PCM-15-2022

This decree approves the Medium-Term Macro Fiscal Framework (MMFMP) 2023-2026, a plan that establishes economic and fiscal projections for the country for the coming years. It affects all citizens by defining how the government will manage its spending and revenue, with objectives of reducing poverty, generating employment, and maintaining responsible fiscal stability.

Whereas, in accordance with the provisions of Article 245 of the Constitution of the Republic of Honduras, the President has charge of the General Administration and representation of the State, as well as the direction of general policy and, as part of her constitutional attributes, it is incumbent upon her to administer public finance, issue agreements and decrees in accordance with Law.

Whereas, the President of the Republic is responsible for the supreme direction and coordination of the Public Administration, defining the Government's plans and programs, directing its tasks and guiding the activities of the administrative bodies.

Whereas, the General Law of Public Administration, in Article 11, establishes that the President of the Republic has charge of the supreme direction and coordination of the Centralized and Decentralized Public Administration, being able in the exercise of her functions to act by herself or in Cabinet Council.

Whereas, Legislative Decree No. 25-2016 approved on April 7, 2016 and published in the Official Gazette "La Gaceta" on May 4, 2016 in edition number 34,024, containing the Fiscal Responsibility Law (LRF), has as its objective to establish guidelines for better management of public finances, ensuring consistency over time of budgetary policy and guaranteeing fiscal consolidation, debt sustainability and poverty reduction with responsibility, prudence and fiscal transparency.

Whereas, Article 6 of the aforementioned Legislative Decree No. 25-2016 establishes the creation of the Inter-institutional Committee composed of the State Department in the Office of Finance (SEFIN), State Department in the Office of General Government Coordination (SCGG) and the Central Bank of Honduras (BCH), for the preparation and implementation of the Medium-Term Macroeconomic Fiscal Framework (MMFMP).

Whereas, by means of Executive Decree PCM 05-2022, published in the Official Gazette "La Gaceta" on April 6, 2022 in edition number 35,892; the State Department in the Office of General Government Coordination (SCGG) was suppressed, for which reason said Department no longer exists. In that sense, the Inter-institutional Committee for the Preparation and Implementation of the Macroeconomic Fiscal Framework is now composed only of the State Department in the Office of Finance (SEFIN) and the Central Bank of Honduras (BCH).

Whereas, on April 8, 2022, the National Congress of the Republic, by means of Legislative Decree No. 30-2022 published in the Official Gazette "La Gaceta" on April 8, 2022 in edition number 35,894; approved the modification to the General Budget of Income and Expenditures of the Republic and its General Provisions, Fiscal Year 2022; with the objective of reversing conditions of poverty, high rates of unemployment and migration, creating better social conditions for the population, granting subsidies for energy and fuels, generating employment, improving the financial situation of ENEE, guaranteeing youth training through sports and culture, financing social sectors, as well as making payments of Sovereign Bond maturities and carrying out infrastructure investment, which is expected to contribute to greater economic growth.

Whereas, by means of the aforementioned Legislative Decree No. 30-2022, in Article 275-E the interpretation of Article 4, paragraph 3 of Decree No. 25-2016 of the Fiscal Responsibility Law was made.

Whereas, on May 8, 2022, the Congress of the Republic approved by means of Legislative Decree No. 30-2022 the extension of the deadline for approval of the Macroeconomic Fiscal Framework until the last business day of May 2022, as well as the increase of the fiscal deficit percentage of the non-financial public sector up to 4.9% of GDP set at 759,533.0 million lempiras for 2022, in the macroeconomic fiscal framework.

Whereas, on May 13, 2022, the Inter-institutional Committee approved the draft of the Medium-Term Macroeconomic Fiscal Framework (MMFMP) 2023-2026 previously prepared by technical teams.

Whereas, on May 20, 2022, the Central Bank of Honduras sent to SEFIN the technical opinion on the Medium-Term Macroeconomic Fiscal Framework (MMFMP) 2023-2026 and its compatibility with the projections of Balance of Payments, Net International Reserves and the measures and guidelines of Monetary Policy; likewise, it is in line with what is established in the Activation of the current Exception Clauses of the Fiscal Responsibility Law.

Whereas, Article 275-S of Legislative Decree No. 030-2022 establishes that the Medium-Term Macroeconomic Fiscal Framework (MMFMP) must be approved by the President of the Republic in Cabinet Council and its publication must be made in electronic media and in the Official Gazette La Gaceta, on the last business day of May 2022.