effectiveness of its

realization.

2-A evaluation of the economy, efficiency and effectiveness of programs with recourse to

partnerships from the public and private sectors will take as a basis an alternative programme

aiming to achieve the same objectives with exclusion of financing or of

operating in charge of private entities, and shall include, where possible, the

estimate of its net budgetary incidence.

3-The budget programme may be implemented by one or several entities

belonging:

a) At the same or different ministries;

b) To the same or to different subsectors of the Central Administration.

4-Each budget programme is divided into measures, and there may be programmes with

a single measure.

5-Budget programmes with community funding must identify the

community programs that are associated with them.

Article 20.

Measures

1-A measure comprises expenditure of a budget programme corresponding to

projects or activities, well specified and characterized, that are articulated and

supplement with each other and compete for the achievement of the objectives of the

program in which they are inbeing.

2-A The measure may be performed by one or several entities belonging:

a) At the same or different ministries;

b) To the same or to different subsectors of the Central Administration.

3-Each measure is divided into projects or activities, and there may be measures with

a single project or activity.

4-The project or activity corresponds to basic units of realization of the measure,

with strictly defined budget and timetabling.

5-Measures, projects or activities may be created in the course of the implementation of the

Budget of the State.

6-The changes arising from the creation of measures, in the terms of the previous number,

are to appear in expressly of the Budget-Execution Newsletter.

Article 21.

Supplementary legislation

The rules relating to the mode and the form of concrete definition of the programmes and

measures to be enrolled in the State Budget and the respective structures, as well as to the

your specification in budgetary developments and the respective implementation will be

established by decree-law.

SECTION II

Budget of integrated services

Article 22.

Specification

1-A The specification of the expenditure of the budget of integrated services, according to

organic classification, subordinates to the general criteria set out in the figures

following.

2-A Organic classification groups the expenditure on securities, divided into chapters,

may these divide into one or more levels of disaggregation, as if it reveals

required for an appropriate specification of the expenses.

3-Without prejudice to the provisions of the following number, each title corresponds to a

ministry, covering the secretaries of state and the services in it, in the

terms of the respective organic law.

4-Are inscribed in title of the state's general charges, corresponding to the

expenses:

a) of the organs of sovereignty that do not have administrative autonomy and

financial, as well as of the services and other bodies their dependents;

b) of the remaining services and other bodies that do not have autonomy

administrative and financial, not integrated into ministries;

c) Of the transfers to the budgets of the organs of sovereignty and other

organisms not integrated into ministries, which have autonomy

administrative and financial;

(d) of the transfers to the budgets of the Autonomous Regions;

e) of the transfers to local authorities.

5-In each chapter are grouped together all the expenses that compete for one's

purpose and, specifically, the expenditure of a directorate, inspectorate-general or

equivalent service, including the expenses of all services that are

subordinates.

6-In the same chapter, the expenditure of two or more directorates may be grouped together,

inspections-general or equivalent services, provided that the services in question

develop related activities.

7-In exceptional cases, duly justified in the complementary elements of the

proposed state budget bill, can be enrolled in the classification

organic special chapters.

Article 23.

Balance

1-The actual revenue from the budget of integrated services has to be at least

equal to the actual expenditure of the same budget, excluding current charges

of the public debt, save if the conjuncture of the period referred to in the budget

justifiably not allow it.

2-The reports of the state budget bill and the State General Account

present the justification referred to in the final part of the preceding paragraph.

3-For the purposes of the provisions of paragraph 1, all revenue and revenue shall be deemed to be effective and

expenses, with the exception of those relating to financial liabilities.

SECTION III

Budget of services and autonomous funds

Article 24.

Specification

1-In the budget of the subsector of autonomous services and funds, including that of each

one of these services and funds, the revenues and expenses specify the following

mode:

a) Global subsector revenues specify in accordance with the classifications

organic and economic;

b) The overall expenditure of the sub-sector is specified according to the classifications

organic, economic and functional;

c) The disposals of the subsector, by virtue of tax benefits,

specify in accordance with the economic classification of revenue;

d) The revenues of each service and autonomous fund specify in accordance with the

economic classification;

e) The expenses of each service and autonomous fund specify in accordance with the

economic and functional classifications.

2-In the budget of the subsector of autonomous services and funds, including that of each

one of these services and funds, the respective expendities can, still, structure, in the

in whole or in part, by programmes, pursuant to the provisions of Articles 18 to 21.

Article 25.

Balance

1-The budget of each service or autonomous fund is drawn up, approved and implemented

in such a way to present either zero or positive global balance.

2-For the purpose of the caption of the balance referred to in the preceding paragraph, they are not considered

revenue from financial assets and liabilities, as well as the balance of the

previous management, nor the expenses for financial assets and liabilities.

3-In cases where, during the year to which they respect the budgets referred to in para.

1, the budgetary implementation of the set of public sector institutions

administrative to allow, may the Government, through the Minister of Finance,

dispense, in exceptional situations, the application of the established balancing rule

in the same number.

4-In cases where the application of the balancing rule is waived, in the terms of the

previous number, the Government:

a) Approve the corresponding budgetary changes that are from your

competence;

b) Propora to the Assembly of the Republic the corresponding budgetary amendments

that are of the competence of this organ.

Article 26.

Recourse to credit

1-It is vetoing the recourse to credit for the services and autonomous funds.

2-Except for the provisions of the preceding number to contraction of loans giving

source:

a) The floating debt, pursuant to the provisions of Article 3 (a) of the Law n.

7/98, of February 3;

(b) the debt founded, pursuant to the provisions of Article 3 (b) of the Law No.

7/98, of February 3, provided that the situation provided for in paragraph 3 and in the

(b) of paragraph 4 of the preceding Article and that the corresponding indebtedness

net be authorized by the Assembly of the Republic.

3-Only may contract the loans referred to in paragraph (b) of the number

previous the services and autonomous funds whose organic laws allow them to

same have these recipes.

4-In cases provided for in paragraphs 2 and 3, autonomous services and funds will appeal

Priority funding with the Treasury.

SECTION IV

Social security budget

Article 27.

Specification

1-In the social security budget, the revenue and expenditure specifies the following

shape:

a) Global system revenues specify in accordance with the respective

economic classification;

b) Global system expenditces specify according to the classification

economic and functional;

c) The revenues of each subsystem specify in accordance with the respective

economic classification;

d) The expenses of each subsystem specify in accordance with the respective

economic and functional classification.

2-The social security budget can be structured by programs.

3-The expenditure of the social security budget will be structured by classification

organic to be defined by decree-law.

Article 28.

Balance

1-The actual revenue from the social security budget has to be at least

equal to the actual expenditure of the same budget.

2-The annual balances of the previdential subsystem revert in favour of the Fund of

Financial Stabilization of Social Security, pursuant to the Bases Act of the

Social Security.

Article 29.

Recourse to credit

The recourse to credit within the social security system is only permitted to

Institute for Financial Management of Social Security, and as long as it does not give rise to debt

founded.

CHAPTER II

State Budget Law

Article 30.

Formal content and structure

The State Budget Act contains the articulate and the budget maps.

Article 31.

Articulated

1-The articulation of the State Budget Act contains, in particular:

a) the approval of the budget maps;

(b) the standards necessary to guide the budget implementation;

c) The indication of the destination to be given to the funds resulting from the possible surpluses

of the budgets of integrated services and services and autonomous funds;

d) the possible indication of the monies entered in the budget which, to ensure the

achievement of fiscal policy objectives, stay captive, up to the Government

authorize its use, in whole or in part, in cases where the evolution of the

budget implementation shall allow it;

e) The determination of the maximum amount of the net debt addition and

the remaining general conditions to which the issuance of public debt is to be subordinated

founded by the State, through the Government, and by the services and autonomous funds,

during the economic year;

f) The determination of the extra amounts to the addition of indebtedness

authorized net, in cases where the use of credit is provided for

to finance the expenditure on the operations referred to in the antecedent point (d) or

the conjunctural action programmes;

g) The determination of the general conditions to which the operations of

management of the legally provided public debt;

h) The determination of the maximum limit of personal guarantees to be granted by the

State, through the Government, and by the services and autonomous funds, during the year

economic;

i) The determination of the maximum limit of loans to be granted and of other

active credit operations, whose repayment term exceeds the end of the year

economic, to be carried out by the State, through the Government, and by the services and funds

autonomous;

j) The determination of the maximum limit of the anticipations to be carried out, pursuant to the

applicable legislation;

l) The determination of the maximum limit of any commitments to be made with

contracts for the provision of services in private or other financing arrangements

form of partnership of the public and private sectors;

m) The determination of the maximum limits of the indebtedness of Regions

Autonomas, in the terms provided for in the respective finance law;

n) The possible updating of the values below which acts, contracts and other

instruments generators of expenditure or representative of responsibilities

direct or indirect financial aid shall be exempt from prior surveillance by the

Court of Auditors;

o) The maximum overall amount of financial authorization to the Government for satisfaction

of charges with the benefits to be settled, referring to investment contracts

public under the Military Programming Act, in the form of rental;

p) Too many measures that prove indispensable to the correct financial management

of the integrated services, services and autonomous funds and the system of

social security in the economic year to which it respects the Budget Act.

2-The provisions set out in the articulation of the State Budget Law shall

limit itself to the strictly necessary for the implementation of budgetary policy and

financial.

Article 32.

Budget maps

The maps referred to in point (a) of paragraph 1 of the preceding Article are as follows:

Map I, "Income from integrated services, by economic classification";

Map II, " Expense of integrated services, by organic classification,

specified by chapters ";

Map III, "Expense of integrated services, by functional classification";

Map IV, "Expense for integrated services, by economic classification";

Map V, " Revenue From services and autonomous funds, by organic classification,

with specification of the overall revenues of each service and fund ";

Map VI, " Revenue From services and autonomous funds, by classification

economic ";

Map VII, " Expense of services and autonomous funds, by organic classification,

with specification of the overall expenditure of each service and fund ";

Map VIII, " Expense of services and autonomous funds, by classification

functional ";

Map IX, " Expense of services and autonomous funds, by classification

economic ";

Map X, "Recipe of social security, by economic classification";

Map XI, "Social security expenditure, by functional classification";

Map XII, "Social security expenditure, by economic classification";

Map XIII, "Recipes of each subsystem, by economic classification";

Map XIV, "Expense of each subsystem, by economic classification";

Map XV, " Program of Investments and Development Expenditure of

Central Administration (PIDDAC), which includes only the respective programs and

budgetary measures, articulated with the Major Options of the Plan (GOP) and with the

Community Support Framework (CSF), evidencing the multi-annual charges and the

sources of funding and the regionalized allocation of the programmes and measures to the

level of the Nomenclatures of Territorial Units-NUT II ";

Map XV-A, " regionalized breakdown of the programs and measures-PIDDAC da

Regionalization, of mandatory presentation, but not subject to voting ";

Map XVI, "Expenditure Corresponding to programmes";

Map XVII, " Multiannual contractual responsibilities of integrated services and

of the services and autonomous funds, grouped by ministries ";

Map XVIII, "Transfers to the Autonomous Regions";

Map XIX, "Transfers to municipalities";

Map XX, "Transfers to the freguesies";

Map XXI, " Tax revenue cessation of integrated services, services and

autonomous funds and social security ".

Article 33.

Species of budget maps

1-The maps to which the previous articles are referred to be classified on basic maps and

derivatives.

2-Are basic maps:

a) The maps containing the revenue of the integrated services, services and funds

autonomous and social security, specified by economic classification;

b) The maps containing the expenses of the integrated services, services and funds

autonomos, specified by programs and measures and by functional classification

and organic;

c) The map containing the expenses of social security, specified by

functional classification.

3-Are derivative maps of which present all or part of the revenue and expenditure

inscribed on the base maps, according to other classifications or forms

specification supplemental.

4-Understand in paragraph 2 the maps I to III, V, VI, VII, VIII, X, XI and XV and in paragraph 3

all the remaining maps of the State Budget Act.

5-The species of revenue and the amounts relating to the expenditure entered in the maps

Basic budget as referred to in paragraph 2 are binding on the Government, which only

you may change them in the cases provided for in Chapter IV.

6-The budgetary maps derived as referred to in paragraph 3 have no binding character

for the Government, which will be able to change them, except in cases where changes in

cause to implicate reflex changes in some basic budgetary map and in the

too many cases provided for in Chapter IV.

Article 34º

Proposal for a law

1-A proposed state budget bill has a structure and formal content

identical to those of the Budget Act.

2-A budget bill proposal is accompanied by the developments

budgetary, by the respective report and by the informative elements provided for in the

present section, as well as by all the other elements necessary for the justification

of the decisions and the budgetary and financial policies presented.

3-The informative elements referred to in the preceding paragraph may be

presented in the form of autonomous attachments or integrated elements in the

report that accompany the proposed law.

Article 35.

Budget developments

1-The budget developments that accompany the budget bill proposal

of the State comprise:

a) the development of the revenue and expenditure of the integrated services;

b) The budgets of services and autonomous funds;

c) The social security budget.

2-The development of the revenue of integrated services integrates a framework of

observations, which indicate, in particular, the main characteristics of each

revenue item and the respective legal bases.

3-The developments of the expenditure of integrated services organize themselves by

ministries and present the expenses of each of their respective services,

specified, up to maximum disaggregation levels, according to the

economic and functional classifications.

4-The budget of each service and autonomous fund presents the respective revenue and

specified expenses, up to maximum disaggregation levels, according to the

economic and functional classifications.

5-In cases where they are structured, in whole or in part, by programmes, the

budget developments of integrated services, the budget of each service

and autonomous fund and the social security budget highlight the expenditure

relating to the programmes and measures borne by the respective managing entity.

Article 36.

Contents of the report

1-The report of the proposed State Budget Bill contains the presentation and the

justification of the proposed budget policy.

2-The report referred to in the preceding paragraph includes the analysis of the main elements

relative to the following aspects:

a) Evolution and projections of the main macroeconomic aggregates with

influence in the State Budget;

b) Developments of the financial situation of the administrative public sector and, in

particular, of the State, including integrated services, services and funds

autonomous and system of solidarity and social security;

c) General lines of fiscal policy;

d) Adequacy of the budgetary policy proposed to the obligations arising from the

Treaty of the European Union and of the Economic and Monetary Union;

(e) budgetary impact of decisions relating to public policies;

f) measures to rationalize the management of monies and other public values;

g) Other material relevant to the presentation and justification of the main

proposed budget decisions and policies.

Article 37.

Informative elements

1-A The proposed state budget bill is accompanied at least by the

following informative elements:

a) medium and long time financial indicators;

b) multiannual financial programming;

c) Descriptive Memory of the reasons justifying the resource to partnerships of the sectors

public and private, in the face of an alternative programme drawn up under the terms of paragraph 2

of Article 19;

d) Estimation of the consolidated budget of the administrative public sector, in optics

of public accounting and in the optics of national accounting;

e) descriptive memory of the reasons that justify the differences between the values

ascertained, in the optics of public accounting and in the optics of accounting

national;

f) Consolidated budget of integrated services and services and funds

autonomous and consolidated budget of the State, including that of social security;

g) Situation of public debt, treasury transactions and Treasury bills;

h) Financial and equity status of the subsector of integrated services;

i) Financial and equity status of the subsector of autonomous services and funds;

j) Financial and patrimonial status of the solidarity and security system

social;

l) Financial transfers between Portugal and the outside with incidence in the proposal

of budget;

m) Budget transfers to the Autonomous Regions;

n) Budget transfers to municipalities and freguesias;

o) Budget transfers to public companies and other institutions not

integrated in the administrative public sector;

p) informative elements on budget programmes;

(q) Justification of the forecasts of tax revenue, with discrimination of the situation

of the main taxes;

r) Tax benefits, estimates of the outgoing revenues and their justification

economic and social;

s) Expenditure crossed by the various budget classifications.

2-A presentation of the informative elements on the patrimonial situation of the

Autonomous services and funds depends on the application to each of the Official Plan of

Public Accounting (POCP).

Article 38.

Deadlines for submission

1-The Government presents to the Assembly of the Republic, until October 15 of each year, the

proposal for the State Budget Act for the following economic year,

accompanied by all the elements referred to in Articles 35 to 37.

2-The time limit referred to in the preceding paragraph shall not apply in cases where:

a) The government in office shall find itself dismissed on October 15;

b) The takeover of the new government occurs between July 15 and October 14;

c) The term of the legislature occurs between October 15 and December 31.

3-In the cases provided for in the preceding paragraph, the proposed State Budget Bill

for the following economic year, accompanied by the elements to which the

articles 33 to 35, it is submitted, by the Government, to the Assembly of the Republic, in the

period of three months from the date of its possession.

Article 39.

Discussion and voting

1-A proposed state budget bill is discussed and voted on in the terms of the

provisions of the Constitution, in this Law and in the Rules of the Assembly of the

Republic.

2-A vote on the proposed state budget bill takes place within 45 days

after the date of its admission by the Assembly of the Republic.

3-The Plenary of the Assembly of the Republic discusses and votes, in generality, the proposal

of the State Budget Act, pursuant to and the time limits set out in the Rules

of the Assembly of the Republic.

4-The Plenary of the Assembly of the Republic discusses in the specialty the proposed law of the

Budget of the State, in the terms and deadlines set out in the Rules of the

Assembly of the Republic.

5-With the exception of subjects voted in the specialty by the Plenary under the terms of the n.

4 of Article 168 of the Constitution, the vote in the specialty of the proposed law of the

State budget stems from the relevant parliamentary committee in respect of

consideration of the proposal for the Budget Act and is for the purpose of the articulate and the

constant budget maps of that proposed law.

6-Any subjects understood in the voting phase in the specialty of the proposal

of the State Budget Act may be avocated by the Plenary of the

Assembly of the Republic, under the terms set out in the respective Rules.

7-Within the framework of the examination and discussion of the proposed State Budget Bill, the

Assembly of the Republic may hold any hearings in the general terms.

8-For the purposes of the preceding paragraph, it may, in particular, the Assembly of the

Republic convene directly, the request of the specialist committee

permanent competent in budgetary matters, the entities that are not

submitted to the power of direction of the Government and whose deposition deems relevant

to the cabal clarification of the matter in appreciation.

Article 40.

Publication of the full content of the Budget

The Government ensures the annual publication of the full content of the Budget of the

State until the end of the 2. the month after the entry into force of the State Budget Act.

Article 41.

Extension of the term of the Budget Act

1-A The term of the State Budget Act is extended when it occurs:

a) The rejection of the proposed state budget bill;

b) The taking of possession of the new government, if this occurred between July 1 and 30

of September;

c) The expiry of the proposed State Budget Act by virtue of the

resignation of the bidder government or the previous government not to have submitted

any proposal;

d) The non-parliamentary vote of the proposed state budget bill.

2-A extension of the duration of the State Budget Act covers the respective

articulated and the corresponding budget maps, as well as their

developments and the decrees-budget implementation laws.

3-A The extension of the term of the State Budget Act does not cover:

a) the legislative authorizations contained in its articulation which, according to

Constitution or the terms in which they were granted, should lapse at the end of the

economic year to which he respected the law;

b) The authorisation for the collection of the revenue whose schemes were intended to

invigorate only until the end of the economic year to which he complied with the law;

c) The authorization for the realization of the expenditure relating to services, programmes and

multi-annual measures that should be extinguished by the end of the economic year to which

respected that law.

4-During the transitional period in which the extension of the term of the Act is maintained

of the State Budget relating to the previous year, the implementation of the budget of the

expenditure obeys the principle of use by twelfth of the monies fixed in the

budget maps that specify them, in accordance with the organic classification, without

Injury to the exceptions set out in paragraph 5 (a) of Article 43 (43)

5-During the transitional period in which the extension of the term of the Act is maintained

of the State Budget relating to the previous year, the Government and the services and

autonomous funds can:

(a) to issue public debt founded, in the terms provided for in the respective legislation;

b) To provide loans and carry out other active credit operations, up to the

limit of one twelfth of the maximum amount authorized by the Budget Act

in each month in which she keeps vigore transiently;

c) Concede personal guarantees, under the terms provided for in the respective legislation.

6-The revenue and expenditure operations implemented under the transitional scheme are

imputed to the accounts relating to the new economic year started on January 1.

7-For the purposes of the provisions of the preceding paragraph, the decrees-laws of enforcement of the laws of the

State budget that comes into force with delay will establish the

procedures to be adopted in cases where they cease to appear appropriations or

are modified assignments of existing items in the previous Budget and by

account of which expenses have been incurred during the interim period.

8-During the transitional period in which the extension of the law is to be maintained

of the Budget relating to the previous year, the Government may approve, by decree-law,

the budget implementation standards required to discipline the application of the

scheme established in this chapter.

CHAPTER III

Budget implementation

Article 42.

Principles

1-The implementation operations of the revenue and expenditure budget shall comply with the

principle of segregation of settlement and collection functions, as to the

first, and of the authorization of the expense, of payment authorization and of

payment, as to Mondays.

2-A segregation of functions referred to in the preceding paragraph may establish between

different services or between different agents of the same service.

3-No revenue can be liquidated or charged, even if it is legal, without that,

cumulatively:

a) have been the subject of correct budgetary enrollment;

b) Be suitably classified.

4-A settlement and collection may, however, be carried out in addition to the values

provided for in the respective budget inscription.

5-The appropriations set out in the expenditure budget constitute the ceiling to

use in the achievement of these.

6-No expense can be authorized or paid without, cumulatively:

a) the fact that the generator of the expenditure obligation complies with the applicable legal standards;

b) The expenditure in question has budgetary enrollment, has a fit in the

corresponding endowment, be suitably classified and comply with the

principle of the implementation of the budget by twelfth, saved, in the latter

matter, the exceptions provided for in the Act;

c) The expenditure in question satisfies the principle of the economy, efficiency and effectiveness.

7-Unless otherwise lawful provision, the cableway referred to in point (b) of the

previous paragraph shall be afflicted by the headings of the most disaggregated level of the classification

economic and respecting, if applicable, the cabling in the programme, project or

activity.

8-The respect for the principles of economics, efficiency and effectiveness, as referred to

c) of paragraph 6, shall be checked, in particular, in relation to the expenditure which,

by its high amount, by its continuity in time, once initiated, or

for any other reason involve a significant dispend of money

public.

9-In addition to the required requirements, the realization of any expenditure to which it is

consignothing determined revenue is also conditioned on the collection of this recipe

in equal amount.

Article 43.

Competence

1-The Government sets out, by decree-law, the budgetary implementation operations of the

competence of the members of the Government and the leaders of the services under their

direction or tutelage.

2-In each year, the Government establishes, by decree-law, the necessary provisions to

implementation of the State Budget Act, including that of social security

concerning the year in question, without prejudice to the immediate implementation of the standards of this

law that are enforceable by themselves.

3-For the purposes of the provisions of the preceding paragraph, the Government shall approve in a single

decree-law the implementing rules of the State Budget, including the relative

to the budget of integrated services, the budgets of services and funds

autonomous and the budget of social security.

4-The provisions of the preceding paragraph shall not preclude that, during the economic year, they are

approved other decrees-budget implementation laws, where this is warranted.

5-The decree-law relating to the implementation of the budget of integrated services, services

and autonomous funds and the social security budget contains:

a) the indication of the budgetary allocations for which the

regime of the twelfths;

b) The indication of the budgetary allocations that are captive and of the conditions to which

it shall be conditional on its use, in whole or in part;

c) The indication of the expenses or payments whose authorisation depends on the

intervention of the central services tasked with coordinating and controlling

globally the implementation of the budget of integrated services and budgets

of the autonomous services and funds and that of the social security budget;

d) The deadlines for the authorization of expenses;

e) The remaining standards required for the implementation of the State Budget and of each

one of the budgets by it covered.

6-The decree-law referred to in paragraphs 2 and 5 is published by the end of the following month

to that of the entry into force of the State Budget Act.

Article 44.

Regimes of implementation

1-A The implementation of the expenditure budget subordinates to the scheme:

a) of administrative autonomy, in the part concerning the budget of services

integrated;

b) Of administrative and financial autonomy, in the part concerning budgets

of the services and autonomous funds;

c) Special implementation of the social security budget.

2-The provisions of this Chapter shall apply to all implementing schemes

budget referred to in the preceding paragraph.

3-A The Law of Bases of Public Accounting lays the foundations of the regimes of

budget implementation, in accordance with the provisions of this Law.

Article 45.

Assumption of commitments

1-Only expenditure commitments may be made after the competent

accounting services exarize prior cabling information in the document

of authorization of the expenditure concerned.

2-The commitments that give rise to multi-annual charges can only be

assumed by prior authorization, to be granted by joint porterie of the

Finance and tutelage ministers, unless, alternatively:

(a) Respect to the programmes, measures, projects or activities contained in the

maps XV and XVI of the State Budget Act;

b) The respective amounts do not exceed, in each of the economic years

following, the limits and deadlines established, for this purpose, in law.

3-The first year of the implementation of the expenditure relating to the multiannual commitments

must correspond to the one in which the commitment in question is made, with the

legally permitted exceptions.

Article 46.

Implementation of the budget of integrated services

1-A The implementation of the budget of integrated services is ensured:

a) In the part concerning the revenue, by the services that liquidate them and that they zelam by

its collection, as well as by the network of Treasury charges;

b) In the part concerning the expenditure, by the members of the Government and the leaders

of the services, as well as by the Treasury payment system.

2-A The law defines, depending on its characteristics or amounts, the operations of

budget implementation, specifically the expenditure authorisations that are incumbent

to the members of the Government.

3-Within the scope of the current management of integrated services, it is incumbent on the respective

leaders and those responsible for accounting services the enforcement operations

budget, fully fit with the leaders the practice of the acts of authorisation

of expense and payment authorization.

Article 47.

Implementation of the budget of services and autonomous funds

1-A The implementation of the budgets of the services and autonomous funds lies with the

respective leaders, without prejudice to the expenditure authorisations which, pursuant to the

law, they should be granted by the members of the Government.

2-A the realization of the expenditure on the acquisition of goods and services or the realization of

undertaken by the services and autonomous funds becomes subject to the scheme of the contracting

public, saved the exceptions provided for in the Community Standards and in the law.

3-Autonomous services and funds use their own revenue as a matter of priority

not consigned by law to specific purposes for the coverage of their respective expenses.

4-Only in cases where the own revenue referred to in the preceding paragraph is

disclose insufficient, autonomous funds and services will proceed to the coverage of the

respective expenses through the transfers receiving from the budget of the

integrated services or the budgets of other services or autonomous funds.

Article 48.

Implementation of the social security budget

1-Incumbent to the Institute of Financial Management of Social Security the global management of the

implementation of the social security budget, in respect of the provisions of the present

law and the standards specifically applicable within the framework of the system.

2-The Institute of Financial Management of Social Security can only carry out operations of

funding upon authorization by the Government, to be granted through dispatch

set of the Ministers of Finance and Labour and Solidarity.

3-The management balances of the social security budget will be used by

prior authorization to be granted by the Government, through joint dispatch of the

Ministers of Finance and Labour and Solidarity.

4-The collections of revenue and the payments of the expenses of the security system

social media are carried out by the Institute of Financial Management of Social Security that

takes on the unique treasury competencies of the social security system in

articulation with the State Treasurer.

5-A The implementation of the social security system budget has on the basis of the

respective treasury plans, drawn up by the Institute of Financial Management of the

Social Security.

6-The ins and outs of funds from the social security system are carried out through

of the Institute for Financial Management of Social Security, directly or by

intermediate of collaborating entities, where they hold their own

surplus and treasury availabilities.

CHAPTER IV

Budget amendments

SECTION I

General provisions

Article 49.

General regime

1-The amendments to the State Budget shall comply with the provisions of this Chapter.

2-Without prejudice to the provisions of the preceding paragraph, the articulation of the Budget Act of the

State may lay down the supplementary rules to which they will subordinate the

changes to the budget concerned.

Article 50.

Budget amendment laws

1-A The structure and the contents of the budget amendment laws comply with the provisions of the

chapter II, whose standards are applicable with the necessary adaptations.

2-The Government will be able to define by decree-law the rules that it will understand necessary to

application of the provisions of the preceding paragraph.

3-Budget amendment laws come into force on the date of their publication, save

provision to the contrary of them constant.

Article 51.

Budgetary changes in the competence of the Government

1-Compeve to the Government:

a) All changes to budget developments that do not imply

changes to the basic budgetary maps, referred to in Article 33;

b) Budget changes regarding the transition of balances;

c) The remaining budgetary changes which, in accordance with the provisions of the present

chapter, by it should be carried out.

2-The Government may reduce or annul any budgetary allocations that are lacking from

justification, provided that they are safeguarded by the obligations of the State arising out of

of law or contract.

3-The Government defines, by decree-law, the general rules to which they comply with the amendments

budgetary of their competence.

4-The budgetary changes which, pursuant to this Law, are of the competence of the

Government may also be carried out by the leaders of the services under its

direction or guardian, in the cases provided for in the decree-law referred to in the number

previous.

Article 52.

Publication of budgetary changes

In cases where the respective publicity is not ensured through the

compulsory publication in the Journal of the Republic of the Acts that approve them, the

budget changes are disseminated through the publication in the same Journal of the

maps of the State Budget Act modified by virtue of the changes in them

introduced during the quarter concerned:

a) By the end of the following month every quarter, in the case of the first three

trimesters of the economic year;

b) By the end of the month of February, in the case of the 4 th quarter.

SECTION II

Changes to the revenue budget

Article 53.

Changes to the revenue budget

1-Compeve to the Assembly of the Republic the changes in the budget of the revenue of the

integrated services, the budget of each service or autonomous fund or the

social security that:

a) shall be determined by changes in the respective budgets of the expenditure, of the

competence of the Assembly of the Republic;

b) Envolve an addition of the respective limits on net borrowing

fixed in the State Budget Act.

2-Compeve to the Government the changes in the revenue budget not included in the

previous number.

SECTION III

Changes to the budget of expenditure

Article 54.

Budget by programs

1-Compeeve to the Assembly of the Republic the budgetary changes consisting of the

enrollment of new programs.

2-Compeeve to the Assembly of the Republic the budgetary changes consisting of a

increase in the total amount of expenditure of each programme, save the provisions of the

the following number.

3-Compeve to the Government the budgetary changes to which the preceding paragraph is concerned,

in cases where the increase in the total amount of expenditure for each programme has

counterpart:

a) In increasing the forecast of actual revenue that are consigned;

b) In management balances or appropriations from previous years whose use is

permitted by law;

c) In the provisional allocation.

4-It is the competence of the Assembly of the Republic for transfers of monies between

different programmes, with the exception of the provisions of the following number.

5-It is the responsibility of the Government for transfers of appropriations:

a) Between programs, provided that with the same title and chapter and if you hold the

respective functional classification;

b) Among the various measures, projects or activities in a same programme;

(c) Arising from the transfers of the competences of a managing entity of a

program or measure for other entities or the succession of these in the

competences of the first;

d) Provence of existing measures, projects or activities for new

measures, projects or activities to be created in the course of the implementation of the Budget

of the State.

6-In the case of the expenditure shown on the XVI map, the changes in the amounts of each

title or chapter, as well as those involving the transfer of monies or the

suppression of appropriations between titles or chapters, are the competence of the Government and

may be introduced, in accordance with the criteria set out in the annual law of the

Budget, within the framework of each of the budget programmes approved by the

Assembly of the Republic, with a view to its full realization.

7-The provisions of this Article shall be without prejudice to the powers conferred on the Government

within the framework of the programming laws.

Article 55.

Budget of integrated services

1-Compeve to the Assembly of the Republic the changes in the budget of services

integrated:

a) which consist of an increase in the total amount of each title or chapter;

b) Of a functional nature.

2-Compeve to the Government the budgetary changes to which the preceding paragraph is concerned,

in cases where the increase in the total amounts of the expenditure in question has

counterpart:

a) In increase of actual revenue consignments;

b) in balances of appropriations from previous years whose use is permitted by law;

c) In reinforcement or enrollment of revenue from transfers from the

budgets of services and autonomous funds or the security budget

social;

d) In the provisional allocation.

3-It is the competence of the Assembly of the Republic the transfers of monies from the

budget of integrated services:

a) Between different titles or chapters;

b) Of a functional nature.

4-Compeve to the Government the transfers of money from the services budget

integrated:

a) Between different titles or chapters, in cases where the same are due

modifications of the organic laws of the Government or of the ministries or the

transfer or succession of skills between different services;

b) Between different titles or chapters and of a functional nature, in cases where

those are carried out with consideration in the provisional allocation;

c) Among the headings of the map of the economic classification of expenditure.

5-In cases where the legislative modifications referred to in paragraph (a) of the number

previous to demand it, the Government may enroll new titles or chapters on the map of the

organic classification of expenditure, for which it will carry out the due

transfers of monies.

Article 56.

Budget of services and autonomous funds

1-Compeeve to the Assembly of the Republic the budgetary changes consisting of the

increase in the amount:

a) of the overall expenditure of each service or autonomous fund;

b) of the expenditure of each service or autonomous fund allocated to a heading of the

functional classification.

2-Compeve to the Government the budgetary changes to which the preceding paragraph is concerned,

in cases where the increase in the amounts of the expenditure in question has

counterpart:

a) In effective collections of own revenue from the autonomous service or fund, which

do not come from the resource to the credit, higher than the values provided in the

respective budget;

b) In management balances or appropriations from previous years whose use is

permitted by law;

c) In reinforcement or enrollment of revenue from transfers from the budget

of the integrated services, other services and autonomous funds or security

social;

d) In the provisional allocation.

3-Compeve to the Assembly of the Republic the transfers of appropriations in the budget of

each service or autonomous background consisting of transfers of nature

functional.

4-Compeve to the Government the transfers of monies in the budget of each service or

autonomous background, with the exception of those provided for in the preceding paragraph.

Article 57.

Social security budget

1-Compeve to the Assembly of the Republic the changes of the security budget

social which consisted of an increase in the total amount of expenditure, with the exception

of those referred to benefits which constitute the rights of the beneficiaries of the system of

social security.

2-Compeve to the Government the budgetary changes arising from the increase in

expenses for the benefits referred to in the preceding paragraph.

3-Compeve, still, to the Government the budgetary changes that consist of the increase

of the total amount of expenditure referred to in paragraph 1 which have counterpart in:

a) Increase of actual revenue that is consigned to it;

b) Office of management or appropriations of previous years whose use is

permitted by express determination of the law;

c) Transfers from other subsectors of the Public Administration.

4-It is the competence of the Assembly of the Republic the transfers of monies from the

social security budget between different large functions or functions in the

respect for the selective appropriateness of the sources of funding enshrined in the Law of

Bases of the Social Security System.

5-Compeve to the Government the transfers of monies between different headings of the map

of the economic classification of the expenditure of the social security budget.

CHAPTER V

Budgetary control and financial responsibility

Article 58.

Budgetary control

1-A The implementation of the State Budget shall be subject to control, in the terms of the present

law and of the other applicable law, which is the subject of the verification of the

legality and the financial regularity of revenue and public expenditure, well

how the appreciation of the good management of the money and other public assets and debt

public.

2-A The implementation of the State Budget is the subject of administrative control,

jurisdictional and political.

3-Budgetary control takes place in advance, concomitant and successively à

realization of the budget implementation operations.

4-Administrative control competes at the service itself or responsible institution

by the respective implementation, the respective budget and accounting services

public, to hierarchically superior entities, oversight or guardian and

to the general inspection and control services of the Public Administration.

5-The services or institutions responsible for the budget implementation and the respective

budgeting and public accounting services elaborate, organize and maintain

in operation systems and procedures of internal control of the operations of

implementation of the Budget, which they may involve, in cases where this is

justifies, the resource to services of auditing companies.

6-The jurisdictional control of the implementation of the State Budget competes with the Court

of Accounts and is carried out in the terms of the respective legislation.

7-The jurisdictional control of implementing acts of the Budget and the effectivation of the

non-financial liabilities of them emerging incumbent too

courts, in particular to administrative and tax courts and to the courts

judicial, within the framework of their respective competences.

8-A The implementation of the social security budget is subject to budgetary control

intended for the State Budget, of which it is an integral part.

Article 59.

Political control

1-A Assembly of the Republic exercises political control over the implementation of the

Budget of the State and effective the corresponding political responsibilities, in the

terms of the provisions of the Constitution, in the Rules of the Assembly of the Republic, in the

present law and in the other applicable legislation.

2-In the exercise of its functions of control of the implementation of the State Budget,

compete with the Assembly of the Republic, specifically, take the State Account and

follow up with the budget implementation, pursuant to the provisions of this Law.

3-The Government sends tempestively to the Assembly of the Republic all the elements

informations necessary to enable you to monitor and control, in a way

effective, the implementation of the State Budget, specifically reports on:

a) the implementation of the State Budget, including that of social security;

b) The implementation of the consolidated budget of public sector institutions

administrative;

c) the budgetary changes approved by the Government;

d) Public debt management operations, the recourse to public credit and the

specific conditions of public borrowing concluded in the terms provided for

in the State Budget Act and the legislation on the issuance and management of the

public debt;

e) the loans granted and other active credit operations carried out in the

terms set out in the State Budget Act;

f) The personal guarantees granted by the State pursuant to the terms set out in the Law of the

State budget and the applicable legislation, including the nominal relationship of the

beneficiaries of the avales and fiances granted by the State, with explanatory

individual of the respective values, as well as of the overall amount in force;

g) Financial flows between Portugal and the European Union.

4-The informative elements referred to in point (a) of the preceding paragraph are

sent, by the Government, to the Assembly of the Republic on a monthly basis and the remaining

quarterly, and in any case, the respective shipment shall be carried out in the 60

days following the period to which they respect.

5-The Court of Auditors sends to the Assembly of the Republic the final reports

referring to the exercise of their budgetary control skills.

6-A Assembly of the Republic may request the Government, in the terms provided for in the

Constitution and the Rules of the Assembly of the Republic, the provision of any

supplementary information on the implementation of the State Budget, in addition

of those provided for in paragraph 1, and such information shall be provided in no time

higher than 60 days.

7-A Assembly of the Republic may request the Court of Auditors:

a) Information relating to the respective functions of financial control, the

provide, inter alia, by the presence of the President of the Court of

Accounts or of rapporteurs in committee sessions, in particular of inquiry, or

by the technical collaboration of personnel of the support services of the Court;

b) interim reports on the results of the monitoring of the implementation of the

State budget throughout the year;

c) Any clarifications necessary for the assessment of the State Budget and

of the opinion on the General Account of the State.

8-Where it is warranted, the Court of Auditors may communicate to the Assembly of

Republic the information by it obtained in the exercise of its competences of

control of budget implementation.

Article 60.

Fiscal policy direction

1-In each legislative session, during the month of May and in Plenary of the Assembly of the

Republic, will take place a general policy debate, initiated with an intervention of the

Government on the direction of fiscal policy.

2-The debate focuses, inter alia, on the evaluation of the measures and results of the

global and sectoral policy with budgetary impact, the general policy guidelines

economic, especially within the framework of the European Union, the budget implementation, the

evolution of public finances and the orientation of public spending in the medium term and the

future measures of global and sectoral policy.

3-In order to comply with the provisions of the preceding paragraphs, the Government presents to the

Assembly of the Republic, until April 30, in addition to the Grand Options of the Plan, a

report containing, specifically:

a) The general economic policy guidelines and, in particular, the guidelines of

public finance specific to Portugal within the framework of the European Union;

b) The assessment of fiscal consolidation in the context of the European Union;

c) Recent macro-economic developments and forecasts in the framework of the economy

national and the international economy;

d) Recent developments in public finances, with a focus on the analysis of the

accounts that have served as a basis of the last notification regarding excessive deficits;

e) Budget implementation in the 1º quarter of the respective year;

f) The evolution of public finances and the direction of public expenditure in the medium

deadline, including the projections of the main budget aggregates for the

next three years.

4-The budget policy orientation debate is subject to questions from the groups

parliamentarians and includes a widespread debate, closed by the Government.

Article 61.

Assessment of the review of the Stability and Growth Programme

1-The Government submits to the assessment of the Assembly of the Republic the annual review of the

Stability and Growth Programme, carried out in accordance with the

community regulation.

2-A Assembly of the Republic shall carry out the assessment referred to in the preceding paragraph

within 10 working days of the date of the presentation in the Assembly.

3-The Government sends to the Assembly of the Republic the final review of the Programme of

Stability and Growth, before giving it definitively to the Council and the

Commission.

Article 62.

Control of public expenditure

1-The expenditure of the bodies referred to in Article 2 (1) shall be subject to

external audit, at least every eight years, covering the evaluation of the

mission and objectives of the body, as well as the economy, efficiency and effectiveness of the

matching expense.

2-The system and procedures for internal control of the implementing operations of the

Budget referred to in Article 58 (5) shall be subject to audit in the

framework of the operation of the Internal Control System (SCI), in the light of the

respective principles of coordination and having present the principles of auditing

internationally enshrined.

3-The Government will inform the Assembly of the Republic of audits programmes that

will promote on its initiative in the current year, for the purposes of fulfilling the

provisions of paragraphs 1 and 2, accompanied by the respective terms of reference.

4-In addition to the provisions of the preceding paragraph, the Assembly of the Republic

will determine in each year the Government two supplementary audits for the effects

provided for in paragraph 1 and shall request the Court of Auditors to audit two bodies

of the Internal Control System (SCI), for the purposes provided for in paragraph 2.

5-The results of the audits referred to in paragraphs 3 and 4 shall be sent to the

Assembly of the Republic within one year, extended up to 18 months, for reasons

duly justified.

6-The Government responds in 60 days to the recommendations of the Assembly of the Republic that

to inciditate on the audits referred to in paragraphs 4 and 5.

Article 63.

Systems and procedures of internal control

The Government sends to the Assembly of the Republic, accompanying the report of the Account

General of the State, an information on the results of the operation of the system and

of the procedures of the internal control of the implementation operations of the budget to which

it refers to Article 58 (5) specifying the respective financial impact.

Article 64.

Management by objectives

1-The budgets and accounts of the bodies referred to in Article 2 (1) shall be

be the subject of complementary systematization by objectives, considering the

definition of the activities to be developed by each body and the respective centres of

costs and taking into account the totality of the resources involved, including those of

capital, aiming to substantiate the decisions on reorientation and control of the

public expenditure:

a) In the knowledge of the mission, objectives and strategy of the body;

b) On the correct articulation of each area of activity in relation to the objectives;

c) In the accountability of actors engaged in the management of activities by the

achievement of the objectives and good use of the resources that are allocated to them;

d) On the identification of redundant activities in the value chain of the organism a

justified reallocation of the resources in them consumed.

2-Developments by purpose should be introduced in a phased manner,

accompanying the proposed State Budget Act and the General Account of the State

the informative title, while the law does not otherwise dispose of it.

3-The preparatory work and progress recorded in the implementation of the systematization

by objectives should be the subject of special mention in the debate referred to in para.

1 of Article 60 para.

Article 65.

Cooperation between the instances of control

Without prejudice to the respective competences set out in the Constitution and in the law, the

organs and services tasked with internal and external control of the implementation of the Budget

of the State cooperate with each other with a view to the best performance of their duties.

Article 66.

Cross control

1-The instances of control, referred to in Article 58, dispose of powers of

control over any entities, public or private, in cases where these

benefit from grants or other financial aid granted through the

State budget or those powers show itself to be necessary for control,

by indirect and cross-route, from budget implementation.

2-Cross control shall be carried out only in cases where it is indispensable

and to the extent strictly necessary for the control of budget implementation and the

monitoring of the legality, regularity and economic and financial correctness of the

application of the monies and other public assets.

Article 67.

Information to be provided by the services and autonomous funds

1-For the purpose of enabling consolidated information of the whole sector

administrative public, the services and autonomous funds shall refer to the

Ministry of Finance, in the terms and with the periodicity to be defined in the decree-law

of budget implementation, the following elements:

a) Full information on the balances of deposits or other applications

financial and respective remunerations;

b) complete information on the financing operations, inter alia

loans and depreciation carried out, as well as those foreseen by the end of

each year;

c) Accounts of its budget implementation, where they build the commitments

assumed, the processing carried out and the amounts paid, as well as the

updated forecast of budget implementation for the whole of the year and the balts that

evidences the accounts of the availabilities classes and third parties, in the case of

organisms using the patrimonial accounting;

d) Budget implementation report;

e) Data referring to the situation of the debt and assets expressed in securities of

public debt;

f) Documents of accountability.

2-Under the terms to be established by the diploma referred to in the preceding paragraph, they may be

requested at all time to the services and autonomous funds other elements of

information not referred to in this article intended for the follow-up of the respective

budget management.

Article 68.

Information to be provided by Autonomous municipalities and Regions

With the aim of allowing consolidated information of the sector set

administrative public, the municipalities and the Autonomous Regions shall refer to the

Ministry of Finance, in the terms and with the periodicity to be defined in the decree-law of

budget implementation, the following elements:

a) Budgets, quarterly accounts and annual accounts;

b) Information on the contracted debt and on the assets expressed in securities of the

public debt.

Article 69.

Information to be provided by the Institute for Financial Management of Social Security

With the aim of allowing consolidated information of the sector set

administrative public, the Institute of Financial Management of Social Security shall

refer to the Ministry of Finance, in the terms and with the periodicity to be defined in the

decree-budget implementation law, the elements on the implementation of the budget of the

social security.

Article 70.

Responsibility for budget implementation

1-Political office holders respond policy, financial, civil and criminally

by the acts and omissions that they practise in the context of the exercise of their functions of

budget implementation, under the Constitution and too much applicable legislation, the

which typifies criminal and financial offences, as well as the respective penalties,

as they are or not committed with dolo.

2-Employers and agents are responsible disciplinary, financial, civil and

criminally by its acts and omissions that it results in violation of the norms of

budget implementation, pursuant to Article 271 of the Constitution and legislation

applicable.

Article 71.

Financial responsibility

Without prejudice to the own forms of effectivation of the remaining modalities of

liability referred to in the previous article, financial responsibility is

actuated by the Court of Auditors, pursuant to the respective legislation.

Article 72.

Remittance of the opinion of the Court of Auditors

For the purpose of the efective of possible financial or criminal liabilities

arising from the implementation of the State Budget, the Plenary of the Assembly of the

Republic may decide to refer to the competent entities the opinion of the Court of

Accounts on the General Account of the State, whether or not this is approved.

Title IV

Accounts

Article 73.

State General Account

1-The Government shall submit to the Assembly of the Republic the General Account of the State,

including that of social security, until June 30 of the year following that to which

respect.

2-A Assembly of the Republic appreciates and approves the General Account of the State, including the

of social security, preceding the opinion of the Court of Auditors, until December 31

next and, in the case of non-approval, determines, if that there is place, the

efectivation of the corresponding responsibility.

3-The opinion of the Court of Auditors shall be accompanied by the responses of the departments and

organisms to the issues that such an organ to formulate them.

4-A General Account of the State includes the report, the general accounting maps, the

accounts groupings and the informative elements.

Article 74.

Report

The report contains the presentation of the General Account of the State and the analysis of the

key elements concerning the following aspects:

a) Evolution of the main macroeconomic aggregates during the period of the

budget implementation;

b) Developments of the financial situation of the State, including that of services and funds

autonomous and that of social security;

c) Execution and changes of the State Budget, including that of social security;

d) Other material relevant to the presentation and justification of the General Account of the

State.

Article 75.

General accounting maps

1-A General Account of the State comprises general accounting maps referring to:

a) Budget implementation;

b) Status of treasury;

c) patrimonial status;

d) Account of the financial flows of the State.

2-The maps referring to the budget implementation are as follows:

Maps I to XIX-in accordance with the provisions of paragraph 7;

Map XX-accounts of the revenue and expenditure of the subsector of integrated services;

Map XXI-consolidated account of revenue and expenditure of services and funds

autonomous;

Map XXII-consolidated account of revenue and expenditure of the security system

social;

Map XXIII-consolidated account of the State, including that of the security system

social.

3-The maps referring to the treasury situation are as follows:

Map XXIV-charges and budget payments;

Map XXV-repositions abated in the payments;

Map XXVI-movements and balances of the accounts at the State Treasury;

Map XXVII-movements and balances in the state treasury boxes;

Map XXVIII-A-movements and balances of the accounts in the treasury of the system of

social security;

Map XXVII-B-movements and balances in the treasury boxes of the system of

social security.

4-The maps referring to the patrimonial situation are as follows:

Map XXVIII-application of the loan product;

Map XXIX-movement of public debt;

Map XXX-balance sheet and demonstration of results of the subsector of services

integrated;

Map XXXI-balance sheet and demonstration of results of the services and funds

autonomous;

Map XXXII-balance sheet and demonstration of results of the solidarity system and

social security.

5-The XXXIII map is regarding the account of the financial flows of integrated services

of the State.

6-A presentation of the XXX maps to XXXI, provided for in paragraph 4, will only be mandatory

when all the services to which they refer have adopted the Official Plan of

Public Accounting, owing to the balance sheets presented in the XXX maps to XXXII

distinguish the heritage of services and institutions covered in the heritage affection

by or to other services and institutions.

7-Without prejudice to what the Government establishes as to the minimum content of the maps

general accounting, the structure of maps I to XIX will be identical to that of the

corresponding budget maps, owing to their contents, as well as that of the

remaining maps, evidencing, as per cases, the main accounting rules

used in the implementation of revenue and expenditure, particularly those that are referred to

exceptions to the rule of non-compensation and non-consignment.

Article 76.

Informative elements

1-A General Account of the State comprises informative elements, presented under the

form of maps, regarding:

a) In common, to the accounts of the subsectors of integrated services, services and

autonomous funds and the social security system;

b) To the account of the subsector of integrated services;

c) To the account of the subsector of services and autonomous funds;

d) To the account of the social security system.

2-The informative elements referring, in common, to the accounts of the subsector of the

integrated services, the sub-sector of services and autonomous funds and the system of

social security are as follows:

a) Identification of the personal guarantees of the State, services and autonomous funds

and of the social security system;

b) Global mongering of financial aid to private individuals;

c) Global mongering of compensation paid to private individuals;

d) Credits satisfied by dation in payment or by compensation;

e) Credits subject to consolidation, divestance, conversion into capital or any

another form of mobilization;

f) Credits extinguished by confusion;

g) extinguished credits by prescription;

h) Credits annulled by force of judicial decision or for any other reason.

3-The informative elements referring to the account of the integrated services subsector

are as follows:

a) budgetary changes;

b) Unfolding of the covers in revenue from budgetary changes;

c) Revenue collected, specified in accordance with the economic classification,

compared to those budgeted and with those charged in the previous economic year;

d) Expenses Paid, specified in accordance with the economic classification,

compared with those of the previous economic year;

e) Expenses Paid, specified in accordance with the functional classification,

compared with those of the previous economic year;

f) Expenditure without revenue consignothing compared to those of the economic year

previous;

g) Expenditure on revenue achieved, compared with those of the economic year

previous;

h) Expenditure crossed by the various budget classifications;

(i) Developments of expenditure;

j) Map of the commitments made.

4-The informative elements referring to the account of the subsector of services and funds

autonomous are the following:

a) budgetary changes;

b) Revenue collected, specified in accordance with the economic classification,

compared to those budgeted and with those charged in the previous economic year;

c) Expenses Paid, specified in accordance with the economic classification,

compared with those of the previous economic year;

d) Expenses Paid, specified in accordance with the functional classification,

compared with those of the previous economic year;

e) Cross-expenditure by the various budget classifications;

(f) Discrimination of revenue and expenditure of autonomous services and funds;

g) Map of the commitments made.

5-The informative elements regarding the account of the social security system are the

following:

a) budgetary changes;

b) Revenue collected, specified in accordance with the economic classification,

compared to those budgeted and with those charged in the previous economic year;

c) Expenses Paid, specified in accordance with the economic classification,

compared with those of the previous economic year;

d) Expenses Paid, specified in accordance with the functional classification,

compared with those of the previous economic year;

e) Cross-expenditure by the various budget classifications;

f) Map of the commitments made.

6-The informative elements relating to the budget programmes completed in the year

evidence of the paid budgetary expenditure on each programme, measure and project.

7-In addition to the informative elements provided for in the preceding paragraphs, the Account

General of the State should contain all the remaining elements that show

appropriate to a clear and complete provision of public accounts.

8-A The presentation of the elements on commitments made will only be

obligatory when all the services to which they refer have adopted the Plan

Officer of Public Accounting.

9-The Government will define, by decree-law, the minimum content of the elements

informations.

Article 77.

Presentation of accounts

1-The accounts of integrated services and services and autonomous funds are also

provided, by April 30 of the year following that to which they respect, to the Minister of

Finance and the respective minister of tutelage.

2-A unjustified lack of the provision of accounts referred to in the preceding paragraph

constitutes:

a) Financial infraction, punishable with a fine of value equal to that provided for in paragraphs 2, 3 and

4 of Article 65 of Law No. 98/97 of August 26, by which they are responsible the

leaders of the departments concerned;

b) Founding of refusal of applications for the requisition of funds, release of

credits and authorization of payments in respect of the budget in

execution, presented by the service concerned, while remaining the situation

of late.

Article 78.

Account of the Assembly of the Republic

1-The report and the account of the Assembly of the Republic are drawn up by the board of

administration, until March 31 of the year following that to which they respect.

2-A account of the Assembly of the Republic is sent, until April 30 of the following year

to the one concerning, to the Government, for the purposes of its integration into the General Account of the

State.

Article 79.

Account of the Court of Auditors

Once approved, the account of the Court of Auditors shall be remitted, until April 30 of the

year following that to which respect, to the Assembly of the Republic, for information, and to the

Government, for the purposes of its integration into the General Account of the State.

Article 80.

Publication

After approved by the Assembly of the Republic, the General Account of the State is

published in the Journal of the Republic, in the terms to be defined by the Government, which will define

also the arrangements for the publication of own accounts and of the informative elements,

as well as the information likely to be published only in computer support.

Article 81.

Provisional accounts

1-The Government makes publishing, in the Journal of the Republic, within 45 days after the end of

each quarter, interim accounts relating to the trimesters decorated.

2-The accounts referred to in the preceding paragraph contain at least the following

elements:

a) Maps corresponding to maps XXVI and XXVIII;

b) Summaries of maps XXVI and XXVIII;

c) Map corresponding to map I;

d) Map by presenting the comparison, up to the level of the articles of the classification

economic, among the revenue of the set of the integrated services settled and

collected in the period in question and in the corresponding period of the previous year;

e) Maps of the expenditure of the subsector of the integrated services specified by

title of the organic classification, indicating the respective amounts of the

twelfth, of the payment commitments and payments;

f) Map of the development of the expenditure of the integrated services subsector,

specified by chapter of the organic classification, comparing the amounts

of the respective twelfths with those of the corresponding authorizations of

payment dispatched in the period concerned;

g) Maps corresponding to maps XXI and XXII.

Title V

Budgetary stability

CHAPTER I

Object and scope

Article 82.

Subject

1-The present title contains the specific principles and procedures to which they must

obey the approval and implementation of the budgets of the entire public sector

administrative, in the matter of budgetary stability.

2-In the framework of budgetary stability, the present title is intended to fulfil the

obligations arising from Article 104 of the Treaty establishing the Community

European and the Stability and Growth Pact, up to the full realization of this, and

concretifies the provisions of the final part of Article 2 (5), Article 4 (2) and in the

(b) of Article 17 of this Law.

Article 83.

Scope

This Title applies to the State Budget and the budgets of the Regions

Autonomas and local authorities, without prejudice to the principle of independence

budget as set out in Article 5 (2) of this Law.

CHAPTER II

Budgetary stability

Article 84.

Principles of budgetary stability, reciprocating solidarity and

budget transparency

1-The subsectors constituting the administrative public sector, as well as the

organisms that integrate them, are subject, in the approval and execution of their

budgets, the principles of fiscal stability, reciprocal solidarity and

of budgetary transparency.

2-A Budget stability consists of a situation of balance or surplus

budget, calculated in accordance with the constant definition of the European System of

National and Regional Accounts, under the conditions laid down for each of the

subsectors.

3-The principle of reciprocal solidarity obliges all subsectors of the public sector

administrative, through their bodies, to contribute proportionally to

the realization of the principle of budgetary stability, so as to avoid situations of

inequality.

4-The principle of budgetary transparency implies the existence of a duty of

information among public entities, so as to ensure stability

budget and reciprocating solidarity.

Article 85.

Financial Coordination Council of the Administrative Public Sector

1-It is created, together with the Ministry of Finance, with a consultative nature, the Council of

Financial Coordination of the Administrative Public Sector.

2-Compete to the Council:

(a) Appreciate the appropriateness of the situation and financial policies of the various

subsectors of the administrative public sector to the evolution of the economy and the

stability obligations assumed by the Portuguese State;

b) Promoting the articulation between the budgets of the institutions of the various

subsectors of the administrative public sector;

(c) to appreciate the guiding documents of financial policy presented by the

Portuguese State to European instances, the multiannual financial programming

of the various subsectors and any measure with financial repercussions from the

institutions that integrate them;

(d) to issue recommendations on any aspects of the financial activity of the

institutions of the various subsectors which, by their characteristics, seem to

a coordinated action.

3-The Council has the following composition:

a) the Minister of Finance, who presides;

b) The ministers responsible for the areas of the administration of the territory, of the

social security and health;

(c) The Secretaries of the Regional Governments of the Azores and Madeira responsible

by the area of finance;

d) The Presidents of the National Association of Portuguese Municipalities and of the

National Association of Freguesias.

Article 86.

Objectives and measures of fiscal stability

1-A approval and implementation of the budgets of all public sector bodies

administrative are compulsorily carried out in accordance with the measures of

budgetary stability to be inserted into the Budget law, in accordance with

suitably identified targets for each of the sub-sectors, to

compliance with the Stability and Growth Program.

2-The objectives and measures referred to in the preceding paragraph are integrated into the

informational element provided for in paragraph 1 (b) of Article 37 of this Law, the

what constitutes a predictive management instrument that contains the programming

multi-annual financial required to ensure budgetary stability.

3-Stability measures shall include the setting of borrowing limits and

of the amount of the transfers, pursuant to Articles 87 and 88 of this Law.

4-A The justification of the stability measures is stated in the report of the proposed law of the

Budget and includes, specifically, the justification for compliance with the Programme of

Stability and Growth and its repercussion in public sector budgets

administrative.

Article 87.

Budget balance and borrowing limits

1-In fulfillment of the budgetary stability obligations arising from the

Stability and Growth Programme, the Budget Act sets limits

specific indebtedness of the central government of the State, of the Regions

Autonomous and local authorities, compatible with the calculated budget balance

for the whole of the administrative public sector.

2-Indebtedness limits referred to in the preceding paragraph may be lower

to those that would result from the financial laws especially applicable to each sub-sector.

Article 88.

Transfers of the State Budget

1-To ensure strict compliance with the principles of budgetary stability and

reciprocal solidarity, arising from Article 104 of the Treaty establishing a

European Community and the Stability and Growth Pact, the Budget Bill

may determine transfers from the Budget State of the lower amount to that

that would result from the financial laws especially applicable to each sub-sector, without

injury to the commitments made by the State in the framework of the system of

solidarity and social security.

2-A The possibility of reduction predicted in the previous number always depends on the

verification of exceptional circumstances imperiously required by the rigorous

observance of the obligations arising from the Stability and Growth Programme

and of the principles of proportionality, not arbitrio and reciprocal solidarity and lacks

of prior hearing of the constitutional and legally competent bodies of the

subsectors involved.

Article 89.

Provision of information

The Government provides the Assembly of the Republic with all the information required by the

monitoring and monitoring of budget implementation and, well, the whole

information that proves justified for the fixation in the State Budget Act of the

specific indebtedness limits of the central administration, of the Regions

Autonomous and local authorities.

CHAPTER III

Guarantees of budgetary stability

Article 90.

Verification of compliance with the principle of budgetary stability

1-A verification of compliance with the requirements of budgetary stability is made

by the competent bodies for budgetary control, pursuant to this Law.

2-The Government will present, in the report of the proposed State Budget Bill, the

necessary information on the realization of the stability measures

budget relating to the previous economic year, in fulfillment of the Programme

of Stability and Growth.

Article 91.

Duty of information

1-The Minister of Finance may demand from the bodies that integrate the public sector

administrative a detailed and justified information of the observance of the

measures and procedures that they have to comply with in accordance with this Act.

2-Whenever there is any circumstance that involves the danger of occurrence,

in the budget of any of the bodies that integrate the public sector

administrative, of a budgetary situation incompatible with the compliance of the

measures of stability referred to in Article 86, the respective body shall

to immediately refer to the Ministry of Finance a detailed information and

justified about what occurred, identifying the revenues and expenses that the

originated, and a proposal for regularization of the verified situation.

3-The Minister of Finance may request the Bank of Portugal and all the

credit institutions and financial societies all the information that falls on

any body of the administrative public sector and which it considers relevant to

the verification of compliance with this Law.

Article 92.

Failure to comply with the standards of this Title

1-Failure to comply with the rules and procedures provided for in this Title constitutes

always an aggravating circumstance of the inherent financial responsibility.

2-A The verification of the default referred to in the preceding paragraph shall be communicated from

immediate to the Court of Auditors.

3-In view of the strict fulfillment of the obligations arising from Article 104 of the

Treaty establishing the European Community and the Stability Pact and

Growth in budgetary stability, can be suspended

actuation of the transfers of the State Budget, in the event of default

of the duty of information set out in the previous article and until the situation created

has been properly sanated.

4-By effect of non-compliance with the specific indebtedness limits that if

provided for in Article 87, the Budget Act may determine the reduction, in proportion

of the default, of the transfers to be carried out, after prior hearing of the organs

constitutional and legally competent of the subsectors involved.

Title VI

Final provisions

Article 93.

Autonomous services and funds

1-Autonomos services and funds, whose regime of administrative autonomy and

financial not decoration of constitutional imperative and its integration into the areas of

National Health Service and regulation and supervision, which, in the economic years of

2000 and 2001, have not had at least two thirds of own revenue

regarding your total expenses will pass to the autonomy regime merely

administrative, on the terms that they come to be defined in the Budget and the

decree-budget implementation law for 2003.

2-The specially competent bodies for the management of community funds

can maintain their current regime of autonomy, if this proves to be indispensable

to that management.

Article 94.

Administrative and financial autonomy of universities and institutes

polytechnics

The provisions of this Law shall be without prejudice to the possibility of the universities and the

polytechnic institutes, as well as their organic units, will have a scheme

special administrative and financial autonomy, in the terms set out in the

respective laws of autonomy and supplementary legislation.

Article 95.

Supplementary legislation

By the end of the year 2002 the Government must approve the supplementary standards

necessary for the proper execution of the provisions of this Law.

Article 96.

Abrogation standard

The Act No 6/91 of February 20 and all standards, even if of the

special character, which contravens the provisions of this Law, without prejudice to the provisions of the

next article.

Article 97.

Transitional arrangement

1-The processes of organization, elaboration, presentation, discussion, voting,

amendment and implementation of the audit and budgetary responsibility relating to the

State budgets and accounts prior to those of 2003 continue to be governed by the

legislation referred to in Article 96.

2-The provisions of the preceding paragraph shall also apply during the period in which the

State budget, including that of social security, concerning the year

economic in progress vigore in the year 2003, for its duration has been extended

in the terms of the legislation referred to in Article 96.

3-It is not mandatory application to the preparation, drafting and presentation of the

State budget for 2003 the provisions of articles 18 to 20 of the present

law.

4-Title V applies to budgets for 2003 and vigour until full

realization of the Stability and Growth Pact.