Decree 4-2025

In compliance with Articles 1 and 2 of the Organic Budget Law, the scope of application of this Law is mandatory for all institutions of the Public Sector, comprised of: the Central Administration, which includes: the Constitutional Bodies, as well as the Public Ministry, Electoral Justice Court (TJE), National Electoral Council (CNE), National Registry of Persons (RNP), National Commissioner of Human Rights (CONADEH), Superior Court of Accounts (TSC), Office of the Attorney General of the Republic (PGR) and other public entities of similar legal status, State Secretariats, Deconcentrated Bodies, and the Decentralized Administration which includes: Autonomous Institutes, Public Universities, Social Welfare Institutes, Non-Financial and Financial Public Enterprises; Municipalities; and any natural or legal person that receives resources from the State.

All ordinary fiscal revenues shall constitute a single fund except for exceptions by law or by international agreements. No commitment may be made or any payment effected outside the allocations voted in this Law, or in contravention of budget standards. Violators shall be liable civil, criminal and administratively, as established by the Constitution of the Republic and the Organic Budget Law.

In compliance with Article 12 of the Organic Budget Law, all revenues of Public Administration institutions through self-management, transfers, loans, donations and pre-allocations from the national treasury must be registered, categories that have assigned their respective codes in accordance with the budget classifiers of sources and financing organizations. In accordance with what is established in Article 6 of the Organic Budget Law, and Article 7 of the Technical Standards of the Budget Subsystem, the direct responsible parties for institutional financial management, budget execution and control of public spending are the Highest Authorities, Administrative Management offices of the State Secretariats or their equivalent in Public Sector dependencies, as well as Officials or Public Servants of the different Executing Units.

Non-compliance with this budget regulatory provision shall be sanctioned with fines of three (3) to thirty (30) minimum wages. The Office of the Attorney General of the Republic (PGR) is the entity responsible for applying the fines once the proceeding for civil or administrative liability at the Superior Court of Accounts (TSC) is concluded, and without prejudice to criminal liability. The State Secretariat of Finance (SEFIN) is authorized to refer to the Superior Court of Accounts (TSC) cases of non-compliance and/or violations of this law. For the General Budget of Income and Expenditures of the Republic and its General Provisions for Fiscal Year 2025, the articles contained in Legislative Decree No. 62-2023 of January 16, 2024, published in the Official Gazette "La Gaceta" number 36,437 dated January 18, 2024, containing the General Budget of Income and Expenditures of the Republic and its General Provisions for Fiscal Year 2024, whose literal text is incorporated into this Decree, are in effect, in accordance with the following equivalency detail: [detailed numerical equivalency table follows]

Approve as an estimate of Income by Categories of the Central Administration for Fiscal Year 2025, the sum of TWO HUNDRED SIXTY-SIX THOUSAND SIX HUNDRED SIXTY-SEVEN MILLION FIVE HUNDRED SEVENTY-FOUR THOUSAND TWO HUNDRED TWENTY-SEVEN LEMPIRAS EXACT (L266,667,574,227.00), in accordance with the following detail:

Approve as an estimate of Income by Categories of the Central Administration for Fiscal Year 2025, the sum of TWO HUNDRED SIXTY-SIX THOUSAND SIX HUNDRED SIXTY-SEVEN MILLION FIVE HUNDRED SEVENTY-FOUR THOUSAND TWO HUNDRED TWENTY-SEVEN LEMPIRAS EXACT (L266,667,574,227.00), in accordance with the following detail: [detailed income codes and amounts for Central Administration, including tax revenues, non-tax revenues, sales of goods and services, property income, transfers and donations, financial assets, debt securities, and loans, totaling L266,667,574,227.00]

Approve as an estimate of Income by Categories of the Decentralized Administration for Fiscal Year 2025, the sum of ONE HUNDRED SIXTY-FOUR THOUSAND TWO HUNDRED FORTY MILLION TWO HUNDRED FORTY-SEVEN THOUSAND FIFTY-NINE LEMPIRAS EXACT (L164,240,247,059.00), in accordance with the following detail:

Approve as an estimate of Income by Categories of the Decentralized Administration for Fiscal Year 2025, the sum of ONE HUNDRED SIXTY-FOUR THOUSAND TWO HUNDRED FORTY MILLION TWO HUNDRED FORTY-SEVEN THOUSAND FIFTY-NINE LEMPIRAS EXACT (L164,240,247,059.00), in accordance with the following detail: [detailed income codes and amounts for Decentralized Administration, including non-tax revenues, contributions to social security, contributions to other systems, sales of goods and services, operating income, property income, transfers and donations, own capital resources, and loans, totaling L164,240,247,059.00]

Approve as an estimate of the Expenditures of the Public Administration by type of administration, institution and source of financing for Fiscal Year 2025, the sum of FOUR HUNDRED THIRTY THOUSAND NINE HUNDRED SEVEN MILLION EIGHT HUNDRED TWENTY-ONE THOUSAND TWO HUNDRED EIGHTY-SIX LEMPIRAS EXACT (L430,907,821,286.00) in accordance with the following detail:

Approve as an estimate of the Expenditures of the Public Administration by type of administration, institution and source of financing for Fiscal Year 2025, the sum of FOUR HUNDRED THIRTY THOUSAND NINE HUNDRED SEVEN MILLION EIGHT HUNDRED TWENTY-ONE THOUSAND TWO HUNDRED EIGHTY-SIX LEMPIRAS EXACT (L430,907,821,286.00) in accordance with the following detail: SUMMARY OF PUBLIC ADMINISTRATION [detailed table by type of administration showing National Treasury, Own Resources, Credit and Domestic Donations, External Sources and Total for Central Administration and Decentralized Administration, with total of L430,907,821,286.00]

Approve as an estimate of the Expenditures of the Public Administration by type of administration, institution and source of financing for Fiscal Year 2025, the sum of FOUR HUNDRED THIRTY THOUSAND NINE HUNDRED SEVEN MILLION EIGHT HUNDRED TWENTY-ONE THOUSAND TWO HUNDRED EIGHTY-SIX LEMPIRAS EXACT (L430,907,821,286.00) in accordance with the following detail: [detailed expenditure breakdown by Central Administration and Decentralized Administration, including State Secretariats, Deconcentrated Institutions, Constitutional Bodies, and Autonomous Institutes, with amounts allocated from National Treasury, Own Resources, Internal Credit and Donations, and External Sources, totaling L430,907,821,286.00]

All institutions of the Central Administration that generate or perceive income, whether from their own activities, eventual or provided for by laws, and categorized as own resources in

All institutions of the Central Administration that generate or perceive income, whether from their own activities, eventual or provided for by laws, and categorized as own resources in source 12, shall deposit the same in the General Income Account that the Office of the Attorney General of the Republic (TGR) maintains at the Central Bank of Honduras (BCH), using the official TGR-1 receipt online. The State Secretariat of Finance (SEFIN) may authorize up to fifty percent (50%) of own resources (Source 12), originating from: Property income, own capital resources and financial assets, so that they may be used by the dependencies that generated them, previously accrediting the capture of these. The following institutions are excepted from the foregoing paragraph: [detailed table of 37 institutions with their assigned percentages and legal basis for income retention, including the National Registry of Persons (100%), Judicial Power (100%), Military Defense (100%), Health Secretariat (100%), Education Secretariat (100%), and others with varying percentages from 20% to 100%]

All institutions of the Central Administration to which a percentage is assigned based on the own resources mechanism established in Article 8 of this Law, shall submit to the General Budget Directorate (DGP) in the month following the month in which such income was generated, the necessary documentation to prove that the amounts have been registered with the Office of the Attorney General of the Republic (TGR). Failure to comply with the established deadline is sanctioned with the loss of the right to claim the resources. All Institutions of the Central Administration that are assigned a percentage based on the own resources mechanism, when there are incomes from fines collected and in which the Office of the Attorney General of the Republic (PGR) intervenes, such income must be distributed between both institutions up to ten percent (10%) of the total collected. Income perceived by the intervention of the Office of the Attorney General of the Republic (PGR), at the request of other Institutions, must be deposited in the Unique Account of the Office of the Attorney General of the Republic (TGR) and up to ten percent (10%) of such income shall be granted. In the case of sanctions imposed by the State Secretariat of Labor and Social Security (STSS) on companies that commit infractions and in which the Office of the Attorney General of the Republic (PGR) intervenes, the STSS shall be assigned 90% of the percentage established in the previous paragraph. When the income is due to a finding that caused detriment to the patrimony of a Municipality or Institution created by it, ninety percent (90%) of the recovered funds must be reintegrated to the Municipality or Institution.

All institutions of the Central Administration to which a percentage is assigned based on the mechanism of own resources established in Article 8 of this Law must submit to the General Budget Directorate (DGP) in the month following the month in which such income was generated, the necessary documentation to prove that the amounts have been registered in the Office of the Attorney General of the Republic (TGR). Non-compliance with the established deadline is sanctioned with the loss of the right to claim the resources.

The income received by the Office of the Attorney General of the Republic (PGR) from actions exercised before the national or international Courts or Tribunals, originating from the Superior Court of Accounts (TSC), must be deposited in the income account of the General Treasury of the Republic (TGR) in accordance with what is established in Article 8 of this Law. The distribution of income from audit adjustments shall be carried out in accordance with what is provided in Article 34 of the Law on the Organization of Public Finances, Control of Exemptions and Anti-evasion Measures, contained in Decree No. 278-2013.

The resources generated from the sale of passports at the national and international levels, fees, tariffs, sanctions, and other income generated from migration services and foreign services, as a result of the regulation of permanence and migration control, under the responsibility of the National Migration Institute, including those from the foreign service, shall finance the budget with source 11 National Treasury of said Institute. The financial availability shall be enabled through the commitment fee as income is collected up to the amount approved in the budget of expenses of that institution. The Official Payment Receipts (TGR-1) and the supporting documents submitted by the National Migration Institute to the Ministry of State in the Office of Finance (SEFIN) under the item Passport Booklets shall be linked with the submission date of the taxpayer of the Current Fiscal Year. The TGR-1 of the other items shall be validated based on Article 9 of this Law.

Decentralized Institutions that generate own resources (Source 12) are authorized to proceed with their incorporation, excepting the application of Article 51 of the Organic Budget Law, provided that they demonstrate the availability of the resources to be incorporated and that the total of the projection of income approved in the budget under the income item subject to the expansion has been collected at one hundred percent (100.0%). In case it is necessary to incorporate income generated and recorded in the General Budget of Income and Expenses of the Republic in previous years, the procedure for incorporating cash and bank availabilities established by the Ministry of State in the Office of Finance (SEFIN) for the use of these resources must be applied.

The income received from the sale of electrical energy to the National Electrical Energy Company (ENEE), through the operation of the José Cecilio del Valle Hydroelectric Power Plant, located in Nacaome, must be paid into the General Treasury of the Republic (TGR) and shall be incorporated at 100.0% into the budget of the Ministry of State in the Office of Infrastructure and Transportation (SIT). The resources shall be used to cover the expenses of maintenance and operation of the Dam, as well as the cost incurred for the pumping and supply of water for the Water Boards in the Zone.

The funds collected by hotel companies, vehicle rental companies for tourism purposes, and tourism operators in the concept of four percent (4%) for tourism service fees, in accordance with what is established by Article 43 of the Law for the Promotion of Production, Competitiveness, and Support for Human Development, contained in Legislative Decree No. 131-98 of April 30, 1998, published in the Official Gazette "La Gaceta" of May 20, 1998; must be deposited by the companies in the General Treasury of the Republic (TGR) or in the authorized collection agency for such purpose. The obligation must be fulfilled within ten (10) days of the month following the month in which the tax was incurred, based on what is established in Article 43 of Decree No. 131-98. The Ministry of State in the Office of Finance (SEFIN) shall transfer to the Ministry of State in the Office of Tourism, which in turn shall transfer said resources to the Honduran Tourism Institute (IHT), these funds may be used for the promotion and development of tourism in the country, as well as for the self-sustainability of the Institute, including administrative activities, management, and operational support necessary for its efficient operation; the regulation of the provisions shall establish the guidelines for the application of this provision. Of the four percent (4%), one percent (1%) shall be allocated to the creation of a fund for the promotion of municipal tourism projects. The Honduran Tourism Institute (IHT) and the Association of Municipalities of Honduras (AMHON) are instructed, once this Law is published, to proceed to prepare the pertinent regulation for the execution of municipal tourism projects within a period of no less than ninety (90) calendar days. The values incorporated and not executed at the close of the previous fiscal period may be incorporated for execution in the present fiscal period before the end of March 2025, otherwise the values shall remain in the common fund of the General Treasury of the Republic (TGR), without option for claim by the Ministry or the Institute.

Notwithstanding the limit established in Article 51 of the Organic Budget Law and for the purpose of facilitating financial investments of Social Security Institutions, these institutions are authorized to incorporate the surpluses and surplus to their Budget of Income and Expenses of the present fiscal period, prior Legal Opinion and Resolution of the Board or Executive Council and to invest these resources in securities with high security, profitability, and liquidity.

Any additional requirement of resources from Source (11) National Treasury by the Institutions of the Central and Decentralized Administration, aimed at satisfying unavoidable needs not provided for in the Objectives and Results of the Annual Operating Plan (POA) and the approved Budget, must be met with resources from their own budget through a physical and financial reprogramming of their objectives and results, in accordance with the Technical Standards of the Budget Subsystem. For the reprogramming referred to above, the counterparts of projects that are being financed with External Funds should not be considered.

In duly justified cases, the Ministry of State in the Office of Finance (SEFIN) may authorize in the present Fiscal Period the institutions of the Central Administration to incorporate fifty percent (50%) of the own resources that have been received, incorporated, and not executed in the previous period and the same shall be against the approved budget.

Own resources from the concept of sale of services and others generated by (ENAG) must be deposited in the Unique Account of the General Treasury of the Republic (TGR) in compliance with Article 363 of the Constitution of the Republic and the execution thereof must be done online in the Integrated Financial Administration System (SIAFI); in order to guarantee compliance with what is established in Articles 4, 5, and 47 numeral 5) of the Organic Budget Law, which establishes that all institutions of the Central Government, Ministries of State, Deconcentrated Entities, Decentralized Institutions, and Public Companies must be operating in SIAFI.

When the Current Income of the Central Administration is greater than the amounts estimated in the General Budget of Income authorized in Article 5 of this Law, the Executive Power is authorized to, through the Ministry of State in the Office of Finance (SEFIN), carry out the budgetary and financial operations necessary to incorporate the surpluses to the present General Budget of Income and Expenses of the Republic through the procedure of Expansion without waiting to reach 100.0% of the total Current Income in the revenue item that has been exceeded and in the expense budget according to the financing need, considering the destinations described below and being obliged to notify the National Congress through the First Secretary. The surpluses to be incorporated shall be destined solely for:

• 1)

  To pay Debt Service;

• 2)

  To cancel the balance of debt that has less favorable conditions;

• 3)

  To reduce the use of internal or external credit;

• 4)

  To continue promoting Economic Reactivation in zones affected by climate change or natural phenomena;

• 5)

  To address Social Protection Projects and Programs; and,

• 6)

  To resolve unforeseen emergency situations. The surpluses shall be incorporated in accordance with the institutional budgetary classifier, in the Institution "449 Financial Services of the Central Administration" for its later distribution using the procedure of budgetary modifications, likewise, in said institution, are included the budgetary allocations for contingencies as established in Article 40 of the Organic Budget Law.

The balances of resources from the Loan Agreement of the Central Bank of Honduras (BCH) and of the Ministry of State in the Office of Finance (SEFIN) assigned to the institutions to finance the investment programs and projects during the fiscal periods 2022, 2023, and 2024, may be used for the same purpose in the present Fiscal Period. Likewise, authorization is granted to incorporate the unexecuted balance of projects that have not been completed in 2024, which were initially financed with BCH Funds and in which 2024 the financing was complemented with source 14 Internal Donations, for which the Ministry of State in the Office of Finance (SEFIN) is authorized to carry out the budgetary and financial operations necessary to guarantee the investment.

The resources generated from the concept of Toll Road Use Fee, with source 11 National Treasury as a result of toll collection under the responsibility of the Road Concessionaire Honduras, S.A. de C.V. (COVI), shall be transferred at one hundred percent (100%) to that Concessionaire through the Ministry of State in the Offices of Infrastructure and Transportation (SIT). The financial availability shall be enabled through the commitment fee as income is collected, up to the amount approved in the Budget of Expenses of that institution. From the funds generated as a product of the Toll Road Use Fee, the Ministry of State in the Offices of Infrastructure and Transportation (SIT) is authorized to incorporate them in its approved budget, both income and expenses, in the month following collection within the present Fiscal Period, being obliged to present the necessary documentation to verify that the amounts have been registered in the General Treasury of the Republic (TGR). Non-compliance with the established period shall be sanctioned with the loss of the right to claim the resources. The income generated in the month of December of the previous fiscal period may be requested for incorporation no later than January 31 of the present fiscal period or shall be enabled through the commitment fee prior request of the Ministry of State in the Offices of Infrastructure and Transportation (SIT).

The resources generated from the concept of Airport Services Fee, with source 11 National Treasury as a result of the collection of the Airport Fee, shall be transferred at one hundred percent (100%) to the National Investigation and Intelligence Directorate (DNII) through the Ministry of State in the Office of the Presidency (SDP). The financial availability shall be enabled through the commitment fee as income is collected, up to the amount approved in the Budget of Expenses of that institution. From the funds generated as a product of the Airport Fee, the Ministry of State in the Office of the Presidency (SDP) is authorized to incorporate them in its approved budget, both income and expenses, in the month following collection within the present Fiscal Period, being obliged to present the necessary documentation to verify that the amounts have been registered in the General Treasury of the Republic (TGR). Non-compliance with the established period shall be sanctioned with the loss of the right to claim the resources. The income generated in the month of December of the previous fiscal period may be requested for incorporation no later than January 31 of the present fiscal period or shall be enabled through the commitment fee prior request of the Ministry of State in the Office of the Presidency (SDP).

The income from tariffs, surcharges, authorized licenses, or services provided by the National Telecommunications Commission (CONATEL) shall be paid at any Bank of the National Financial System certified by the Ministry of State in the Office of Finance (SEFIN) for the use of the Official Payment Receipt (TGR-1). The income received abroad from the issuance of Radio Licenses paid by the owners and lessees of ships or vessels to the National Telecommunications Commission (CONATEL), as well as the income from the registration in the Ship Registry and from the issuance of the Navigation License collected by the General Directorate of the Merchant Marine, shall be transferred by these institutions to the Unique Account of the General Treasury of the Republic (TGR).

Operators of Public Telecommunications Services and Information and Communications Technology (ICT) must make the monthly contribution of 1.5% of their gross income within the following ten (10) calendar days of the close of the month to which the payment corresponds, through the National Telecommunications Commission (CONATEL). CONATEL must present to the General Directorate of Budget (DGP), the month following the month in which said income was generated, the necessary documentation to verify that the amounts have been registered in the General Treasury of the Republic (TGR). Likewise, CONATEL shall transfer to the Honduran Telecommunications Company (HONDUTEL) Exactly Two Hundred Million Lempiras (L200,000,000.00) with the purpose of continuing with the implementation of universal access to information and communications technology through internet connectivity to Public Educational Centers at the national level, as well as in public recreation parks. Likewise, it shall transfer to the Ministry of State in the Offices of Childhood, Adolescence and Family (SENAF) the amount of Fifty-One Million Lempiras (L51,000,000.00) with the purpose of guaranteeing effective protection of the rights of childhood, adolescence, and family.

The payment receipt for non-tax income TGR-1 online must be used as proof of all payments in favor of the National Treasury and payments of Own Resources of Secretariats and Institutions in accordance with the Constitutional Principle of Single Account. For the purpose of making more efficient the processes of review and control of TGR-1s, Institutions must enable before the State Secretariat in the Office of Finance (SEFIN), the query and institutional users in the TGR-1 module, for the change of status from Paid to Requested in each TGR-1 generated by the institution.

The TGR-1 receipts, once paid by citizens, have no expiration date, so every public institution must provide the service at the moment when people request it, the only requirement being the TGR-1 duly paid. NET INCOME

For purposes of this Law, Net Income is understood as the result of subtracting from Total Income the following concepts:

• 1)

  The amount of loans received from both internal and external sources;

• 2)

  Transfers and donations internal and/or external;

• 3)

  The recovery of loans;

• 4)

  The values generated by the application of the Law of Public Security contained in Decree No. 105-2011 of June 23, 2011, published in the Official Gazette La Gaceta of July 8, 2011, amended by Decree No. 166-2011 of September 6, 2011, published in the Official Gazette "La Gaceta" of October 1, 2011;

• 5)

  The amounts collected as own resources;

• 6)

  The values paid to the national banking system for collection services;

• 7)

  Tax refunds;

• 8)

  Refunds for overpayments made in Previous Fiscal Years;

• 9)

  The applicability of Credit Notes;

• 10)

  The collection of four point zero percent (4.0%) of Tourist Tax intended exclusively for the Honduran Institute of Tourism (IHT);

• 11)

  Percentage allocated to Port Municipalities;

• 12)

  Percentage allocated to Telecommunications Services;

• 13)

  Percentage corresponding to ECOTASA;

• 14)

  Values assigned to cover payments of the Government Civic Center;

• 15)

  The transfer to the Honduran Institute for the Prevention of Alcoholism, Drug Addiction and Pharmacodependence (IHADFA) in application of the Special Law for the Control of Tobacco contained in Decree No. 92-2010 of June 10, 2010 and its amendments, as well as its regulations;

• 16)

  Allocation for operating expenses of the State Collection Entities;

• 17)

  The transfer to the State Secretariat in the Office of Women (SEMUJER), intended for the expansion of coverage and functioning of the State Secretariat; construction, equipment and maintenance of Safe Houses for women survivors of domestic violence and operating expenses of those already existing and for actions to prevent violence against women; It is understood that the Safe Houses have the purpose of serving as temporary and safe shelter for women victims of violence and risks, and may be accompanied by their daughters and sons, guaranteeing them psychosocial, legal, educational and comprehensive health support;

• 18)

  Values assigned by law transfers; and,

• 19)

  Those intended for social expenses, financed with the increase of three percent (3%) of the Sales Tax (Legislative Decree No. 278-2013 Law of Ordering of Public Finances, Control of Exemptions and Anti-evasion Measures). NATIONAL GOODS CANON

The National Directory of State Property (DNBE) is ordered to proceed with public auction to carry out the sale of national movable and immovable property that provides no utility to the State, in accordance with the Opinion issued by said Directory. From sales generated through public auction, the National Directory of State Property (DNBE) must obtain a Canon of twenty percent (20%) on the total of auctions, in its capacity as managing body of said processes. In the case of State Secretariats and Deconcentrated Institutions, these shall remit to the General Treasury of the Republic (TGR) one hundred percent (100%) of the resources generated by auctions and the same must be distributed as follows: twenty percent (20%) for the National Directory of State Property; thirty percent (30%) for the General Treasury of the Republic (TGR) and fifty percent (50%) for the institution conducting the auction. In the case of Decentralized Institutions, these shall deposit in the General Treasury of the Republic (TGR) fifty percent (50%) of the total auction, with twenty percent (20%) corresponding to the National Directory of State Property and thirty percent (30%) for the General Treasury of the Republic (TGR). The remaining fifty percent (50%) remains in the Treasury of each decentralized institution. These regulations shall not be applicable to the Honduran Telecommunications Company (HONDUTEL), which, being in a financial rescue process, may dispose for its operational and functional strengthening of the totality of the resources generated by the auctions it conducts. From the funds generated as a product of the Canon referred to in the two preceding paragraphs, the National Directory of State Property (DNBE) is authorized to incorporate them into its approved budget, both for income and expenses, in the month following collection within the present Fiscal Year. The deposited values may be allocated to the hiring of certified appraisers by the National Commission of Banks and Insurance (CNBS), as well as hiring of temporary personnel, acquisition of equipment and any other need that the National Directory of State Property (DNBE) considers priority for its operation.

The Honduran Customs Administration (AAH) is ordered to coordinate with the National Directory of State Property (DNBE) to proceed with the direct sale of goods fallen into abandonment (surplus from auction) in the various customs houses of the country, as well as in customs deposits in the following cases: 1) Merchandise not awarded in public auction conducted by the Customs Administering Entity, which due to their physical conditions cannot be donated to state or public benefit institutions; and, 2) Vehicles that entered the national territory whose importation is prohibited by Law, in accordance with Article 21 of the Law of Strengthening of Income, Social Equity and Rationalization of Finances, contained in Decree No. 17-2010, of March 28, 2010, published in the Official Gazette "La Gaceta" of April 22, 2010. Prior to the sale, the customs valuation unit must issue the corresponding opinion on the value of the merchandise. When the sale corresponds to vehicles, these must be sold as scrap, and the buyer is obligated to dismantle them, which shall be done under the supervision of the Customs Authority. In no case shall vehicles sold in parts or as scrap be allowed to circulate in national territory. The Property Institute (IP) is prohibited from authorizing the registration of these vehicles. It may only register the engine, chassis or cabin. The merchandise fallen into abandonment referred to in the first paragraph of this Article, as well as merchandise donated to state institutions, shall be exempt from the collection or costs of storage or demurrage charges that may have been incurred in the customs deposits of the country. The Honduran Customs Administration (AAH) in coordination with the National Directory of State Property (DNBE) must comply with Executive Agreement No. 009-2023 published in the Official Gazette "La Gaceta" No. 36,187 of March 23, 2023, containing the Regulations for the direct sale of merchandise fallen into abandonment in the customs houses of the country surplus from auction, as well as in customs deposits. The financial resources generated by the sales established in this Article shall be deposited in the Single Account of the General Treasury of the Republic (TGR).

In compliance with Articles 83 and 84 of the Organic Budget Law and Article 27 of its Regulations, the State Secretariat in the Office of Finance (SEFIN) is authorized, through the General Treasury of the Republic (TGR) prior coordination with the General Directorate of Public Credit, to transfer to the Single Account of the General Treasury of the Republic (CUT), the available resources at the end of Fiscal Year 2024 in accounts opened at the Central Bank of Honduras (BCH), from funds from reimbursable and non-reimbursable external cooperation that are closed and whose return has not been requested by the corresponding Financial Organisms, with the purpose of strengthening the capacity of the CUT. In order to carry out the operations authorized in the preceding paragraph, the General Treasury of the Republic (TGR) shall request the General Directorate of Budget (DGP) to conduct all budgetary operations required to transfer or redirect funds in effect from donations and external credit appropriated in accordance with the institutional budget classifier in the institution Financial Services of the Central Administration (449) in the present fiscal year. In said institution are found resources from External Credit, External Donations and Paris Club Relief. The General Treasury of the Republic (TGR), shall request through the National Commission of Banks and Insurance (CNBS), bank statements from all Institutions of the Public Sector that maintain public funds in the National Financial System in electronic format, related to the movements of savings accounts, current accounts and fixed-term deposits. As of the publication of this Law, institutions of the National Financial System must require prior to the opening of a bank account for public sector institutions, authorization from the General Treasury of the Republic (TGR), so that it provides the movements of bank statements, in view that the opened accounts will receive transfers of public funds. DONATIONS AND CREDITS

Public sector institutions that receive Non-Reimbursable External Cooperation resources must incorporate them and execute them in the General Budget of Income and Expenses of the Republic through the Integrated Financial Administration System (SIAFI) for control and monitoring. The execution of these resources must be registered in SIAFI through the regularization mechanism, if they are direct payments or in kind; except in those cases where the International Agreement expressly establishes how it should be handled.

The resources from debt relief under the Heavily Indebted Poor Countries Initiative (HIPC), the Multilateral Debt Relief Initiative (MDRI) and the Paris Club, must be allocated exclusively for continuity projects contained in the Poverty Reduction Strategy, which forms part of the Budget of Income and Expenses of the Republic, Fiscal Year 2025.

Notwithstanding the provisions of Article 36 paragraph 2 of the Organic Budget Law, the funds corresponding to external resources from Donations and Loan Agreements may be incorporated into the General Budget of Income and Expenses of the Republic, based on the amount established in the Medium-Term Macro Fiscal Framework (MMFMP) 2025-2028. In the case of Public Investment programs and projects, they may be incorporated if they meet the technical and legal requirements in accordance with current legislation.

Notwithstanding the provisions of Article 68 of Decree No. 17-2010 of March 28, 2010, published in the Official Gazette "La Gaceta" of April 22, 2010, containing the Law of Strengthening of Income, Social Equity and Rationalization of Public Spending, for purposes of contracting external financing necessary to cover budgetary requirements, non-concessional debt may be contracted, provided that the portfolio of total existing external debt maintains a minimum weighted concessionality of twenty percent (20%). In case of requiring a percentage lower than established, the Public Credit Commission constituted in Article 66 of the Organic Budget Law (LOP) may modify said percentage in the Public Debt Policy (PEP). The new borrowing must be contracted preferably in the same currency in which Honduras' international reserves are constituted. The Executive Branch through the State Secretariat in the Office of Finance (SEFIN) is authorized to subscribe loans within the framework of the debt ceilings established in the Public Debt Policy and in line with the Medium-Term Macro Fiscal Framework (MMFMP), and must be submitted to the National Congress for subsequent ratification.

The different categories of resources, whatever their source of origin, are income and are considered fungible in accordance with the provisions of Articles 12 (income) and Article 13 (expenses) in the Organic Budget Law. The resources of Non-Reimbursable and Reimbursable Cooperations deposited in operative accounts and booklets are fungible in character for purposes of execution and may generate fiscal space between the Central Administration and the Decentralized Administration.

The State Secretariat in the Office of Finance (SEFIN) is authorized to subscribe Financing Agreements with public enterprises under the same conditions as said borrowing is acquired or on a non-reimbursable basis. The State Secretariat in the Office of Finance (SEFIN) and public enterprises must create the budgetary items for income, expenses and financial assets necessary in the General Budget of Income and Expenses of the Republic Fiscal Year 2025, for the recording of operations derived from the application of this provision, during the validity of said obligations. Likewise, when allowed by the conditions of the respective operation, amendments may be subscribed to register and transfer resources on a non-reimbursable basis to public enterprises, from public investment programs that are under execution.

The fluctuations due to exchange rate or inflation that affect the amounts of titles and securities placed against the amount authorized in this Law shall only be considered on the date of placement of the title in foreign currency (or denominated) and indexed to inflation. The State Secretariat in the Office of Finance (SEFIN) may issue governmental securities up to the net credit ceiling authorized in Article 5 of this Law, understanding by net credit the value to be captured/paid, which results from the nominal value placed minus discounts, plus accrued premiums and interest. The State Secretariat in the Office of Finance (SEFIN) is empowered to increase or decrease the nominal value of internal debt securities as the case may be, provided that the value captured/paid by the placement does not exceed the net credit limit authorized by the National Congress, and shall not require an opinion from the State Secretariat in the Office of Finance (SEFIN). Said amount shall be formalized through Ministerial Agreement, and once subscribed, the Finance Secretariat shall make the corresponding budgetary modifications.

The public borrowing authorized through bond issuance and obtaining of loans is considered fungible from internal to external source and vice versa, with respect to the internal or external market, financial organism, source, item, type of currency, terms and other terms that impact financing, provided it does not exceed the total amount authorized in Article 5 of this Law, for which the State Secretariat in the Office of Finance shall make the corresponding budgetary modifications, once the resources are received. The State Secretariat in the Office of Finance (SEFIN) through the General Directorate of Public Credit, may redistribute, reallocate, redirect or disregard the funds from external credits. The State Secretariat in the Office of Finance (SEFIN) is authorized to perform the necessary budgetary and financial operations with the purpose of reducing the budgetary space of internal or external credit within the General Budget of Income and Expenses of the Republic Approved for the year 2025, in the event that disbursements are not received in total or in part.

The negotiation of securities shall be governed by the General Regulations for the Negotiation of Governmental Securities of the Government of Honduras approved by Executive Agreement No. 301-2018 of March 5, 2018, published in the Official Gazette "La Gaceta" on March 12, 2018.

A maximum ceiling is established for the balance in present value of indebtedness of the Non-Financial Public Sector of fifty-five percent (55%) in relation to the Gross Domestic Product (GDP), in accordance with monetary policy and for the purpose of maintaining a level of stable and sustainable indebtedness in the medium and long term.

Municipalities, Decentralized and Autonomous Institutions, prior to the formalization of new indebtedness, are obligated to request a Borrowing Capacity Opinion from the State Secretary of the Office of Finance (SEFIN) through the General Directorate of Public Credit (DGCP). Municipalities, Decentralized and Autonomous Institutions that request a Borrowing Capacity Opinion for the purpose of obtaining loans, renegotiation or refinancing of debt with national and/or international entities, must present the required documentation. Municipalities registered in the Integrated Municipal Administration System (SAMI), must have available in the same system, budgetary and financial information to request such Opinion. The Borrowing Capacity Opinion issued by the DGCP must comply with the established indicators and shall not constitute a guarantee by the Central Administration. The State Secretary of the Office of Finance (SEFIN) must issue borrowing capacity opinions within a maximum period of sixty (60) days counted from the delivery of complete information by the requesting party. Municipalities, Decentralized and Autonomous Institutions must present reliable information related to contracted obligations no later than thirty (30) days after the operation is formalized.

The National Electrical Energy Company (ENEE) is authorized to perform placements of available balances from already authorized indebtedness, by Legislative Decree No. 62-2023. Likewise, ENEE may issue new securities and values, contract loans, credit lines or other legally viable financial mechanisms for up to an amount of FIVE BILLION LEMPIRAS (L5,000,000,000.00). Resources obtained for this purpose shall be used to pay debts with delays exceeding forty-five (45) days to energy suppliers. The indebtedness authorized in Articles 6 and 42 of this Law and the available unplaced balances of Legislative Decree No. 62-2023 are fungible and may change from internal to external source and vice versa, financial organization, instrument, source, budget item, currency type, terms and other financing-related matters, provided they do not exceed the total authorized amount, and may access the domestic and international market. The State Secretary of the Office of Finance (SEFIN) and the National Electrical Energy Company (ENEE) must make the corresponding budgetary modifications once resources are received. In the same manner, the National Electrical Energy Company (ENEE) is authorized to perform liability management operations of current obligations, with the purpose of minimizing risk and improving the debt portfolio profile. Operations performed shall not count against the budgetary ceiling of indebtedness authorized for the present year and may be conducted through swap operations, refinancing, early redemption of securities, contracting of loans or other legally viable financial mechanisms, and may access the domestic and international market. The new indebtedness and liability management conducted by the National Electrical Energy Company (ENEE) in 2025 shall have Sovereign Guarantee of the State of Honduras. Authorization from the President of the Republic to constitute Sovereign Guarantee must be granted when the Executive Branch enacts this Law, based on what is established in Article 215 of the Constitution of the Republic, and for its formalization, the State Secretary of the Office of Finance (SEFIN) shall be competent. Within the framework of the Fiscal Responsibility Law, contained in Decree 25-2016 of April 7, 2016, published in the Official Gazette La Gaceta dated May 4, 2016, in the event of having budgetary support resources available in the Central Administration, authorization is granted to the State Secretary of the Office of Finance (SEFIN), to subscribe with the National Electrical Energy Company (ENEE), a Reassigned Loan Agreement under the same conditions as the financing is acquired or as a non-reimbursable provision. The State Secretary of the Office of Finance (SEFIN) and the National Electrical Energy Company (ENEE) must create budgetary items for income and expenses in the General Budget of Income and Expenditures of the Republic for the recording of operations derived from the implementation of this Law and during the validity of such obligations.

All amounts in the form of own resources, transfers and any other income concept that have been received by institutions of the Non-Financial Public Sector (SPNF) that were not utilized in previous Fiscal Years must be returned to the General Treasury of the Republic (TGR) no later than fifteen (15) days after publication of this Decree. This provision is applicable to private institutions that receive resources from the Central Administration, who must submit a settlement of expenses incurred. All institutions listed in Article 47 of this Law are exempted from the return of resources. Authorization is granted to the Executive Branch so that through the State Secretary of the Office of Finance (SEFIN), it performs the budgetary and financial operations necessary to incorporate into the General Budget of Income and Expenditures of the Republic the resources returned by institutions based on the first paragraph of this Article.

For the purpose of better development of daily, weekly and monthly programs, institutions of the Public Sector included in the Single Treasury Account System (CUT) must submit to the General Treasury of the Republic (TGR) their cash programming, in accordance with the procedures established for such purpose. Within the framework of the daily, weekly and monthly cash program and the monitoring of its execution, the General Treasury of the Republic (TGR) shall assign periodic payment quotas to all Public Sector institutions included in the scope of the Single Treasury Account System (CUT), financed with Treasury resources. Periodic payment quotas for the use of own income from the Special Treasury Services of the organs indicated in Article 86 of the Organic Law of the Budget and decentralized institutions shall be defined by the institution itself according to its cash programming and communicated to the General Treasury of the Republic (TGR) in the last week of the month prior to execution. For the purpose of administering the liquidity generated by temporary cash surpluses of the Single Treasury Account System (CUT), the General Treasury of the Republic (TGR) may conduct financial investments in accordance with the policies and strict compliance with investment criteria and recommendations approved by the State Secretary of the Office of Finance (SEFIN), at the proposal of the General Treasury of the Republic (TGR). The conducting of such investments shall not require budgetary authorization unless: (i) its maturity exceeds the budgetary period; and, (ii) the use of resources generated by way of interest must be properly included in the General Budget of Income and Expenditures of the Republic. For the purpose of ensuring transparency, investments and financial income resulting from them shall be recorded accountably in accordance with international public sector accounting standards. With the exception of public social security institutes, public financial institutions and municipalities, all interest generated by financial investments must be remitted to the Single Treasury Account (CUT).

Authorization is granted to the State Secretary of the Office of Finance (SEFIN) through the General Treasury of the Republic (TGR) to perform the necessary operations to transfer available resources between bank accounts opened at the Central Bank of Honduras (BCH) for temporary use of financial availability. Resources must be returned entirely to the accounts of origin of the income collection of the current fiscal year. These operations shall be conducted for the purpose of guaranteeing the liquidity of the Single Treasury Account System (CUT) and the compliance of payment obligations based on the priority and order established in the technical standards of the Treasury Subsystem. Bank accounts for garnishment and guarantee funds are excepted from this provision.

Transfers granted by Public Sector institutions and public or private entities shall be administered in the Single Treasury Account System (CUT), and must ensure their availability for when financial resources are effectively required for the execution of payments by the beneficiary entity. For the aforementioned purpose, the General Treasury of the Republic (TGR) shall establish the regulations and operational definitions and procedures to facilitate the use of electronic payment mechanisms for holders of funds administered in the system.

RETURN OF UNUSED PUBLIC FINANCIAL RESOURCES. The General Treasury of the Republic (TGR), by constitutional mandate, is empowered to perceive, safeguard, administer and disburse public financial resources; therefore, for the purpose of transparency, supervision, evaluation and effectiveness of budgetary execution, the General Treasury of the Republic (TGR) shall require through the National Commission of Banks and Insurance (CNBS) bank statements and financial reports in physical and electronic format from all Public Sector institutions that maintain public financial resources in the national or international financial system (public or private), related to balances, account movements of savings accounts, current accounts, fixed-term deposits and any other financial product that maintains or involves public financial resources. National or international financial system institutions (public or private) are obligated to submit information requested by the General Treasury of the Republic (TGR) within a period not exceeding three (3) calendar days, and non-compliance shall generate administrative responsibility, which shall be sanctioned in accordance with applicable regulations, without prejudice to civil or criminal responsibilities that may correspond. Notwithstanding the foregoing, all amounts in the form of own resources, transfers and any other income concept that have been received by Non-Financial Public Sector institutions that were not utilized at the end of the previous fiscal year must be returned to the Single Treasury Account System (CUT) within the first fifteen (15) days of the month of February of the immediately following fiscal year and in accordance with technical guidelines determined by the General Treasury of the Republic (TGR). This provision shall also be applicable to private institutions that have received public financial resources from Public Sector institutions, who must present a settlement of expenses incurred. Exempted from the return of resources established in the preceding paragraph are the Sanitary Regulation Agency (ARSA), specifically resources for the construction of Quality Control Laboratories for Products of Sanitary Interest; the Heroic and Benevolent Fire Department of Honduras, institutions to which transfers are granted based on the Constitution of the Republic, Law of Municipalities and Law of the Cooperative System, as well as Public Companies and Social Security Institutions, which comprise the following institutions:

• 1)

  Institutions that receive transfers in percentages provided in the Constitution of the Republic:

  • a)

    Public Ministry (MP);

  • b)

    National Autonomous University of Honduras (UNAH).

• 2)

  Independent Powers enumerated in the Constitution of the Republic: a) Judicial Branch (PJ); and, b) Legislative Branch.

• 3)

  Municipalities, in accordance with provisions contained in the Law of Municipalities (Legislative Decree No. 134-90 and its amendments).

• 4)

  Institutions in accordance with current cooperative system regulations: National Supervisory Council of Cooperatives (CONSUCOOP).

• 5)

  Public Companies:

  • a)

    National Electrical Energy Company (ENEE);

  • b)

    Honduran Telecommunications Company (HONDUTEL);

  • c)

    National Port Company (ENP);

  • d)

    Honduras Postal Company (HONDUCOR);

  • e)

    National Railway of Honduras (FCNH);

  • f)

    Honduran Agricultural Marketing Institute (IHMA);

  • g)

    National Supplier of Basic Products (BANASUPRO); and, h) National Autonomous Service of Water and Sewage (SANAA).

• 6)

  Social Security Institutions:

  • a)

    Honduran Social Security Institute (IHSS);

  • b)

    National Institute of Retirements and Pensions of Public Employees (INJUPEMP);

  • c)

    National Social Security Institute for Teachers (INPREMA);

  • d)

    Military Social Security Institute (IPM); and, e) Social Security Institute of Employees of the National Autonomous University of Honduras (INPREUNAH). With respect to institutions not included in the aforementioned exception, the Central Bank of Honduras (BCH) is authorized, at the request of the General Treasury of the Republic (TGR), to transfer to the Single Treasury Account System (CUT) the resources existing in accounts opened by Public Sector institutions at the Central Bank of Honduras (BCH) outside the Single Treasury Account System (CUT). Similarly, any natural or legal person is ordered who has received deposits from Public Sector institutions not included in the aforementioned exception, so that at the request of the General Treasury of the Republic (TGR) shall return to the Single Treasury Account System (CUT) the resources existing in accounts opened by Public Sector institutions. Non-compliance with this provision shall generate administrative responsibility, which shall be sanctioned in accordance with applicable regulations, without prejudice to civil or criminal responsibilities that may correspond for the improper retention of public financial resources.

External resources from the financing of Public Sector entities shall be administered in the Single Treasury Account System (CUT), with the General Treasury of the Republic (TGR) obligated to guarantee their availability according to the requirements of the respective owning entity. For such purpose, the General Treasury of the Republic (TGR) in order to achieve adequate management of resources may utilize the subaccounts of the Single Treasury Account System (CUT), in both national and foreign currency.

The State Secretary of the Office of Finance (SEFIN) and the Central Bank of Honduras (BCH) are ordered to coordinate how external resources from different international organizations and other external sources shall be managed.

Authorization is granted to the State Secretary of the Office of Finance (SEFIN) so that, through the General Treasury of the Republic (TGR), available resources at the end of fiscal year 2024 are transferred to the Unique Treasurer Account from accounts opened at the Central Bank of Honduras (BCH) and income received in the national banking system as interest on deposits held as guarantee, in compliance with Articles 83 and 84 of the Organic Law of the Budget (LOP).

No institution of the Public Sector may contract commitments or obligations, celebrate contracts, or authorize obligations without having the respective budgetary and financial availability. Commitments shall be maintained until works are completed, goods are delivered or services are provided. In the case that contracts extend beyond the fiscal year, the corresponding budgetary allocation for each year must be provided in the respective expense items, and the Executing Unit and Administrative Management shall be responsible. If the term of the contract extends beyond the government period, the contract must be ratified by the National Congress. For the reasons stated above, it shall not be permitted in the last quarter of the year for Public Institutions to incorporate within their Annual Procurement and Contracting Plan (PACC) processes for the execution of work contracts, consulting or the acquisition of goods or services that cannot be executed before the close of the fiscal year, and must consider the same for the formulation of the PACC for the following fiscal year.

The registration in the F01 of the expense execution of Precommitment, Commitment and Accrued must be concluded in the name of the final beneficiary within a maximum period of forty-five (45) days counted from the accrued status. All expense documents F01 that have not been concluded within the maximum established period shall be automatically reversed in the Integrated Financial Administration System (SIAFI). The Administrative Managers of each institution shall be responsible for damages and losses caused to the State by any commitment registration or accrued registration that does not have the legal supporting documentation, without prejudice to the administrative, civil and criminal responsibility that corresponds.

Every supplier and/or contractor of the State at the moment of purchase order or commencement of work must demand a copy of the Form of Expense Execution (F01) registered in the Integrated Financial Administration System (SIAFI) in the stage of approved commitment; to ensure availability, otherwise the Government of the Republic shall not be responsible for payment. The State Secretary of the Office of Finance (SEFIN) shall assign requested funds in the quarterly expense quota (CGT) in accordance with the Annual Procurement and Contracting Plan (PACC). The allocation ensures that the contracting institution has budgetary availability to effectively comply with commitments to be acquired. Officials who contravene the provisions of this Article shall be jointly and administratively responsible for compliance with contracted debts.

Employees and officials of Decentralized Administration Institutions and Deconcentrated Entities, whether of permanent character, by contract or any other modality that enter public service, must receive compensation equal to that established for employees and officials of Central Administration institutions of equal category, according to group and level of classification of positions of the Civil Service System. Institutions with special regimes or others qualified by the National Civil Service Administration (ANSEC) or the State Secretary of the Office of Finance (SEFIN), as corresponding, are excepted from this provision. An equal measure must be applied to new job positions in any public institution.

The salaries earned by Secretaries and Subsecretaries of State must be those approved in the Detailed Annex of Basic Salaries and Wages of the Central Administration or its equivalent in the rest of public institutions, as an integral part of the General Budget of Income and Expenses of the Republic.

Decentralized Institutions shall maintain the number of positions and amounts that have been approved in their budget and that appear in the Opinion issued by the State Department of Finance (SEFIN); notwithstanding, the General Budget Directorate (DGP) shall conduct a review of said positions based on the update of the Detailed Annex established in Article 68 of this Law, for purposes of validating the number of positions that the institution will have for the present Fiscal Year.

The creation of positions arising from the division of the same position is authorized, without any savings being required.

The elimination of positions shall be permitted provided that these are vacant and are not subject to judicial litigation.

The appointment of personnel for the Central Administration and indefinite-term hiring for the Decentralized Administration in vacant positions must be made in compliance with what is established by Articles 54 and 270 of this Law.

No official or employee may be appointed in the Central Administration and/or permanently hired in the Decentralized Administration without the position being created or vacant within the Detailed Annex of Salaries and Wages of the Institution or its equivalent. In the same manner, they may not be appointed permanently and/or hired in a position that is subject to judicial litigation or vacant due to leave; notwithstanding, interim appointments may be made, in observance of Article 93 of this Law, in the contested position while there is no final judgment ordering the reinstatement of the Public Servant.

Retirees from any State institution may be hired with national or external funds through the expense subgroup 24000 to perform consultancies, or the expense subgroup 12000 corresponding to contract personnel, likewise, they may be appointed on an interim basis without causing payment for vacation and benefits and without suspension of payment of their retirement.

Payroll records, ancillary payments and benefits of all employees and officials of Public Sector institutions, except Municipalities, must be validated month by month in the Public Servant Registration and Control System (SIREP), in accordance with their payment mechanism (fortnightly, monthly, biweekly, among others), hiring modality, expense object and source of financing to be charged. In accordance with Executive Decree PCM-021-2016, the records of personnel records do not represent an authorization or approval by the State Department of Finance (SEFIN), regarding the appointments, hiring or personnel movements carried out by institutions. The integrity and truthfulness of the information contained in said records and in the validation of payrolls is the exclusive responsibility of each institution, as is the execution of its spending budget. Likewise, prior to payroll processing, personnel records must be updated in the Server Registration Module, for which supporting documentation will be required in each case. Notwithstanding its source of financing, this provision applies to the Personal Services Group. Likewise, in order to identify resources allocated to individual consultancies for statistical purposes, all Consultants who receive professional fees and are under the Non-Personal Services Expense Group (subgroup 24000) financed from any source must be registered in this System (SIREP), without these being considered under any circumstances as permanent or temporary employees of State institutions.

The Heads of institutions, Unit Managers, Administrative and Human Resources Managers (or their equivalents) are responsible for payroll registration and its updating in the Server Registration Module, for which supporting documentation will be required in each case. Notwithstanding its source of financing, this provision applies to the Personal Services Group, and non-compliance entails administrative and civil liability. The General Treasury of the Republic (TGR) may not transfer payroll payments from Institutions while the omission or non-compliance is not remedied.

The indemnification to public servants of the Central Administration who have worked consecutively for the State may in no case exceed twenty-five (25) months of salary according to the years of service worked. Likewise, the benefit shall apply to public servants who hold excluded service positions, provided that these have administrative career status based on what is established in Article 4 of Decree No. 126 of October 1, 1993, published in the Official Gazette La Gaceta dated October 14, 1993, containing the Civil Service Law and its amendments.

State institutions may not allocate funds from loans or donations to grant overpayment, make allowances or salary increases to public servants.

For payment of salaries of diplomatic and consular personnel and any other person holding a representation office abroad, the Law of Diplomatic and Consular Service of Honduras shall be applied, contained in Decree No. 80-2013 of May 21, 2013, published in the Official Gazette La Gaceta dated June 7, 2013, once the corresponding deductions are made. Any additional charge generated by exchange rate differential or banking commissions for the transfer shall be covered with its own budget. In no case shall such charges be added to the comprehensive salary of the employee or official. In the case of the State Department of National Defense (SEDENA), the salary of personnel assigned to Defense Attachés accredited in the foreign service is authorized, with the obligation to make the deductions that the laws and regulations establish.

All employees and officials of the Central Government and Deconcentrated Institutions included in the category of Article 3 of the Civil Service Law, contained in Decree No. 126 of October 1, 1993, published in the Official Gazette "La Gaceta" dated October 14, 1993, have the right to annual unpaid vacation in accordance with the periods established by said Law. This right is acquired after completing the first year of uninterrupted service. If due to work demands the vacation period is suspended or not granted, employees and officials shall have the right to payment for these.

All Public Sector Institutions, except Municipalities, shall present to the State Department of Finance (SEFIN), through the General Budget Directorate (DGP), no later than January 31, 2025, the Detailed Annex of Salaries and Wages for Fiscal Year 2025, in accordance with the format provided by the State Department of Finance (SEFIN) through the General Budget Directorate (DGP) and based on the approved budget. The Annex must be updated periodically with information on permanent personnel positions, positions of trust, temporary positions (contracts, special contracts and day labor), ancillary payments and other benefits granted regardless of the source of financing.

The obligations arising from the employment relationship, such as the recognition and payment for benefits, severance and indemnification by final judgment or extrajudicial settlements, regardless of their nature, are the responsibility of the institution where the employee or public official provided their services and must be assumed with its own budget.

Public Institutions are authorized to, when a State employee resigns, is dismissed or removed from office, and the payments of the Thirteenth Month of Salary in the concept of Christmas bonus, Fourteenth Month of Salary as social compensation, vacation or any other benefit that pursuant to Law or Collective Bargaining corresponds; effect the proportional payment for these concepts immediately at the moment the resignation, dismissal, or removal occurs.

The payment of the Thirteenth Month of Salary in the concept of Christmas bonus and Fourteenth Month of Salary as social compensation shall also be granted to officials, daily wage personnel and contract personnel of the Public Sector that are comprised in Group 10000 of Personal Services, with the exception of expense item 12910 of Special Contracts. In the cases of the contract and daily wage modality, the payment of the two (2) benefits referred to in the first paragraph must be effected within the Validity and/or Resolution of the contract.

The process of creating positions or any movement of posts (reassignment, elimination, merger, division, classification and others) of the Central and Decentralized Administration must be at the request of the Human Resources Sub-management (or its equivalent) of each Institution before the National Civil Service Administration (ANSEC), being approved via opinion in observance of article 54 of this Law; the structure of positions and the allocated budget shall be confirmed by the State Secretary in the Office of Finance (SEFIN) through the General Budget Office (DGP). Upon having the aforementioned confirmation, the ANSEC, through the Work Organization and Remuneration Office shall issue the effectiveness opinion as appropriate. This last document supports the incorporation of the position or positions into the Integrated System of Human Resources Administration (SIARH). In the case of teaching personnel, this process shall be carried out through the General Sub-directorate of Teaching Human Talent and the procedure determined for the Integrated System of Teaching Human Resources Administration (SIARHD) must be followed.

The preparation of payroll for employees of the Centralized and Decentralized Administration governed under the civil service regime, statutes and special laws, excluded service, daily wages and contracts, shall be carried out through the Human Resources Administration System (SIARH), which is governed by the National Civil Service Administration, as a module of the Integrated Financial Administration System (SIAFI). Employees and officials governed by the Fundamental Law of Education, contained in Decree No. 262-2011 of January 19, 2012, published in the Official Gazette La Gaceta dated February 22, 2012, the Honduran Teaching Statute, contained in Decree 133-97 of September 11, 1997, are excepted from incorporation into the SIARH. The Teaching Human Resources Administration System (SIARHD) must develop interfaces with the Integrated Financial Administration System (SIAFI), for purposes of registration and electronic payment.

The appointment of personnel in excluded status in positions under the Civil Service Regime is prohibited; excluded positions are those recorded in article 3 of the Civil Service Law, contained in Decree 126 of October 1, 1993, published in the Official Gazette "La Gaceta" dated October 14, 1993 and Article 9 of its Implementing Regulation. Positions that are not currently included in the Position and Salary Classification Manual must be classified upon request of each institution before the National Civil Service Administration (ANSEC).

The cancellation and transfer of positions of the State Secretary in the Office of Health (SESAL) is authorized solely and exclusively in those health centers and hospitals that are closed or that have excesses of appointed personnel, prior to the Opinion of the National Civil Service Administration (ANSEC) and the State Secretary in the Office of Finance (SEFIN).

Every action of position transfer must have the person who will replace it, and must previously notify the State Secretary in the Office of Finance (SEFIN) so that it carries out the issuance of the Internal Resolution, the budget modification and the Detailed Annex of Basic Salaries and Wages, for this purpose the justification of the movement must be attached. In relation to the State Secretary in the Office of Health (SESAL), every person who for any reason has been transferred to a zone or region different from the area where the position is budgeted must return to the place where they were appointed. The positions are excepted for which the authority that accepted the transfer assumes budgetary responsibility, without prejudice to the one that originally made the appointment.

The State Secretary in the Office of Finance (SEFIN) is ordered to, in coordination with the National Civil Service Administration (ANSEC), regulate the restructuring, organization and administration of human resources and its budgetary effect, in compliance with the guidelines established in the Budget and Salary Policy for the present fiscal year.

The institutions of the Central Administration are ordered to reduce the 75% of the budget for vacant positions financed with National Treasury funds, wherefore, said positions remain frozen. If it is necessary to appoint public servants in the frozen vacant positions, resources must be identified within its budget to finance the budgetary deficit generated by the reduction. SALARY INCREASES, SALARY ADJUSTMENTS AND MINIMUM WAGE

Every request for salary increase or adjustment for the civil service regime shall be evaluated and opined by the National Civil Service Administration (ANSEC) prior to the State Secretary in the Office of Finance (SEFIN) approving the corresponding budgetary availability and issuing the authorization through Internal Resolution. Likewise, increases or adjustments for decentralized institutions must be opined by the SEFIN prior to their application and must present the authorization of their superior body with the request. Furthermore, all modification of position structure, including salary adjustments of any kind that are made in Public Sector institutions must be updated in the Detailed Annex of Salaries and Basic Wages based on what is established by Article 68 of this Law.

Every Institution of the Non-Financial Public Sector (SPNF) prior to granting salary increases must submit to the State Secretary in the Office of Finance (SEFIN), the corresponding request that must include the Budget and Financial Study that accredits the sustainability of the benefit; increases may not exceed the Year-over-Year Consumer Price Index (IPC) published by the Central Bank of Honduras (BCH) at the close of 2024, except for cases of restructuring, salary adjustments agreed for employees of the Civil Service Regime and application of the Minimum Wage Law. This benefit must not be applied to personnel that have less than one (1) year of seniority in the position; likewise, it does not apply to positions with leave and positions that are in judicial proceedings. In the case of vacant positions, salary adjustments may be granted, in correspondence with the salaries approved for the same group and level, in accordance with Article 54 of this Law. Additionally, the application of the benefit shall be made when it is verified by the SEFIN through the General Budget Office (DGP), that the institution formulated said adjustments in expense item 11400 additional, in compliance with the Budget Policy Guidelines. The State Secretary in the Office of Finance (SEFIN) through the General Budget Office (DGP) shall review the request referred to in the first paragraph of this article and in case of complying with what is established shall issue the Opinion of Budgetary Availability and the Internal Resolution in accordance with what is established by Article 238 of this Law. The Legislative Branch, the Judicial Branch, the State Secretary in the Office of Security, National Police, members of the Armed Forces that are governed by the Constitutive Law of the Armed Forces and the Personnel Law for members of the armed forces, including change of category and the Financial Public Sector are excepted from this provision.

In case it is necessary to finance salary adjustments agreed in favor of public employees subject to the Civil Service Regime and Teaching Statute, prior to the review of available balances generated by vacant positions or other current expenditure savings, in the budgets of institutions governed under the civil service regime including the State Secretary in the Office of Education, the State Secretary in the Office of Finance (SEFIN) is authorized to finance the complement of the value that the institution requires to cover the budgetary impact as of December 31, 2025. The State Secretary in the Office of Finance (SEFIN) is authorized to carry out the budgetary and financial operations that are necessary to operationalize the financing of transfers within the budget of the institutions or inter-institutionally as appropriate.

Institutions governed by Collective Contracts may grant the benefit of salary increase, provided they have budgetary and financial capacity, without implying expenditures from the National Treasury, that is to say from source 11.

Salary adjustments may not exceed the salary of positions of equal category or competence whether in the Central Administration or Decentralized Administration.

Every Decentralized Institution that conducts a new collective negotiation or review of economic clauses must request, prior to the Notice of the Collective Contract before the State Secretary in the Offices of Labor and Social Security (SSTS), the Opinion of the State Secretary in the Office of Finance (SEFIN) through the General Office of Decentralized Institutions (DGID). The institutions must accompany the Opinion request with the budget and financial study that accredits the sustainability of the benefit to be granted, as well as the information required by the DGID, without which it must return the requests. The Opinion issued by the DGID shall be exclusive regarding the content of the articles referred to the collective negotiation and must be attached to the request for Modification and Opinion on Budgetary Availability. The State Secretary in the Offices of Labor and Social Security (SSTS) must request as part of the documents that accompany the Minutes of the new negotiations of Collective Contracts, the Opinion issued by the State Secretary in the Office of Finance (SEFIN) through the DGID, prior to granting authorization or notice of the new collective negotiation, which must consider only salary increases that can be covered budgetary and financially by the requesting institution, without implying any expenditure to the National Treasury, that is to say source 11.

The State Secretariats, Decentralized and Deconcentrated Institutions are ordered to conduct an annual review and adjustment of the Minimum Wage for personnel working in the Public Administration in the amount of L17,238.13 (SEVENTEEN THOUSAND TWO HUNDRED THIRTY-EIGHT LEMPIRAS WITH THIRTEEN CENTAVOS). Each institution must identify the financing of said adjustment in its own budget, considering the savings generated in Basic Salaries and in any other current expenditure item; therefore, the State Secretariat in the Office of Finance (SEFIN) is authorized to carry out the budgetary and financial operations necessary to operationalize the adjustment. This provision is excepted for Municipalities.

The budgetary resources allocated in the budget of the State Secretariat in the Offices of Foreign Affairs and International Cooperation in expenditure items 11400 additional allocations assigned to employees in the foreign service in the concept of displacement allowance and 99910 Current Expenditures of Embassies, Permanent Missions and Consular Offices, intended for operational expenses of embassies, consulates and permanent missions abroad, consigned in Program 13 Foreign Service Affairs; cannot be used for salary increases nor transferred for any other purpose. TEACHING PERSONNEL EXPENSE

The contract period for teachers appointed as interim teachers, except for the holding of competitive examinations and the assignment of positions in accordance therewith, shall be established from the month of February through the month of November 2025, recognizing payment for December and January of the following year as vacation, proportional to the months worked and without discrimination if they do not hold a degree.

The contract period for teachers under the modality of the Distance Secondary Education System (SEMED), shall be established from January to June and from July to December of each year as applicable, provided they hold a degree in education at the bachelor's level.

In the Teaching Sector, the division of teaching positions shall be permitted, originated by retirements, deaths, resignations, cancellations and dismissal by final judgment for the purpose of: Hiring a teacher with base salary or complementing class hours of a teacher who has fewer than thirty-six (36) hours per week to replace the teacher who is vacating the position and with the salary difference complementing class hours of a teacher who has fewer than thirty-six (36) hours per week and who are strictly in front of students.

The Honduran Community Education Program (PROHECO) must pay the monthly salary of contracted teachers through deposit in their respective bank accounts. For this purpose, it must have the technological platform that enables the execution of payments and connectivity with the Financial Administration Systems (SIAFI) and human resources control SIREP. The provision in the preceding paragraph shall apply only if the teacher belongs to the contract modality in the Honduran Community Education Program (PROHECO). When the Teacher moves to a permanent position in the same program, their salary payment must be made through the Human Resources Administration System (SIARH). The State Secretariat in the Office of Education through the administration of the Program is directly responsible for compliance with this provision.

The Cancellation and Transfer of positions in the Teaching Administrative function is authorized, solely and exclusively in those educational centers that are closed or have excess named personnel, prior to a favorable Opinion from the State Secretariats in the Offices of Education and Finance.

Every action of transfer of position or teaching personnel, prior to its approval, must be justified, include the budgetary structure and notify the State Secretariat in the Office of Finance (SEFIN) for the issuance of the Internal Resolution, budgetary modification and the Detailed Annex of Basic Salaries and Wages. Positions for which the instance that accepted the transfer assumes budgetary responsibility are excepted, without prejudice to whoever originally made the appointment. PERSONNEL EXPENSE BY CONTRACT

Increases are prohibited by budgetary modifications for the expense subgroup 12000 with source 11 – National Treasury, referred to contract personnel, with all institutions required to limit themselves to the allocations and amounts approved in their Budget. With the exception of financing for general salary adjustments agreed in favor of public employees and minimum wage. The heads of institutions, heads of Executing Units and Administrative Management offices shall be directly responsible for the personnel selection process to be hired under expense subgroup 12000 (Non-Permanent Personnel), which must be conducted based on competencies, abilities, skills, academic merits, probity and suitability. The employment relationship shall be formalized through a contract executed between the institution and the worker. Due to the nature and temporary character, this type of contract does not include payment of vacation bonification; it is valid only within the present Fiscal Year and its effectiveness shall be counted from the date the candidate signs the contract and takes possession of the position. Prior to contract signature and commencement of service provision, the authority responsible for hiring must consult the System of Registration and Control of Public Employees (SIREP) to determine if the applicant has any employment relationship with another institution.

It is prohibited to hire non-permanent personnel (12000) when in the Detailed Annex of Basic Salaries and Wages of the State Secretariats or its equivalent in the rest of the Public Sector Institutions, there are approved positions for the performance of the functions subject to the contract. Likewise, it is prohibited to hire as non-permanent personnel (12000) those who, in accordance with the General Law of Public Administration, contained in Decree No. 146-86 published in the Official Gazette "La Gaceta" number 25,088 dated November 29, 1986 or Special Laws, are of free appointment and removal by the President of the Republic.

Specific Item 12200 daily wages shall be exclusive for paying personnel under that modality and in no case should it be used to pay personnel performing administrative, technical and professional functions. Prior to hiring and before commencement of service under this modality, consultation must be made to the Payment Collection System (SIREP) to determine if the candidate has any employment relationship with another institution. The hiring of personnel whose functions are different from those corresponding to the nature of work as daily wages is prohibited.

Specific Item 12910 special contracts, allocation for personnel contracts for a period not exceeding ninety (90) days in the fiscal period, are personnel contracts that complement the proper activity of each institution and require monthly payments. Prior to hiring and commencement of service under this modality, the institution must consult the Payment Collection System (SIREP) to determine if the candidate has any employment relationship with another institution, including hires to cover absence of personnel due to the enjoyment of acquired rights in accordance with current regulations such as: Sick leave, maternity leave, scholarships, paid leave, as well as special cases to cover emergency declarations, medical personnel while concluding the competitive examination process, or other cases that in accordance with the type of operations of the institution, are duly justified and approved by the State Secretariat in the Office of Finance (SEFIN). Due to the temporary nature of the contract, the right to vacation, thirteenth month as bonus, fourteenth month as social compensation and other rights of employees financed through other items of Subgroup 12000 are not considered.

Public Servants who as a consequence of their cancellation or termination have sued the State judicially through any of its institutions; may work solely under the temporary contract modality in any public nature institution, during the time of judicial proceedings. USE OF BASIC SALARY SAVINGS

The savings from allocations of basic salaries for permanent personnel, arising from cancellation of positions, temporarily vacant positions, positions earning less salary than budgeted, cancellation of supernumerary personnel in the Public Sector or any other, must not be used for salary increases, adjustments, wage levelings, and/or appointment of personnel, nor transferred for another purpose.

The savings from allocations of basic salaries for permanent personnel, referred to in the preceding article may be used for the following:

• 1)

  Creation of positions prior to favorable opinion from the National Civil Service Administration (ANSEC) and the State Secretariat in the Office of Finance (SEFIN), through the General Budget Office (DGP), when it concerns personnel that, due to the nature of their functions, is required for the normal functioning of the State;

• 2)

  Creation of positions prior to favorable opinion from the State Secretariat in the Office of Finance (SEFIN), through the General Budget Office (DGP), when it concerns personnel that, due to the nature of their functions, is required for the normal functioning of Decentralized Institutions. 3) Address urgent and unforeseen situations, such as:

  • a)

    Emergency Expenses, declared by the President of the Republic;

  • b)

    Internal unrest or public calamity;

  • c)

    Payment of labor benefits and/or termination compensation;

  • d)

    Adjustment for payment of acquired rights including benefits established in collective bargaining or internal regulations;

  • e)

    Payment of Judgments by Labor or other Claims ordered judicially, in cases where no other source of financing exists;

  • f)

    Cover Minimum Wage from a new negotiation or in case it has not been adjusted in the year 2024;

  • g)

    Revaluation of five-year bonuses in case they have not been covered in the year 2024;

  • h)

    Cover the indemnities established in the Constitutive Law of the Armed Forces, in accordance with Decree No. 189 of July 15, 1959, containing the Labor Code and recognition for services rendered to the Nation, equivalent to the amount resulting from applying termination assistance, including personnel assigned to Program 01 Central Activities, of the State Secretariat in the Office of National Defense;

  • i)

    Salary adjustment agreed in favor of public employees subject to the Civil Service regime and any other Special Law, using as reference the immediate previous process, Collective Bargaining, Professional Statutes and the budgetary availability to cover the benefit; and,

  • j)

    Cover any other expense instructed by the President of the Republic through an Executive Decree to address government priorities.

The savings generated by the Secretary of State in the Office of Education, from positions that become vacant due to retirement; teaching hours in secondary education; pension; death or for any other cause, must be reinvested one hundred percent (100%) in the creation of positions and allocation of teaching hours to new teacher employees, in accordance with the Law.

The savings generated by the Secretary of State in the Office of Security, from vacant positions due to voluntary retirement and restructuring of the National Police, must be reinvested one hundred percent (100%) in the creation of positions for new police officers, assigning them the base salary established by Law; likewise, in Capital Goods, Operations and other needs of the Institution. Likewise, the savings generated by the Secretary of State in the Office of Defense, in basic salaries and wages may be used for capital goods (group 4000) and for payment of the historical debt of the Secretary of State in the Office of National Defense (SEDENA) to the National Electric Power Company (ENEE). PAYMENT OF OVERTIME

The procedure to be followed for the calculation of overtime shall be established in the Regulation of this Law.

Payment of overtime is recognized for personnel of the Air Traffic Service (Air Controllers) and Aeronautical Information Services (Flight Plan), dependent on the Honduran Agency of Civil Aeronautics; drivers assigned to the highest institutional authority; Security, Transport and Issuance personnel of the Central Bank of Honduras (BCH), who perform official missions for the transfer of Bank funds; BCH personnel who work for the National Household Income and Expenditure Survey (ENIGH) and the National Agricultural Development Bank (BANADESA), with respect to custody, transfer and handling of funds work, without prejudice to the provisions of Article 31 numeral 1), section c) of the Tax Equity Law, contained in Decree No. 51-2003 dated April 3, 2003, published in the Official Gazette La Gaceta dated April 10, 2003. Likewise, to maintain the transparency and control that supports the payment of such benefits, they must be carried out based on the electronic record of the time clock or, failing that, the registration controls used by the institution.

Officials/officials who make a promise under the Law in accordance with Article 322 of the Constitution of the Republic are excluded from the payment of overtime, including Presidents, Executive Presidents, Executive Secretaries, Executive Subsecretaries, Executive Directors, Executive Subdirectors, President Commissioners, Commissioners, Rectors, Vice-Rectors, General Directors and General Subdirectors, Internal Audit Chiefs and Sub-Chiefs, Administrative Managers, General Managers, General Sub-Managers. REPRESENTATION EXPENSES

Representation Expenses within the country are amounts inherent to the exercise of public functions that are granted to officials due to their position, rank and responsibilities. They are determined as non-liquidable and non-taxable and are different from those referred to in the Regulation of travel allowances and other travel expenses for officials and employees of the Executive Branch. Representation expenses shall be granted only to officials who earn a salary equal to or less than that of the President of the Republic in the following amounts:

• 1)

  President of the Republic, Twenty Thousand Lempiras (L20,000.00);

• 2)

  Secretaries of State, Twenty Thousand Lempiras (L20,000.00);

• 3)

  Subsecretaries of State, Fifteen Thousand Lempiras (L15,000.00);

• 4)

  Commissioner holding the Presidency in any institution of the Public Sector, Fifteen Thousand Lempiras (L15,000.00);

• 5)

  Head of Decentralized Institutions and Deconcentrated Bodies, Fifteen Thousand Lempiras (L15,000.00); and,

• 6)

  Subdirector or Submanager of Decentralized Institutions and Deconcentrated Bodies, Ten Thousand Lempiras (L10,000.00). Likewise, in the case of those Heads and Subheads of Deconcentrated Institutions that earn a salary greater than that of the Secretaries or Subsecretaries of State, they shall not be granted representation expenses. In the case of Higher-Level Bodies other than those of the Executive Branch and that generate Own Income, they may grant such expenses from their own income and if they do not generate that type of resources they may finance them from National Treasury funds, provided they earn a salary equal to or less than that of the President of the Republic, without exceeding in any case the maximum level of the amounts that correspond to the Secretaries and Subsecretaries of State described in numerals two (2) and three (3) of this provision according to the corresponding rank. EMPLOYER CONTRIBUTIONS

The employer contribution calculated at twelve (12) months of salary and individual contribution that the State pays and transfers to the Social Security Institutes cannot exceed the percentage established in their respective Laws. The allocations designated for payment of employer contributions to the Institutes cannot be transferred for another purpose, unless savings in these allocations are identified, which shall be applied to the revaluation of five-year increments, salary adjustment agreed in favor of employees subject to the Civil Service System and for other institutions that apply that same adjustment as reference, minimum salary and payment of benefits. Employer and employee contributions, as well as deductions for loans granted to public servants, must be fully remitted to the social security institutes in accordance with the Law. The use of these resources for other purposes is prohibited. Once employer obligations have been met and budgetary availability exists, modifications may be made to reorient and make payment of other pending contributions to the Social Security Institutes and address what is established in the first paragraph of this Article. The Heads, Administrative Managers or delegated authority who fail to comply with this provision are jointly, civilly and administratively responsible for all obligations that arise.

It is the obligation of the State to allocate to the National Institute of Professional Training (INFOP), as employer contribution through current transfer; one-half of one percent (1/2 of 1%) of the total amount of permanent salaries and wages of the Central Administration, which amount must be transferred through the Secretary of State in the Offices of Work and Social Security (STSS).

The Executive Branch through the Secretary of State in the Office of Finance (SEFIN), may pay through bonds, up to a maximum of fifty percent (50%), the fees that the State must contribute to the Social Security Institutes, in its capacity as employer. If necessary, authorization is granted to negotiate percentages greater than fifty percent (50%). Likewise, the Secretary of State in the Office of Finance (SEFIN) is authorized to pay, through the issuance of bonds, the obligations of employer contributions pending payment from previous fiscal years, upon prior negotiation with the Social Security Institute. GOODS AND SERVICES

In accordance with the functions and powers granted to the Normative Office of State Contracting and Acquisitions (ONCAE) in Article 31 of the State Contracting Law, Article 44 of the Regulation of the State Contracting Law (LCE) and Article 6 of the Law of Efficient and Transparent Purchases through Electronic Means (LCETME), and for the purpose of expediting budget execution in all areas; making efficient the provision of public services to the population and effectively developing productive and social investment programs and projects that directly impact people and communities; the Normative Office of State Contracting and Acquisitions (ONCAE) is authorized to prepare the legal and operational instruments required for the purchase and acquisition of goods and services by the centralized and decentralized public administration, including companies, institutes and municipalities, and must consider: documentation requested according to the contracting modality; deadlines for submitting offers; conditions of contract; terms of reference; electronic procedures; local purchases; promotion of competition; and evaluation and access to the list of certified suppliers.

All institutions that make up the Centralized and Decentralized Administration, including companies, institutes and municipalities, in order to be able to contract supplies of goods or services, execution of works, and consultancies, must take into account the following procedure:

• 1)

  Load in the Procurement System managed by the Normative Office of State Contracting and Acquisitions (ONCAE), their Procurement and Contracting Plan (PACC), for their respective review and publication;

• 2)

  Preparation of base documents according to the contracting modality (Conditions of Contract or terms of reference);

• 3)

  Publish in the Procurement System administered by the Normative Office of State Contracting and Acquisitions (ONCAE), the minimum documentation required by the system for the dissemination of processes from their launch to the award and signing of contract or issuance of purchase order.

• 4)

  Receive offers, proposals or quotations based on the formalities required by the Law and Regulation;

• 5)

  The Head of the Institution shall award in accordance with the Recommendation Report of the Evaluation Commission, issuing the corresponding award resolution, and subsequently signing the contract or issuing the purchase order with the awarded offeror. All institutions must take into account for the conduct of their contracting procedures the guidelines established in the State Contracting Law (LCE) and its Regulation and General Budget of Income and Expenditures of the Republic and Its General Provisions Fiscal Year 2025. In matters not provided for, the State Contracting Law, contained in Decree No. 74-2001 of July 1, 2001, published in the Official Gazette "La Gaceta" dated September 17, 2001 and its Regulation shall apply. This procedure shall apply only to processes with amounts exceeding SIX HUNDRED THOUSAND LEMPIRAS (L600,000.00). THRESHOLDS AND CONTRACTING MODALITIES

In compliance with the provisions of Article 360 of the Constitution of the Republic and Article 38 of the State Contracting Law, contained in Decree No. 74-2001 of July 1, 2001, published in the Official Gazette "La Gaceta" dated September 17, 2001, which define the procedures and methods of contracting public works, acquisition of supplies and services, purchase sale or lease of goods, the following types and modalities of contract are determined, as well as the required amounts and small purchases: No. Type of Contracts Amount Required in Lempiras Contracting Modality 1 Public Works Contracts L4,000,000.01 and above Public Bid L2,000,000.01 to L4,000,000.00 Private Bid L500,000.01 to L2,000,000.00 Three (3) Valid Quotations L100,000.01 to L500,000.00 Two (2) Valid Quotations L0.01 to L100,000.00 One (1) Valid Quotation - 4 - No. Type of Contracts Amount Required in Lempiras Contracting Modality 2 Consulting Contracts L2,000,000.01 and above Public Competition L350,000.01 to L2,000.000.00 Private Competition L200,000.01 to L350.000.00 Small Purchase with a minimum of three (3) Valid Technical and Economic Proposals L0.01 to L200,000.00 Small Purchase with a minimum of one (1) Valid Technical and Economic Proposal 3 Supply of Goods and Services Contracts L1,000,000.01 and above Public Bid L300,000.01 to L1,000,000.00 Private Bid L100,000.01 to L300,000.00 Small Purchase with a minimum of three (3) valid quotations L50,000.01 to L100,000.00 Small Purchase with a minimum of two (2) valid quotations L0.01 to L50,000.00 Small Purchase with a minimum of one (1) valid quotation The amount of contracts subscribed by the State includes the payment of taxes except for the exemptions and exclusions in force, established in national or international regulations. In compliance with Article 37 of the State Contracting Law, contained in Decree No. 74-2001 of July 1, 2001, published in the Official Gazette "La Gaceta" dated September 17, 2001, registration in the supplier and contractor registry shall not be necessary when contracts whose amount does not require bidding or competition are involved.

The amount of contracts subscribed by the State includes the payment of taxes except for the exemptions and exclusions in force, established in national or international regulations. In compliance with Article 37 of the State Contracting Law, contained in Decree No. 74-2001 of July 1, 2001, published in the Official Gazette "La Gaceta" dated September 17, 2001, registration in the supplier and contractor registry shall not be necessary when contracts whose amount does not require bidding or competition are involved.

Internal control for the application of contracting ceilings must be carried out by the Administrative Manager or the employee or official to whom it is delegated, who shall be responsible for verifying prior to authorizing a disbursement, that the contract is published on the HONDUCOMPRAS platform and that its amount corresponds to the ceiling assigned according to the version of the system used. Administrative and Financial Managers are responsible for conducting the administrative procedure and contractual operation. Non-compliance with contracting ceilings, according to the system in which the contract was managed and located, is sanctioned with a fine equivalent to the value of the contract. The fine for this non-compliance shall be applied by the General Prosecutor's Office (PGR) once the procedure has been completed in the Superior Court of Accounts (TSC), in which civil or administrative liability is declared.

The quotations referred to in this article must be from unrelated suppliers, in accordance with what is established in Decree No. 232-2011 of December 8, 2011, published in the Official Gazette "La Gaceta" dated December 10, 2011, Article 3, numeral 3), of the Transfer Pricing Regulation Law that defines cases of related or connected parties. The quotation document must include the general data of the supplier, as well as the number of the National Tax Registry (RTN). Quotations that do not comply with the requirements and specifications established by each institution in relation to the good, service, work or consulting that they need to contract shall not be considered valid. For everything related to Small Acquisitions (Small Purchase) the Guide of Procedures for Small Purchases, prepared by the Normative Office of State Contracting and Acquisitions (ONCAE), must be consulted.

In Private Contests and Bidding Processes, once the invitation has been published, participation must be allowed for prospective bidders who request it in writing in physical form or through virtual means, and they must be provided with an invitation, the terms and conditions, and any other document related to the same, of which a record shall be kept in the procurement file. In those cases where precertification requirements exist, participation must be allowed for prospective bidders who have been precertified by the body responsible for procurement.

In compliance with Article 4 of the Law on Transparency and Access to Public Information, contained in Legislative Decree No. 170-2006 of November 27, 2006, published in the Official Gazette "La Gaceta" on December 30, 2006, all contractor selection processes must be disseminated in the HONDUCOMPRAS System and must comply with the principles established for open procurements. In compliance with Article 17 of the aforementioned law, the publication of information does not apply in exceptional cases.

The processes for the procurement of real property leasing shall be subject to the provisions contained in the Tenancy Law, in accordance with what is provided by Article 360, second paragraph of the Constitution of the Republic and Article 2 of the State Procurement Law, contained in Decree No. 74-2001 of July 1, 2001, published in the Official Gazette "La Gaceta" dated September 17, 2001, which mandates special regulation regarding its preparation, adjudication or execution, without prejudice to the formalities or requirements of form that Private Law may require for the validity of said contracts. However, the contracting party must ensure compliance with the principles of publicity, transparency, equality and free competition in the selection process, and must in turn document the process in an administrative file that shall be subject to audit by the State control bodies. This procurement shall not form part of the Annual Plan for Purchases and Procurements (PACC).

In order to comply with national defense plans and in application of the laws and regulations governing the Armed Forces, the Secretariat of State of the Office of National Defense (SEDENA) is authorized to execute its budget allocations under operational decentralization, according to SDN Agreement No. 006-2018. This management mechanism applies to expenditure items for food and beverages for persons, fuels and lubricants, fats and oils, material goods and services for the military health system; and spare parts, accessories and services for military equipment. Those responsible for the procurement and contracting process must provide evidence that the purpose of the activities is the urgency of the procurement.

Considering the nature of the services provided by the Secretariat of State of the Office of Security and the Secretariat of State of the Office of Health (SESAL), especially due to the imminent attention demanded by the population, the acquisition of goods and services allocated in the expenditure items: Food and Beverages for Persons (31100) and its auxiliary (31110) Food Products and Beverages; and Medical Instruments, Materials and Minor Supplies and Laboratory (39500) and its auxiliaries (39510) Minor Medical-Surgical Instruments and (39520) Laboratory Instruments and Materials; fuels and lubricants, fats, oils, spare parts, accessories and services for security equipment, may be carried out by the administrations of the departmental health regions and hospitals; and the Departmental Units and Metropolitan Police Station. When the emergency purchase is outside the coverage or electronic catalog of the Normative Office for State Procurement and Acquisitions (ONCAE) and when the product is not found in the product list described in the electronic catalog activation circular, its authorization shall not be necessary. When a bidding process does not meet the previously registered conditions or due to legal circumstances a procurement process for hemodialysis and peritoneal dialysis services is declared void or failed, the Secretariat of State of the Office of Health (SESAL), through the departmental regions and hospitals, may contract such emergency services through quotations; to guarantee the right to health and the right to life of patients requiring public service. Those responsible for the procurement and contracting process must provide evidence of the urgency and that the subdivision is not performed for the purpose of evading procurement thresholds. Likewise, the Secretariat of State of the Office of Security is authorized to carry out in the current fiscal year the payment of rental of vehicles and aircraft corresponding to the 2024 fiscal year, provided it is demonstrated that compliance with the rules established in the State Procurement and Contracting Law is met and the prices do not exceed market prices, in order to guarantee the security logistics of the Honduran population, in compliance with community prevention and security plans.

All State institutions, in the processes of acquisition of goods and services, must grant preference to local suppliers, entrepreneurs, micro, small and medium enterprises; and organizations of the social economy sector; and must accredit the geographical location in the administrative file and in their monthly expense settlements. Direct contracting may only be carried out in the cases and under the conditions provided by the State Procurement Law, contained in Decree No. 74-2001 of July 1, 2001, published in the Official Gazette "La Gaceta" dated September 17, 2001.

The failure to comply with the partial deadlines provided in accordance with Article 72, second and third paragraphs, of the State Procurement Law, contained in Decree No. 74-2001 of July 1, 2001, published in the Official Gazette "La Gaceta" dated September 17, 2001, shall be sanctioned with a fine equivalent to zero point thirty-six percent (0.36%), for each day of delay, in relation to the total amount of the contract balance. The Terms and Conditions and the Contract for Construction and Supervision of Public Works must contain the sanction clause. This same provision must also be applied to purchases made through electronic catalog and goods and services contracts entered into by Public Sector Institutions.

Advance fund payments shall only be authorized for public works contracts and must not exceed twenty percent (20%) of the total contract amount, in accordance with what is established by the State Procurement Law, contained in Decree No. 74-2001 of July 1, 2001, published in the Official Gazette "La Gaceta" dated September 17, 2001. Foreign contractors may be granted advance payments only when projects are financed with a minimum of eighty percent (80%) of external funds. Advance fund payments are initially authorized for Public Works contracts at 20%; for foreign contracts an advance may be granted only when projects are at 50% with external and internal funds.

In every contract financed with external funds, the suspension or cancellation of the loan or donation shall give rise to the rescission or termination of the contract, without further obligation on the part of the State than the payment corresponding to the works or services already executed as of the date of the rescission or termination of the contract. The same measure shall be applied in the cases provided in Article 39, first paragraph of the Organic Budget Law. The provisions of this Article must be mandatorily included in the terms and conditions, terms of reference and Contract.

Acquisitions made through electronic catalogs, regardless of their amount, shall be made through the issuance of a direct purchase order, which shall be generated in the Electronic Catalog module found in the National Procurement and Contracting System HONDUCOMPRAS. The Normative Office for State Procurement and Acquisitions (ONCAE) is authorized to issue guidelines that allow for greater opportunity for competition within the catalog, for those acquisitions that due to their amount may provide greater savings benefits for the State. All procurement processes for goods or services that, having been incorporated in the Electronic Catalog, are conducted outside of it shall be null. Under the provisions of Article 12 of the Regulations of the Law on Efficient Procurement Through Electronic Means, the Normative Office for State Procurement and Acquisitions (ONCAE) may, upon formal written request of the contracting institution, authorize the purchase of a good or service outside the Catalog provided that proper justification is attached in the form provided by ONCAE; in the Activation, the reasons for requesting an Authorization to Purchase outside the Electronic Catalog of products detailed therein shall be specified. Users of the electronic catalog shall be obligated to generate a pre-purchase order prior to the generation of the official purchase order, for the purpose of verifying the existence of the product by the supplier or other reasons that prevent its selection.

All institutions that make up the Public Administration are obligated to publish in the HONDUCOMPRAS system administered by the Normative Office for State Procurement and Acquisitions (ONCAE) and the transparency portal of their institution, in all stages and modalities, the procurement and acquisition process, as well as the selection of contractors, consultants and suppliers; contracts and purchase orders, beginning with the Annual Plan for Purchases and Procurements (PACC), regardless of the source of financing, national or external funds and the amount of the procurement. The entity responsible for the process must notify ONCAE of any breach of obligations of suppliers and contractors agreed upon in the signed contracts and/or purchase orders. Contracts and/or purchase orders must mandatorily contain an anti-fraud clause and corruption prevention. Likewise, any precertification of public works and, where applicable, precertification in goods, services or consulting, must be supported by information available in the State Supplier and Contractor Registry. It is mandatory to publish the contractor selection procedures and contracts executed in the website administered by ONCAE. The violation of this provision, without prejudice to the sanctions established in the Law on Transparency and Access to Public Information, entails a fine of three (3) minimum salaries up to thirty (30) minimum salaries, which shall be imposed by the Office of the Attorney General of the Republic as established in Article 4 of this Law.

The Administrative Manager in the Secretariats of State and whoever performs this function in other public institutions is responsible for ensuring compliance with what is established in the previous article, in accordance with what is provided in the Regulations of the State Procurement Law, and is also responsible for coordinating the quality of the data and information published in the HONDUCOMPRAS system through its institutional links in accordance with the guidelines established by the Office of Procurement and Acquisitions of the State (ONCAE). The Institute for Access to Public Information (IAIP) shall verify the publication of processes in the HONDUCOMPRAS System when contracts are uploaded to their transparency portals, and if they are not found to be published it shall apply the corresponding sanction with the exception of institutions that by their nature have information confidentiality duly accredited by the Competent Body.

The coordination of the preparation, publication, execution and modification of the Annual Plan for Purchases and Procurements (PACC) is the responsibility of the Administrative Manager, or equivalent, and of the highest authority of the institution, in accordance with what is established by Article 5 of the State Procurement Law, contained in Decree No. 74-2001 of July 1, 2001, published in the Official Gazette "La Gaceta" dated September 17, 2001. For this purpose, the Normative Office for State Procurement and Acquisitions (ONCAE) shall provide specific guidelines. Institutions required to comply with the State Procurement Law (LCE) must begin their planning for the following fiscal year (2026), and must publish the PACC draft no later than October of the current fiscal year (2025). The Annual Plans for Purchases and Procurements (PACC), updated, must be published by the institutions in the HONDUCOMPRAS system and the Transparency Portal of the Institutions, no later than thirty (30) calendar days after the publication of the General Budget of Income and Expenses of the Republic for the Fiscal Year 2025, in the Official Gazette "La Gaceta". ONCAE shall communicate through circulars the Expenditure items that must be included in the PACC. Institutions, municipalities, associations of municipalities and other entities financed with public funds (source 11. National Treasury) shall notify the Superior Court of Accounts (TSC), Secretariat of State of the Office of Finance (SEFIN) and the Institute for Access to Public Information (IAIP), no later than twenty (20) calendar days after the deadline cited above, of compliance with the publication of their PACC in HONDUCOMPRAS together with the evidence that supports it.

The Annual Plan for Purchases and Procurements (PACC) may be modified or updated for the purpose of ensuring compliance with the procurement needs of goods, works, consulting and services to fulfill the Annual Operational Plan (POA). All modifications or updates to the PACC must be published by the bodies responsible for procurement in the HONDUCOMPRAS system and in their institutional portals in accordance with the guidelines of the Normative Office for State Procurement and Acquisitions (ONCAE). Institutions shall monitor and control the execution of the PACC published in HONDUCOMPRAS in accordance with the efficiency indicator that the Normative Office for State Procurement and Acquisitions (ONCAE) establishes, in order to efficiently manage its budget and the provision of goods and services in a timely manner for compliance with the Annual Operational Plan (POA).

The Normative Office for State Procurement and Acquisitions (ONCAE), to ensure obtaining better conditions of quality and cost, shall identify and define the goods or services that may be acquired through the joint procurement modality, no later than thirty (30) calendar days after the maximum deadline established for the publication of the Annual Plans for Purchases and Procurements (PACC) in the HONDUCOMPRAS system. Joint procurements, once notified through a circular issued by ONCAE, are mandatory for all institutions that acquire goods or services included in the Joint Procurement.

All direct contracting covered under an emergency decree shall be conducted in accordance with the provisions of the State Contracting Law, contained in Decree No. 74-2001 of July 1, 2001, published in the Official Gazette "La Gaceta" dated September 17, 2001 and its Regulations, and in accordance with the guidelines issued by the Normative Office of State Contracting and Acquisitions (ONCAE). The processes must be published in HONDUCOMPRAS from the stage of preparation through contract formalization, once it has been signed.

The Dispute Resolution Board (MRD) regulated in Article 3-A of the State Contracting Law, contained in Decree No. 74-2001 of July 1, 2001, published in the Official Gazette "La Gaceta" dated September 17, 2001, is an instance for conflict resolution, composed of one (1) to three (3) persons designated in the Contract. For contracts with an initial contracting amount equal to or exceeding FIFTY MILLION LEMPIRAS (L50,000,000.00), the contracting parties must jointly appoint a Dispute Resolution Board (MRD) on the date established in the contract. The compensation conditions of the sole member, or of each of the three (3) members, including the compensation of any expert whom the Dispute Resolution Board (MRD) consults, must be determined by mutual agreement between the contracting parties when agreeing on the conditions of the appointment. Each contracting party shall be responsible for paying half of this compensation; therefore, each State institution that in its Annual Plan of Purchases and Contracts (PACC) has planned to enter into contracts for initial contracting amounts equal to or exceeding FIFTY MILLION LEMPIRAS (L50,000,000.00) must make provision of funds in the Budget of Expenditures to make the corresponding payments.

Institutions of the Centralized Public Sector, Decentralized Sector, and Municipalities, prior to the acquisition of information systems and/or development of information systems in administrative, financial, and accounting matters, shall require a Technical Opinion from the Secretaría de Estado en el Despacho de Finanzas (SEFIN) through the Modernization Unit (UDEM) in coordination with the various governing bodies, to ensure that they do not duplicate the Integrated Financial Administration System (SIAFI), the Integrated Municipal Administration System (SAMI), the National System of Public Investment of Honduras (SNIPH), the Human Resources Administration System (SIARH), and other national-level systems managed by SEFIN. Interested institutions must submit the request attaching detailed technical and functional specifications of the systems they wish to acquire; if the information is incomplete or insufficient, SEFIN may request additional information prior to issuing an Opinion, with the timelines being suspended. The Opinion shall be issued within a maximum period of forty-five (45) days. If the Technical Opinion is favorable, it shall include guidelines to ensure interoperability or information exchange if such exists among the systems. A Technical Opinion is not required for the acquisition of Hardware, Licenses, and Software for the operation of platforms or technology services not related to the functionalities of the systems described above, as well as those related to the functioning of Customs operations of the SARAH system of the Customs Administration of Honduras (AAH).

When the bidding process required for the subscription of a new contract has not been completed, the superior authority may authorize by means of a reasoned resolution the modification of the current contract under identical conditions and for a maximum period of three (3) months, which may only be extended for an additional three (3) months; in the event that the new bidding process has been declared null or failed in accordance with the Law.

The Normative Office of State Contracting and Acquisitions (ONCAE) through the Secretaría de Transparencia y Lucha contra la Corrupción (STLCC) shall send to the Secretaría de Planificación Estratégica (SPE) and to the Secretaría de Estado en el Despacho de Finanzas (SEFIN) the consolidated information of all Annual Plans of Purchases and Contracts (PACC) of the current Fiscal Year that have been published by institutions in the HONDUCOMPRAS System as of February 28, 2025.

In the budgetary execution process, Public Sector institutions must provide to the Normative Office of State Contracting and Acquisitions (ONCAE) information that allows for the identification of the goals and indicators planned in the planning and their relationship with what was budgeted, including acquisition and contracting data properly reflected in the Annual Plan of Purchases and Contracts (PACC).

Public investment contracts subject to the State Contracting Law, contained in Decree No. 74-2001 of July 1, 2001, published in the Official Gazette "La Gaceta" dated September 17, 2001, or the Efficient Purchases Law, contained in Decree No. 36-2013 of March 21, 2013, published in the Official Gazette "La Gaceta" of August 5, 2014, through Electronic Means, that are entered into by the Public Administration, as well as their modifications, must be registered in the HONDUCOMPRAS System no later than thirty (30) days after subscription.

The Normative Office of State Contracting and Acquisitions (ONCAE) is ordered to identify within the budget allocated to its institution resources that can be reoriented for the Creation of the Model of Inclusive and Sustainable Public Purchases with a Gender Approach.

The Secretaría de Estado en los Despachos de Transparencia y Lucha Contra la Corrupción en Honduras through the Normative Office of State Contracting and Acquisitions (ONCAE) shall promote the regulatory framework for public purchases under the supply-demand intervention model, which shall promote the participation of at least thirty percent (30%) of companies owned by women and excluded groups such as MSMEs or social economy enterprises and the disability sector; promoting the participation and access of different groups of women and their intersectionalities, especially women in conditions of vulnerability.

All centralized public institutions, including Project and Program Executing Units, must apply the Regulations on Per Diem and Other Travel Expenses for Officials and Employees of the Executive Branch, approved by Executive Agreement No. 0696 dated October 27, 2008. Non-compliance with this provision shall result in the application of Article 4 of this Law.

Employees and officials of the Public Sector who participate in official events outside the national territory, invited by international institutions or organizations that cover travel expenses in their entirety, shall only receive the supplement to adjust it to the amount provided in the Regulations on Per Diem and Other Travel Expenses for Officials and Employees of the Executive Branch, except in the case of State institutions that by their nature and functions are governed by a per diem and travel expense regulation different from the Regulations on Per Diem and Other Travel Expenses for Officials and Employees of the Executive Branch.

The President of the Republic or the person to whom authority is delegated shall authorize the Titular Officials of the Secretarías de Estado and the Decentralized Secretarías for Per Diem and Other Travel Expenses outside the country. For the Titular Officials of Decentralized Institutions, such authorization shall be granted by the Board of Directors or their Superior Body. In the cases of other public servants or employees, authorization for Per Diem and Other Travel Expenses outside the country shall be granted by the Titular Official of the institution itself. Every official or public employee who has received Per Diem and Other Travel Expenses outside the country must settle the use of resources with the receipts received in accordance with the determination of categories, zones, periods of missions, and limits for per diem contained in the Regulations on Per Diem and Other Travel Expenses for Officials and Employees of the Executive Branch. The supporting documentation shall be submitted for review by the Administrative Management or its equivalent in each institution, and in the event falsifications or alterations are found therein, total return of the amount contained in the altered documents must be made within a period not exceeding five (5) business days after notification, without prejudice to the administrative and criminal responsibility incurred.

Cash refunds of surplus per diem and other travel expenses must be deposited with the Tesorería General de la República (TGR) or Institutional Treasury, accompanied by the respective deposit receipt and travel settlement. If a trip is not carried out, the value of the per diem and other expenses that have been granted shall be refunded within a period not exceeding five (5) business days after receipt. Under no circumstances may these resources be used for other purposes.

The acquisition of air tickets shall be conducted through the lesser purchase modality regardless of its amount, due to the nature and varying conditions of the market, and must carry out the process with a minimum of three (3) valid quotations, with publication in the HONDUCOMPRAS system.

It is prohibited to enter into air transport contracts in first class with resources from external and internal sources (national treasury and own resources). The following cases are excepted from the foregoing: 1) When due to circumstances (travel dates, season, urgency of the mission, or due to lack of availability of spaces in economy class), it is necessary to purchase another higher class of ticket, which must be properly documented; and, 2) When the public servant requests this alternative form of air transport, being responsible for paying from their own account the difference resulting from the cost of the ticket.

State purchases of goods and/or services for which the payment of Sales Tax is applicable shall have said tax withheld in each payment document and shall be transferred or deposited in the General Treasury of the Republic (TGR) within ten (10) calendar days following the transaction. Within the aforementioned period, the withholding institution shall not be able to use these resources to finance expenses of any nature. The provisions in the preceding paragraph shall apply to Decentralized Institutions, Deconcentrated Institutions, and Project Executing Units without exception, who as Withholding Agents must deliver to the provider of goods and/or services the withholding receipt, so that they may accredit to the Tax Administration Service (SAR) the amounts paid for this concept. In the case of Central Administration and Decentralized Institutions operating in the CUT, the transaction is automatic at the moment of making payment of the corresponding F-01 document.

Deductions of Income Tax from officials, employees, and contractors of the public sector, and any other type of deduction or withholding made from payments in favor of providers of goods and/or services or from employees, must be remitted in full by the respective institutions, no later than within ten (10) calendar days of the month following the month in which the withholding was made. The use of these resources for other purposes is prohibited. The Heads of Institution and Administrative Managers or delegated authority who violate this provision shall be jointly and administratively liable for all obligations generated, without prejudice to the sanctions provided in Article 4 of this Law.

The Public Enterprises referred to in Article 53 of the General Law of Public Administration of Decree No. 146-86 and its reform contained in Decree No. 266-2013 of December 16, 2013, published in the Official Gazette "La Gaceta" No. 33,336 of January 23, 2014, in order to determine the Income Tax for the present Fiscal Year, shall not be subject to the provisions of Article 22-A of the Income Tax Law of Decree No. 25 of December 20, 1963 and its reform contained in Decree No. 31-2018 of March 21, 2018, published in the Official Gazette "La Gaceta" No. 34,620 of April 20, 2018 and No. 31-2019 of April 10, 2019, published in the Official Gazette "La Gaceta" No. 34,932 of April 30, 2019, but rather by the provisions of Article 22, literal a) of the Income Tax Law. Likewise, Public Enterprises for the present Fiscal Year shall not be subject to Advance Payments determined by Article 34 of the Income Tax Law. RENTAL OF REAL PROPERTY

The amount of a real property lease contract shall be calculated based on the total of its annual rent.

It is prohibited for the dependencies of the Central Government, Deconcentrated and Decentralized, to execute rental contracts for real property within the country in a currency other than the Lempira. Rental contracts based on International Agreements are excepted.

Public Sector institutions may condition internal physical spaces for the operation of offices, agencies, or service windows to the public, provided they do not exceed TWO HUNDRED FIFTY THOUSAND LEMPIRAS (L250,000.00) annually per building. The Administrative Manager or the authority performing such function must verify that the requesting dependencies attach the necessary quotations and comply with the standards established in these Provisions. The physical conditioning in internal spaces referred to in this article applies to those institutions that are still paying rent to third parties for the operation of their offices; public institutions that have their own buildings must proceed based on the thresholds established in Article 111 of this Law.

The renewal of real property rental contracts executed by annuities in public sector institutions is authorized, when these represent higher costs to the institution due to mobilization, price, location, and quality of service. Renewals may not exceed the presidential government period and shall be formalized by Ministerial Agreement in the case of the Secretariats of State or Resolution for Decentralized or Deconcentrated Institutions.

The Secretariat of Foreign Affairs and International Cooperation (SRECI) is authorized to execute rental contracts abroad for the operation of the Embassies, Permanent Missions, and Consular Offices of Honduras for a period of up to three (3) years, provided that the value of the monthly rent remains unchanged and/or free of indexation during said period. As to the amount to be paid for deposit, administrative expenses, and real estate commission, it shall be that determined by the legislation of the receiving State, or in its case, the real estate market. The same condition shall apply to the residence of the Heads of Mission. It may also contract security services to protect the diplomatic and consular offices.

Public Administration institutions are authorized to pay the equivalent of one (1) month of rent as a deposit, which shall be applied to the payment of rent for the last month in case of resolution of the real property rental contract, without the need to require a guarantee for advance payment. PUBLIC SERVICES

All institutions of the Central Government, Deconcentrated and Decentralized, as well as their ascribed programs, including the legislative and judicial branches, and constitutional entities, are obligated to use the services provided by the following state enterprises in those places where they have coverage:

• 1)

  the Honduran Postal Enterprise (HONDUCOR),

• 2)

  the National Graphic Arts Enterprise (ENAG),

• 3)

  the Honduran Telecommunications Enterprise (HONDUTEL),

• 4)

  the National Basic Products Supplier (BANASUPRO), and 5) the Military Industry of the Armed Forces (IMFFAA). The foregoing for the purpose that the funds allocated in the budgets of the institutions or enterprises that make up the public sector for the payment of services provided by the aforementioned state enterprises, when used for the contracting of such services, contribute to the strengthening of the finances of the State itself that provides them, and furthermore, to the process of social and financial rescue in which the state enterprises find themselves. In cases where state enterprises do not have coverage of the required services, institutions may conduct contracting with other enterprises within the framework of what is established in the State Procurement Law and these provisions. Prior to the proceeding related to the acquisition of services, Administrative Managers must verify that in the corresponding administrative file it is proven that the required services cannot be attended by state enterprises, and the compliance of what is established in Article 80 of the Regulations of the State Procurement Law.

Public Service Enterprises are ordered to, within a period of one (1) effective year from the effective date of this Law, proceed to effect the settlement of pending accounts receivable for the provision of services, having the option of performing the subrogation for debt recovery in arrears or conducting a payment arrangement. The results of these actions must be reported quarterly to the Superior Court of Accounts (TSC), to the Institute of Access to Public Information (IAIP), and to the Secretariat of State in the Office of Finance (SEFIN), through the General Directorate of Decentralized Institutions (DGID), as well as to the General Accounting Office of the Republic (CGR). The Administrative Managers of said enterprises shall be responsible for the execution of the actions established in this article and their non-compliance shall be sanctioned in accordance with what is provided in Article 4 of this Law.

All Secretariats of State, Deconcentrated and Decentralized that currently have pending debts with the Honduran Telecommunications Enterprise (HONDUTEL), for the concept of the different services it offers, must make payment effective in the present fiscal year, with their budget. All institutions of the Public Sector are ordered to execute financial and budgetary operations within each institution in order to comply with documented obligations, pending payment from prior years (Account statements, invoices, payment agreements, F-01, among others) in favor of the Honduran Telecommunications Enterprise (HONDUTEL), which must be settled in the present fiscal year 2025. HONDUTEL must send the corresponding account statements to each public institution so that they proceed to make payment effective.

The State of Honduras and all its institutions, including the legislative and judicial branches, constitutional entities, institutions and dependencies of the Central, Deconcentrated, and Decentralized Government, and municipalities, must allocate and execute monthly based on billing notices and charged to their respective Budget, the services provided to them by the Honduran Telecommunications Enterprise (HONDUTEL), the National Autonomous Service of Aqueducts and Sewerage (SANAA), the National Electrical Energy Enterprise (ENEE), the Honduran Postal Enterprise (HONDUCOR), and any other public institution that provides services. Institutions are authorized to honor under Compensation Agreements their debts with Municipalities. This compensation must be consolidated in the first quarter of the year 2025.

Budget allocations intended for the payment of public services must be used exclusively to cover expenses incurred for these concepts; consequently, it is prohibited to make transfers of these expenditure items to cover obligations of a different purpose. However, if by the third quarter, given the estimate at the close of the fiscal year, it is identified that allocations for public services have available balances, these may be used to cover other institutional needs. In the case of requiring a budget modification that is authorized by the Secretariat of State in the Office of Finance (SEFIN), the evidence of the spending projection as of December 31, available balances in those allocations, and proof that the institution is current with its payments to the service provider company must be attached. The Administrative Manager and the budget sub-manager or their equivalent in the different institutions shall be responsible administratively, civilly, and penally for non-compliance with this provision.

All public institutions are ordered to conduct a review of electric energy meters, water, and telephone lines in order to determine that the amounts charged correspond effectively to their institution. Any payment made improperly is the responsibility of the Administrative Manager or whoever performs this function in the institution. The Honduran Telecommunications Enterprise (HONDUTEL), the National Autonomous Service of Aqueducts and Sewerage (SANAA), and the National Electrical Energy Enterprise (ENEE) are obligated to provide to the powers, constitutional bodies, and user institutions of the State, the detail of the charges for services provided during the period covered by the respective billing notices. Likewise, they must make the corresponding credits in the billing notices when the State has used the compensation mechanism to settle debts between public service providers and public institutions. In case there is no agreement between the institutions to execute the compensation mechanism, the principle of non-simultaneity of performances or obligations must be applied, whereby each of the institutions is responsible for making the corresponding payments in a timely and proper manner.

The State Secretariat in the Office of Finance (SEFIN) is authorized to, in accordance with the account statements presented of amounts owed between institutions of the Central Administration, perform account compensations and, if necessary, affect through the "Budget Modification Form" the budget items approved in this law; without prejudice to subsequently performing the reconciliation of pending balances, which may result in outstanding credits. Public Sector Decentralized Institutions must submit to the General Directorate of Decentralized Institutions (DGID) of the State Secretariat in the Office of Finance (SEFIN), a quarterly report on the risks identified in the administrative and operational management of their institutions, with the respective measures that contribute to the reduction of identified risks. CONSULTANTS

The hiring of consultants charged to Sub-group of Expense 24000 Professional Services shall be conducted under the responsibility of the head of each institution, provided that budget availability exists and the nature of the required services is in accordance with the classification of the item to be charged. Individual consultants must be identified and registered in the System for Registration and Control of Public Employees (SIREP). Exempt from the Validation Process in SIREP is the State Secretariat in the Office of National Defense (SEDENA), regarding the hiring of Intelligence Expense services and training services, which are found in the Group of Expense for Non-Personal Services, (Sub-group 24000), Object of Expense 24710 (Consulting Services for Administrative and Financial Management).

Increases by budget modification for expense group 24000 with National Treasury source are prohibited. The following are excepted from this provision:

• a)

  contracts for medical, health and social services;

• b)

  contracting conducted by the Superior Court of Accounts (TSC) with Municipal Transparency Funds approved in accordance with the provisions of article 287 numeral 4) of these provisions;

• c)

  budget modifications made by public sector institutions for the purpose of conducting audits of public funds; and,

• d)

  National counterpart funds of project or program structures financed with external funds that by their purpose require this expense sub-group.

The hiring of External Legal Consultants is prohibited if institutions have a Legal Directorate or Department for the substantiation of lawsuits filed in the Courts and Tribunals of the Republic, as a consequence of the exercise of the institution's functions and powers. Excepted from this provision are the Honduran Bank for Production and Housing (BANHPROVI) and the National Agricultural Development Bank (BANADESA), due to their banking business of portfolio recovery and claims for default; and the Central Bank of Honduras (BCH) for the recovery of eventual assets it has received or receives as a consequence of payments for cases of insolvency of institutions of the financial system or insurance and reinsurance institutions, the hiring of legal professionals as external consultants must be carried out prior to an agreement on professional fees.

The capacity of contractors, aptitude to contract and disabilities contained in articles 15 and 16 of the State Contracting Law contained in Decree No. 74-2001 of July 1, 2001, published in the Official Gazette "La Gaceta" dated September 17, 2001, shall be applied to all contracts executed by the Public Administration, regardless of their method.

Any natural or legal person hired under the modality of Personal Services expense group 10000 and Consulting Services of Professionals and Technicians (national or foreign) in the Sub-group of Expense 24000, financed with resources from any source of financing, is subject to current tax obligations.

Public Sector Institutions may contract the provision of professional services or consulting, with national or international consultants under the following conditions: is subject to current tax obligations.

Public Sector Institutions may contract the provision of professional services or consulting, with national or international consultants under the following conditions: National International 1. A National Consultant shall be understood as the professional who performs his activity with permanent residence in the national territory; 1. An International Consultant shall be understood as a person who has performed consulting work in a country other than that of his nationality and whose permanent residence is outside the national territory. National International 2. The services are provided by companies, professionals and specialists without an employment relationship with the institution, considering that, due to their degree of specialization or other qualified reason, the object of the contract cannot be fulfilled by the institution's own personnel; 2. The hiring of international consultants for programs and projects financed with external funds shall be governed by what is established in credit agreements, letters, agreements, memoranda of understanding or donation agreements. 3. It is prohibited to enter into contracts of this nature to perform functions of a directive, administrative, technical, operational or support nature, typical of employees with an employment relationship; 3. Consultants of foreign nationality may not perform functions of a directive, administrative, technical, operational or support nature, typical of employees with an employment relationship in the institution; 4. The hiring of international consultants for programs or projects with national funds shall be made based on conditions of the professional environment and in accordance with the availability of budget and financial resources; 5. If there is no document indicating the contracting regime for this type of consultants, the State Contracting Law and its Regulations shall apply; 6. The fixing or estimation of fees shall be stated in the budgets agreed between the executing entity and the financing or cooperating agency.

The consulting contract, expense group 24000, by its nature does not include vacations, thirteenth month as a Christmas bonus, fourteenth month as

The consulting contract, expense group 24000, by its nature does not include vacations, thirteenth month as a Christmas bonus, fourteenth month as

The consulting contract, expense group 24000, by its nature does not include vacations, thirteenth month as a Christmas bonus, fourteenth month as

The consulting contract, expense group 24000, by its nature does not include vacations, thirteenth month as a Christmas bonus, fourteenth month as social compensation and other rights typical of employees financed through Group 10000 Personal Services. The head of each institution that executes this type of contract and grants any of the aforementioned benefits shall be civilly, administratively and criminally liable. INSURANCE AND BONDS

The State Secretariat in the Offices of Foreign Relations and International Cooperation (SRECI) is authorized to finance from its operating expenses Fifty Percent (50%) of the medical insurance hired in the Foreign Service by officials and public servants incorporated or not into the diplomatic service, while they are accredited in the foreign service. The internal control mechanisms for this partial payment shall be those established by the Administrative Management Office of the State Secretariat within the framework of the Law.

The process of insurance acquisition conducted by the Powers of the State, constitutional organs, Central Government, Deconcentrated and Decentralized, must be framed in the State Contracting Law contained in Decree No. 74-2001 of July 1, 2001, published in the Official Gazette "La Gaceta" dated September 17, 2001 and the regulations issued by the National Banking and Insurance Commission (CNBS). In compliance with what is established by Article 99 of the Law of Insurance and Reinsurance Institutions contained in Decree No. 22-2001 of April 2, 2001, published in the Official Gazette "La Gaceta" dated August 11, 2001, it is prohibited for Public Social Security Institutes to directly hire Insurance and Bonds through agents, brokers or brokerage firms, regarding property of their ownership and those related to their credit portfolio.

State Secretariats, Deconcentrated and Decentralized institutions are empowered to contract, charged to their respective budget, individual fidelity bonds in favor of each of the natural persons who manage public goods and resources, to protect State funds and property, determining the amounts of said bonds based on the Law of the Superior Court of Accounts (TSC) contained in Decree No. 14-2002-E of December 5, 2002, published in the Official Gazette "La Gaceta" dated January 20, 2003 and article 126 of its Regulations. In the insurance contract it shall be stipulated that the insurer will collect from bonded public officials and employees, the payments made in favor of the State as a consequence of improper use and infidelity in the handling of public property. The collection actions carried out by both the State and the insurance company must be conducted in accordance with the reports rendered by the Internal Audit units of each institution and/or the Superior Court of Accounts (TSC). Payment made by the insurance company as compensation for infidelity of the public official or employee in the handling of public property or resources does not exempt him from the civil, administrative or criminal responsibility that corresponds according to law.

The General Staff of the Armed Forces may authorize, in cases of emergency, the provision of medical services with Private Health Institutions at the national level for immediate medical care, provided that the Military Hospital cannot offer such services. VEHICLES AND FUEL

The use of official vehicles on non-business hours and days is prohibited; however, in exceptional cases and duly justified, the heads of departments may authorize their use. The lack of authorization or permit that supports the use of these assets owned by the State shall be the responsibility of the Administrative Management or its equivalent in each institution.

All vehicles owned by the State assigned to the different Secretaries of State, Deconcentrated, Decentralized entities, and Municipalities must be properly identified with the National Flag and the emblem or logo of the institution to which they belong, unless otherwise authorized by the Supreme Audit Court (TSC). The following institutions are excepted from this provision: Supreme Court of Justice (CSJ), National Congress of the Republic, Public Ministry (MP), National Police (PN), Secretary of State in the Office of National Defense (SEDENA), National Directorate of Investigation and Intelligence (DNII); and the Special Protection Unit (UEP) pursuant to the Law of Special Protection of Officials and Former Officials in Extraordinary Risk, contained in Legislative Decree No. 323-2013 of January 15, 2014, published in the Official Gazette "La Gaceta" dated July 1, 2014 and its amendments.

The purchase of fuel shall not be subject to the contracting modalities provided for in article 38 of the Law of Contracting of the State, contained in Decree No. 74-2001 of July 1, 2001, published in the Official Gazette "La Gaceta" dated September 17, 2001, because prices are established through a formula approved by the Government of the Republic; therefore, the purchase of fuel does not form part of the Annual Plan of Purchases and Contracting (PACC).

The Secretary of State in the Offices of Foreign Affairs and International Cooperation (SRECI) is authorized to use its budget to proceed with the purchase and/or lease of motor vehicles for the Embassies, Permanent Missions, and Consular Offices that do not possess their own vehicle for official use. Each vehicle shall be acquired in the countries or places where Honduras has Diplomatic representation; the contracts for purchase and/or lease of vehicles that SRECI enters into pursuant to this article are exempt from the bidding procedure; therefore, the Embassy, Permanent Mission, and Consular Office must open a contracting file in which it shall document the entire process, attaching to said file at least 2 quotations from companies engaged in the sale or lease of vehicles. Vehicle lease contracts are exempt from the bidding procedure; likewise, all other contracting processes for goods and services related to embassies, permanent missions, and consular offices are exempt from the bidding procedure established in the Law of Contracting of the State and its regulation, for which a comparative pricing process shall be conducted, selecting the one with the lowest cost and best quality for the State, which shall be recorded in the procurement file maintained by said missions.

Based on the Lease Agreement with Purchase Option of October 17, 2012, published in the Official Gazette "La Gaceta" dated November 15, 2012, which has a validity of thirteen (13) years from 2013 to 2026, the budgetary allocation approved for the Secretary of State in the Office of Defense (SEDENA), specifically in Program 11 Defense of National Sovereignty and Territorial Integrity, Subprogram 03 Defense of Sovereignty and National Security in the Maritime Space Domain, for the lease with purchase option of six (6) interceptor boats and two (2) patrol boats, may not be transferred nor used for any purpose other than the payment of this commitment. PROGRAMS AND PROJECTS

All institutions that formulate programs and projects of public investment must have the studies and final designs of the infrastructure works to be carried out. These shall be updated within the last 5 years from the date of application for the Priority Note. In the case of costs, they must be updated as of the date of application for the Priority Note. If final studies and designs are not available, a Priority Note must be requested for the preparation of such studies. Once the results of the final studies and designs of the project are obtained, prior to the start of any acquisition process related to physical works, the institution must request an Amendment to the Priority Note in order to make the corresponding adjustments and proceed with a new evaluation of the project, attaching such studies and designs.

Institutions that formulate public investment projects and are in the design and pre-investment stage must send through the Planning and Management Evaluation Units (UPEGs) the inventory of projects that are considered priorities for the socioeconomic development of the country and the supporting documentation to the General Directorate of Public Investment, in order to continue with the corresponding actions for resource management; the guidelines for formulating projects shall be issued in the regulation of this Law.

Programs financed with external funds that are not framed within the General Methodological Guide for the Formulation and Evaluation of Public Investment Projects (GMG), but that are oriented toward Social Investment Programs and require registration in the System of External Loan Executing Units (UEPEX), must have a BIP code generated from the National System of Public Investment of Honduras (SNIPH), related to the agreement solely for this purpose. Such programs must consider in the formulation of their budget the programming of income and expenses in accordance with disbursements received in the previous fiscal year or from previous outlays.

All Institutions of the Public Sector that execute programs and projects of public investment registered in the National System of Public Investment of Honduras (SNIPH), formulated on the basis of the General Methodological Guide (GMG), with national and/or external funds, must include the indicators of physical and financial monitoring in the SNIPH once the Monitoring Submodule is implemented. Likewise, they must keep updated the physical and financial information throughout the entire cycle of the Project through the National System of Public Investment of Honduras (SNIPH) and adjust their programming of commitments and payments to the Current Budget. Likewise, they must keep updated the financial information in the System of External Loan Executing Units (UEPEX). The supervision of projects must be carried out by institutions of the Public Sector related to the work being executed. Non-compliance with this provision shall be the direct responsibility of the Project Executing Unit and shall give rise to the imposition of the administrative sanctions provided for in article 4 of this Law.

The executing institutions of public investment projects must present to the Secretary of State in the Office of Finance (SEFIN), with a copy to the Secretary of State in the Offices of Development and Project Follow-up and Agreements (SEDESPA), regardless of the source of financing:

• 1)

  Plan of Acquisitions and Contracting (PACC);

• 2)

  Monthly projection of physical and financial execution;

• 3)

  Detail of Public Investment by Department and Municipality with semi-annual updates;

• 4)

  The contracts for works and supervision with their amendments that are under execution; and any other relevant information that may be requested by the General Directorate of Public Investment.

On the Honduras Investments platform, the Executing Units of projects must keep updated all information requested by the Secretary of State in the Office of Finance (SEFIN). The information shall be entered into the systems of the SNIPH, SIAFI, and the Regulatory Office of Contracting and Acquisitions of the State (ONCAE), among others.

Institutions that execute programs and projects financed with external credit, prior to disbursement requests, must have budgetary provisions in the current Fiscal Year. The Secretary of State in the Office of Finance (SEFIN) through the General Directorate of Public Credit shall verify that requests for cash disbursements, direct payments, or direct charges have such budgetary provision and/or are contemplated in the disbursement programming, which it shall confirm in writing prior to sending to the Financing Organization, in order to guarantee compliance with the disbursement ceilings established in the Current Public Debt Policy. Institutions must attach to their disbursement request the schedule of payments to be made in the six (6) months following the same. Requests for cash disbursements (other than direct payment or charge), scheduled for the last quarter of the fiscal year, must consider the budgetary availability contained in the preliminary budget of the following fiscal year. Once a direct payment or charge is made, the Institution executing programs and projects financed with external funds must record its budgetary execution in the Integrated Financial Administration System (SIAFI) no later than fifteen (15) days after the disbursement is made. The Institution that fails to comply with this Provision shall suspend disbursement requests before the Financing Organization. Likewise, the Secretary of State in the Office of Finance (SEFIN) through the General Directorate of Public Credit shall refrain from issuing confirmation of budgetary provision and/or inclusion in the programming of new external credit disbursements until the Executing Unit records the direct payment/charge made. In the same manner, it shall refrain from issuing budgetary confirmations of disbursements that may exceed the maximum dates established in the closing norms.

For the financing of new Programs and/or Projects through Debt Swap Programs, all those specifications that investment projects must comply with to be subject to such financing shall be considered in the pre-investment phase, without prejudice to what is established in the General Methodological Guide for the Formulation and Evaluation of Public Investment Projects. The classification, definition of amounts, management, and strategies of thematic financing for Debt Swap Programs shall be carried out according to the considerations and guidelines established in the executed agreements.

In order to guarantee the correct use of funds from external credit and donations subscribed by the Secretary of State in the Office of Finance (SEFIN), the officials authorized to request disbursements shall be the Heads of Institutions of the Public Sector designated as Executing Units in the financial agreements. Administrative procedures may be carried out by the Directors, Coordinators, Administrative and/or Financial Managers of the Program or Project.

The persons responsible for the administration and execution of the programs and projects that authorize non-eligible expenses shall be jointly and severally liable, administratively, civilly and criminally. The Public Sector Institution that the Executing Unit depends upon, which presents findings in its audited financial statements, shall suspend disbursement requests to the Financing Organization and shall carry out the corresponding procedures to reimburse the organization for non-eligible project expenses, identifying them within the budget of said institution. The Ministry of State in the Office of Finance (SEFIN), through the General Directorate of Public Credit, shall refrain from issuing budget forecast confirmation and/or inclusion in the programming of new disbursements until the Executing Unit remedies its financial execution. When losses are generated due to exchange rate differentials in the execution of programs and projects financed with external funds, the Public Sector Institution that the Executing Unit depends upon must identify the resources within its budget and carry out the corresponding procedures for their reimbursement, unless the Financial Organization does not require their return.

The Ministry of State in the Office of Finance (SEFIN) through the General Directorate of Public Investments (DGIP) shall issue the Priority Note within a maximum period of fifteen (15) business days, provided that the documentation attached to the request complies with all technical, methodological and legal requirements. The Priority Note does not constitute an obligation for the State of Honduras; it is issued for financing management purposes and has a validity of two (2) years from the date of its issuance when the financing management and negotiation process for the project is not completed.

Following the issuance of the Priority Note, when it is necessary to modify technical aspects in the methodological and financial formulation of the project, Public Sector institutions must request from the Ministry of State in the Office of Finance (SEFIN) a Technical Opinion for Amendment to the Priority Note in the following cases:

• a)

  inconsistencies in the project name (provided that the objective is not modified);

• b)

  change of Executing Institution;

• c)

  coverage and geographic location;

• d)

  increase or decrease in project cost; and e) creation or elimination of components. Said opinion must be sent to the executing unit with a copy to the Ministry of State in the Offices of Development and Project and Agreement Monitoring (SEDESPA). In the exclusive case of change of source and/or financing organization, only the modification in the National System of Public Investment of Honduras (SNIPH) must be made, prior to the request of the Executing Institution, accompanied by the information that accredits the change. For this purpose, it will be required that Public Sector institutions, through the Unit of Planning and Management Evaluation (UPEG), attach supporting documentation that justifies and permits technical analysis for the issuance of the Opinion that includes accumulated physical and financial progress. In the event that modification of the objective is required, it shall be considered as a new Project.

Project Executing Units must not process the execution of contracts for works, goods, services or supplies whose closing date extends beyond the project completion date as per the National System of Public Investment of Honduras (SNIPH), regardless of the financing source.

Programs and/or projects to be financed regardless of the financing source must have the Strategic Alignment Analysis, issued by the Institutional Planning Directorate of the Ministry of Strategic Planning, which shall issue a Certificate of Strategic Alignment (CAE) of the program or project aligned to Government Priorities within a maximum period of ten (10) business days, provided that the request is accompanied by the required documentation. The Ministry of State in the Office of Finance may continue with the processes of Fiscal Space, Priority Note and financing management once the institution has requested the Certificate of Strategic Alignment. The non-issuance of said Certificate within the established timeframe shall authorize the requesting institutions to continue the procedure provided they demonstrate that they complied with all the requirements requested in the established time. The non-issuance of said Certificate within the established timeframe shall not exempt the institution from completing management with the Ministry of State in the Office of Planning until delivery of the corresponding Certificate.

The Ministry of State in the Office of Finance (SEFIN), through the Budget Incorporation Committee composed of the General Directorate of Public Investments (DGIP), General Directorate of Macro Fiscal Policy (DGPMF), General Directorate of Budget (DGP) and General Directorate of Public Credit (DGCP), shall jointly issue a Technical Note to determine whether there is fiscal space for external financing of credit or donation of a new project, as well as in any other operation that requires a Technical Note.

Every institution requesting Fiscal Space shall present to the Ministry of State in the Office of Finance (SEFIN), the executive summary of the Project and the respective Certificate of Strategic Alignment issued by the Ministry of Strategic Planning. In the case of treasury and/or own resources that require execution in the current fiscal year, these must have availability within the budget of the executing institution, which must evidence the corresponding budget structure. For subsequent years, the Fiscal Space of National Funds must be included in the budget draft and the Medium-Term Macro Fiscal Framework.

The Ministry of State in the Office of Finance (SEFIN) is authorized to consider, through the General Directorate of Public Investments, as part of the process of prioritizing new investments, indicators of comprehensive disaster risk management, climate change, gender equity, specific programs directed at women and human rights, as well as the Government Priorities established in the Budget Policy Guidelines 2025 within the framework of the Bicentennial Government Program to Refound Honduras oriented toward the Sustainable Development Goals (SDG). In view of the foregoing, the Ministry of Women's Affairs is ordered, so that SEMUJER prepares an annual report on compliance with the process of prioritizing new investments with a gender perspective, which must be sent to the Presidency of the Republic, so that SEMUJER fulfills the function of monitoring, evaluation and follow-up to the prioritization of new investments with a gender perspective, which allows for the corresponding assessments, application of corrections in a timely manner and guidance for sound decision-making.

Every executing institution of public investment programs or projects must consider within its budget the values corresponding to national counterparts when required. The percentage of national counterpart for projects financed with external credit, when required by the financing organization, shall be established at up to ten percent (10%) of the total amount of the credit agreement. The percentage of national counterpart for projects financed by donations shall be up to twenty percent (20%) and preferably shall be agreed in-kind.

Administrative expenses of the total project cost must not exceed ten percent (10%), regardless of the financing source and must be reflected in the budget structure corresponding to administrative expenses of the Executing Unit. In the case of Project Management Units (UAP), administrative expenses must not exceed ten percent (10%) of the total cost of the sum of all projects under its administration. Non-compliance with this provision shall be sanctioned in accordance with the provisions of Article 4 of this Law.

For projects in closing, only the necessary administrative and accounting personnel must be maintained in the executing unit, and must submit to the General Directorate of Public Investments (DGIP) three (3) months before the project closing date, the corresponding payroll. The DGIP of the Ministry of State in the Office of Finance (SEFIN) shall issue a Technical Opinion at the request of the institution, through which it shall pronounce on the necessity of human resources and the time to complete pending activities, and compliance is mandatory. Institutions must contemplate in annual budget formulation the necessary funds to guarantee the sustainability of works and goods generated by Public Investment projects that end physically and financially and that are registered in the National System of Public Investment of Honduras (SNIPH), regardless of the financing source.

Public Sector Institutions are authorized to implement programs and projects with a comprehensive approach, as a response to the effects caused by climate change or natural phenomena that affect or have affected national territory, with the purpose of achieving resilient and sustainable reconstruction, conducive to increasing productivity, contributing to economic growth, job creation and well-being of the population.

All institutions that execute public investment programs and projects must identify the programmatic structures in the Medium-Term Budget Framework (MPMP) in accordance with the budget classifier for Climate Change, which was developed based on technical criteria oriented toward mitigation, adaptation and disaster management related to Climate Change; an activity that must be developed by the General Directorate of Public Investments (DGIP) and the General Directorate of Budget (DGP) in coordination with the Unit of Planning and Management Evaluation (UPEG) of the different Public Sector Institutions.

The values and resources to execute programs and projects of the Strategy for Poverty Reduction (ERP) must be incorporated in each executing unit of the Public Sector institutions, in accordance with the provisions of the Technical Standards of the Budget and Public Investment Subsystems, as applicable.

Public Sector institutions that have budget allocation in the transfers spending group (50000), object of spending national scholarships (51211) and foreign (51212) for their employees, must comply with the following procedure:

• 1)

  Submit a request to the Human Resources Sub-management or equivalent, accrediting their academic degree, acceptance at the educational institution;

• 2)

  Have a minimum of one (1) year of employment at the institution by Agreement;

• 3)

  Execute an Institutional Scholarship Agreement, which includes the commitment to work at the institution for double the time the scholarship lasts, otherwise the scholarship recipient shall return the amount of money received during the time of the benefit, without prejudice to case of force majeure or act of God;

• 4)

  Approval by the highest authority through internal resolution; and 5) Comply with the other requirements contained in the Institutional Scholarship Agreement. Applications for scholarships presented by women have preference. Institutions that grant the benefit must send an annual report to the Ministry of State in the Office of Women's Affairs (SEMUJER), disaggregated by sex, age, origin of the beneficiaries and studies undertaken.

The University of Defense of Honduras (UDH) is authorized to issue its own Scholarship Regulation that permits the inclusion of civil personnel of low economic resources and administrative personnel by contract who have one (1) or more consecutive years of service, so that they may pursue studies in the different academic programs offered by said university. The National Defense Secretariat (SEDENA) is authorized to issue its own Scholarship Regulation that permits the inclusion of civil personnel of low economic resources and administrative personnel by contract who have two (02) or more consecutive years of service, so that they may pursue studies in the different academic programs offered by the University of Defense of Honduras (UDH) and other Universities.

The transfers in favor of institutions of the Public Sector, approved in the General Budget of Income and Expenditure of the Republic, are subject to the values collected in the present fiscal year, regardless of what was approved, respecting the provisions of the Constitution of the Republic, the Organic Budget Law, special laws, regulations, agreements and conventions in force in the Republic. The provision in the preceding paragraph is applicable to transfers made to institutions of the private sector that are financed with resources from the National Treasury. The State Secretariat in the Office of Finance (SEFIN) shall notify the values that will not be granted so that institutions may reprogram their Annual Operating Plan (POA) and Budget in the Integrated Financial Administration System (SIAFI) and any other systems determined by the governing body.

Resources from transfers with a specific beneficiary cannot be transferred to a different beneficiary, nor reassigned to a purpose other than that for which they were approved. The exceptions to this provision are the remainders from payments of budgetary allocations of ordinary and extraordinary contributions to International Organizations.

State institutions must publish on their WEB page, through the Administrative Management offices, the liquidations presented by beneficiary institutions of the transfers recorded in budgets, prior to making a new disbursement; likewise, the expenditures that are executed through group 90000 Other Expenses of the institutions under the Executive Branch; and in the case of Superior Level Bodies and Constitutional Bodies, send that information to the Superior Court of Accounts (TSC).

The National Board for Child Welfare (PANI) is authorized to transfer to the Central Administration and deposit with the General Treasury of the Republic (TGR), a minimum amount of FOUR HUNDRED FIFTY MILLION LEMPIRAS EXACT (L450,000,000.00), for the Fiscal Year 2025, resources from the Cooperation Agreement between the Government of Honduras and the Government of Canada, approved by Legislative Decree No. 183-2011 of October 12, 2011, published in the Official Gazette "La Gaceta" on October 28, 2011 and its amendments. From the resources transferred by PANI, the following budgets shall be financed:

• 1)

  One Hundred Thirty-Two Million Lempiras exact (L132,000,000.00) to the National Institute for the Care of Juvenile Offenders (INAMI);

• 2)

  Sixty-Nine Million Lempiras exact (L69,000,000.00) to the Secretariat for Childhood, Adolescence and Family (SENAF);

• 3)

  Eleven Million Lempiras exact (L11,000,000.00) to the National Institute of Youth (INJUVE); and,

• 4)

  Two Hundred Thirty-Eight Million Lempiras exact (L238,000,000.00) for school meals. Of the total amount to be incorporated by the National Board for Child Welfare (PANI), the State Secretariat in the Office of Finance (SEFIN) is authorized to carry out the budgetary and financial operations necessary for the incorporation of said resources into the General Budget of Income and Expenditure of the Republic Fiscal Year 2025. In case of obtaining higher revenues from this concept, they must be incorporated into the General Budget of Income and Expenditure of the Republic to finance priority social programs and projects within the Bicentennial Government Plan.

The National Port Enterprise (ENP) must transfer to the Central Administration through the General Treasury of the Republic (TGR), the sum of ONE HUNDRED MILLION LEMPIRAS EXACT (L100,000,000.00), in accordance with the payment schedule jointly prepared by the Enterprise with the State Secretariat in the Office of Finance (SEFIN), no later than January 31, 2025. The maximum payment date must not exceed the last day of each month and the final installment must be deposited by November 30, 2025. In case of non-compliance with this obligation, the State Secretariat in the Office of Finance (SEFIN) is empowered to request the amounts of the pending installments through automatic debit from the bank accounts that the institution maintains in the Central Bank of Honduras (BCH) and/or in the rest of the National Financial System. Based on what is established in article 269 of the Constitution of the Republic, the Executive Branch through the State Secretariat in the Office of Finance (SEFIN) may authorize and dispose, in case the financial situation of this Institution permits, additional or complementary funds to address priority government programs and projects, based on the Constitutional norm; the National Port Enterprise (ENP) additionally to the amount described in the first paragraph of this article shall transfer to the Central Administration through the General Treasury of the Republic (TGR) the sum of ONE THOUSAND FIVE HUNDRED THIRTY-ONE MILLION ONE HUNDRED SEVENTEEN THOUSAND ONE HUNDRED FIFTY-ONE LEMPIRAS EXACT (L1,531,117,151.00), a value that shall be used to cover the following:

• 1)

  Design, construction and equipment of the General Hospital, located in the Municipality of Santa Bárbara, Inguaya Village for L797,357,875.00;

• 2)

  Design, construction and equipment of the Basic Hospital, located in the Municipality of Salamá, Olancho for L375,514,035.00;

• 3)

  Design, construction and equipment of the Basic Hospital, located in the Municipality of Ocotepeque, Ocotepeque for L358,245,241.00. The National Port Enterprise (ENP) is prohibited from transferring the resources established in this article for a purpose or beneficiary other than that described.

The resources from the National Port Enterprise (ENP) established in the first paragraph of the previous article shall be used to cover the following:

• 1)

  TWENTY-EIGHT MILLION LEMPIRAS EXACT (L28,000,000.00) to finance the operability of the National Port Protection Commission (CNPP), in accordance with the provisions of article 2 of Executive Decree PCM-050-2013; the CNPP must adjust its Annual Operating Plan (POA) and 2025 Budget to the amount described above and present monthly reports on physical and financial progress to the State Secretariat in the Office of Finance (SEFIN), through the Administrative Management office. These reports are indispensable for making disbursements;

• 2)

  TWENTY-FIVE MILLION LEMPIRAS EXACT (L25,000,000.00), to the Secretary of Agriculture and Livestock (SAG) for the Agricultural Research Program executed through the Honduran Foundation for Agricultural Research (FHIA), recording said allocation in the following structure: Institution 140, Administrative Management 01, Executing Unit 31, Program 15, Activity 01, expenditure object 51310, Transfer Beneficiary 4107; and,

• 3)

  FORTY-SEVEN MILLION LEMPIRAS (L47,000,000.00) to finance the Programs or Projects established in the Bicentennial Government Plan to Refound Honduras. These funds shall be recorded in institution 449 for their subsequent transfer by means of Budget Modification.

All institutions of the Decentralized Administration that have transfers recorded in their budget for the Honduran Institute for the Prevention of Alcoholism, Drug Addiction and Pharmacological Dependence (IHADFA), must make effective said transfer before the end of October 2025, as well as any other transfer recorded in their budgets. To carry out the payment management of said transfer, IHADFA must send to each institution the corresponding receipt recording the total amount of the transfer or the value that has been agreed upon and scheduled between the parties (IHADFA and Institution). In the case of institutes of social security and welfare (IHSS, INPREMA, INJUPEMP, IPM and INPREUNAH), said transfer must be financed with the additional resources they receive, distinct from the contributions and/or fees they receive from system members. All public sector institutions that currently have pending transfers from previous years to IHADFA must make payment effective with the budget of the Present Fiscal Year, making a reprogramming within the same, for which IHADFA must send the account statements owed by each public institution. Non-compliance with these payments shall be sanctioned in accordance with the provisions of article 4 of this Law.

For the programming of disbursements of transfers to Non-Governmental Organizations (NGOs), recorded in the Transfers group through public institutions, the following rules shall apply:

• 1)

  Forty percent (40%) for the first disbursement as an advance;

• 2)

  Forty percent (40%) second disbursement subject to liquidation of the first disbursement; and,

• 3)

  Twenty percent (20%) third disbursement subject to liquidation of the previous disbursements. The final disbursement must be liquidated no later than two (2) months after project completion, presenting a results report demonstrating the solution of the problem that motivated the allocation of the requested resources, through signed testimonies, satisfaction and perception surveys, videos and other applicable means, Financial Statements certified by an authorized accountant and the Audit Firm Report properly registered with professional associations regarding the transfers made by the State. The natural or legal person receiving the transfer shall be responsible for the execution of expenditures.

From the available balances that were transferred to the General Treasury of the Republic (TGR) from the liquidation carried out of the Public Safety Security Rate Trust Fund repealed by Legislative Decree No. 66-2022, of May 27, 2022, published in the Official Gazette "La Gaceta" dated June 15, 2022 and from any other tax revenue, the State Secretariat in the Office of Finance (SEFIN) shall assign for administration to the State Secretariat in the Office of Women's Affairs the following values: Fifty Million Lempiras (L50,000,000.00) for coverage expansion and operation as a State Secretariat, Twenty-Six Million Lempiras (L26,000,000.00) shall be directed to the construction and equipment of Shelters for women survivors of domestic violence, four million lempiras (L4,000,000.00) for operating expenses of those already existing, prioritizing timely disbursement, and Twenty Million Lempiras (L20,000,000.00) for violence prevention actions toward women, reaching a total of One Hundred Million Lempiras (L100,000,000.00) additional to the assigned ceiling value. These additional funds must be integrated into the budgetary structure of the State Secretariat in the Office of Women's Affairs (SEMUJER) for the purpose of continuing the construction, equipment and operation of more shelters, attending to the priority demands of the population.

The National Service for Entrepreneurship and Small Business (SENPRENDE) is ordered that from the resources allocated in its approved budget under the following structure: Institution: 39 National Service for Entrepreneurship and Small Business (SENPRENDE), Program 11: Entrepreneurship and Small Business Services, Act/Obj 04: Financial Services and Access Products to Solidarity Credit and even venture capital funds, Expenditure Object 63110: Long-Term Loans to individuals, allocate a minimum of Twenty-Five Million Lempiras (L25,000,000.00) to address the CREDIMUJER Fund, in coordination with the State Secretariat in the Office of Women's Affairs (SEMUJER). Likewise, the National Bank of Agricultural Development Honduras (BANADESA) shall allocate budget items to increase the fund of credit programs for women, reporting quarterly the execution of said amounts to the State Secretariat in the Office of Women's Affairs (SEMUJER), in a disaggregated manner by beneficiary population group. In order to comply with the allocations, the aforementioned institutions must integrate a monitoring team in coordination with the State Secretariat in the Office of Women's Affairs (SEMUJER), to ensure the effective use of funds in favor of Honduran women, for which SEMUJER shall coordinate the formation of said teams.

The State through the State Secretariat in the Offices of Governance, Justice and Decentralization (SGJD) must transfer to the Municipalities a budgetary allocation in accordance with the following distribution:

• 1)

  FIFTY PERCENT (50%) of the transfers must be distributed equally among municipalities;

• 2)

  TWENTY PERCENT (20%) by projected population according to the latest Census of Population and Housing conducted or projected by the National Institute of Statistics (INE); and,

• 3)

  THIRTY PERCENT (30%) by poverty, according to the proportion of poor population in each municipality, under the methodology of Unmet Basic Needs (NBI) and according to the latest Census of Population and Housing conducted or projected by the National Institute of Statistics (INE).

Of the total amount of the Transfer established in the previous article, the Municipalities must allocate the resources in accordance with the percentages provided in this provision and the Law of Municipalities; and must notify their decision to the Municipal Strengthening Directorate (DFM) of the State Secretariat in the Offices of Governance, Justice and Decentralization (SGJD) through the Certification of the Record Point. The budgetary allocation shall be distributed as follows: 1) THIRTY-FIVE PERCENT (35%) under the Social and Community Strengthening Program for investments that improve the living conditions of the population through programs and projects to provide social assistance to children, with special attention to returning migrants, adolescence and youth, persons with disabilities, municipal investment guidelines in pre-basic, basic, third cycle education, primary family and community health care, water and sanitation, electrification and home improvement for families in extreme poverty situations. Of what is allocated to this component, Municipalities may invest from five percent (5%) to twenty percent (20%) to address emergencies and disasters; and, 2) FIVE PERCENT (5%) under the Women's Care Program for municipal programs, projects or services of full access to women and their human rights, at the different stages of the cycle and spheres of their lives, under the principle of non-discrimination by age, ethnicity, socioeconomic level, origin, opinion, belief, sexual orientation or any other condition that has the purpose or result of nullifying or diminishing the recognition, enjoyment or exercise, in conditions of equality. For the execution of this amount, the following Axes of the National Policy for Women must be considered:

• 1)

  VIOLENCE PREVENTION AXIS. Twenty percent (20%), prioritizing actions to prevent and address violence against women, with emphasis on gender training and awareness-raising actions and women's human rights, community actions, municipal action plans, violence prevention campaigns and micro-campaigns, creation of violence prevention networks, leveraging support for shelters, among others.

• 2)

  ECONOMY AXIS. Thirty percent (30%), prioritizing at least: b.1 Economic initiatives of women to promote and guarantee their economy. b.2 Municipal services for care initiatives, promotion of care co-responsibility and freeing women's time for the exercise of other rights.

• 3)

  SOCIAL AND POLITICAL PARTICIPATION AXIS. Ten percent (10%), considering at least initiatives to achieve women's empowerment in social, economic and political spheres, for the full exercise of their citizenship;

• 4)

  HEALTH AXIS. Twenty percent (20%), prioritizing direct comprehensive health care for women at different stages of the life cycle, with emphasis on sexual and reproductive health and non-communicable chronic diseases and care for acute diseases as a consequence of COVID-19. Access to recognition and exercise of sexual and reproductive rights;

• 5)

  EDUCATION AXIS. Ten percent (10%), considering affirmative actions in Formal and Non-Formal Education for women in conditions of vulnerability; and,

• 6)

  ENVIRONMENT AXIS. Ten percent (10%), prioritizing at least initiatives to promote agricultural practices with climate change mitigation measures. The Municipality may review the percentage distribution and adjust it in accordance with the municipal context, and must contemplate the mainstreaming of gender equity investment in municipal policies, programs and projects through open women's meetings where proposals are socialized with the networks of women in the municipality. Municipalities that conduct this process must inform the State Secretariat in the Office of Women's Affairs (SEMUJER). Additionally, municipalities with indigenous peoples, Afro-descendants and vulnerable populations must address the demands of indigenous and Afro-Honduran women in a differentiated manner. 3) A TWENTY PERCENT (20%) Under the Cultural Strengthening and Social Coexistence Program to strengthen the social fabric under a prevention approach, promoting a culture of peace, justice and coexistence in municipal territories, through the revitalization of public spaces to promote sports, cultural activities, training in values and human rights for citizenship, community surveillance and other actions that make it possible to address the particular conditions of violence prevention, so that in the short and medium term there are results of impact and measurable in the municipalities; 4) TEN PERCENT (10%), Under the Administrative Development Strengthening Program to improve the municipal investment climate, driving territorial competitiveness through productive infrastructure works, promoting the Micro, Small and Medium Enterprise (MIPYME) sector in rural and urban areas, for the generation of employment sources, administrative simplification processes, harmonization of tax assessment plans, municipal property registries, strengthening of administrative, budgetary and treasury capacities, project execution, formulation of local economic development agendas, which are integrated with central government initiatives seeking public-private coordination, supporting the infrastructure of agricultural, tourism and business development center corridors, among others; 5) ONE PERCENT (1%), under the Municipal Infrastructure Program for the Municipal Transparency Fund (FTM) assigned to the Superior Court of Accounts (TSC), as municipal counterpart. Decision-making regarding the use and purpose of said funds shall be made through meetings of the Committee that has been created for this purpose, composed of the State Secretariat in the Offices of Governance, Justice and Decentralization (SGJD) which presides over it, the Association of Municipalities of Honduras (AMHON), serving as secretary, and the Superior Court of Accounts (TSC) which administers it. With these Financial resources, training in Municipal Management and Municipal Financial Administration Systems implemented by the State Secretariat in the Office of Finance (SEFIN), on-site Technical Assistance, monitoring, compliance with recommendations and greater coverage of municipal audits shall be conducted. It is understood that while resources from other sources are identified to fulfill these obligations, the Superior Court of Accounts (TSC) shall formalize an agreement and regulation with the Committee members, for the purpose of jointly planning the activities to be developed within the Annual Operating Plan (POA) of the Municipal Transparency Fund Committee (CFTM); 6) Municipalities that fail to transfer five percent (5%) of funds to programs for women shall be sanctioned with ten (10) minimum salaries. Likewise, the State Secretariat in the Offices of Governance, Justice and Decentralization (SGJD) must open a non-compliance file.

• 7)

  TWENTY PERCENT (20%), under the Own Administration Expenses Program (Operation) for Own Administration Expenses. Municipalities whose annual own revenues do not exceed FIVE HUNDRED THOUSAND LEMPIRAS (L500,000.00), excluding transfers, may allocate for such purposes up to twenty-nine percent (29%); and,

• 8)

  The remainder of the resources shall be allocated under the Municipal Infrastructure Program, coverage of the counterpart required by organizations financing the projects; payment of contributions to the Association of Municipalities of Honduras (AMHON), payment of contributions that municipalities make to Associations or Municipals Commonwealths prior to a decision by the Municipalities, by affirmative vote of two-thirds (2/3) of their members and transfers in goods or services to organized communities for Investment, and in all cases the provisions of Article 98 of the Law of Municipalities must be respected. It should be understood that the expenses described in paragraphs 1), 2) and 3) above are considered investment, as well as the salaries and wages included in the health and education areas;

• 9)

  Municipalities that enjoy the economic benefit established in Decree No. 72-86 (port municipalities), dated May 20, 1986, may adopt the regime established in this article, provided they renounce before the State Secretariat in the Office of Finance (SEFIN) the benefit established in the aforementioned Decree; and,

• 10)

  From the Municipal Budget. The Secretariat of Governance, Justice and Decentralization must send to the State Secretariat in the Office of Women's Affairs (SEMUJER) the quarterly reports of the transfers presented by the Municipalities on the use of five percent (5%), for monitoring purposes in relation to the Index of Investment in Municipal Gender.

The Honduran Social Investment Fund (FHIS) is ordered to continue the construction of the Honduran Oncology Hospital in the Municipality of the Central District, department of Francisco Morazán as part of the comprehensive public health services network. For the design, supervision, construction and operation of the hospital, the Honduran Social Investment Fund (FHIS) must coordinate with the State Secretariat in the Office of Health (SESAL) in its capacity as the governing body of the health sector, for which the sum of Fifty Million Lempiras (L50,000,000.00) is allocated in fiscal year 2025. The State Secretariat in the Office of Finance (SEFIN) is empowered to make the corresponding budget modification.

The State Secretariat in the Office of Health (SESAL) is authorized a budgetary allocation of up to THREE HUNDRED FORTY-TWO MILLION FIVE HUNDRED THIRTY-FOUR THOUSAND SEVEN HUNDRED FORTY-ONE LEMPIRAS EXACT (L342,534,741.00), which shall be used to cover the budgetary impact generated by the application of salary adjustment, based on the Interannual Consumer Price Index (IPC) published by the Central Bank of Honduras (BCH) as of the close of 2024 in favor of public servants governed under the Professional Statutes of: Physicians, Nurses, Dentists, Microbiologists, Pharmaceutical Chemists and Social Workers. Likewise, the State Secretariat in the Office of Security (SESEGU) is authorized an allocation of up to TWO HUNDRED SIXTY-NINE MILLION SEVEN HUNDRED TEN THOUSAND TWO HUNDRED SEVENTY-ONE LEMPIRAS EXACT (L269,710,271.00), allocation that shall be used to cover the creation in the present fiscal year of Police Agent positions and Sub-Inspector positions for an amount of L221,339,826.00; and, Vegetative Growth for L48,370,445.00. Said values with Source 11 National Treasury have been recorded in institution 449 Central Administration Financial Services; the institutions referred to in the preceding paragraphs must present to the State Secretariat in the Office of Finance (SEFIN) a request for resources, accompanying it with information evidencing the budgetary impact and any other documentation necessary and required by SEFIN. The State Secretariat in the Office of Finance (SEFIN) is authorized to carry out the budgetary and financial operations necessary to operationalize the financing of transfers within the budget of the institutions or inter-institutional as appropriate.

Bonds acquired by Public Sector Institutions, including State Enterprises, may be traded in the primary or secondary securities market without intermediaries when transactions are between institutions of the same Public Sector and the operation is carried out for investment purposes in their own portfolio, without further purposes of speculation in the market. It is explicitly recognized that securities vary in price according to market conditions, therefore the sale or purchase price may be at par, below par, or above par, fluctuating according to the specific conditions on the date of trading.

The Secretary of State in the Office of Finance (SEFIN) is authorized to issue, if necessary, Sovereign or Thematic Bonds in the international capital market, charged against the borrowing amount authorized in the present budget, being able to use the debt fungibility referred to in Article 38, under the modality of reopening or new issuance and financial conditions prevailing in the market at the time of trading, being able to be placed at a premium, discount, or at par.

When it comes to external sovereign bond operations, referred to in Articles 216 and 317 of this Law, the Secretary of State in the Office of Finance (SEFIN) is authorized to directly contract the following services: One or more investment banks specialized in the structuring, marketing, pricing, and placement of sovereign bonds, brokerage firms, financial and/or legal advisory services, national and/or international printing companies for the offer circular, one or more banks providing fiscal agent services, trustee services, custodian agent services, exchange agent services, information agent services, closing agent services, registrar services, and paying agent services, legal registry entities, the securities markets that will list the operation, risk rating firms, Bloomberg financial platform and services, for a maximum term equal to the maturity of the bonds and according to market practices. The contracts executed within the framework of this article shall be valid and binding once signed by the Secretary of State in the Office of Finance (SEFIN), in accordance with the constitutional powers of the Executive Branch established in Article 245, numeral 13. The issuance and placement shall be carried out in accordance with international practices and the legislation of the place where the bond placements are registered. The issuance of these bonds does not require the subscription of the Act referred to in Article 76 of the Organic Budget Law, its equivalent being the authorization format under the framework of the Indenture Agreement dated January 19, 2017 which shall formalize the issuance and shall be signed by the holder of the Secretary of State in the Office (Finance) and the international agent. The Secretary of State in the Office of Finance (SEFIN) is authorized to identify and allocate the necessary budgetary space for payment of said services.

The debt service of sovereign bonds, capital gains from sales in primary or secondary markets, as well as payments for services rendered stated in the previous article, shall be exempt from all types of taxes, rights, fees, surcharges, assessments, contributions, contributions, fees, or public, governmental, or municipal contributions; the above is applicable only to natural or legal persons with residence abroad. Notwithstanding the foregoing, natural or legal persons resident in the country shall be subject to complying with the formal and material tax obligations determined by the laws in force in Honduras.

The Secretary of State in the Office of Finance (SEFIN) is authorized to carry out the placements of available balances from the issuance of public debt securities and bonds established in Article 6 of Legislative Decree No. 62-2023 containing the Budget of Income for the Central Administration for Fiscal Year 2024. The resources captured for this purpose shall be allocated, if necessary, to finance government priorities contained in the budget of the present fiscal year.

The Secretary of State in the Office of Finance (SEFIN) is authorized to issue short-term financial instruments (Treasury Bills) that allow it to cover seasonal cash shortfalls, when the fiscal and financial conditions of the State warrant it. These short-term financial instruments shall not have a budgetary effect on income and expenses, provided they are canceled in the same fiscal year and without prejudice to what is established by Article 90 of the Organic Budget Law.

Every payment by the Central Administration in favor of or through the Central Bank of Honduras (BCH) shall be made through the respective manual or electronic document issued by the Secretary of State in the Office of Finance (SEFIN). The Central Bank of Honduras (BCH) shall not effect any debit on accounts in the name of the General Treasury of the Republic (TGR) and of the Secretary of State in the Office of Finance (SEFIN) unless it has the express authorization of the Secretary, except as agreed in agreements and/or contracts executed prior to this provision. For these exceptional cases the Central Bank of Honduras (BCH) must:

• 1)

  In Direct Internal Public Debt, deliver to the Secretary of State in the Office of Finance (SEFIN), through the General Directorate of Public Credit, a copy of the documents that support the amounts paid for amortizations, interest, and commissions, disaggregated according to the requirements of said General Directorate, each time the operation is generated, for purposes of registration and control of borrowing;

• 2)

  In loans granted to Public Sector Institutions that have the guarantee, bond, or security provided on the basis of Article 78 of the Organic Budget Law, notify the Secretary of State in the Office of Finance (SEFIN), through the General Directorate of Public Credit, of the following situations: a. With twenty (20) business days in advance, the insufficiency or availability of funds in the accounts of the debtor institution, for purposes of programming the cash flow of the Single Account; and, b. With seven (7) business days in advance, the failure to present the debt service payment order by the debtor institution, as well as the availability of funds in its bank accounts.

• 3)

  If there is availability in the accounts and payment procedures have not been initiated by the debtor institution, the Central Bank of Honduras (BCH) must comply with the instruction of the Secretary of State in the Office of Finance (SEFIN), debiting the bank accounts of the debtor institution to carry out the payment directly; and,

• 4)

  Give immediate notice to the General Treasury of the Republic (TGR) and to the General Directorate of Public Credit of each debit effected in application of this article, specifying the concept and basis for it, in order to proceed with its corresponding verification.

The Public Debt Service that originates from the borrowing agreements that comprise the loans subject to reorganization and that improve the public debt profile shall be executed budgetarily through the Integrated Financial Administration System (SIAFI) and its interface with the Debt Management and Administration System (SIGADE), on the dates and terms established in the respective agreements or loan contracts. Simultaneously, the income that this debt relief concession may generate must be registered in the Integrated Financial Administration System (SIAFI), and the funds obtained shall form the resources of the Heavily Indebted Poor Countries Initiative (HIPC), Multilateral Debt Relief Initiative (MDRI), and Paris Club, which shall serve as the basis for financing programs and projects for poverty eradication.

The Secretary of State in the Office of Finance (SEFIN) and the National Electric Energy Company (ENEE) are authorized to renegotiate the Loans reassigned as a result of sovereign bond emissions issued by the Government in 2017 and 2020, for a term of not less than 15 years, with a grace period for payment of interest until the year 2027 and a single principal payment at maturity. The interest rate shall be agreed between both parties.

The National Electric Energy Company (ENEE) is prohibited from transferring the amount allocated in the following expenditure items: 21120 Electric Energy for Resale, 35660 Bunker, and 35680 Diesel for Electric Energy Generation. Only movements to these expenditure items shall be authorized to increase their allocations or to make transfers between them for the purpose of guaranteeing the supply of electric energy.

Public Sector institutions, Secretaries of State, Decentralized and Deconcentrated entities are prohibited from decreasing the amount allocated to the expenditure subgroup 16000 referred to as Benefits and Compensation. Only movements in this subgroup shall be authorized to increase such allocation. Notwithstanding, if at the third quarter, in view of the estimate at the close of the fiscal year, it is identified that the allocation for subgroup 16000 has available balances, these may be used to cover other needs of the institution, with the Administrative Management for Central Administration institutions or its equivalent in other public institutions being responsible for ensuring the use and disposition of said allocation; the Secretary of State in the Office of Finance (SEFIN) through the General Budget Directorate (DGP) shall not process in the last quarter any budgetary modification request for expansion for said subgroup.

For the purpose that all Secretaries of State and Decentralized and Deconcentrated institutions may honor commitments of a legal nature, the expenditure item 27500 referred to as Judicial Expenses may be increased without restriction during the present fiscal year. Notwithstanding, if at the third quarter, in view of the estimate at the close of the fiscal year, it is identified that the allocation for subgroup 27500 has available balances and that the same will not be required for the last quarter, these may be used to cover other needs of the institution; with the Administrative Management for Central Administration institutions or its equivalent in other public institutions being responsible for ensuring the use and disposition of said allocation; the Secretary of State in the Office of Finance (SEFIN) through the General Budget Directorate (DGP) shall not process in the last quarter any budgetary modification request for expansion for said subgroup.

The Central Bank of Honduras (BCH) is authorized to, using the resources approved within its budget, continue with the development of activities related to the National Survey of Income and Household Expenses (ENIGH) and to carry out procedures related to vehicle leasing and the contracting of goods, services, and consultancies that may be required.

The National Institute of Professional Training (INFOP) is ordered to: Give continuity to infrastructure projects and inter-institutional cooperation agreements with public and private sector companies executed in 2023, with the primary purpose of expanding coverage of youth training (men and women) throughout the country, in different technical areas especially in systems development, programming and software development, and in the professionalization of paid domestic workers. The INFOP is ordered to incorporate into the budget for the year 2025, under the item of decrease in availabilities, the amount approved to said Institution by Decree No. 62-2023, which amounts to the sum of Two Hundred Fifty Million Lempiras (L250,000,000.00).

In compliance with what is provided in Article 84 of the Organic Budget Law, the Secretary of State in the Office of Finance (SEFIN) may enter into Financial Services Provision Agreements with the National Banking System through the direct contracting procedure, as established in Articles 9 and 63 of the State Contracting Law, with the objective of expediting the operations carried out by the General Treasury of the Republic (TGR).

For the execution of the Budget of the present fiscal year, the social security institutes, National Social Security Institute for Teachers (INPREMA), Institute of Pensions and Retirement Benefits for Employees and Officials of the Executive Branch (INJUPEMP), Social Security Institute for Employees of the National Autonomous University of Honduras (INPREUNAH) and Military Social Security Institute (IPM), must obtain a Net Loan Concession equal to zero (0), that is to say that the granting of loans must be equal to the amount of their recovery. In exceptional cases and with prior opinion from the National Banking and Insurance Commission (CNBS), the aforementioned institutes may have a net concession different from zero (0).

The surpluses and surpluses reflected by the Public Social Security and Pension Institutes may be used for financial investments in the purchase of securities, Treasury bills of the General Treasury of the Republic (TGR) and Central Bank of Honduras (BCH), time deposits, purchase of shares and any other instrument classified in the Regulations for Investment of Public Pension Funds, as well as the limits established by instrument in the same Regulations contained in Minutes No. 1148 of the National Banking and Insurance Commission (CNBS), published in the Official Gazette "La Gaceta" No. 34,418 of August 16, 2017.

The Public Social Security and Pension Institutes must submit to the General Directorate of Decentralized Institutions (DGID) and to the General Directorate of Macro-Fiscal Policy (DGPMF) of the Ministry of State in the Office of Finance (SEFIN), no later than ten (10) days after the end of each month, the details of the financial investments they maintain in the National Financial System.

Officials who use personal security with public funds must limit themselves to a maximum of three (3) persons. This provision is exempt from what is established in Legislative Decree No. 323-2013 of January 15, 2014, which contains the Law of Special Protection for Officials and Former Officials at Extraordinary Risk.

Without prejudice to what is established in Article 31, numeral 2), letter c) of the Tax Equity Law, contained in Decree No. 51-2003 of April 3, 2003, published in the Official Gazette La Gaceta of April 10, 2003, the Regulations of these standards must determine which other officials are recognized for payment of cellular telephone service, as well as the maximum authorized monthly limits. When the official responsible for the use of Cellular Service exceeds the authorized consumption, the administration of each institution must make the deduction from their respective monthly salary. Payments for cellular telephone services from external sources are prohibited.

To maintain stability in the urban transportation tariff (buses), in favor of users, an allocation of up to Four Hundred Million Lempiras Exact (L400,000,000.00) is approved as a Subsidy, a value that includes operating expenses for subsidy distribution of up to THREE MILLION FIVE HUNDRED THOUSAND LEMPIRAS EXACT (L3,500,000.00). The Ministry of State in the Office of Finance is authorized to allocate in the present fiscal year said allocation in the budget of the Honduran Institute of Land Transportation (IHTT) and to perform the financial and budgetary operations that are necessary.

In order to avoid overdrafts in the approved budgetary allocations, public institutions must perform the necessary budgetary modifications prior to the execution of expenses. In accordance with what is established in Article 22 literal 1) of the Fiscal Responsibility Law, contained in Decree 25-2016 of April 7, 2016, published in the Official Gazette La Gaceta dated May 4, 2016, any commitment acquired by public institutions outside of the allocations approved in this Budget will not be registered in the Integrated Financial Administration System (SIAFI) nor recognized as public debt. The Ministry of State in the Office of Finance (SEFIN) through the General Directorate of Budget (DGP) will not process any request for budgetary modification after the Institution has made expenditures that must be allocated to the expense objects subject to approval, therefore the Ministry of State in the Office of Finance (SEFIN) shall refrain from issuing an opinion on the matter and will refer the case to the Superior Court of Accounts (TSC) as established in Article 4 of this Law, 34 and 123 of the Organic Budget Law.

Budgetary Modifications shall be processed in all cases through the FMP-05 "Budgetary Modification Document" generated by the Integrated Financial Administration System (SIAFI), which shall have the same effect as an Internal Resolution or Opinion issued by the Ministry of State in the Office of Finance (SEFIN). Only for Budgetary Modifications of salaries, modifications of position structures in the Central Administration, operations related to the Financial Services institution of the Central Administration (449) and the Incorporation of National Treasury resources (Source 11) in the Central Administration, an Internal Resolution shall be prepared through the General Directorate of Budget (DGP). All documents requesting budgetary modification submitted by public institutions must officially enter in electronic and physical form to the Ministry of State in the Office of Finance (SEFIN), addressed to the highest authority. The Regulations of this Law shall establish the requirements that must be met by submitted requests and the internal procedure to follow.

Without prejudice to what is established in Article 36 of the Organic Budget Law, for purposes of expediting the incorporation of external resources from Donations, Non-reimbursable Budget Support and other external sources other than Loans, provided that such resources are received in the present Fiscal Year and/or are required to regularize income and expenses made in the present year, they shall be added to the General Budget of Income and Expenses of the Republic for the present Fiscal Year, making use of the Form (FMP-05) "Budgetary Modification Document" generated by the Integrated Financial Administration System (SIAFI) which shall have the same effect as an Internal Resolution. In the case of requiring a counterpart, it must be identified within the budget of the Institution for its incorporation following the budgetary modification procedure established in this law. In the event that external resources from Donations, Non-reimbursable Budget Support and other external sources other than Loans, have been received in previous years, the procedure for searching for Budgetary Space within the institution or in other institutions must be followed for its incorporation. If Budgetary Space is not identified, budgetary incorporation may be carried out by offsetting the same amount through the reserve of disbursements received in the present fiscal year, submitting to the analysis of the Budgetary Incorporations Committee of the Ministry of State in the Office of Finance (SEFIN), created in Article 190 of this law. When it comes to Public Investment Projects, the General Directorate of Public Investments shall prepare the Technical Note on Budgetary Space; in the case of External Credit (source 21), External Donations (source 22), Budget Support (source 23) and Debt Relief-Paris Club (source 27) that do not form part of the Public Investment Projects structure, the General Directorate of Public Credit shall prepare the Technical Note together with the General Directorate of Public Investments. Donations received in kind by the different public institutions are exempt from the preparation of Technical Note or search for space.

In order to make effective use of external funds from Loans, public institutions must review within their budget the execution level and will identify based on prioritization, the transfers of required budgetary space, and must submit to the Ministry of State in the Office of Finance (SEFIN), the request for budgetary modification. The Ministry of State in the Office of Finance (SEFIN) shall conduct the corresponding analyses in accordance with the fiscal policy goals defined for the present Fiscal Year and will identify the Budgetary Space in the institution that requires it and will decrease it from another, whether from the Central or Decentralized Administration, maintaining the total amount of the Budget approved by the National Congress for the Public Sector, through the Form (FMP-05) "Budgetary Modification Document", generated by the Integrated Financial Administration System (SIAFI) based on the Technical Note issued by the Budgetary Incorporations Committee of the Ministry of State in the Office of Finance (SEFIN), created in Article 190 of this law. The search for budgetary space does not apply in cases where the incorporation of external funds is related to financial applications and public investment projects approved by the Legislative Branch.

Whenever the Budgetary Modification affects the Annual Operating Plan, the information of the Integrated Financial Administration System (SIAFI); the Monthly Spending Programming (PGM), the Quarterly Spending Quota (CGT) or the Annual Plan of Purchases and Contracting (PACC), the document or documents must be readapted. In the case of modifications to the Annual Operating Plan (POA) for the creation of new products at the level of Program, Subprogram, Project and Activity/Work, and adjustments to the Strategic Institutional Plan (PEI), these must have validation through Technical Opinion issued by the Ministry of Strategic Planning, said modification request must be duly justified and sent through official letter addressed to the highest authority of the Ministry of Strategic Planning (SPE).

In order to make efficient the execution of the budget linked to operational spending and interventions performed by institutions that make up the General Budget of Income and Expenses of the Republic within the framework of compliance with the Annual Operating Plan (POA) and with the purpose of expediting efforts related to budgetary operations, without prejudice to what is established in Article 37 of the Organic Budget Law, 24 of the Technical Standards of the Budget Subsystem in effect and the provisions of this Law and its Regulations, public sector institutions are empowered so that through their heads may authorize transfers of budgetary credits between specific objects of the Expense Groups 20000 Non-Personal Services, 30000 Materials and Supplies, 40000 Capitalizable Assets and 50000 Transfers and Donations without Transfer Beneficiary, to create or expand allocations of Expense Group 40000 Capitalizable Assets; including allocations marked within the Poverty Reduction Strategy (ERP). However, to effect transfers affecting project structure, the Executing Units must submit to the Highest Authority of the Ministry of State in the Office of Finance (SEFIN), with a copy to the General Directorate of Public Investments, the corresponding request, using the procedure established in Article 237 of this Law and its Regulations. This provision does not apply to budgetary modifications between different projects financed with external funds, it only applies within the same project.

The Ministry of State in the Office of Finance (SEFIN) is authorized to conduct the necessary budgetary and financial operations in the General Budget of Income and Expenses of the Republic 2025, with the purpose of addressing the priorities of the Government of the Republic with prior opinion from the Ministry of State in the Office of Strategic Planning (SPE). The General Directorate of Macro-Fiscal Policy (DGPMF) shall coordinate the opinion with the Budgetary Incorporations Committee established in Article 190 of this Law, only in cases that correspond to transfers of capital expenses to current expenses. In the case of budgetary and financial transfers to address emergencies from natural and non-natural disasters, the Ministry of State in the Office of Finance (SEFIN) is authorized to manage, redirect and allocate the budgetary and financial resources identified in the General Budget of Income and Expenses of the Republic 2025, with the purpose of allocating such resources to public sector institutions that conduct efforts related to reconstruction and rehabilitation of infrastructure in public or private domain and humanitarian care at the national level that were affected by the passage of storms, hurricanes or any other natural catastrophe or in cases of non-natural events and other interventions related to the care of emergencies decreed by the President of the Republic in Cabinet; likewise, within this framework may conduct efforts with external resources from credit and non-reimbursable support, and must perform the necessary budgetary and financial operations to address the declared emergencies, these funds must be executed in accordance with applicable current laws or international agreements. For the purpose of identifying and making visible the budget of the actions to be performed in the cases described above, the institutions that will execute such resources must create a programmatic category at the activity or work level in the Integrated Financial Administration System (SIAFI) in accordance with the standards and procedures established by the Organic Budget Law, the Technical Standards of the Budget Subsystem and other applicable current laws for budgetary modifications, said structures shall be named as follows: When it comes to natural catastrophes the activity or work shall be named: Management for the care of natural disasters; and in case of being for various non-natural emergencies the activity or work shall be named: Management for the care of various non-natural emergencies.

In order to operationalize budgetary and financial transfers between institutions of the Central and Decentralized Sector, authorized by the President of the Republic through Executive Agreement and based on what is established in Article 37 numeral 2 of the Organic Budget Law and Article 23 of the Technical Standards of the Budget Subsystem, the Ministry of State in the Office of Finance (SEFIN) is authorized to execute the necessary budgetary and financial operations and in accordance with the budgetary availability of the institution that will provide the financing.

With the objective of guaranteeing and optimizing the resources allocated to the Ministry of State in the Office of Health (SESAL) for payment of transfers to Decentralized health service managers, authorization is granted to conduct budgetary modifications from one transfer beneficiary to another, solely and exclusively at the first level of care (departmental regions). The transfer of one beneficiary (Manager of the First and Second Level of Care) may be decreased in cases where the provision of services with SESAL is rescinded or the agreement is repealed, to transfer the resources to expense objects of any kind and Executing Units that correspond.

The Public Institutes of Foresight and Social Security, prior to any modification in the structure of benefits to active members, pensioners, and retirees of their systems, including changes in payment frequency and increases in pension amounts, must obtain authorization from the National Commission of Banks and Insurance (CNBS), following submission of the request together with the actuarial technical study that supports the financial capacity of the Institute. Likewise, the revaluation of pensions may not exceed the annual inflation rate and for its approval, the Institution must have budgetary and financial capacity, supported by the actuarial technical study.

All State Secretariats, Decentralized and Deconcentrated Institutions, must register in the Integrated Financial Administration System (SIAFI) the readjustments to their Annual Operating Plan (POA) after the opening of the system and conclude with the same within a maximum period of ten (10) business days. The readjustment of the POA shall be validated by the Secretariat of Strategic Planning to ensure its consistency with the value chain matrices approved in the Formulation. The Annual Plan of Purchases and Contracts (PACC) must be adjusted as a prerequisite requirement for the allocation of external resource quotas and the national counterpart. Readjustments to the PACC must have prior authorization from the Secretariat of Transparency and Fight Against Corruption through the Normative Office of Contracting and Acquisitions of the State (ONCAE), as rector in matters of purchases and contracts of the State. In the case of programs and projects financed with external funds, they must make budgetary transfers between projects within the institution, according to the execution programming, as well as readjustments to the Annual Operating Plan (POA) and records in the module of the External Financing Project Executing Unit (UEPEX) of the Integrated Financial Administration System (SIAFI), for financial monitoring, during the same established time period.

Any modification made to the Programmatic Structures by State Secretariats, Autonomous Institutions, and Deconcentrated Organs or Entities must be sent with proper justification to the Directorate of Institutional Planning of the Secretariat of Strategic Planning, for its review and validation as a prerequisite requirement for authorization by the State Secretariat in the Office of Finance (SEFIN). The Secretariat of Strategic Planning together with the State Secretariat in the Office of Finance (SEFIN) may recommend adjustments in the Programmatic Structures already in existence for better planning. MODIFICATIONS OF PROGRAMS AND PROJECTS

Modifications between investment categories and components, extensions of project execution closing dates and disbursement periods, regardless of their source of financing, must have prior Technical Opinion from the General Directorate of Public Investments (DGIP) of the State Secretariat in the Office of Finance (SEFIN).

Extensions, project execution closing dates and disbursement periods, regardless of the source of financing, must have the Technical Opinion of the General Directorate of Public Investments of the State Secretariat in the Office of Finance (SEFIN). For projects with external financing, the General Directorate of Public Credit will manage before international organizations, within the framework of the executed agreement, the deadline extensions based on the Technical Opinion described in the previous paragraph. In the case of projects financed with funds from the National Treasury and Own Funds, the State Secretariat in the Office of Finance (SEFIN) through its highest authority shall notify directly to the Executing Institution, the applicability or inapplicability of the request for deadline extension through official letter, attaching the Technical Opinion issued by the General Directorate of Public Investments (DGIP). Prior to the issuance of the aforementioned Opinion, regardless of the source of financing, it is a mandatory requirement for the requesting institution to present to the General Directorate of Public Investments (DGIP) the following:

• 1)

  Analysis by the Executing Unit showing the Scenarios with project extension (Times: Maximum, Medium, and Minimum) and Scenario without project extension;

• 2)

  Report of cumulative physical and financial execution of the project;

• 3)

  Reprogramming of activities that include costs per activity, and in the project closing stage must contemplate only administrative and accounting personnel;

• 4)

  Demonstrate that administrative expenses do not exceed ten (10%) with respect to the total investment;

• 5)

  Have seventy-five (75%) of committed resources (regardless of the Source of Financing) according to the executed contract of the total amount of the project (according to the amount established in the Priority Note and/or Amendments). Actions carried out by Executing Units to advance acquisition processes up to the adjudication stage may be considered as part of the commitment, subject to contract signature until the deadline extension is approved and the financial organization does not object; and,

• 6)

  Reasoned justification of the deadline extension request. The deadline extension request must be submitted to the State Secretariat in the Office of Finance (SEFIN), three (3) months in advance of the disbursement deadline.

The State Secretariat in the Office of Finance (SEFIN) is authorized through the General Directorate of Public Credit (DGCP) during the present fiscal year to request before financial organizations, a deadline extension, prior to the request of the Executing Unit, to complete its financial closing process; this rule is applicable only to those operations whose closing deadline expired in previous years. Likewise, SEFIN is authorized through the corresponding Directorate, to request before the Inter-American Development Bank (IDB), the extension of the execution deadline of the loan contract No. 4942/BL-HO "Digital Transformation Project for Greater Competitiveness" until July 30, 2028.

Modifications between investment categories and components, regardless of the source of financing, must have prior Technical Opinion from the General Directorate of Public Investments (DGIP), which shall be sent to the executing unit of the project. For projects with external financing, the General Directorate of Public Credit will manage before international organizations, the non-objection of the change between Investment Categories and Components within the framework of the executed agreement, based on the Technical Opinion described in the previous paragraph. It is a mandatory requirement that the Executing Unit present to the General Directorate of Public Investments (DGIP) the following information:

• 1)

  Approved financing and proposed modification by investment category/component;

• 2)

  Committed resources and project availabilities by investment category/component;

• 3)

  Report of cumulative physical and financial execution of the project; and,

• 4)

  Detailed justification of the Opinion request between Investment Category, both for decreases and increases. MODIFICATIONS OF PERSONNEL

Modifications to the position structure under Civil Service Regime and Special Laws of institutions of the Central Administration and Deconcentrated entities must be opined upon by the National Civil Service Administration (ANSEC); the State Secretariat in the Office of Finance (SEFIN) must confirm budgetary availability through Internal Resolution of the General Directorate of Budget (DGP); these modifications must be financed with the budget approved to each Institution. The only exception to this provision is modifications opined upon by the National Civil Service Administration (ANSEC) that do not present additional financial impact and that maintain the same group and level of the position, and must send to the State Secretariat in the Office of Finance (SEFIN), through the General Directorate of Budget (DGP), a copy of the Technical Opinion issued and the Itemized Attachment of Salaries of the institution properly updated.

All modifications to the position structure carried out by institutions under the Civil Service regime, regardless of whether they present or not financial impact, must be registered in a mandatory manner in the Integrated System of Administration of Human Resources (SIARH) during the execution of the fiscal year in which the change is authorized, or at the latest, in the opening process of the following year, during the period of thirty (30) days prior to initiating execution.

Modifications to the position structure of Decentralized Institutions must be authorized by their Superior Bodies based on Special Laws and the same must not have budgetary effect. In case they do, they must have availability within their budget and send the authorization request to the State Secretariat in the Office of Finance (SEFIN) prior to its execution. The request must include the authorization of the Superior Body of the Decentralized Institution. Once all information is validated, the State Secretariat in the Office of Finance (SEFIN), through the General Directorate of Budget (DGP), shall proceed to issue the corresponding Internal Resolution.

The reassignment of functions and renaming of positions is a matter of administrative character of each Decentralized institution, therefore it is the exclusive responsibility of the institutional authority to carry out these actions, which must have prior authorization from the highest decision-making body, ensuring no duplication of functions in key positions. Reassignments of functions and renamings must not imply changes in the amount of the position. Decentralized Institutions that carry out the administrative actions described above, must make the adjustments in the System of Registry and Control of Public Employees (SIREP), considering the current legal regulations. In the case of modifications to the position structure in institutions of the Public Financial Sector, they must be authorized by their Superior Bodies based on Special Laws and must update the Itemized Attachment.

The modifications of the Central Administration, Deconcentrated and Decentralized that are authorized, must be updated in the Itemized Attachment of Salaries and Wages or its equivalent. If any modification of position structure related to current or to-be-created positions is in process, while it has not been finalized and applied in the Itemized Attachment of Salaries and Wages of the Institution, the positions may not be filled, therefore the effectiveness of the appointment shall take effect at a later date to the conclusion of the process. Once the resolution authorizing the modification to the position structure is issued, if the administrative act of the personnel action is not concluded in the same fiscal year, the process may continue in the opening of the following year, using the resolution issued by the State Secretariat in the Office of Finance (SEFIN) in the previous fiscal year. If there is no financing in the corresponding budgetary structures, the Institution must request the modification of the budgetary impact for the present fiscal year to the State Secretariat in the Office of Finance (SEFIN). The violation of this article shall be sanctioned in accordance with the provisions of Article 4 of this law.

During the last quarter of the year, no requests for modification of position structure, including salaries in the different Public Institutions shall be received or authorized to be effective within said quarter, due to the formulation, submission, and approval of the General Budget Project of Income and Expenses of the Republic for the following Fiscal Year. Exempt are the procedures that were initiated in the previous quarters and are pending resolution and in which the effectiveness of the position structure modifications shall be at the latest September 30, 2025. CHAPTER VI MONITORING, FOLLOW-UP AND EVALUATION

The Secretariat of Strategic Planning (SPE), is responsible for providing technical assistance on Institutional Strategic Planning to all State Secretariats, Autonomous Institutions, and Deconcentrated Organs or Entities, and for conducting the validation of Institutional Strategic Plans (PEI) and Annual Operating Plans (POA), through Opinion issued by the Directorate of Institutional Planning of that State Secretariat. The Secretariat of Strategic Planning (SPE), shall issue the corresponding instruments to provide the necessary directives to institutions in matters of Planning. All State Secretariats, Autonomous Institutions, and Deconcentrated Organs or Entities in case they carry out updates to their Institutional Strategic Plan (PEI) must send it to the Secretariat of Strategic Planning (SPE) for its review and validation before April 30, 2025.

The Secretariat of Strategic Planning through the Directorate of Economic and Social Studies, shall carry out the monitoring of strategic planning, on the level of progress of short, medium, and long-term results, defined in the strategic planning instruments. To this end, it shall prepare an annual report on the progress of global results and the established indicators which it shall send to the Presidency of the Republic and publish on its website.

For the proper monitoring of strategic planning, all Secretariats of State, Autonomous Institutions, and Deconcentrated Bodies or Entities shall submit during the first fifteen (15) days of the month of April of the current year to the Secretariat of Strategic Planning a report on progress of their institutional strategic plans with their respective verification methods, by means of which the Secretariat of Strategic Planning through the General Directorate of Planning (DGP) shall conduct an evaluation report of the same in order to improve the implementation of said plans.

The Directorate of Management by Results (DIGER), as a Deconcentrated Entity of the Presidency of the Republic, shall carry out the monitoring and evaluation process of public management to guarantee effectiveness in the formulation and execution of policies, regulations, projects and other management instruments by results, in accordance with the public value chain constructed by DIGER in the Matrix of Results Consistency (MCR), which shall measure the degree of progress of governmental management against the goals established at the institutional, sectoral, and presidential levels. This Institution shall issue the corresponding instruments to provide the necessary directives to institutions in matters of Management by Results. The progress of governmental management against the goals established at the institutional, sectoral, and presidential levels must be recorded in the System of Public Management by Results and Transparency (SIGPRET), in accordance with the guidelines established by DIGER, and the results shall be published annually through its public version on the website of the Presidency of the Republic and the SIGPRET Portal, prior approval by the Presidency of the Republic in Council of Secretaries of State, for its effectiveness. Furthermore, DIGER is the governing body of digital transformation and government in the public sector, where plans and projects are formulated based on a policy for the digital transformation of the Government of the Republic.

The monitoring and evaluation of the Annual Operating Plan (POA) and Budget shall be carried out by Government institutions in accordance with the Technical Standards and Procedure Manuals of the Subsystems of Budget, Treasury, Accounting, Public Credit, and Public Investment, approved by the Secretariat of State in the Office of Finances (SEFIN). Based on the information recorded in the Integrated Financial Administration System (SIAFI), the monitoring and evaluation of financial information shall be recorded no later than the last day of each month and of physical information, the first five (5) business days after the month has ended. The institutions of Central Government, Deconcentrated and Decentralized, must submit to the Secretariat of State in the Office of Finances (SEFIN), within the first fifteen (15) business days of the month following the end of the quarter, a report in digital format with the physical and financial execution of the Annual Operating Plan and the Budget, which must also be available on the WEB sites of each Institution. Likewise, institutions must take into consideration the information contained in the National System of Public Investment of Honduras (SNIPH); System of Administration of Human Resources (SIARH); System of Registration of Public Employees (SIREP); System of Teaching Administration (SAD); and System of Management and Administration of Debt (SIGADE), for the conduct of their self-evaluation. The Secretariat of State in the Office of Finances (SEFIN) shall submit to the President of the National Congress and the legislative blocs through the General Secretariat and no later than fifteen (15) business days after receiving the information from the institutions; the quarterly report containing the monitoring and evaluation of institutional budget execution, in digital and printed format. The same submission shall be made to the Secretariat of State in the Office of Strategic Planning (SPE); Superior Court of Accounts (TSC), Institute of Access to Public Information (IAIP), and the Directorate of Management by Results (DIGER). The Secretariat of State in the Office of Finances (SEFIN) shall also publish the reports on its WEB Portal, WWW.sefin.gob.hn.

The National Congress through the Ordinary Legislative Commission on Budget, jointly with representations of the legislative blocs, shall analyze the reports submitted by the Secretariat of State in the Office of Finances (SEFIN) and when necessary, shall hold Public Hearings with the institutions of Central Government, Deconcentrated and Decentralized, in order to exercise a controlling, financial and operational function. The Commission may request technical support from the Secretariat of State in the Office of the Presidency (SDP), the Secretariat of State in the Office of Finances (SEFIN), and the Superior Court of Accounts (TSC). Civil Society Organizations that have conducted oversight and social audit processes or monitoring may participate in Public Hearings to present their findings. The Ordinary Legislative Commission on Budget in coordination with the Legislative Commission on Gender Equality and the Secretariat of State in the Office of Women's Affairs, shall conduct a semi-annual monitoring of the execution of expenses in matters of gender equality through specific public hearings. For this purpose, the state agencies and entities shall be summoned to said public hearings and shall have the responsibility to prepare reports on their investment in favor of women's rights and gender equality. The Commission on Gender Equality and the Budget Commission of the National Congress shall coordinate this process with the Secretariat of State in the Office of Women's Affairs and representatives of Women's Organizations of Civil Society and at least one representative of the Municipal Roundtables that are constituted, who shall be invited in a mandatory manner by the National Congress to the public hearings for review of budget execution. The Secretariat of State in the Office of Women (SEMUJER) shall define the format and criteria for the submission of the reports referred to in the third paragraph of this article. Public hearings on gender-sensitive budgets shall be for all public institutions and shall last the time necessary for their development.

The Office of Administrator of Seized Assets (OABI) shall submit a semi-annual report to the Secretariat of State in the Office of Women's Affairs (SEMUJER) on the resources allocated to the prevention of violence and protection of women.

The Executing Units of programs and projects financed with external funds must conduct periodic audits and closing audits in accordance with the financing agreements executed, and must submit to the General Directorate of Public Credit and the General Directorate of Public Investments of the Secretariat of State in the Office of Finances (SEFIN), the results of the audits conducted on their financial statements no later than fifteen (15) days after the date of receipt thereof, for the purpose of supervising the proper use of resources from external credit. The Executing Unit of external funds is responsible for the execution, monitoring, and achievement of objectives and goals with the anticipated resources and costs. From the standpoint of budget administration, it constitutes the area of a dependency or entity with powers to acquire, contract, and cover commitments. This organizational and functional figure is established for purposes of budget execution. In its broadest acceptance, it represents the entity responsible for the administration and execution of programs, subprograms, and projects.

The institutions executing public investment projects must submit quarterly to the General Directorate of Public Investments (DGIP) with a copy to the Secretariat of Development and Monitoring of Projects and Agreements (SEDESPA), a report on evaluation of results or progress monitoring report for each project, regardless of its source of financing, in compliance with the provisions of Article 61 of the Organic Law of Budget. This report must be submitted within the first fifteen (15) days of the month following the end of the quarter to be reported, and shall contain:

• 1)

  Financial and budgetary execution in the life of the project;

• 2)

  Financial and budgetary execution of the quarter to be reported;

• 3)

  Accumulated physical progress;

• 4)

  Physical progress of the quarter;

• 5)

  Monthly budgetary programming;

• 6)

  List of contracts for Goods, Services, Supplies, works and supervision signed in the quarter;

• 7)

  Problems affecting the execution of programs and their respective follow-up actions, and 8) Any other information of relevance that is requested.

The institutions executing Social Programs (Social Investment) must submit quarterly to the General Directorate of Public Investments (DGIP), a report on evaluation of results or progress monitoring report for each Program; this report must be submitted within the first fifteen (15) days of the month following the end of the quarter, said report must contain: 1) Financial execution of the quarter to be reported 2) Accumulated physical progress in the year; 3) Physical progress of the quarter; 4) Problems affecting the execution of programs and their respective follow-up actions; 5) Any other information of relevance that is requested by DGIP.

All institutions that execute Social Investment programs must identify and mark their budgetary structures according to the strategy indicated by the General Directorate of Budget (DGP), oriented toward improving the quality of life of people and generating a positive impact on the development of communities; an activity that must be carried out by the Planning Units of Management (UPEG) of each public institution.

To conduct the monitoring and oversight of salaries and wages of employees and officials of the Institutions of Decentralized Administration and Deconcentrated Entities, the superior authority must send to the General Directorate of Budget (DGP) and the General Directorate of Decentralized Institutions of the Secretariat of State in the Office of Finances (SEFIN), the complete human resources payroll, containing the description of permanent, trusted, temporary (contract), and daily wage personnel, within ten (10) days following the expiration of each month.

For statistical and control purposes, Decentralized Institutions must send monthly the list of personnel in the formats provided to the General Directorate of Budget (DGP) and the General Directorate of Decentralized Institutions (DGID), broken down by their different categories and classified by gender. Said list must be consistent with the data entered by the Institution in the System of Registration and Control of Public Servers (SIREP).

The Secretariat of State in the Office of Finances (SEFIN), through the System of Registration and Control of Public Servers (SIREP), must submit to the Secretariat of State in the Office of Women's Affairs (SEMUJER), a report at the beginning of the year (January) and two updates thereof in the first semester (June) and at the end of the year (December) on the breakdown of the total of public servants to determine the number of officials who are in decision-making positions and intermediate management, disaggregated by sex, in view of the fact that this indicator is recorded in the National Gender Observatory-ONAG under the responsibility of the Secretariat of State in the Office of Women (SEMUJER).

Gender Budget is a democratic tool of affirmative action in the allocation of resources intended to carry out actions to close the gap of discrimination between men and women, ensuring that funds are used equitably from a gender perspective. The agencies and entities must consider the following: 1) In their Annual Operating Plan (POA) Budget, validate at the level of final and intermediate results, all those actions to reduce gender gaps and address causes of substantive inequality between men and women; and, 2) Use of disaggregated information (sex, ethnicity, age, department, municipality, among others) to prioritize interventions at the national or local level to close gaps and reduce gender inequalities. The Secretariat of State in the Office of Women's Affairs (SEMUJER) shall apply annually the index of investment in gender equality, as a mechanism for monitoring and evaluation of public management in matters of gender equality. For this purpose, State institutions must submit an annual budgetary report through the Units of Planning and Evaluation of Management (UPEGs), on their allocation and budget execution with a gender perspective. Said report must be socialized with State Institutions, Women's Organizations, and Civil Society. SEMUJER shall continue to support the Secretariat of State in the Office of Finances (SEFIN) in the implementation of the Budgetary Classifier of Substantive Equality, to comply with the international commitments assumed by the State of Honduras in matters of gender. All public institutions must submit quarterly reports to the Secretariat of State in the Office of Women's Affairs (SEMUJER), on the actions, allocation, and execution of resources in favor of equality and gender equity, in accordance with the National Policy of Women and the National Plan against Violence against Women. The reports must be submitted by the Units of Planning and Evaluation of Management (UPEGs), in coordination with the Gender Unit. State institutions must allocate from their budget a minimum of ten percent (10%) to carry out actions in favor of equality and gender justice.

Public institutions participating in the Ciudad Mujer Program must provide monthly budgetary reports to the National Program Directorate on the actions, allocation, and execution of resources, detailing at the level of expenditure object the respective execution and accompanying the necessary annexes (payrolls, contracts, invoices, among others).

The Secretariat of State in the Office of Women's Affairs (SEMUJER) shall be responsible for validating that all participating institutions of the Ciudad Mujer Program comply with their obligations in the modules corresponding to them and shall report quarterly to the Presidency of the Republic; in turn, shall submit to the Superior Court of Accounts (TSC) the report of non-compliance. For its part, the Program Directorate is authorized to request and conduct proceedings before the respective institutions.

Quarterly, the Administrative Management offices or their equivalent in the Institutions of the Central, Decentralized and Autonomous Sector, must simultaneously send to the National Company of Electrical Energy (ENEE), Honduran Telecommunications Company (HONDUTEL), National Autonomous Service of Aqueducts and Sewers (SANAA), Postal Company of Honduras (HONDUCOR) and to the General Direction of Decentralized Institutions of the State Department of Finance (SEFIN), sufficient evidence (F01 and other supporting documentation) of the budget and financial execution of the budget allocations intended for the public services provided by the aforementioned companies. In case of non-compliance with said obligations by the public institutions, and at the request of the service provider, the State Department of Finance (SEFIN) must withhold the commitment quotas as of the date of the request from those institutions that owe the service providers, until the corresponding obligations are fulfilled. The Internal Audit of each Institution must ensure compliance with this provision and communicate to the superior authority and the Superior Court of Accounts (TSC), so that they adopt the necessary measures for resolution. In case of omitting its duty, the internal audit shall be considered jointly and severally responsible in accordance with what is established in Article 119 of the Organic Law of the Budget.

The institutions, programs and projects related by their performance with services of assistance, protection and social development, must incorporate the guidelines of the Policies of Social Protection and Comprehensive Development of Early Childhood in their Institutional Strategic Plans, a public policy measure, as well as in their Annual Operating Plans and Budgets. The State Department of Strategic Planning shall be responsible for evaluating compliance with this provision, as well as the impact of the measures implemented. The State Department of Social Development shall be responsible for evaluating quarterly the fulfillment of commitments regarding assistance and social protection in favor of the vulnerable population, for which it must generate evaluation instruments. The institutions, programs and projects must submit within five (5) calendar days after the end of the quarter, a compliance report of the Policies of Social Protection and Comprehensive Development of Early Childhood.

For the purpose of complying with the provisions of Legislative Decree No. 25-2016 of April 7, 2016, published in the Official Newspaper "La Gaceta" dated May 4, 2016 and Agreement No. 288 containing its Regulations, all State institutions must submit quarterly, within the first fifteen (15) days of the month following the end of the quarter, the Matrix of Identification of Judicial Proceedings in the format designated for such purpose by the Fiscal Contingencies Unit (UCF). The information must be delivered by any available means in digital format, containing the total of Judicial claims in process and claims with final judgment. The presentation of the Matrix of Identification of Judicial Proceedings, in a format other than that established by the Fiscal Contingencies Unit (UCF), shall be considered non-compliance with this provision. The Fiscal Contingencies Unit (UCF) dependent on the State Department of Finance (SEFIN), shall establish channels of communication with all public sector institutions for the request of necessary information, while defining the technical criteria that allow the construction of a historical and standardized database for the estimation and quantification of contingent liabilities from judicial claims in accordance with the methodology for assessing fiscal risks. Institutions that omit compliance with this norm are subject to the application of what is established in Article 4 of this law.

In compliance with the Fiscal Responsibility Law, contained in Legislative Decree No. 25-2016 of April 7, 2016, published in the Official Newspaper La Gaceta dated May 4, 2016, all institutions of the Decentralized Sector must submit to the General Direction of Macro Fiscal Policy (DGPMF) of the State Department of Finance (SEFIN), within the first ten (10) days after the end of each month, the monthly report on its budget execution and trial balance in the format of the Single Plan of Accounts of the General Accounting Office of the Republic.

The Tax Administration Service (SAR) and the Honduran Customs Administration (AAH) are ordered to follow up on the Tax Compliance Management Plan (PGCT) and Post-Audit Plan (PAT), which must be prepared and sent to the Presidency of the Republic with a copy to the State Department of Finance (SEFIN) before the first twenty (20) days of the year 2025. CHAPTER VII BUDGET LIQUIDATION

All Institutions of the Centralized, Decentralized, Deconcentrated Public Administration and Constitutional Bodies, must submit to the State Department of Finance (SEFIN) through the General Treasury of the Republic (TGR), the bank statement of all accounts they maintain in the National and Foreign Financial System with the balance as of December 31, 2024, no later than ten (10) business days after the end of the Fiscal Year. In case of non-compliance with this Article, the General Treasury of the Republic (TGR) is authorized to not authorize the Commitment Quotas associated with the loading of the PGM (Monthly Spending Programming) of each institution that fails to comply with what is established in the first paragraph of this article and proceed based on what is established in Article 4 of this Law.

In order to comply with the annual liquidation of the General Budget of Income and Expenses of the Republic, the State Department of Finance (SEFIN) is authorized to use, through the "Budget Modification Form", the available balances of budget allocations of various kinds that remain at the end of the Fiscal Year, in order to carry out the budget expansions or creations that may be necessary. The available balances of the budget allocations referred to in the first paragraph of this Article must be used at the end of December, in order not to hinder the achievement of the objectives and goals established in the Annual Operating Plan and Program (POA). The State Department of Finance (SEFIN) is authorized in accordance with Law, to carry out the necessary budgetary and financial operations through transfers and/or adjustments, to adjust the budget during fiscal year 2025 for the purpose of utilizing remaining resources that can be redirected to finance programs for economic reactivation, job creation, social protection, debt service payments, deficit in Itemized Annexes of Salaries and Wages and their collateral and any other unavoidable and necessary expense, in order that no unfulfilled commitments remain for the next fiscal year.

The Municipalities, no later than January 31, 2026, must present to the General Accounting Office of the Republic their Financial Statements, annexes to the Financial Statements and Budget Liquidation for their consolidation, in accordance with the current Accounting Closing Standards issued by the Accounting Office.

The State Department of Finance (SEFIN) is authorized to, during budget closing operations, eliminate the income approved as source 21 for Obtaining Sectoral Loans from the External Sector for the Long Term and/or Obtaining Loans from the External Sector for the Long Term that have not been accrued or received during fiscal year 2025. CHAPTER VIII MUNICIPALITIES COMPLEMENTARY STANDARDS

The different resources that Municipalities receive, whatever their source of origin, are considered fungible in accordance with the provisions of Articles 12 and 13 of the Organic Law of the Budget.

The State Department of Governance, Justice and Decentralization (SGJD), shall withhold from the transfers granted to the Municipalities or to the Port Municipalities, the quotas in favor of:

• 1)

  Fire Department. One hundred percent (100%) of the amounts owed by the municipalities collecting the Fire Service rate in the Municipalities where this service exists, provided that the firefighters have exhausted the conciliation process to sign payment plans between both institutions. After the agreement is signed, non-payment of one of the payment quotas shall result in the application of the withholding of the total amount owed from the following transfer, with balances reconciled by both institutions;

• 2)

  Association of Municipalities of Honduras (AMHON). Statutory quota calculated on one percent (1%) of real municipal current income, contained in the Annual Cumulative Accountability Report of the year prior to the approval of the municipal budget;

• 3)

  Municipal Associations. The amounts corresponding to statutory fees or contributions from Municipalities. Prior to the application of the withholding, these organizations must present the document or other requirements established in the DFM that support collection and budget execution in the Accountability Submission Subsystem for Municipal Associations;

• 4)

  Transfer of one percent (1%) which is in turn deducted from the transfer to Municipalities in accordance with Article 91 of the Law of Municipalities, contained in Decree No. 134-90 of October 29, 1990. The Municipalities benefiting from Decree No. 72-86 dated May 20, 1986 (4% or 8% of Port Municipalities), must contribute equally with one percent (1%) of their annual transfers, with the same purpose established in said article. The percentage must be credited to the Superior Court of Accounts (TSC) through Internal Resolution of the State Department of Finance (SEFIN) and using the automatic expansion procedure in the Integrated Financial Administration System (SIAFI), as disbursements to municipalities are made; and,

• 5)

  The percentage corresponding to the local contribution of municipalities benefiting from projects financed with resources from loans and donations entered into with international organizations and amounts owed for non-compliance with Agreements and Contracts entered into with the State and financed with national funds, upon request of the State Department of Community Development, Water and Sanitation (SEDECOAS) and the National Program for Rural, Urban and Sustainable Development (PRONADERS). The withholding shall be made prior to notification to the municipalities that fail to comply with payment of the municipal counterpart, agreements and contracts entered into with the State. The State Department of Governance, Justice and Decentralization (SGJD) is ordered to deduct the amounts owed by the municipalities to the National Company of Electrical Energy (ENEE), National Service of Aqueducts and Sewers (SANAA), Honduran Telecommunications Company (HONDUTEL), from the budget transferred to it, unless they have entered into a payment agreement, which shall not exceed this fiscal year. For compliance with the preceding paragraph, all public companies referred to above, must notify the State Department of Governance, Justice and Decentralization (SGJD), of the amounts that Municipalities owe. These amounts must be reconciled between the company and the municipality before proceeding with the deduction requested by the service provider.

The Superior Court of Accounts (TSC) is ordered to proceed with the corresponding audits of all those municipalities that do not receive municipal transfers, as a result of not having supporting documentation to carry out budget liquidations. In the audit process, the State Department of Governance, Justice and Decentralization (SGJD) must generate the F01 (Document of Expense Execution in the SIAFI) so that the State Department of Finance (SEFIN) transfers the corresponding resources in accordance with Law.

Municipalities may commit up to thirty percent (30%) of the transfer funds for the payment of loan quotas, solely to finance works whose investment is recoverable and the debt does not exceed the Government period, otherwise it must be approved by the National Congress.

The Central Government shall make transfers to the Municipalities in accordance with financial availability, to ensure the payment and execution of programs and investment projects in Social, economic and security matters, provided that they comply with the required administrative and procedural requirements. Municipalities must support the initiatives of the Presidency of the Republic aimed at universal connectivity, implementing community technology centers that promote human development.

The courts and tribunals of the Republic may only attach thirty percent (30%) of the monthly transfer that municipalities receive to satisfy the basic needs of the people, without affecting the one percent (1%) corresponding to the Fund for Municipal Transparency and the one percent (1%) corresponding to the Association of Municipalities of Honduras (AMHON).

In compliance with the Fiscal Responsibility Law, contained in Decree 25-2016 of April 7, 2016, published in the Official Gazette "La Gaceta" dated May 4, 2016 and its Regulations, Municipalities must report to the State Secretary in the Ministry of Finance (SEFIN), through the General Directorate of Decentralized Institutions (DGID), thirty (30) days after the end of the quarter and in digital form: 1) The list of personnel that was requested by means of Circular DGID/SEFIN No. 001-2020; and, 2) The Annual Investment Plan, in order to know the projects being executed. The information shall be incorporated into the quarterly report on Municipalities, under the responsibility of the General Directorate of Decentralized Institutions (DGID), which must also prepare the Financial Account of Municipalities, following the methodology used for the Financial Account of the Non-Financial Public Sector (SPNF). Similarly, Municipalities that have implemented the Integrated Municipal Administration System (SAMI) with the support of the State Secretary in the Ministry of Finance (SEFIN), must report figures on budgetary execution.

The State Secretary in the Offices of Governance, Justice and Decentralization (SGJD), shall transfer by monthly and advance installments to Municipalities, through the Central Bank of Honduras (BCH), the amounts corresponding to Capital Contribution in accordance with what is set forth in the General Budget of Income and Expenses for the current Fiscal Year; as well as what corresponds to Port municipalities, prior to the accreditation of administrative and accounting documents in physical and electronic form in Approved status, before the State Secretary in the Offices of Governance, Justice and Decentralization (SGJD), in the following manner: Municipalities registered in the Integrated Municipal Administration System (SAMI) through this system and the remaining municipalities through the Accounting Reporting Subsystem for Local Governments (RENDICIONGL). They must also present, prior to the transfer management, the following original documents:

• 1)

  Municipalities that are in the process of drafting or updating the Municipal Development Plan for Results-Based Management with Territorial Ordering focus, the progress certificate, extended semi-annually by the General Directorate of Planning and Local Governance (DGPGL) of the State Secretary in the Offices of Governance, Justice and Decentralization (SGJD), which shall be reviewed in accordance with the activity schedule that each municipality presents for the development thereof;

• 2)

  Municipalities that have already concluded the Municipal Development Planning process for Results-Based Management with Territorial Ordering focus, must present the certification and registration certificate for Territorial Ordering Norms (RENOT) issued by the State Secretary of Strategic Planning and the certificate extended to the Municipality by the General Directorate of Planning and Local Governance (DGPGL) of the State Secretary in the Offices of Governance, Justice and Decentralization (SGJD). The entire Planning process must comply with the Regulatory Framework for Municipal Development Planning of Results-Based Management;

• 3)

  Municipalities that, on their own account, in a professional and technical manner, have prepared their Municipal Development Plans for Results-Based Management with Territorial Ordering focus, duly approved by the Corporation in plenary session and the respective Open Cabildo, shall be issued the certification thereof, in accordance with the established procedure;

• 4)

  Property Tax Plan for the current fiscal year, with its respective Certification of Approved Minute Point by the Municipal Corporation;

• 5)

  Present the progress and the certification of update from the State Secretary of Strategic Planning in the drafting of the Municipal Emergency Plan on various topics; and,

• 6)

  Annual budget of income and expenses for the current fiscal year, in physical form, generated from the Budget Subsystem, approved in the Integrated Municipal Administration System (SAMI), including Municipal Investment Plan and Payroll Book. Municipalities not registered with SAMI must accredit this requirement through the Accounting Reporting Subsystem for Local Governments, in approved status. For the issuance of the Final Opinion prior to transfer management, the aforementioned documents must be presented by January thirty-first (31) of the current year, as the maximum date;

• 7)

  Quarterly Report on physical and financial progress of projects and executed expenses, corresponding to the first, second and third quarter, no later than thirty (30) days after completion thereof, and the fourth quarter by maximum date of January thirty-first (31) of the following year, according to the guidelines of the Municipal Strengthening Directorate (DFM). All Municipalities that already have a Master Development Plan duly approved and whose transfer amount received from the Central Government is less than seven percent (7%) of their annual current income; shall only present the annual accounting report to the Superior Court of Accounts (TSC) and shall be exempted from the presentation of quarterly accounting reports to the General Directorate for Local Strengthening of the State Secretary in the Offices of Governance, Justice and Decentralization (SGJD);

• 8)

  Cumulative Quarterly Accounting Report in its fourteen (14) forms, electronic and physical, no later than thirty (30) days after completion thereof, for the first, second and third quarter; and the fourth quarter by maximum date of January 31, 2026; In the framework of the transition and transfer of command process, the outgoing Municipal Corporations are obligated to prepare and approve the Accounting Report for the 25 days corresponding to their management in January of the current year, and the records must remain in books, municipal administrative systems and in SAMI for those integrated, duly approved by the Municipal Corporation and exported/approved in RENDICIONGL no later than January 25 of the current year, likewise, present payroll of municipal employees, with their respective full names, identity numbers, salaries and wages and dates of entry to work, non-compliance with this provision shall subject the municipality to the corresponding sanctions in accordance with law; The amounts received by Municipalities as transfers from the Central Government must be liquidated under the terms and procedures established in this article. Other income shall be liquidated in accordance with the Applicable Legal Framework.

All administrative financial documents referred to in the preceding article must be presented to the Municipal Strengthening Directorate (DFM) of the State Secretary in the Offices of Governance, Justice and Decentralization (SGJD), in electronic and physical version in original document, attaching the certification of the approved minute point of the Municipal Corporation. The delivery date shall be the one appearing on the DFM received stamp. The administrative financial documents provided for in items 6) and 7) of the preceding Article shall be reviewed by the DFM of the State Secretary in the Offices of Governance, Justice and Decentralization (SGJD), which within a period of thirty (30) business days shall issue an opinion and notify the municipal corporation of the recommendations for it to make the necessary corrections (updates, implementations, modifications or extensions) and shall return them to the same directorate within a maximum period of thirty (30) days, counted from receipt of the notification. In case of non-compliance by Municipalities, the Municipal Strengthening Directorate shall not issue the final opinion and as a consequence, the transfer shall not be made. The National Banking and Insurance Commission (CNBS) must send thirty (30) days after the end of the quarter, in digital form, to the DFM of the State Secretary in the Offices of Governance, Justice and Decentralization (SGJD); to the General Directorate of Public Credit and to the General Directorate of Decentralized Institutions of the State Secretary in the Ministry of Finance (SEFIN), the detailed records of the loans that municipalities have with banking and credit entities in the country, in order to verify the thirty percent (30%) percentage authorized by article 287 of this law, to commit transfer funds to payments of bank loans. The National Banking and Insurance Commission (CNBS) shall send the information on the registration of municipal loans at the end of each month or upon request of the State Secretary in the Offices of Governance, Justice and Decentralization and/or State Secretary in the Ministry of Finance (SEFIN).

Any debit made by the Central Bank of Honduras (BCH) to the accounts of the General Treasury of the Republic (TGR), for payments in accordance with the provisions of article 285 of this Law, shall be applied to the transfers set forth in this General Budget of Income and Expenses of the Republic.

For purposes of contingent debt control, Municipalities are obligated to present to the State Secretary in the Ministry of Finance (SEFIN), through the General Directorate of Public Credit (DGCP), the information related to their credit operations, such as: Loan agreements, issuance of securities, disbursements and debt service payments, which must be sent via electronic mail (dgcp@sefin.gob.hn) or other means, no later than thirty (30) days after the operation. Likewise, they must send the budgetary and accounting information required by the General Directorate of Budget (DGP), General Directorate of Decentralized Institutions (DGID), the General Comptroller of the Republic (CGR) or the Fiscal Contingency Unit (UCF) belonging to the State Secretary in the Ministry of Finance (SEFIN).

In compliance with the Fiscal Responsibility Law contained in Decree 25-2016 of April 7, 2016, published in the Official Gazette "La Gaceta" dated May 4, 2016, Municipalities that have implemented the Integrated Municipal Administration System (SAMI) with the support of the State Secretary in the Ministry of Finance (SEFIN), must report budgetary execution figures.

Every taxpayer obligor, whether natural or legal person, must present municipal clearance at their place of domicile. Institutions must request from taxpayer obligors, whether natural or legal person, the presentation of municipal clearance where they pay taxes, for the registration of production and real property. The financial system is excepted. Registration of real property inscription and other intervening parties shall not proceed, unless municipal clearance is presented by both the seller and the buyer. When real property is sold, a mortgage is constituted or a property transfer instrument is subscribed; donation or otherwise, the real property object of the contract must be clear of municipal obligations.

Municipalities and/or Joint Municipal Associations are authorized to purchase heavy machinery for their social and community use, provided that it does not exceed a depreciation of eight (8) years.

Municipal Governments, within the framework of their attributions, shall prepare the Municipal Emergency Plan to prevent emergency situations due to force majeure or act of God. The Permanent Contingencies Commission (COPECO) shall provide technical assistance to Municipal Governments, shall certify such plans and shall coordinate with the Association of Municipalities of Honduras (AMHON), and the State Secretary in the Offices of Governance, Justice and Decentralization (SGJD) the definition of a methodology for the formulation and articulation of the plans, in accordance with local reality and government priorities. The formulation of the plans shall be gradual, in accordance with COPECO's capacity to provide technical assistance and the availability of resources of the municipalities. COPECO, AMHON, and SGJD shall define an annual implementation plan through which they must update existing plans and formulate new ones. This provision shall not be a requirement to receive transfers, since the preparation of these Plans shall be gradual and in accordance with the capacity of each Municipality and the coordination carried out between COPECO, SGJD and AMHON.

All Municipalities, Joint Municipal Associations and Municipal Enterprises must present to the Superior Court of Accounts (TSC) no later than April 30, 2025, the following:

• 1)

  The Municipalities: a. Annual accounting report in physical and electronic form, generated from the Integrated Municipal Administration System (SAMI); and, b. In case they are not registered with the Integrated Municipal Administration System (SAMI), present their annual accounting report in physical and electronic form, generated from the RENDICIONGL Subsystem. Additionally, they must attach the certification of the Approved Minute Point of the Municipal Corporation and a complete copy of the minutes book showing that the Municipal Corporation has approved the Accounting Report. Similarly, all public institutions, private institutions and international organizations that transfer funds to Municipalities, as subsidies, bequests and donations, are obligated to provide this information to the Superior Court of Accounts (TSC), for the purpose of identifying the source of financing, use and destination of the funds.

• 2)

  The Joint Municipal Associations: The annual accumulated accounting report, in physical and electronic form, generated from the Joint Municipal Association Accounting Subsystem and the Certification of the Approved Minute Point by the Board of Directors and a complete copy of the minutes book. Municipalities are prohibited from transferring funds to joint municipal associations that do not present their accounting report in the RMANCOMUNIDAD Subsystem. The Directorate of Regulation, Registration and Monitoring of Civil Associations (DIRRSAC) of the State Secretary in the Offices of Governance, Justice and Decentralization (SGJD), is obligated to request joint municipal associations to present their accounting reports in the RMANCOMUNIDAD Subsystem.

• 3)

  Municipal Enterprises: Financial Statements, Certification of the Approved Minute Point by the Board of Directors and a complete copy of the minutes book.

Within the framework of the National Planning System for Honduras Development (SNPDH) with the objective of monitoring municipal public investment and its alignment to the Government's Strategic Plan (PEG), the State Secretary in the Offices of Governance, Justice and Decentralization (SGJD) is ordered, through the Municipal Strengthening Directorate (DFM) to send to the Directorates of Development and Territorial Ordering of the State Secretary of Strategic Planning, the following documents:

• 1)

  Annual Municipal Investment Plan (PIMA);

• 2)

  The quarterly reports on physical progress of projects with their geographic location and executed expenses already approved by the Municipal Strengthening Directorate (DFM) of the State Secretary in the Offices of Governance, Justice and Decentralization (SGJD); and,

• 3)

  Annual Operating Plan (POA) for the respective monitoring and follow-up of the 298 Municipalities of Honduras.

For the present Fiscal Year, Decree No. 368-2005 is ordered suspended, concerning additional monetary transfers in favor of the Municipalities of Central District and San Pedro Sula.

In compliance with the Governing Framework for Institutional Internal Control of Public Resources (MARCI), municipalities must conduct self-evaluation exercises of institutional internal control and issue compliance plans for the recommendations; furthermore, they must complement them with independent evaluations of internal control that are conducted.

The State Secretary in the Ministry of Finance (SEFIN) is authorized to assign in the budget of the State Secretary in the Offices of Governance, Justice and Decentralization (SGJD) an amount of up to FOUR HUNDRED NINETY-EIGHT MILLION FIVE HUNDRED NINETY-FIVE THOUSAND TWO HUNDRED SIXTY-FIVE LEMPIRAS EXACTLY (L498,595,265.00) resources that shall be used in the present fiscal year, solely and exclusively for the execution of projects for reconstruction, maintenance and repair of school infrastructure in the two hundred ninety-eight (298) municipalities of the country and the financing of operating expenses related to project supervision. Likewise, it is authorized to conduct the budgetary and financial operations that are necessary and related to this allocation. The State Secretary in the Offices of Governance, Justice and Decentralization (SJGD) shall transfer financial resources to Municipal Governments, under the concept of capital transfers for the attention of the National School Infrastructure Intervention Program, said program is in charge of the General Directorate of School Construction and Real Property (DIGECEBI) attached to the State Secretary in the Ministry of Education (SEDUC); DIGECEBI shall provide support to municipalities in the processes of formulation and feasibility of projects related to construction, reconstruction, rehabilitation, reinforcement, maintenance and relocation of government educational centers, to facilitate dignified access to children, adolescents and young students to pre-basic, basic and secondary education, and thus guarantee compliance with the planning and design manual for educational centers approved by Executive Decree No. PCM 34-2023, published in the Official Gazette La Gaceta, edition No. 36,297 dated August 2, 2023. Municipal Corporations that receive the transfers are responsible for presenting in a timely manner to the State Secretary in the Offices of Governance, Justice and Decentralization (SJGD), the Financial Reports of the Projects on the resources received in 2023, 2024 and 2025.

In compliance with what is established by articles 4, 5 and 47 numeral 5 of the Organic Law of the Budget, the Powers of the State, Constitutional Bodies and all institutions of the Central Government, State Secretaries, Deconcentrated Entities, Decentralized Institutions and Public Enterprises, must detail the structures of their budget and Operating Plan to be executed with the resources allocated in the present fiscal year and operate in the Integrated Financial Administration System (SIAFI), with the exceptions provided by law.

The Institutions of the Decentralized Public Sector that are not operating in SIAFI shall coordinate with the General Directorate of Decentralized Institutions (DGID) the actions for system implementation, monitoring compliance with the scheduled activities and dates, with the assistance of the Governing Bodies of each Subsystem and the support of the Technical Units. The authorities must approve and monitor the implementation of the System in their respective institutions. In the event of having an administrative, financial and accounting system, they must technically design and develop an interface with the Integrated Financial Administration System (SIAFI), responding to the needs for integration, consistency and reliability; and must register the execution of income and expenditure, identifying in the latter, the natural or legal person that provides services and/or goods to the Institutions.

The implementation of the Integrated Financial Administration System (SIAFI) must be gradual and with accompaniment in the process review by the Modernization Unit (UDEM) of the State Secretariat in the Office of Finance (SEFIN). Non-compliance with the implementation of the System shall result in the measure of not transferring resources from the National Treasury source and/or the restriction of budget modifications. The State Secretariat in the Office of Finance (SEFIN) is ordered to, through the General Directorate of Decentralized Institutions (DGID), develop a training process for municipalities in order to effectively comply with budgetary regulations for the present fiscal year. To carry out said process, the DGID shall coordinate with the rectors of the different subsystems and the Modernization Unit.

All Institutions of the Public Sector that finance their budget with source 11 National Treasury, once the General Budget of Income and Expenditure of the Republic for Fiscal Year 2025 comes into effect, must submit their original document of Monthly Expenditure Programming (PGM) in SIAFI through their Executing Units, based on the planning of their expenses from January to December, for which institutions must complete the readjustments to the Annual Operational Plan (POA) in the Integrated Financial Administration System (SIAFI), in Authorized status. The State Secretariat in the Office of Finance (SEFIN) may decrease the assigned amounts of Quarterly Spending Quota, as well as decrease the pending budget to be committed, when the results obtained are not in accordance with what was programmed, according to the Quarterly Monitoring and Evaluation reports and provided that such decrease does not affect the development of priority programs and projects.

For compliance with the Budget Transparency Indicators and Accountability, the State Secretariat in the Office of Finance (SEFIN) shall make available to the population in digital and printed form the following documents:

• 1)

  Budget Policy Guidelines;

• 2)

  Institutional Ceilings;

• 3)

  Medium-Term Macrofiscal Framework;

• 4)

  Draft of the General Budget of Income and Expenditure of the Republic;

• 5)

  Supporting Budget Documents of the Draft General Budget established in Article 23 of the Organic Budget Law such as: Statement of Reasons or a similar document, among others;

• 6)

  Approved Budget and Citizen Budget;

• 7)

  Quarterly Reports;

• 8)

  Mid-year Review; and,

• 9)

  End of Year Report; among other reports: Fiscal Risk Report, Tax Expenditure Report, Execution Report marked for Climate Change. During budget execution and through the aforementioned documents, social audit shall be carried out through the dissemination of information that promotes citizen control through monitoring, tracking and evaluation of expenditure.

The State Secretariat in the Office of Transparency and Fight Against Corruption (STLCC) through the National Office for Comprehensive Development of Internal Control (ONADICI), shall support and provide technical assistance to public institutions and municipalities in internal control mechanisms, emphasizing financial administration, purchases and contracting of goods and services, as well as human resource administration. The STLCC shall establish guidelines and standards to ensure the effectiveness of the Institutional Internal Control process.

When a State institution must make any payment in favor of third parties, they must present proof of tax solvency issued by the Tax Administration Service (SAR). In the event that the obligated taxpayer is not solvent, they must present to the public institution the corresponding collection notice for the collection of taxes owed by the withholding agency.

The State Secretariat in the Office of Finance (SEFIN) is authorized through the General Treasury of the Republic (TGR) to conduct the necessary operations to transfer available resources among the bank accounts opened in the Central Bank of Honduras (BCH) for temporary use of financial availability. The resources must be returned in full to the accounts of origin of the capture of revenues of the current fiscal year. This operation shall be carried out for the purpose of guaranteeing the liquidity of the Single Treasury Account and the fulfillment of payment obligations based on the precedence and order established in the Technical Standards of the General Treasury Subsystem. Bank accounts of seized funds, guarantees, programs and projects with external financing are excepted from this provision.

Article 7 of the Special Law for the Simplification of Public Infrastructure Investment Procedures, contained in Decree No. 58-2011 of May 18, 2011, published in the Official Gazette "La Gaceta" dated July 13, 2011, is suspended, by virtue of the fact that the criteria of financial programming contained in Executive Agreement No. 217-2014 of the Technical Standards of the General Treasury Subsystem of the Republic (TGR) Articles 16, 17 and 18 must be complied with.

The State Secretariat in the Office of Finance (SEFIN), through the General Treasury of the Republic (TGR), guarantees payment of Final Judicial Sentences as a consequence of claims filed against the Institutions of the Public Sector. When judicial orders are issued for the application of attachments as a result of the execution of said sentences, the Corresponding Courts shall issue the Official Communication or copy of the Final Sentence directly to the General Treasury of the Republic (TGR) so that the attached amounts are adjusted to the budget availability of each of the defendant institutions, without affecting compliance with payments for public debt service (external/internal), personal services (salaries and collateral payments) and the budget corresponding to the operative function thereof. In case of non-compliance, the provisions of Article 4 of these dispositions shall apply.

The State Secretariat in the Office of Finance (SEFIN) is authorized to conduct liability management operations, for the purpose of mitigating financial risks and/or improving the maturity profile of the public debt portfolio. Within liability management operations, the following are contemplated: condonation, conversion, consolidation, renegotiation, refinancing, exchange or swap, early purchase or redemption and subscription of financial derivatives contracts. In the event of conducting swap or refinancing operations of bonds maturing within the year 2025, these must be recorded as a charge to the present Budget. For bonds with maturity date after the year 2025, the General Budget of the Republic for the present Fiscal Year shall not be affected. If there is a nominal increase in the debt balance as a result of liability management operations, it shall count against the public debt ceiling authorized in the present General Budget, for which the State Secretariat in the Office of Finance (SEFIN) is authorized to conduct budget modifications. Likewise, SEFIN is authorized to contract Instruments for the financial management of disaster risk, with the objective of strengthening the resilience of public finances and the capacity to respond to disaster risk associated with natural phenomena. The State Secretariat in the Office of Finance (SEFIN) in conformity with the State of Honduras' accession to the Participation Agreement, is empowered to contract directly the parametric insurance policy for sovereign risk, for climatic and geophysical events to be subscribed with The Caribbean Catastrophe Risk Insurance Facility Segregated Company (CCRIF SPC). This authority includes authorization for the subscription of legal protection instruments, including International Jurisdiction and Arbitration (insurance company). The State Secretariat in the Office of Finance (SEFIN) is empowered to identify and use budget allocations to cover the value for which the parametric insurance policy or policies authorized in this article are subscribed and to make the payments derived from the subscription of the instruments.

The Institutions of the Decentralized Administration are obligated to present no later than ten (10) business days after the end of the month, the Financial Statements and other information necessary for the continuous monitoring of their financial situation, complying with the requirements established in International Accounting Standards. The information must be registered and printed in the computer tool for Consolidation of Financial Statements and sent to the State Secretariat in the Office of Finance (SEFIN) at the email informesfinancierosAD@sefin.gob.hn in digital format and in Excel duly signed. In case of non-compliance, the provisions of Article 4 of these dispositions shall apply.

For purposes of the application of International Financial Reporting Standards (IFRS) in Public Enterprises and International Public Sector Accounting Standards (IPSAS), whose Financial Statements must be prepared following the bases of recognition, measurement, fair presentation and disclosure established in the regulations; the enterprises and public sector subject to the implementation of the standards must present within the first twenty (20) calendar days following the end of each quarter, the technical progress reports to the General Comptroller of the Republic in digital form.

Decentralized Institutions that currently operate with the Single Account mechanism but do not generate their accounting and financial statements from the accounting module of the Integrated Financial Administration System (SIAFI) are ordered to register the opening balances in this module for the preparation of their Accountability Reports for fiscal year 2025, based on the financial statements presented at the close of fiscal year 2024. Decentralized institutions that have opening balances loaded in the SIAFI accounting module and that do not prepare financial statements from this module, must make the necessary accounting adjustments in the corresponding module, during the present year and register the opening balances considering the balances at the close of fiscal year 2024, in such a way that the financial statements to be presented at the close of 2025 are generated from SIAFI and comply with the established regulations.

The State Secretariat in the Office of Finance (SEFIN) and the Central Bank of Honduras (BCH) are authorized to refinance or exchange government securities up to a maximum nominal value of SIX THOUSAND NINE HUNDRED SIX MILLION FIVE HUNDRED FIFTY THOUSAND LEMPIRAS EXACTLY (L6,906,550,000.00) maturing in 2025, through the issuance of a new government security under the conditions negotiated between the parties. Likewise, the State Secretariat in the Office of Finance (SEFIN) and the Central Bank of Honduras (BCH) are authorized to renegotiate any obligation, negotiable instrument or agreement that is in effect and subscribed between both institutions, and both institutions are also authorized to subscribe an Agreement to establish the mechanisms for recognition of quasi-fiscal losses and capitalizations to the Central Bank of Honduras (BCH).

The operations related to debt service and exchange rate variations, conducted by the Central Bank of Honduras (BCH), are excepted from the provisions of Article 51 of the Organic Budget Law and the Technical Standards of the Budget Subsystem, which must be approved by its Board of Directors and report to the State Secretariat in the Office of Finance (SEFIN) for purposes of monitoring and control.

The State Secretariat of Finance (SEFIN) shall initiate the process of formulating a Climate Financing Strategy, with the purpose of promoting structural changes in the behavior of public finances, for which it must identify international cooperation funds that allow carrying out this activity.

The State Secretariat of Finance (SEFIN) may carry out actions that allow management of public debt liabilities, among these, debt-for-nature swaps, issuance of thematic bonds and debt forgiveness mechanisms for environment, which serve to finance sustainable economic growth initiatives.

The National Electrical Energy Company (ENEE) is authorized to carry out the necessary actions, including budget reorientation and obtaining internal or external credit, to meet payment obligations for labor benefits and purchase of energy for resale and investments. The issuance of the Opinion established by Article 36 of Legislative Decree No. 83-2004 dated May 28, 2004, published in the Official Gazette "La Gaceta" dated June 21, 2004, containing the Organic Budget Law, as well as the opinion established by Article 42 of this law, shall not be required from the National Electrical Energy Company (ENEE).

The institutions described in the following table are ordered to allocate in a labeled and progressive manner in the General Budget of Income and Expenses of the Republic assigned to their institution the following detail: 2004, containing the Organic Budget Law, as well as the opinion established by Article 42 of this law, shall not be required from the National Electrical Energy Company (ENEE).

The institutions described in the following table are ordered to allocate in a labeled and progressive manner in the General Budget of Income and Expenses of the Republic assigned to their institution the following detail: No. Institution Purpose 1 All institutions of the Public Sector, including the National Electoral Council, Constitutional Bodies, the Judicial Branch and the Legislative Branch Resources for strengthening and creation of Gender Units for their effective functioning; for this reason the State Secretariat of Affairs of Women and the State Secretariat of Finance (SEFIN) shall provide the necessary technical support. 2 Judicial Branch Resources for strengthening and expanding specialized courts in domestic violence in cities where there is high incidence. For this reason the State Secretariat of Finance (SEFIN) must provide the necessary technical support to achieve this identification. Resources for creation of the Program of Judicial Facilitators to accompany women survivors of violence. Resources for strengthening the Registry of Food Debtors and Defaulters. 3 Public Ministry Resources for strengthening the investigation unit of women's deaths and femicides, both in the Technical Agency of Criminal Investigation (ATIC), as well as in the Prosecution for Crimes against Life; as well as those of the Special Prosecution for Women and the Specialized Comprehensive Care Module (MAIE) and Forensic Medicine. Likewise, create and strengthen the Gender Unit of the Public Ministry; the State Secretariat of Finance (SEFIN) must provide the necessary technical support. 4 50 Secretariat of Education (SEDUC), Program 23: Pedagogical Technical Services, Act/Obj 20: MORADAS Scholarships, Expenditure Object 51211: National Scholarships Resources to create the scholarship program called MORADAS exclusively for girls, adolescent women and young women, prioritizing daughters of women victims of violence with reported complaints and violent deaths and femicides, as affirmative action for women's advancement in education and as a reparations measure by the State. For compliance with this Program, an Inter-institutional Monitoring Commission shall be created, which shall be composed of: Secretariat of Education, State Secretariat of Affairs of Women, National Institute of Youth and three representatives of Women's Organizations including young women. 50 Secretariat of Education (SEDUC), Program 23: Pedagogical Technical Services, Act/Obj 20: MORADAS Scholarships, Expenditure Object 51211: National Scholarships Resources for a specific literacy program for women in areas where there are high levels of women who cannot read and write. 50 Secretariat of Education (SEDUC), Program 23: Pedagogical Technical Services, Act/Obj 20: MORADAS Scholarships, Expenditure Object 51211: National Scholarships Resources for school dropout prevention programs for girls and boys with early parenthood, the same must be reflected in their POA and shall be validated by the State Secretariat of Affairs of Women. 5 State Secretariat of Social Development and its Deconcentrated Institutions Resources to create an Integral Social Care System that includes social protection. For this reason the State Secretariat of Affairs of Women and the State Secretariat of Finance (SEFIN) shall provide the necessary technical support. 6 State Secretariat of Security Resources for strengthening and creation of Investigation Units for Violent Deaths of Women and Femicides in the Directorate of Investigation Police (DPI); likewise this Secretariat shall allocate resources for the reopening of the 114-Woman Line specific for addressing violence against women. For this reason, the State Secretariat of Finance (SEFIN) must provide the necessary technical support to achieve this identification. Resources for strengthening and expanding coverage of rapid response units in violence against women and specialized units in investigation of violent deaths and femicides in the DPI; for this reason, the State Secretariat of Finance (SEFIN) must provide the necessary technical support. Each Secretariat and Institution mentioned above, participant in the implementation of the Action Plan for the Prevention of Femicides, must allocate resources for its financing. To strengthen supervision of compliance with this provision, the institutions mentioned above shall prepare a semi-annual report on execution of these provisions, which shall be sent to the State Secretariat of Affairs of Women (SEMUJER), within the first fifteen (15) business days after the semester ends.

The distribution of values or property seized through the Office of Seized Property Administrator (OABI) must be carried out in accordance with the percentages established by its Law to guarantee the activities of Prevention and Protection of Women. In the case of seized lands transferred in property to the National Agrarian Institute (INA), fifty percent (50%) must be allocated to rural women.

The State Secretariat of Health (SESAL) is ordered to allocate budgetary, human and logistical resources to improve women's and girls' access to health services; especially those related to Sexual and Reproductive Health; elimination of gender violence in Health establishments at primary and secondary level, especially those with hospitalization, rehabilitation and/or treatment services, including Psychiatric Hospitals at the national level and Family Counseling services.

The Ciudad Mujer Program is ascribed to the State Secretariat of Affairs of Women (SEMUJER) as a deconcentrated entity, based on Article 3 of PCM-05-2022. The coordination shall be exercised by the National Directorate of the Ciudad Mujer Program (Institution No. 244). Said Program has held since 2016 the status of National State Policy, for which compliance is mandatory for all governments.

The institutions of the State involved and participating in the Ciudad Mujer Program are ordered to allocate in their respective budgets sufficient resources to cover necessary expenses (including payment of inputs, purchase of materials and payment of their personnel assigned exclusively to the Program), to ensure and guarantee the management model in the different Modules that integrate the Program. The budget must be allocated in a labeled manner at the level of Activity/Work and identified in the Annual Operational Plan (POA) of each participating institution. The funds allocated to the different modules of Ciudad Mujer must be used exclusively for expenses related to the operability of such modules. It is prohibited for participating institutions to make budgetary modifications to fulfill commitments of different purpose that redirect resources allocated to Ciudad Mujer.

To facilitate women's citizen participation in the elaboration of the national budget, the Working Table on Gender-Sensitive Budgets (PSG) shall continue at the highest level, composed of: State Secretariat of Finance (SEFIN), State Secretariat of Strategic Planning (SPE), State Secretariat of Affairs of Women (SEMUJER), Budget Commission and Gender Commission of the National Congress, Superior Court of Accounts (TSC), State Secretariat of Interior, Justice and Decentralization (SGJD), Association of Municipalities of Honduras (AMHON), Supreme Court of Justice (CSJ), Public Ministry (MP), State Secretariat of Security (SEGU), Women's Organizations and International Cooperation linked to budgetary matters, in order to make proposals and follow up on gender investment. This Working Table shall be led by the State Secretariat of Affairs of Women (SEMUJER). Likewise, to monitor Municipal Budget and the Five (5%), the Municipal Table of Gender-Sensitive Budget shall be formed, composed of the Municipal Mayor or Mayoress, Treasury, Municipal Office of Women (OMM), Women's Organizations and the Citizens' Transparency Commission, which shall be convened and led by the Mayor or Mayoress and the Coordinator of the Municipal Office of Women (OMM). Both the National and Municipal Working Table of PSG shall function in accordance with their respective regulations. From the Municipal Table of Gender-Sensitive Budget, the Work Plan of the Municipal Office of Women (OMM) shall be developed, which shall be agreed upon with the women's networks and organizations of the municipality.

Decentralized and Deconcentrated Institutions operating outside the Integrated Financial Administration System (SIAFI) shall send to the National Directorate of State Property (DNBE) no later than January 30, 2025, the inventory of property in use and consumption existing as of December 31 of the 2024 Fiscal Year, as well as a detail of losses of these inventories, in accordance with applicable legal regulations and guidelines issued by DNBE. To guarantee compliance with what is established by Article 6 of Legislative Decree No. 274-2010 of January 13, 2011, published in the Official Gazette "La Gaceta" dated March 16, 2011, on the creation and function of the National Directorate of State Property (DNBE); and Article 7 of Executive Decree No. PCM-047-2015, responsibility for movable and immovable property that forms part of the inventory or has been assigned to each institution or dependency of the public sector corresponds to the heads of administrative management or administration departments of such institutions or dependencies of the public sector.

All institutions of the Public Sector must register movable and immovable property in the national property subsystem of the Integrated Financial Administration System (SIAFI) in accordance with the programming established in coordination with the National Directorate of State Property (DNBE). Likewise, institutions of Central Administration must prepare and approve manual entries in the accounting module of the Integrated Financial Administration System (SIAFI) for the recording of discharges, reversals and transfer of property in use, Biological and Intangible assets and those related to their reconciliation as of June 30, 2025 and submit no later than the first 5 business days of July of the current year, to the General Accounting Office of the Republic, the reconciliation of property in use of the balances of the accounting module and the property in use module of the national property subsystem. Non-compliance with the activities and dates established shall affect timely disbursements made by the General Treasury of the Republic (TGR) for each institution. In the case of liquidations, scissions, modifications, reorganizations, suppressions of Public Administration institutions decreed by the President of the Republic in Council of State Secretaries, the Administrative Management Offices and/or Executing Units of liquidated, scinded, modified, reorganized or suppressed institutions shall remain active in SIAFI until such time as a Resolution by the National Directorate of State Property (DNBE) is issued transferring and/or reassigning to the corresponding Administrative Management Office and/or Executing Unit.

The value obtained from property that has been lost, damaged or destroyed may be incorporated into the Budget of the Institution owner or possessor thereof, provided that it is allocated to the repair of damages caused or the acquisition of property of the same nature. These shall be recognized at one hundred percent (100%) as Own Resources (source 12) in the present Fiscal Year; if they were not executed in the previous Fiscal Year, in duly justified cases the State Secretariat of Finance (SEFIN) may authorize the same percentage in the present Fiscal Year the incorporation of resources that have been received, incorporated and not executed in the previous period and these shall be charged against the Approved Budget; if there is no budgetary allocation in the expenditure object that corresponds, the institution shall have to make a budgetary modification. The purpose of the expenditure may not be changed; if additional budget is required to replace or repair the property, the institution must finance it from its own budget.

The fees and expenses for contractual conflicts recognized in favor of national or foreign arbitrators in arbitration chambers or centers by awards or judgments of condemnation judicially recognized against the State of Honduras, provided they have the character of final, must be paid from the budget allocated to the Judicial Branch with funds from the National Treasury in the concept of three point zero percent (3.0%) that this Branch receives from the State as constitutional transfer.

The Fiscal Contingencies Unit (UCF) created by Legislative Decree No. 30-2022, Article 274-X shall continue performing its functions for the Areas of Contingent Liabilities for Specific Risks and Contingent Liabilities for Public-Private Partnerships, in the following manner: 1) With regard to the Area of Contingent Liabilities for Specific Risks, it must identify, quantify, value, record and publish contingent liabilities derived from:

• a)

  Guarantees and Endorsements granted by the State of Honduras;

• b)

  Municipal Indebtedness;

• c)

  Indebtedness of Public Companies;

• d)

  Legal Claims against the State of Honduras. 2) With regard to the Area of Contingent Liabilities for Public Private Partnerships, contingent liabilities and firm commitments acquired in Public-Private Partnership Alliance Contracts shall continue being determined by the granting institutions in accordance with what is established in this Law, and shall be sent to the UCF for registration, analysis, monitoring, follow-up and publication. The UCF shall provide technical assistance in the following aspects: a) In the application of methodological tools that allow the grantor the adequate identification, quantification and valuation of associated fiscal risks; and, b) In specific technical and legal matters arising from management in the executed APP contracts and in relation to inherent risks identified by Grantors, with the UCF acting solely as a consulting entity. For such purpose, the Granting institution must send a formal request for technical assistance. The UCF shall request all information and technical, legal and financial supporting documents that it considers necessary according to technical criteria, as well as establish the objectives and scope of such assistance. The UCF shall request within the framework of its functions, the identification of financial resources or technical assistance for the updating or development of methodologies for identification, quantification and valuation of risks.

In the contracts of Public-Private Partnerships (PPPs) in force and their amendments, the granting institutions shall determine:

• a)

  contingent commitments in accordance with the matrix of identification, quantification, and assessment of fiscal risks prepared by the Fiscal Contingencies Unit (UCF);

• b)

  firm commitments undertaken in concession contracts; and, c) commitments undertaken through trusts associated with concession contracts, and must report monthly to the Secretary of State for the Ministry of Finance (SEFIN) through the Fiscal Contingencies Unit (UCF) on the behavior of the aforementioned variables. Said information must be delivered in digital format by any available means. In case there are modifications to the contract that include the granting of Endorsements, Bonds, or Guarantees, they must be subject to the provisions of Article 78 of the Organic Law of the Budget. Modifications to existing contracts shall require, prior to their execution, the following:

  • 1)

    Technical report prepared by the Conceding Entity, in accordance with what is established in article 4, subsection g of the Regulation of the Fiscal Contingencies Unit (UCF). The foregoing without prejudice to other technical analyses that the conceding institution may consider appropriate to conduct;

  • 2)

    The conceding entities must submit to the Secretary of State for the Ministry of Finance (SEFIN) through the Fiscal Contingencies Unit the aforementioned technical report, in order to make the corresponding risk registrations. The UCF shall request additional information from the Conceding Entity if it deems it pertinent.

  • 3)

    Opinion from the Superintendence of Public-Private Partnerships authorizing or withholding authorization for the signature of the amendment, for which the Conceding Entity must submit the corresponding technical, legal, and financial support. The Conceding Entity must submit the Amendment or final modification document along with all corresponding supporting documents to the UCF for the updating of the Risk Matrix.

All concessionaires are obligated to present, no later than fifteen (15) business days after the end of the month, to the Fiscal Contingencies Unit of the Secretary of State for the Ministry of Finance (SEFIN), General Accounting Office of the Republic, and Superintendence of Public-Private Associations (SAPP), all financial information of the operations of the projects together with the monthly supervision reports.

The projects under the modality of Public-Private Partnership (PPP) and Trust Banks shall present to the Fiscal Contingencies Unit (UCF) the quarterly financial statements, as well as their audited financial statements at the close of the fiscal year. Non-compliance with this provision shall be subject to sanctions applied by the Superintendence of Public-Private Partnership (SAPP) and the Court of Auditors (TSC).

Public Enterprises and government institutions to which a guarantee of joint endorsement has been granted in credit operations by the State of Honduras shall submit, no later than within thirty (30) business days after the end of each quarter, to the Fiscal Contingencies Unit (UCF) ascribed to the Secretary of State for the Ministry of Finance (SEFIN), the accounting and financial information required through each of the formats designed and sent by the Fiscal Contingencies Unit (UCF) for information collection.

The National Electrical Energy Company (ENEE), in addition to complying with what is established in the previous article, must report quarterly to the Fiscal Contingencies Unit (UCF) on renewable energy purchase and sale contracts in force and in the process of renegotiation (Power Purchase Agreements PPA), detailing the information requested in the specific format designed by the UCF for information collection, and may request from them additional information that it considers necessary for the estimation of contingent liabilities associated with ENEE and any other public enterprise.

Public institutions shall submit at the close of the fiscal period, no later than January 30 of the following year (2026), to the Secretary of State for the Ministry of Finance (SEFIN) through the Fiscal Contingencies Unit (UCF), information on physical damage to state infrastructure after the occurrence of a natural disaster, as well as information related to the execution of budget and accounting items regardless of the source of financing used to address damage caused by natural disasters; said information must be submitted in the formats established by the UCF for the quantification and disclosure of contingent liability due to natural disasters.

For purposes of what is established in Article 7, subsection "k" of the Regulation of the State Contracting Law, minor repair of public buildings or other installations shall be considered any work that involves the repair of an element, part, or system, whether due to deterioration, maintenance, or safety, provided that the area and form are not altered and structural, mechanical, or electrical systems are not intervened or modified. Minor repair works include both those carried out on exterior and interior surfaces, and do not require the mandatory participation of a professional. The following are considered conservation and minor repair works in buildings:

• 1)

  Replacement or installation of gutters and downspouts;

• 2)

  Repair of sidewalks;

• 3)

  Installation of fences, grilles, steel curtains, or non-structural perimeter mesh;

• 4)

  Clearing of land of vegetation or plant matter;

• 5)

  Roof covering replacement;

• 6)

  Painting in general, both walls and ceiling;

• 7)

  Installation of wire fences;

• 8)

  Finishing of floors, doors, windows, and ceilings;

• 9)

  Repair of plaster and coatings;

• 10)

  Plumbing repairs;

• 11)

  Remodeling of office modules or cubicles, bathrooms, among others;

• 12)

  Replacement of tiles and sanitary flooring in bathrooms or sanitary facilities, among others; and, 13) Installation of light-weight dry-wall type partitions to form divisions in offices. In the case of electrical works, conservation and minor repair work shall be understood as electrical repairs such as substitution of lamps, outlets, and switches that do not increase the installed electrical load. In the case of hydraulic and sanitary works, conservation and minor repair work shall be understood as mechanical repairs such as substitution of piping, relocation of inspection boxes, in all cases under the assumption that the capacity of the system is not being increased. For road works, minor repair shall be understood as the following actions:

  • 1)

    Cleaning and maintenance of ditches;

  • 2)

    Patching of asphalt surface;

  • 3)

    Cleaning and chipping of channeled islands and road edges;

  • 4)

    Installation of vertical signs; and,

  • 5)

    Substitution of rainwater and sanitary collectors (without modifying slope or diameter).

Interpret numeral 3 of Article 4 of Legislative Decree No. 25-2016 containing the Fiscal Responsibility Law (LRF) of April 7, 2016, published in the Official Gazette "La Gaceta" of May 4, 2016, through which it is established that the annual ceiling target for the fiscal deficit of the global balance of the Non-Financial Public Sector (SPNF) must return in 2023 to one percent (1.0%) of Gross Domestic Product after the application of an exception clause of the LRF. The interpretation is made in the sense of considering that once the new fiscal deficit target of the Non-Financial Public Sector (SPNF) was approved within the framework of the exception clause activated by Legislative Decree No. 27-2021 of May 14, 2021, from that result the fiscal deficit must be reduced by zero point five percent (0.5%) per year as a minimum, until reaching one percent (1.0%) in relation to GDP as established in Article 3 of the LRF.

Reform Article 2 of Legislative Decree No. 27-2021, approved on May 14, 2021, and published in the Official Gazette "La Gaceta" No. 35,599 on May 14, 2021, through which the extension for two (2) years (2022 and 2023) of the MULTIANNUAL FISCAL PERFORMANCE RULES FOR THE NON-FINANCIAL PUBLIC SECTOR (SPNF) was approved, which shall be read as follows: "During the period of suspension of the Multiannual Fiscal Performance Rules, an annual ceiling is established for the deficit of the global balance of the Non-Financial Public Sector (SPNF), which may not exceed three point four percent (3.4%) of Gross Domestic Product (GDP) for the year 2025 and shall be reduced by at least zero point five (0.5%) annually until returning to one percent (1.0%) of Gross Domestic Product (GDP) as established in article 3, numeral 1), subsection a) of the Fiscal Responsibility Law (LRF), contained in Decree 25-2016 of April 7, 2016, published in the Official Gazette La Gaceta of May 4, 2016. The SPNF deficit of three point four percent (3.4%) of Gross Domestic Product (GDP) includes a fiscal space for public investment that will allow the incorporation into the budget execution of 2025 of the priority projects that form part of the Bicentennial Government Plan for the refounding of the nation; with a focus on climate change toward the conservation of life, human rights, and the environment, as well as social investment aimed at serving the most vulnerable population. During the period of suspension of the Multiannual Fiscal Performance Rules, the annual increase in nominal primary current spending of the Central Administration for 2025 may not exceed fourteen point four percent (14.4%), as established in Article 3, numeral 1), subsection b) of the LRF."

The Secretaries of State, Decentralized or Deconcentrated, the Legislative Branch, Judicial Branch, and constitutional bodies must require as a documentary requirement to fulfill economic obligations arising from contracts with providers of goods and services, public works, consulting, or professional services, the Tax Document in accordance with what is established in the Regulation of the Tax Billing System, other documents, and printed tax records. The administrative management offices or units that perform this function according to the organizational structure of each Institution must verify that the tax document mentioned in the previous paragraph is valid and duly authorized by the Tax Administration.

Certificates or other documents necessary to obtain the Visitation Card for Persons Deprived of Liberty, extended by State institutions, including the Judicial Branch, as part of the requirements established by the National Penitentiary Institute (INP), shall be issued at no cost.

The Secretary of State for the Ministry of Finance (SEFIN) is empowered to be assisted by the Tax Administration or Customs Administration in the verification of non-compliance described in articles 20 and 21 of the Tax Code.

For purposes of fiscal year 2025, articles 9, 43, 51, 53, 62, 109, 110, 112, 124, 126, 127, 240, 246, 262, 281, 304, 305, 306, 331 are not binding or applicable to the institutions listed in subsection b of article 47 of this law. Similarly, what is related to the Annual Operating Plan (POA), Annual Plan of Purchases and Contracting (PACC), Institutional Strategic Plan (PEI), Integrated Financial Administration System (SIAFI), and System of Registration and Control of Public Servants (SIREP) is not applicable to the institutions described above.

Within the framework of the Extended Fund Facility (EFF) and the Extended Credit Facility (ECF) of the International Monetary Fund (IMF) agreed upon with the Government of Honduras, the Secretary of State for the Ministry of Finance (SEFIN) and the Central Bank of Honduras (BCH) are authorized to execute loan contracts to transfer the resources under the same terms and financial conditions under which the International Monetary Fund (IMF) granted the disbursements to the Central Bank of Honduras (BCH), as well as service charges or any other cost incurred by the bank to the Fund.

A budget allocation is authorized of up to NINE HUNDRED FIFTY MILLION LEMPIRAS EXACT (L950,000,000.00) for the development of minor infrastructure and social works at the request and for the benefit of Communities, Community Associations, Associations, Municipalities, Water Boards, Rural Savings Cooperatives, among others; as well as for the granting of study scholarships at all educational levels. Minor infrastructure works, social works, scholarships, and sports facilities shall be managed through the Honduran Social Investment Fund (FHIS), the Secretariat of Infrastructure and Transport (SIT), Secretariat of Social Development (SEDESOL), Secretariat of Governance, Justice and Decentralization (SGJD), Educational Credit Institute (EDUCREDITO), Electrical Development Social Fund (FOSODE), and the National Commission of Sports, Physical Education and Recreation (CONDEPOR). The Secretary of State for the Ministry of Finance (SEFIN) is authorized to, in accordance with the Organic Law of the Budget and the regulations governing the Integrated Financial Administration System (SIAFI), perform the necessary operations, upon request from the aforementioned institutions.

The Secretariat of State in the Office of Finance (SEFIN) must incorporate into the General Budget of the Republic for the period 2025, the budgetary allocation contained in Article 338 of Legislative Decree No. 62-2023, which was not incorporated or executed by the institutions and give priority to the projects and social works mentioned in the preceding article of this law, upon request of the same.

Central Government employees under contract modality object of expense 12100 Non-Permanent Personnel, whose employment relationship will not continue, must be honored with payment of labor rights for having been in service of a specific institution; in the case of employees who are appointed by agreement, their seniority will be recognized; each public institution shall be responsible for honoring the obligation and/or conducting the necessary proceedings for appointment both at the Secretariat of State in the Office of Finance (SEFIN) and at the National Civil Service Administration (ANSEC).

For purposes of establishing, strengthening, and financing a national coordination mechanism for the operability of the Special Law for Tobacco Control and its regulation and amendment contained in Decree No. 92-2010 dated June 10, 2010, each year a budgetary item shall be allocated to the Honduran Institute for the Prevention of Alcoholism, Drug Addiction and Pharmacological Dependence (IHADFA), in addition to the approved budget, not less than Ten Million Lempiras (L10,000,000.00), which shall be increased in the following fiscal years in accordance with financial availability. These resources shall be used in part for the opening of the National Center for Treatment of Addictions in Honduras (CENATRAH 24/7), a mental health center that will benefit the population suffering from addictions and will provide service twenty-four (24) hours a day to patients addicted to drugs.

The Secretariat of State in the Office of Finance (SEFIN) is authorized to carry out in the present fiscal year an accounting reclassification of the balances of loans granted to Local Governments in previous years that are registered in the accounting books and reflected in the Financial Statements of the Central Administration at the close of fiscal year 2024, for which the Administrative Management of SEFIN shall reclassify the accounting account Long-Term Loans to Local Governments to Current Transfers for the amount aforementioned, affecting the accounting account Accumulated Results from Previous Fiscal Years.

The Secretariat of State in the Office of Finance (SEFIN) is authorized to incorporate into its approved budget and utilize the balances of own resources Source 12 collected, incorporated, and not executed by the defunct Adjunct Directorate of Customs Revenue (DARA) in fiscal year 2019 that were incorporated into the Secretariat of State in the Office of Finance (SEFIN) in Fiscal Year 2020, to finance and make payment of labor benefits to employees of the former Institution and other administrative and operational expenses that have been left unpaid, up to the available value of the balances. In the event there are more payment commitments, the Customs Administration of Honduras is ordered and authorized to make the authorized payments from Source 12 Own Resources of its budget, payments authorized by the Liquidating Technical Commission.

The National Institute of Statistics (INE) is authorized to conduct temporary personnel contracts, equipment acquisitions, and the implementation of other logistical expenses necessary to carry out the National Census of Population and Housing 2025, for which the INE, in its role as executor of the National Census of Population and Housing 2025 is exempt from the restrictive measures of expenditure and contracting control established in the General Provisions of the General Budget of the Republic for fiscal year 2025 and from decrees on expenditure reduction.

The Secretariat of State in the Office of Finance (SEFIN) is ordered to incorporate the NATIONAL AIRPORT SERVICE (SAN) into the Integrated Financial Administration System (SIAFI) as a deconcentrated entity of the Secretariat of State in the Office of Infrastructure and Transport (SIT) based on what is established in EXECUTIVE DECREE NUMBER PCM 17-2023 that orders the creation of said institution, which is responsible for the construction, administration, operation, and operation of aerodromes and civil, national, and international airports. For this reason, SEFIN must perform all budgetary and financial operations that are necessary in order to incorporate SAN into SIAFI and in the same manner incorporate the resources into the Single Account of the National Treasury.

The Secretariat of State in the Office of Finance (SEFIN) is ordered to additionally incorporate into the Competition Defense and Promotion Commission (CDPC), in addition to the budgetary amount assigned to it, the amount of ten million Lempiras exact (L 10,000,000.00), in order to finance sectoral studies and continue with its role of promoting and protecting the exercise of free competition, as well as combating monopolistic practices.

The pertinent matter of the Normative Office of State Purchases and Acquisitions (ONCAE) Does Not Apply this year 2025 to the Municipalities, since a broad Capacitation process must first be regulated until reaching the 298 municipalities including both the mayors and the officials in charge of this activity, likewise it must proceed to register all local commerce in order to have greater participation in equal conditions for suppliers being that these are ultimately those who pay taxes locally.

The Secretariat of State in the Office of Finance (SEFIN) is ordered to proceed to insert within the budget for fiscal year 2025, a budgetary line item for an amount of Ten Million Lempiras (L 10,000,000.00), the same that must be transferred to the Technical Secretariat of the Municipal Administrative Career (SETCAM), in the month of March of each year starting in 2025, these funds shall be used in the strengthening of SETCAM/IDEMH, which was approved by Decree number 74-2010 and its validity beginning September 2014, for the strengthening of human resources in the municipalities in the processes of training and capacitation, and the implementation of the Law of Municipal Administrative Career, its internal instruments and tools to achieve efficiency and effectiveness in the provision of services in favor of the citizen. The funds requested in this Article must be liquidated in a timely manner at the close of the fiscal year of each year.

The Executive Power through the Secretariat of State in the Office of Finance (SEFIN), must regulate the present Budgetary Provisions within a period of thirty (30) business days, counted from the publication of this Law.

This Decree shall enter into force as of its publication in the Official Journal "La Gaceta". Given in the city of Tegucigalpa, Municipality of the Central District, in the Session Hall of the National Congress, on the fifth day of the month of February of two thousand twenty-five. LUIS ROLANDO REDONDO GUIFARRO PRESIDENT LUZ ANGÉLICA SMITH MEJÍA SECRETARY JOSUÉ FABRICIO CARBAJAL SANDOVAL SECRETARY Therefore: let it be published. THE NATIONAL CONGRESS, CONSIDERING: That the Constitution of the Republic establishes the political rights of citizens, among them the right to exercise the suffrage as a citizen right and public function, likewise it is established that the vote is universal, compulsory, equal, direct, free, and secret. In the same way it is determined that political parties are constituted to achieve the effective participation of citizens. CONSIDERING: That the American Convention on Human Rights (ACHR) concurs with the obligation on the part of Member States to guarantee the existence of an electoral regime that responds to the requirements established in the same, that is, that provides citizens with the right and opportunity to vote and be elected in authentic periodic elections, conducted by universal and equal suffrage and by secret ballot that guarantees the free expression of the will of the voters. CONSIDERING: That by means of Legislative Decree No. 82-2024 dated September 7, 2024 and published in the Official Journal "La Gaceta" on September 8, 2024, the Special Budget for the 2025 Primary and Internal Elections was approved for an amount of ONE THOUSAND FOUR HUNDRED NINETY-TWO MILLION EXACT LEMPIRAS (L.1,492,000,000.00). CONSIDERING: That, in accordance with the Electoral Law, the National Electoral Council (CNE) must guarantee that the votes and counts reflect the real, free, and spontaneous will that citizens express through their direct and secret vote, for which it must implement measures