Wednesday 12/27/2023
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Last updated 8:01
The government announced the extension of the general budget of the national administration for the fiscal year 2023, in light of the 2024 budget law not yet being approved. This measure, which was issued by presidential decision, aims to ensure continuity and effectiveness of basic services while the budget situation is resolved.
The decision is based on Article 27 of the National Public Sector Financial Management and Control Systems Law No. 24.156 and its amendments, which stipulates that if the budget for the next fiscal year is not approved, it must be from the previous year with the amendments introduced by the national executive authority.
Given the advanced status of the 2023 Budget, the adjustments needed to comply with Article 27 cannot be determined immediately and accurately, so they will be implemented in a timely manner. This means that, as of January 1, 2024, the provisions of Law No. 27701 regarding the general budget of the National Administration for the fiscal year 2023 and its amending and supplementary regulations will be applied as of January 1, 2024.
The Head of State, Javier Miley, decreed these measures with the aim of avoiding interruptions in the provision of essential services by judicial authorities and entities of the National Administration.
What does the decree say?
Among the most prominent features of the decree are the instructions directed to the Prime Minister to adapt the expanded budget, in a timely manner, in order to comply with Clauses 1 and 2 of Article 27 of the Financial Administration Law. This crucial task will ensure a smooth transition and allow for the efficient operation of the different government areas.
In addition, the extension addresses institutional amendments derived from the recent ministerial reorganization of the national executive, implemented by Decree No. 8 of 10 December 2023. These amendments are necessary to adapt the structure of government to current needs and priorities.
The decree also includes a redraft of Article 35 of the Appendix to Decree No. 1344 issued on October 4, 2007 and its amendments, which specifies the powers to authorize expenditures, order payment, and make disbursements within the scope of the national executive authority. The amounts and appropriate authorities for various categories of expenditure are detailed, ensuring a clear and transparent financial management framework.
In an attempt to provide greater clarity, the ministries responsible for the armed forces and security forces are scheduled to determine the powers to approve expenditures and regulate payments within the scope of their competencies, within the limits stipulated in the new budget structure.
Expenditure approval procedures will be formally implemented using uniform, general use forms/receipts created by the Finance Secretariat of the Ministry of Economy. A clear process has been established to withdraw funds from the national treasury, with particular attention to payments financed by the state treasury.
