The Convergence Program approved by the government and the macroeconomic scenario foreseen in it for the four-year period 1997-2000 should guide the preparation of the Social Security Budget for 1999, in order to collaborate with the achievement of the estimated deficit target for that year in the general government, in relation to the gross domestic product.

The contribution of Social Security to the achievement of the aforementioned deficit target, which will be compatible with the effective maintenance of the levels of social expenditure cover, will be strengthened by the measures to control the social security system. fraud in the settlement of income and in the misuse of benefits, the containment of operating expenditure and budgetary rigour and discipline, as well as the extent to which funding is made available through the Status of non-contributory benefits and services.

As specific protection objectives to be incorporated in the Social Security Budget for 1999 stand out: The maintenance of the purchasing power of pensions, the control of expenditure on disability benefits and the increase in the coverage of health care in accordance with the expected evolution of the Gross Domestic Product.

These duly quantified objectives, together with the human and financial resources necessary for their achievement, will be reflected in a budget for programmes and management levels which will facilitate the adjustment of expenditure to the available funding.

From an instrumental point of view, the most significant changes that have been made to the budget structure compared to 1998 are the following:

In the organic classification, which derives from the application of Article 70 of Law 66/1997, of December 30, of Fiscal, Administrative and Social Order Measures, which establishes that within the Social, the Social Security General Intervention Budget will be unique and will be integrated into that of the Common Services of Social Security.

In the functional classification, the separation in specific programs of the economic benefits of the State, whose management is attributed to the Social Security, and those of the latter that, according to the Article 1 of the Law 24/1997, of 15 July, of Consolidation and Rationalization of the Social Security System, are non-contributory in nature, in order to delimit total expenditure, benefits and management costs, the financing of which is financed by State contributions. will carry out, in a gradual manner, before the financial year 2000, in terms of establish the corresponding General Budget Law of the State of each economic year.

In the economic classification, pensions of permanent incapacity whose beneficiaries meet the age of 60 and five years shall be included for budgetary purposes within retirement, in accordance with the new paragraph 4, Article 143 of the General Law on Social Security, which adds the Law 24/1997 of 15 July on the Consolidation and Rationalization of the Social Security System, to Article 143 of the text recast of the General Law on Social Security.

In addition, the adaptation of this economic classification to that of the State has been carried out as far as possible, while new codes have been introduced to collect in a differentiated manner certain current expenditure on goods and services. services for the management needs of the entities concerned by the preparation of the budget.

In this context, the content of this Order is articulated, which once defined its scope, establishes the budgetary structure of the Social Security according to the already traditional classification of the resources and expenditure from an organic and economic aspect and, in particular, for the latter from a functional aspect of programmes.

Finally, the Order accurately addresses the procedure for drawing up and dealing with the preliminary draft budgets of the respective entities that make up the Social Security system and refers to the documents This is a key issue in which the budget information needs to be translated.

In its virtue, in the use of the powers conferred on me by Article 5 of the recast text of the General Law of Social Security, I have had to dispose:

Article 1. Scope of application.

The preliminary draft budget to be integrated into the Social Security Budget to reflect all the expenditure and revenue referred to in Article 147 of the recast of the General Law Budget, approved by Royal Legislative Decree 1091/1988 of 23 September, without prejudice to the first paragraph of Article 148.1 of the aforementioned Law, shall be drawn up in accordance with the rules and structure laid down in the Order. This formulation will therefore affect the preliminary draft budgets for 1999 of the Management Entities and the General Treasury of Social Security, that of the management centres of them dependent, as well as those of the Accidents Social security work and occupational diseases.

In accordance with the provisions of Article 70 of Law 66/1997 of 30 December 1997, of Fiscal, Administrative and Social Order Measures, the General Intervention of Social Security, as a management center, will draw up its Preliminary draft single and differentiated budget to be integrated into the Common Service: General Treasury of Social Security.

Article 2. Budgetary structure.

1. Budget of expenditure and allocations: The budget of expenditure and allocations of the entities referred to in the previous article, will be adjusted to a quadruple classification: Organic, functional by programs, economic and territorial.

A) Organic classification: It will facilitate knowledge of the management and control of the budget and the determination of the costs of the services of each managing agent. To this end, the appropriations shall be identified and ordered in such a way as to bring together all the corresponding appropriations.

Consequently, the first grade organic classification will be the following:

National Social Security Institute.

National Institute of Health.

Migration and Social Services Institute.

Social Institute of the Navy.

General Treasury of Social Security.

Mutual of Occupational Accidents and Occupational Diseases of Social Security.

B) Functional classification by programs: The Managing Agents of Social Security will formulate their respective preliminary draft budget in functional structure by programs, understanding it as the framework that allows to express comprehensive and systematic way the activities to be carried out in accordance with the contingencies to be covered or the benefits of the protective action to be granted, in which the programs that serve the quantified and clearly defined objectives will be collected concrete, for whose follow-up and measure the corresponding indicators are established expressed in terms of means or results, so that the degree of effectiveness and efficiency achieved and, where appropriate, the quality of the services and services provided can be known in the implementation of each programme.

In Annex I of this provision the structure of this classification is developed.

(c) Classification by economic category: The appropriations allocated to each function, group of programmes and programmes shall be developed according to the economic nature of the components of the expenditure which makes it possible to carry out the services and services integrated into those, according to the classification by chapters, articles, concepts, subconcepts and headings set out in Annex II.

(D) Territorial classification: In accordance with the fourth rule of Article 54 of the recast text of the General Budget Law and the additional twenty-sixth provision of Law 41/1994 of 30 December 1994, General budgets of the State for 1995, the investment projects included in the respective programs will be classified territorially by provinces and Autonomous Communities, indicating the temporary and economic projection of the cost.

The respective managers will distribute their budgets, once approved, in a way that allows them to know the territorial classification of the human and financial means that they incorporate, and they will inform the Directorate General of Social Security Management of such distribution.

2. Resource and Application Budget: The resource and application budget will be adjusted to a double ranking: Organic and economic.

A) Organic structure: The organic structure of the resource and application budget affects the following entities:

General Treasury of Social Security.

Mutual of Occupational Accidents and Occupational Diseases of Social Security.

B) Classification by economic category: The resources and applications included in the revenue statements of the budget shall be ordered, according to the economic nature of the sources that generate them, according to the classification by chapters, articles, concepts, subconcepts and headings set out in Annex III to this Order.

Article 3. Criteria for the evaluation of expenditure proposals and budgeting methodology.

1. Criteria for the evaluation of expenditure proposals: As a general rule, the credit proposals will be estimated in pesetas of 1998, without initially taking into account the behavior of the inflation rate and the possible revisions. In the case of the Commission, the Commission has taken the necessary steps to ensure that the Commission's decision is taken into account. The assessment shall be carried out in accordance with the following criteria:

(A) Staff expenditure: The appropriations for the remuneration of staff to be provided for in the 1999 financial year shall be calculated in accordance with the provisions of Law 65/1997 of 30 December 1997 on the general budget of the State for 1998, and in the other provisions in force to cover expenditure of this nature.

Social Security contributions will be calculated by applying the current rates on the current basis of contributions.

B) Current expenditure on goods and services: The different expenditure of this nature of each programme, after the abolition of those which are not strictly justified as necessary for the achievement of the objectives to be achieved, (a) shall be determined by quantifying the physical consumption, activities and services, and the valuation of their amount at current prices.

C) Financial expenses: The interest of loans, borrowings and other debts or financial operations shall be estimated, in accordance with the conditions agreed in the contracts that govern them, as well as the expenses arising from their constitution, modification or cancellation. Interest accrued on any assets to be borne by the respective managing agents shall also be included.

D) Current transfers: They will be estimated according to the destination and the rules that regulate them. In the case of transfers to families, consisting of financial benefits to the beneficiaries of social security, it shall be submitted for the purposes of determining the amount of such transfers, in so far as it is applicable to them, the development of the respective regulatory bases, calculating their amount in accordance with the rules in force and the foreseeable development of the number of beneficiaries. However, the following criteria shall be adopted for the performance:

(a) Pensions: The credit for this type of benefit will be obtained by considering the number of pensions provided for in 1999 under each pension scheme and class, the amounts of the respective pensions and the first payments, by separately classifying contributory non-contributory contributions.

(b) Temporary disability: The figure required to deal with the situations of incapacity to be considered will be entered in the course of 1999, justifying the figures which have been paid on the basis of the wages paid by the generate, from the forecast of the number and duration of the processes, as well as the rules in force on days entitled to subsidy and applicable percentages.

(c) Maternity provision: The quantification of the claim shall be made on the basis of the estimate of the number of persons entitled to receive maternity benefit, the average values of the regulatory base, and the duration of the processes.

(d) Family provision: The economic allocation per child shall be calculated on the basis of the census of beneficiaries and their foreseeable development in the financial year, differentiating the contributory benefit of the non-contributory.

(e) Other benefits, allowances and single statutory deliveries: The estimated credit for this concept shall be determined taking into account, for each of the benefits to be covered by the coverage, the number of (a) the compensation provided for in Article

E) Real investments: In the proposal will be the estimated credits for the investment projects to be carried out in 1999 by each managing body, leaving constancy in each one of those, from the provinces to which they correspond, to the effects of its subsequent territorial distribution; the dates of initiation and termination, the temporary and economic distribution of the investment, and separately, the current expenditure which will generate its implementation in full operation.

F) Financial assets: It shall reflect the amounts intended for the acquisition of securities to materialize the cash surplus provided for in the financial year. The appropriations for advances and loans to staff and for the establishment of deposits and bonds shall also be made.

A balance will be sought between reintegrating and granting advances and loans to staff.

G) Financial liabilities: You will understand the amounts intended for the cancellation of all types of debts due in the financial year, taking as a basis, where appropriate, the corresponding tables or plans for depreciation.

2. Budgeting methodology: The different Managing Agents may propose for each of the programs that integrate their functional structure, two differentiated spending proposals that correspond to the following levels of management:

A) Current level: Implants a reconsideration of the expenses to be carried out in order to achieve the most favorable combination of means to maintain the level of management that the program is developing in the current exercise, removing those that are not justified as strictly necessary.

The costs of this level must be unwrapped, for the headings that are expressed, within the maximum limits set out below:

a) Management expenses:

In staff: The credit for the 1999 financial year will be calculated by taking into account the number of people who reflect the payroll of January 1998, except for the personnel employed. It will also include, where appropriate, the high levels of public employment offered in 1998 and others which are justified. The number of persons resulting shall be deducted from the estimated losses for the same year by retirement and other causes.

This credit may be increased with the amount corresponding to the eventual staff required for assistance in assistance centers for licenses, vacations, holidays and other similar causes or for specific tasks (a) economic and social

In current goods and services: The essential amounts which, for all the programmes of each institution or centre, will not exceed those of the 1998 budget for the same volume of services, will be entered eliminated those whose purpose is exhausted in the exercise.

(b) In real investments: the annuities for 1999 of the multi-annual projects for investments already awarded will be included at this level. Projects which do not comply with the above requirement may also be included as a matter of urgency provided that some and all do not exceed the appropriations authorised in the 1998 budget.

B) Additional level: It allows, after the prior review of the expenditure to be carried out at the current level, an increase of its amount according to the financial needs of the programmes, in relation to the objectives that the They must achieve and graduate them according to the priorities that have been defined. It will necessarily require an increase or improvement of the management objectives offered at the current level.

Expenses at this level will be calculated by reference to the following criteria:

a) Management expenses:

On staff: Collect the credit corresponding to the number of persons deemed strictly necessary to achieve the stated objectives, number in which the effective public employment offer will be integrated (a) to be taken into account at the current level and others to be justified, the incorporation of which is planned during the year 1999 and will be deducted from the losses expected in the same year for any reason.

The credit necessary to cover the offer of public employment of the said year shall also be considered as appropriate.

In current goods and services: The amount of credits for the current level can be increased, for all programs, provided that it is translated into an improvement in the efficiency, efficiency and quality of the services.

(b) Actual investments: Other real investment projects, ordered in a rigorous priority, may be added to those included in the current level in order to facilitate the selection of those which may be authorised on the basis of objectives to be achieved and the funding available.

(c) Redistribution of staff and appropriations: The ceilings set at each level will, however, allow for the redistribution of human resources and the appropriations between the various applications and programmes which integrate the blueprint for each managing agent.

Article 4. Documentation, preparation and processing of the pre-draft expenditure budgets.

1. Budget documentation: The managing bodies, the general treasury and the dependent centres, the General Intervention of Social Security, as well as the Mutual Work and Occupational Accident and Occupational Diseases of Social Security, formulate their proposal for a preliminary draft budget for programmes and management levels, on the basis of the models listed below, the format and instructions of which are set out in Annex IV to this Order.

PBC-00. General memory of the preliminary draft budget.

PBC-01. Summary tab of the programme.

PBC-02. Expenditure proposals for economic programmes and headings.

PBC-03. Description of the programme and justification of the proposals.

PBC-04. Official and statutory staff: Number of personnel and basic remuneration for groups and bodies.

PBC-05. Official and statutory staff: Number of additional staff and remuneration per level.

PBC-06. Staff and other staff: Number of staff and remuneration by professional categories.

PBC-07. Summary of staff and remuneration.

PBC-08. Relationship of real investment projects.

PBC-09. Staff and current expenditure generating real investments.

PBC-10. Order of priority assigned to the proposed management levels.

PBC-11. Order of priorities for real investment projects.

PBC-12. Summary of the proposals for programmes and economic chapters.

PBC-13. Basic data for the Mutual and Occupational Accidents of Accidents.

PBC-14. Personal remuneration of the Working Accident and Occupational Diseases Mutuals.

PBC-15. Senior management contracts in the Mutual Work and Occupational Accident Mutuals.

PBC-16. Expenses for the administration of the Accidents of Occupational and Occupational Diseases.

2. Elaboration: The Managing Agents of Social Security shall draw up their respective preliminary draft budget for expenditure on the models and instructions referred to in the previous paragraph, in accordance with the structure set out in the Article 2.1 and the assessment criteria and methodology for the management of the budget referred to in Article 3.

The programs that configure the functional structure of each managing body should include the objectives that are expected to be achieved and the indicators of means and results that will allow to evaluate the degree of effectiveness, efficiency and quality in the the services they manage; the human and financial means proposed for the achievement of these objectives; and the investment projects linked to them duly territorialized.

Where an additional level is proposed for a given programme, the improvement that this entails with regard to its immediate past, both from an economic point of view and from the social aspect of the provision or from the social aspect, should be justified. of the service offered.

In the proposals of the programmes for the levels of management considered, the managing agents will set the list of priorities in which the current level of all the programmes will appear first with the number of persons and the total amount of the credit proposed in each of them, and then, in order of priority, the additional level, if any, by the existing differences with the current level of the same program, so that the total The list of priorities is equal to the sum of all the programmes in its highest level proposal. Consequently, in order to be able to include a particular programme at an additional level, it is necessary that the same programme at current level be given priority.

Without prejudice to the above, the Working Accident and Occupational Diseases Mutuals shall include in the detail detailed in the instructions of the model PBC-00: General memory, information concerning contracts of address, pension supplements to their passive staff and retirement awards, as well as the plan of preventive activities for occupational accidents and occupational diseases intended to be carried out in that exercise, duly prioritised, (i) the implementation of the budget, in order to enable it to be implemented for its coverage, as stated in the Order of 22 April 1997, which regulates the system of operation of the Mutual Insurance and Occupational Diseases of the Occupational Safety and Occupational Diseases (occupational diseases) in the development of prevention activities of occupational risks.

3. Processing and time-limits: Management centres shall draw up their preliminary draft budgets in accordance with the provisions of this Order and with the additional instructions which they may receive from the entity on which they are based. Once the preliminary draft budget has been drawn up for each centre, it shall be forwarded by the preliminary draft budget to the Central Services of the institution concerned.

Received the preliminary projects of the management centers in the Central Services of the managing entities and the General Treasury will be carried out by its part to verify the correct application of the budgetary structure in its functional classifications for programmes and economics, and the content and quantification of the programmes shall be analysed and, where appropriate, the necessary adjustments to be made, both in the figures for appropriations and in the figures for objectives and indicators, eliminating the additional levels that are not warranted.

Analyzed and verified the respective projects of their centers, each managing body and the General Treasury, through an integration process, will prepare its preliminary draft budget that will be forwarded to the Directorate General (a) for the purpose of social security management within the maximum period of 30 days from the date of entry into force of this Order.

In the same period, the General Intervention of Social Security will draw up the preliminary draft of its budget, which will also be sent to the Directorate-General for Social Security Management, for integration into the General Treasury of Social Security.

Each of the Mutual Work and Occupational Diseases Mutuals will formulate their preliminary draft in accordance with the management to be developed by the set of centers and dependencies that are part of the same and will transmit it to the Directorate-General within the period laid down in the preceding paragraph.

Article 5. Preliminary draft budget for resources and applications: Criteria for quantification, processing and processing.

1. Criteria for quantification: The General Treasury of Social Security and the Mutual Occupational Safety and Occupational Health Accident and Occupational Diseases shall estimate the quantification of the preliminary draft budget and applications, within their respective scope of competence, in accordance with the following criteria:

(a) Social contributions: The ordinary contributions of employers and employees shall be estimated in accordance with the rules in force for each scheme and type of contingency, taking into account the evolution of the collective and their respective bases and rate of contribution.

In the forecast of the unemployment contributions, the National Institute of Employment will be computed by quotas and bonuses for the promotion of employment, as well as those that retain the recipients of benefits of unemployment.

Also included in this chapter will be the revenue generated by the cost of integrating new collectives or in the case of corporate responsibility as a result of an administrative or judicial resolution.

B) Revenue from services provided: The estimation of these resources will be made by reference to the collection derived from health care concerts of Social Security with Public and other Mutual entities, as well as those from International Health Care Conventions and any others for which the appropriate consideration should be required.

C) Transfers: Each and every one of the concepts for which the Social Security receives contributions without consideration will be specified in detail, classifying them according to the Financial Agent and the purpose to which they are intended.

D) Equity income: The different types of income will be estimated according to the nature and character of the source that generates them, specifying for the derivatives of the capital, the principal that originates the income and the the known or intended interest rate and, for real estate capital, the nature of the property and the price of the lease, in accordance with the contracts, agreements or types of performance that are provided for in each case.

E) Other income: This item shall be estimated at the revenue to be collected for interest, surcharges and fines; general and supplementary discounts arising from the purchase of medicinal products; (a) the financing of health, as well as those arising from the rights of examination and the sale of printed matter and waste material, and any other in favour of the system's entities.

2. Development and processing: The General Treasury and the Mutual Working and Occupational Accidents Mutuals will draw up their preliminary draft budgets for resources and applications, in accordance with the criteria set out in the previous point, in the following models, the format and instructions for completion of which are specified in Annex V, and shall be sent to the Directorate-General referred to in the above-mentioned time limit.

R-01. Resource and application pormenet.

R-02. Explanatory memory of the resources and applications.

In order for the General Treasury to be able to encrypt the revenue for the provision of services, the different management entities that generate these resources will forward to that, within the next fifteen days from the beginning of the in force of this Order, an evaluation that contemplates the resources to be obtained for each type of service, uniting an explanatory memory that justifies the bases in which its estimation is based.

Article 6. Preparation, processing and approval of the preliminary draft budget of the Social Security system.

Received from the managing entities, General Treasury, and Mutual and Occupational Accidents and Occupational Diseases their respective preliminary draft budget, the Directorate-General for Social Security Management will verify, first, if the criteria for the quantification of credit proposals in the management levels included in the programmes is in accordance with Article 3 of this Order; by checking, secondly, whether the estimation of the Revenue is in accordance with the provisions of Article 5, requiring, where appropriate, those responsible for the preparation of the preliminary draft for the additional information it deems necessary.

These checks will be carried out in that Directorate-General working groups in the functional areas of economic benefits, health care and social services; and treasury, information technology and intervention, with participation of the agents responsible for the preliminary projects, which will analyse and discuss the proposals made in order to select the level of management to be applied to each programme in the light of the achievements or objectives intended.

The result of such actions will be raised to the Secretariat of State of Social Security that will decide the adjustment of the proposals to the available funding and will submit them to the consideration of the Minister of Labor and Social to establish the preliminary draft budget of the different Managing Agents concerned, whose aggregation and consolidation will be carried out by the Directorate-General for Social Security Management, incorporating the preliminary draft of the Institute National of Health to be received from the Ministry of Economy and Finance, to form the preliminary draft budget for social security which, with the documentation provided for in Article 148 (2) of the recast text of the General Budget Law, shall be submitted to the Government for approval and inclusion in the draft budget General Budget of the State to present in the Congress of Deputies for its examination, amendment and approval by the General Courts.

Repeal provision.

The Order of 20 May 1997 is hereby repealed and the rules for drawing up the Social Security budgets for 1998 are laid down.

Final disposition first.

The Secretary of State for Social Security is empowered to issue the instructions necessary for the correct application of this Order, as well as to extend the budgetary structure in order to bring it into line with the the needs of the social security services and services, on the proposal of the entities entrusted with their management.

Final disposition second.

The Directorate-General for Social Security Management is empowered to request the additional information it deems appropriate for the purpose of knowing the distribution of human resources and credits by centres, Provinces and Autonomous Communities, in order to determine standard allocation modules by management levels, as well as to obtain the necessary reports and statements necessary for the accuracy of the required appropriations to take care of the management to be carried out by the managing agents involved in the preparation of the preliminary draft budget.

Final disposition third.

The Directorate-General for Social Security Management will carry out the precise functions of coordination, computer support and documentary processing of all the information needed to be processed for obtaining the The final document of the Social Security Budget Project, through the development of the necessary IT systems.

Final disposition fourth.

This Order shall enter into force on the day of its publication in the Official Gazette of the State.

Madrid, 7 May 1998.

BOCANEGRA SANDS

Excmo. Mr Secretary of State for Social Security and Ilmos. Mr Deputy Secretary of the Department, Director General of Social Security Management and Directors-General of Social Security Management Entities, General Social Security Treasury, General Social Security Controller and Messrs. Presidents of Mutual Workers of Occupational Accidents and Occupational Diseases of Social Security.

(OMITTED ATTACHMENTS).