PCM-032-2020

This decree approves Honduras' financial plan for 2021-2024, which establishes how the government will use its resources and debts responsibly. It affects all citizens by ensuring that public money is managed with transparency, stability, and care to reduce poverty.

That in accordance with numerals 2 and 11 of Article 245 of the Constitution of the Republic, it is incumbent upon the President of the Republic, among other powers, to direct the general policy of the State, issue agreements, decrees, issue regulations and resolutions in accordance with the Law.

That in accordance with Article 11 of the General Law of Public Administration, contained in Legislative Decree No. 146-86, dated October 27, 1986 and its reforms, the President of the Republic of Honduras is in charge of the supreme direction and coordination of Centralized and Decentralized Public Administration, being able to act by himself or in Council of State Secretaries.

That on May 4, 2016, Decree No. 25-2016 approved on April 7, 2016, containing the Fiscal Responsibility Law (LRF), was published in the Official Gazette "La Gaceta", which aims to establish guidelines for better management of public finances, ensuring consistency over time of budget policy and guarantee fiscal consolidation, debt sustainability and poverty reduction with responsibility, prudence and fiscal transparency.

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

That on March 28, 2020, the Inter-institutional Committee approved the Medium-Term Macro Fiscal Framework project (MMFMP 2021-2024).

That Article 7 of Decree No. 25-2016 establishes that the State Secretariat in the Office of Finance (SEFIN) must send to the Central Bank of Honduras (BCH), no later than April 15 of each year, the Medium-Term Macro Fiscal Framework project, so that within the following ten (10) calendar days, it issues a technical opinion on said Framework and its compatibility with balance of payments projections and net international reserves and with its monetary policy. For this purpose, the Central Bank of Honduras (BCH) must send the closing indicators of the previous year no later than February 15 of each year to the State Secretariat in the Office of Finance.

That on April 8, 2020, the BCH sent to SEFIN the technical opinion on said Framework and its compatibility with balance of payments projections and net international reserves and with its monetary policy.

That Article 8 of Decree No. 25-2016 establishes that the Medium-Term Macro Fiscal Framework must be approved by the President of the Republic in Council of State Secretaries, on the last business day of April of each year and must be published in full, together with the Report of the Central Bank of Honduras (BCH) within 2 (two) business days following in the electronic media available and must be sent for its corresponding publication in the Official Gazette "La Gaceta".

That the Constitution of the Republic establishes that the human person is the supreme purpose of society and the State; and that all have the obligation to respect and protect it; that the family, maternity and childhood are under the protection of the State; as well as the special protection of the State to the elderly; recognizing the universal right to protection of health.

That the Republic of Honduras is a signatory state to the Universal Declaration of Human Rights of 1948, as well as to the International Covenant on Economic, Social and Cultural Rights (1996) which literally state: "Everyone has the right to an adequate standard of living for himself and his family, including food, clothing and housing, and to the continuous improvement of living conditions" and "the fundamental right of every person to be protected against hunger".

That in accordance with Article 245, numerals 2, 11, 19, 20 and 45 of the Constitution of the Republic, it is the responsibility of the President of the Republic, among other powers: To direct the general policy of the State and represent it, issue agreements, decrees and enact regulations and resolutions in accordance with the Law, as well as to administer public finances and the other powers granted to him by the Constitution and the Laws.

That in accordance with Article 11 of the General Law of Public Administration, the President of the Republic is responsible for the supreme direction and coordination of the Centralized and Decentralized Public Administration, being able to act on his own or in Council of Ministers.