Executive Decree PCM-060-2021 through which the Medium-Term Macro Fiscal Framework (MMFMP) 2022-2025 is approved

This decree approves the Medium-Term Fiscal Plan 2022-2025, which establishes spending targets and limits for Honduran public spending over four years. It affects all state institutions that must comply with these fiscal rules to ensure responsible public finances, reduce debt, and combat poverty with transparency.

Whereas in accordance with Article 245, numerals 2, 11 and 45 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 and represent it, issue Agreements, Decrees, promulgate Regulations and Resolutions in accordance with the Law, and those others granted by the Constitution and the Laws.

Whereas in accordance with what is established in Article 11 of the General Law of Public Administration, the President of the Republic is responsible for the supreme direction and coordination of Public Administration, both Centralized and Decentralized. The President of the Republic in the exercise of his functions may act alone or in Council of Ministers.

Whereas the Fiscal Responsibility Law contained in Legislative Decree No. 25-2016, published in the Official Journal "La Gaceta" on May 4, 2016, has the objective of establishing guidelines for better management of public finances, ensuring consistency over time of budgetary policy and guaranteeing fiscal consolidation, sustainability of debt and reduction of poverty with responsibility, prudence and fiscal transparency.

Whereas in Article 6 of Legislative Decree No. 25-2016 the Inter-institutional Committee is created, composed of the Department of State for Finance (SEFIN), the Department of State for the General Coordination of Government (SCGG) and the Central Bank of Honduras (BCH), for the preparation and implementation of the Medium-Term Macrofiscal Framework.

Whereas by Legislative Decree No. 18-2021 published in the Official Journal "La Gaceta" on April 30, 2021 the National Congress of the Republic approved the extension of the approval date of the Medium-Term Macrofiscal Framework (MMFMP) to the last business day of May 2021.

Whereas on May 13, 2021 by Legislative Decree No. 27-2021, the Authorization was approved to activate the Exception Clause of the Fiscal Rules of the Fiscal Responsibility Law, which suspends for a maximum of two years the Multi-year Fiscal Performance Rules for the Non-Financial Public Sector (SPNF) established in subsections a) and b) numeral 1) of Article 3 of Legislative Decree No. 25-2016 which contains the Fiscal Responsibility Law.

Whereas on May 14, 2021, the Inter-institutional Committee prepared the Draft Medium-Term Macrofiscal Framework (MMFMP) 2022-2025.

Whereas on May 14, 2021 the Central Bank of Honduras (BCH) sent to the Department of State for Finance (SEFIN) the Technical Opinion on the Medium-Term Macrofiscal Framework (MMFMP) 2022-2025 and its compatibility with the forecasts for Economic Growth, 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 Exception Clauses in effect of the Fiscal Responsibility Law.

Whereas Article 8 of Legislative Decree No. 25-2016 establishes that the Medium-Term Macrofiscal Framework must be approved by the President of the Republic in Council of Ministers, 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 Journal "La Gaceta". Said period being extended in Article 5 of Legislative Decree No. 18-2021, until the last business day of May.