Decree 62-2026

In compliance with Articles 1 and 2 of the Budget Organic Law, the scope of application of this Law is mandatory for all institutions of the Public Sector, comprised of: Central Administration, which includes: State Powers (National Congress, Supreme Court of Justice (CSJ), Presidency of the Republic, Constitutional Bodies, such as the Public Ministry (MP), Electoral Justice Tribunal (TJE), National Electoral Council (CNE), National Registry of Persons (RNP), National Commissioner for Human Rights (CONADEH), Court of Accounts (TSC), General Prosecutor's Office of the Republic (PGR) and other public entities of similar legal status, Secretariats of State, Decentralized Bodies, and 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 State resources.

All ordinary fiscal revenues shall constitute a single fund except as provided by Law or by international agreements. Likewise, no commitment may be made or any payment effected outside the allocations voted in this Law, or in contravention of budgetary rules. Violators shall be responsible civilly, criminally, and administratively, as established by the Constitution of the Republic in Articles 362, 363 and 364 and the Budget Organic Law Article 34.

In compliance with Article 12 of the Budget Organic Law, all institutions of the Public Administration shall record in the Integrated Financial Administration System (SIAFI) all of their income from self-management, transfers, loans, donations and pre-allocations from the National Treasury, using the corresponding codes according to the budgetary classifiers of sources and financing bodies. In accordance with the provisions of Article 6 of the Budget Organic Law and Article 7 of the Technical Standards of the Budget Subsystem, the Senior Authorities, Administrative Management of the Secretariats of State or their equivalent in the Public Sector dependencies, as well as Officials or Public Servants of the different Executing Units are directly responsible for institutional financial management, budget execution and control of public spending. The Secretariat of State in the Finance Offices (SEFIN), in its capacity as the governing body of the Financial Administration System of the Public Sector and in compliance with the provisions of numeral 5) of Article 5 of the Budget Organic Law (Decree No. 83-2004), is limited to exercising functions of supervision, normative control and macro fiscal evaluation. In no case shall such Secretariat assume direct responsibility for the operational execution of budgets allocated to such secretariat and institutions, nor for the acts, resolutions, technical and legal opinions, omissions or results derived from daily financial management, commitments, payments or internal control of spending carried out by such entities, which responsibility falls exclusively on the entities receiving the resources in accordance with Article 45 of the same Law.

The violation of this budgetary regulation 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 the application of fines once the procedure for civil or administrative liability in the Superior Court of Accounts (TSC) is concluded, and without prejudice to criminal liability. The State Department in the Office of Finance (SEFIN) is authorized to refer to the Superior Court of Accounts (TSC) cases of non-compliance and/or violations of this law. Likewise, all State Departments are instructed to enter into concurrent audit agreements with the Superior Court of Accounts, which shall be financed by the institution's own budget.

A.- For the present Fiscal Year 2026, the following articles of the Standards for Budget Execution of the General Budget of Income and Expenditures of the Republic 2025 contained in Decree No. 4-2025 and its amendments are ratified, even though their wording may change, present or add new changes, which do not modify the spirit thereof.

In light of the reformulation of the General Budget of Income and Expenditures of the Republic for Fiscal Year 2026, the State Department in the Office of Finance (SEFIN) is authorized to extend the deadline for sending the Medium-Term Macro Fiscal Framework (MMFMP) 2027-2030 to the Central Bank of Honduras (BCH) no later than May 15, so that it may issue a technical opinion on the compatibility of the MMFMP with the provisions of the balance of payments, net international reserves and the measures and guidelines of monetary policy, guaranteeing the consistency of fiscal policy planning and in accordance with the interpretation and reform of the Exception Clause of the Fiscal Responsibility Law (LRF), established in articles 286 and 287 of the present General Provisions, considering the changes that have been made in this reformulation; once the BCH issues its opinion on the MMFMP, it shall be sent to the President of the Republic for the corresponding approval in the Council of Ministers and sent for publication in the Official Journal "La Gaceta" no later than May 29, 2026.

In compliance with the provisions of Article 31 of PCM-004-2026, the General Budget Directorate (DGP), temporarily assumes the function of articulating national and institutional strategic planning, ensuring that government priorities and objectives are properly incorporated into budgetary and financial programming. By virtue of the foregoing, the General Budget Directorate (DGP), shall provide technical guidelines to Public Sector Institutions, who in turn shall identify the objectives and alignment of goals in their Institutional Strategic Planning (PEI); the allocation of products and resources in their Annual Operational Plans (POA) based on priorities and corresponding budgetary programming; all aimed at complying with the policies and strategic axes defined in the "Government Plan Together We Will Be Well", thus achieving coherent, efficient and sustainable public management.

in compliance with the policies and strategic axes defined in the "Government Plan Together We Will Be Well", thus achieving coherent, efficient and sustainable public management. CHAPTER II OF REVENUES, FINANCING AND EXPENDITURES

Approve as an estimate of Revenues by Items of the Central Administration for Fiscal Year 2026, the sum of TWO HUNDRED SIXTY-THREE THOUSAND EIGHT HUNDRED SEVEN MILLION NINETY-EIGHT THOUSAND FIVE HUNDRED FORTY-SIX LEMPIRAS EXACT (L263,807,098,546.00), in accordance with the following detail: CODE REVENUES BY TYPE OF RECOMMENDED ITEM 2026 11 TAX REVENUES 186,379,850,742 111 INCOME TAX 60,036,122,697 11101 Income Tax on Natural Persons 1,100,000,000 11102 Income Tax on Legal Entities 11,900,000,000 11103 Advance Payments 18,677,100,000 11104 Withholding at Source 9,380,300,000 CHAPTER II OF REVENUES, FINANCING AND EXPENDITURES

Approve as an estimate of Revenues by Items of the Central Administration for Fiscal Year 2026, the sum of TWO HUNDRED SIXTY-THREE THOUSAND EIGHT HUNDRED SEVEN MILLION NINETY-EIGHT THOUSAND FIVE HUNDRED FORTY-SIX LEMPIRAS EXACT (L263,807,098,546.00), in accordance with the following detail:

- 11 - CODE REVENUES BY TYPE OF RECOMMENDED ITEM 2026 11105 Withholding (article 5 and 25) 1 10,000,000,000 11106 Withholding for Default (article 50) 2 800,000,000 11107 Withholding Interest (article 9) 3 1,740,000,000 11108 Capital Gains 985,100,000 11109 Solidarity Contribution 2,261,000,000 11110 Capital Gains (Zolitur) 64,622,697 11111 Residential Rent (10%) 29,000,000 11112 10% on Operating Surpluses of Private Educational Centers 33,000,000 11113 Withholding Advance Income Tax 1% 475,600,000 11115 Perception Advance Income Tax on Legal Entities 1,000,000 11116 Advance Payments Solidarity Contribution 2,589,400,000 112 PROPERTY TAX 1,592,300,000 11201 On the Transfer of Real Estate 1,047,100,000 11202 On Net Assets 545,200,000 TAX ON PRODUCTION, CONSUMPTION AND SALES 88,317,500,000 11301 On Beer Production 2,275,400,000 11302 On Liquor Production 262,000,000 11303 On Compound Liquor Production 107,000,000 11304 On Forest Production 100,000 11305 On Production and Consumption of Carbonated Waters 1,758,500,000 11306 On Sales 15% 77,129,500,000 11307 On Sales 18% 3,750,000,000 1 Income Tax Law Decree No. 25 published in the Official Gazette La Gaceta on December 27, 1963. Income from income taxes that, according to the Law for Strengthening Income, Social Equity and Rationalization of Public Spending Decree 17-2010 of April 22, 2010, stipulates in Article 5 that gross income obtained from Honduran sources by natural or legal persons not resident or domiciled in the country must pay the tax in accordance with the percentages established in said provision. It includes income from income taxes of natural persons, resident or domiciled in the country in the form of dividends, any other form of profit sharing or reserves, as well as dividends distributed to natural persons by companies covered by special regimes are taxed with a ten percent (10%) tax, which shall be withheld and remitted by the commercial company. (Article 25, Decree 17-2010 of April 22, 2010). 2 Income from delinquency in tax payments, includes surcharge and interest from delinquency of the taxpayer who has failed to pay their tax within the established period. (Decree No. 18-90 of March 3, 1990). 3 Income from income taxes resulting from interest generated by holding titles, sight deposits, savings deposits, time deposits and stock market transactions, corresponds to a single tax of ten percent (10%) calculated on the total of such income. (Amendment - Decree No. 135-94 of October 28, 1994).

- 12 - CODE REVENUES BY TYPE OF RECOMMENDED ITEM 2026 11308 On the Sale of Cigarettes 674,200,000 11309 On Selective Consumption of Various Items 958,300,000 11310 On Selective Consumption of Vehicles 1,340,000,000 11314 On Sales (18%) Air Transport Tickets 54,500,000 11315 On Sales (5%) Electronic Lottery Tickets, Raffles and Drawings 8,000,000 TAX ON SERVICES AND SPECIFIC ACTIVITIES 26,893,328,045 11401 To Gaming Casinos 400,000 11402 To the Sale of Contract Stamps 15,000,000 11403 To Asset Revaluation 250,000,000 11404 To Public Roads Services 5,187,700,000 11405 On Vehicle Transfer 169,100,000 11406 On Tourism Services 263,432,855 11407 Contribution Care of Social Programs and Conservation of Road Heritage 14,184,000,000 11408 LPG Gas Tax 430,000,000 11409 Other Taxes and Licenses on Various Activities 995,190 11410 Contribution 0.2% On Financial Transactions For Population Security 5,697,500,000 11411 Mobile Telephone Contribution For Population Security 56,000,000 11412 Mining Contribution For Population Security 71,000,000 11413 Fast Food Contribution For Population Security 11,500,000 11414 Contribution from Casinos and Slot Machines For Population Security 5,000,000 11415 Contribution from Cooperative Sector For Population Security 41,000,000 11416 Ecotax On Import of Used Vehicles 335,700,000 11417 Social Contribution of Cooperative Sector 130,000,000 11418 Social contribution of the social sector of the economy 45,000,000 115 TAX ON IMPORTS 9,523,700,000 11501 Land Import 4,013,700,000 11502 Maritime Import 5,200,000,000 11503 Air and Postal Import 310,000,000 TAX ON EVENTUAL BENEFITS AND GAMES OF CHANCE 16,900,000 11601 On National Lottery Urn Prizes 3,000,000

- 13 - CODE REVENUES BY TYPE OF RECOMMENDED ITEM 2026 11602 On Slot Machine Prizes 2,900,000 11603 On Electronic Lottery Prizes 11,000,000 12 NON-TAX REVENUES 6,252,250,790 121 FEES 2,245,904,016 12102 Migration Control 276,610,000 12104 Vehicles with Foreign License Plates 4,000,000 12105 Marine Recovery Service 15,964,990 12107 License Stamps 71,000,000 12108 Consular Services 96,358,662 12109 Customs Papers 31,000,000 12114 Notarial Paper 62,000,000 12115 National Flights Protection Service 35,746,496 12116 Geological and Shipment Inspections 7,784,000 12117 Environmental Monitoring 3,322,496 12118 Property Law Registrations 352,394,039 12120 Authentication and Translation Services 41,800,000 12121 Issuance of Statements, Certifications and Others 359,630,000 12123 Environmental Conservation and Security (Zolitur) 97,153,249 12124 Fee per Call from Abroad (US$0.03) 51,396,047 12126 Administrative Acts 53,462,862 12127 Toll Fee 145,883,797 12199 Various Fees 540,397,378 122 RIGHTS 1,447,254,198 12201 Passport Booklet 824,223,750 12202 Seamen Identity Card 61,578,152 12203 Trademark Registration 64,368,251 12204 Patent Registration 1,286,435 12205 Moneylender Registration 7,000,000 12207 National Merchant Marine 6,876,483 12208 Driver's License 256,700,000 12209 Other Licenses 85,600,000

- 14 - CODE REVENUES BY TYPE OF RECOMMENDED ITEM 2026 12211 Migration Permits and Renewals 24,974,119 12213 National Weapons Registry 19,287,414 12217 Issuance and Replacement of Plates and Stickers 23,040,180 12218 National Registry of Persons 71,861,980 12219 Copyright Registration and Related Rights 157,434 12299 Various Rights 300,000 123 FEES AND ROYALTIES 959,763,134 12301 Radio Electric Concessions and Frequencies 907,299,560 12304 Water Use Fee 2,300,000 12306 Territorial Fee 39,100,000 12309 Contributive Fishing Fee 11,063,574 124 FINES 821,107,091 12401 Customs Import Fines 120,000,000 12404 Commutation and Court Fines 12,000,000 12405 Fine for Breach of Contracts 1,000,000 12409 Transportation Fines 49,100,000 12410 Labor Fines 2,600,000 12412 CONATEL Sanctions and Infractions 1,907,091 12413 Police and Traffic Fines 269,700,000 12416 Fines for Violations of the Migration and Foreigners Law 76,000,000 12417 Sanctions by General Mining Law 9,000,000 12418 Fines Surcharges and Interest Applied Tax Code 110,000,000 12420 Sanctions for Transfer Pricing 2,500,000 12499 Various Fines and Penalties 167,300,000 128 OTHER NON-TAX REVENUES 778,222,351 12801 Auction Income 10,600,000 12804 Various Adjustments 18,000,000 12806 Refunds from Previous Fiscal Years for Overpayments 300,000,000 12807 Compensation for Loss of Personal Assets 200,000 12809 Customs Auctions 3,104,453

- 15 - CODE REVENUES BY TYPE OF RECOMMENDED ITEM 2026 12899 Other Non-Tax 446,317,898 SALES OF GOODS AND SERVICES OF THE GENERAL GOVERNMENT 939,691,164 151 SALE OF GOODS 27,729,111 15101 Sale of Printed Materials 12,839,289 15102 Sale of Agricultural and Livestock Materials and Products 445,792 15104 Sale of Articles and Various Materials 14,444,030 152 SALE OF SERVICES 911,962,053 15203 Other Services in Ports 508,715 15204 Printing 170,573,229 15205 Security Services to Private Sector Companies 35,900,000 15206 Hospital Center Income 139,177,028 15207 Educational Center Income 12,161,439 15217 Sale of Various Services Cesco 1,500,000 15218 Data Transport HONDUTEL 201,140,130 15299 Sale of Various Services 351,001,512 17 PROPERTY INCOME 197,444,957 172 INTEREST ON LOANS TO PUBLIC SECTOR 134,653,843 17205 Interest on Loans to Public Financial Institutions 1,358,987 17206 Interest on Loans to Non-Financial Public Enterprises 133,294,856 173 INTEREST ON DEPOSITS 17,520,691 17301 Interest on Internal Deposits 17,520,691 174 INTEREST ON TITLES AND SECURITIES 346,225 17403 Commission on Titles and Securities 346,225 176 RENTALS 44,924,198 17601 Land and Lot Rental 21,700,000 17603 Building, Local and Facilities Rental 22,192,698 17605 Other Rentals 1,031,500 CURRENT TRANSFERS AND DONATIONS TO PUBLIC SECTOR INSTITUTIONS 550,000,000 CURRENT TRANSFERS FROM GENERAL GOVERNMENT 450,000,000

- 16 - CODE REVENUES BY TYPE OF RECOMMENDED ITEM 2026 18102 Current Transfers from Decentralized Institutions 450,000,000 CURRENT TRANSFERS AND DONATIONS FROM PUBLIC ENTERPRISES 100,000,000 18402 Current Transfers from Public Enterprises 100,000,000 22 CAPITAL TRANSFERS AND DONATIONS 3,748,010,766 CAPITAL TRANSFERS AND DONATIONS FROM EXTERNAL SECTOR 3,692,555,411 22204 Capital Donations from International Organizations 1,364,087,768 22207 Capital Donations from Debt Relief - Paris Club (Foreign Governments) 181,366,719 22209 Capital Donations from Debt Relief-MDRI (International Organizations) 2,147,100,924 CAPITAL TRANSFERS AND DONATIONS FROM PUBLIC FINANCIAL INSTITUTIONS 55,455,355 22501 Capital Transfers from Public Financial Institutions 55,455,355 23 FINANCIAL ASSETS 20,857,961 234 RECOVERY OF LONG-TERM LOANS 20,857,961 23401 Recovery of Long-Term Loans to Private Sector 724,819 23405 Recovery of Long-Term Loans to Public Financial Institutions 20,133,142 31 DEBT TITLES 30,985,138,073 312 PLACEMENT OF TITLES AND SECURITIES AT LONG TERM 30,985,138,073 31201 Placement of Titles and Securities of Internal Debt at Long Term 30,985,138,073 32 LOANS 34,733,854,093 322 OBTAINING LONG-TERM LOANS 18,437,936,851 32206 Obtaining Loans from Public Financial Institutions at Long Term 6,454,619,490 32208 Obtaining Loans from External Sector at Long Term 11,983,317,361 OBTAINING SECTORAL LONG-TERM LOANS 16,295,917,242 32308 Obtaining Sectoral Loans from External Sector at Long Term 16,295,917,242 TOTAL CENTRAL ADMINISTRATION REVENUES 263,807,098,546

Approve as an estimate of Income by Items of the Decentralized Administration for the Fiscal Year 2026, the sum of ONE HUNDRED EIGHTY THOUSAND FIVE HUNDRED TWENTY-EIGHT MILLION SEVEN HUNDRED TWELVE THOUSAND FOUR HUNDRED ONE LEMPIRAS EXACT (L180,528,712,401.00). in accordance with the following detail: - 17 -

Approve as an estimate of Income by Items of the Decentralized Administration for the Fiscal Year 2026, the sum of ONE HUNDRED EIGHTY THOUSAND FIVE HUNDRED TWENTY-EIGHT MILLION SEVEN HUNDRED TWELVE THOUSAND FOUR HUNDRED ONE LEMPIRAS EXACT (L180,528,712,401.00). in accordance with the following detail: CODE INCOME BY TYPE OF ITEM RECOMMENDED 2026 12 NON-TAX INCOME 1,189,676,847 12100 RATES 212,897,684 12121 Issuance of Certificates, Certifications and Others 196,587,684 12199 Various Rates 16,310,000 12200 RIGHTS 52,000 12299 Various Rights 52,000 12300 CANONS AND ROYALTIES 561,244,778 12307 Canon for Benefits 87,560,567 12308 Electronic Lottery Operation Concession 473,684,211 12400 FINES 203,172,737 12499 Various Fines and Penalties 203,172,737 12800 OTHER NON-TAX 212,309,648

- 18 - CODE INCOME BY TYPE OF ITEM RECOMMENDED 2026 12899 Other Non-Tax 212,309,648 13 CONTRIBUTIONS TO SOCIAL SECURITY 36,669,416,811 13100 CONTRIBUTIONS FROM THE PRIVATE SECTOR TO THE PENSION AND RETIREMENT SYSTEM 7,076,456,503 13101 Employer Contributions 4,681,561,791 13102 Personal Contributions 2,225,426,529 13103 Other Income from Affiliation Agreements 169,468,183 13200 CONTRIBUTIONS FROM THE PUBLIC SECTOR TO THE PENSION AND RETIREMENT SYSTEM 19,069,420,215 13201 Employer Contributions 10,847,728,859 13202 Personal Contributions 6,416,691,356 13203 Other Income from Affiliation Agreements 1,805,000,000 13300 CONTRIBUTIONS FROM THE PRIVATE SECTOR TO THE SOCIAL INSURANCE SYSTEM 8,585,138,057 13301 Employer Contributions 5,816,385,485 13302 Personal Contributions 2,768,752,572 13400 CONTRIBUTIONS FROM THE PUBLIC SECTOR TO THE SOCIAL INSURANCE SYSTEM 1,938,402,036 13401 Employer Contributions 1,578,030,686

- 19 - CODE INCOME BY TYPE OF ITEM RECOMMENDED 2026 13402 Personal Contributions 360,371,350 14 CONTRIBUTIONS TO OTHER SYSTEMS 2,728,193,641 14100 CONTRIBUTIONS TO THE PROFESSIONAL TRAINING SYSTEM 1,548,461,777 14101 Employer Contributions to INFOP 1,548,461,777 14200 CONTRIBUTIONS TO THE COOPERATIVE SYSTEM 77,000,000 14201 Cooperative System Contributions to CONSUCOOP 77,000,000 14300 Contributions from the Insurance System 1,102,731,864 14301 Insurance System Contributions 1,102,731,864 15000 SALES OF GOODS AND SERVICES BY THE GENERAL GOVERNMENT 985,170,370 15100 SALE OF GOODS 602,858,076 15107 Major Lottery Tickets 40,000,000 15108 Minor Lottery Tickets 456,171,800 15199 Sale of Various Goods 106,686,276 15200 SALE OF SERVICES 382,312,294 15299 Sale of Various Services 382,312,294

- 20 - CODE INCOME BY TYPE OF ITEM RECOMMENDED 2026 16 OPERATING INCOME 60,744,324,477 16100 GROSS SALE OF GOODS 1,616,354,840 16199 Gross Sale of Various Goods 1,616,354,840 16200 GROSS SALE OF SERVICES 54,284,099,578 16298 Gross Sale of Electrical Energy Services 51,258,611,933 16299 Gross Sale of Various Services 3,025,487,645 16300 INCOME FROM FINANCIAL INSTITUTIONS 4,062,215,453 16301 Interest on Loans 1,263,872,050 16302 Commissions for Foreign Exchange Services 1,670,455,802 16303 Commissions for Banking Services 1,085,059,751 16399 Other Income from Financial Institutions 42,827,850 16900 NON-OPERATING INCOME 781,654,606 16999 Various Non-Operating Income 781,654,606 17 PROPERTY INCOME 26,024,006,167 17100 INTEREST ON LOANS TO THE PRIVATE SECTOR 4,617,337,231

- 21 - CODE INCOME BY TYPE OF ITEM RECOMMENDED 2026 17101 Interest on Loans to the Private Sector 4,617,337,231 17200 INTEREST ON LOANS TO THE PUBLIC SECTOR 1,860,911,003 17201 Interest on Loans to Central Administration 1,860,911,003 17300 INTEREST ON DEPOSITS 6,432,918,642 17301 Interest on Internal Deposits 2,608,710,664 17302 Interest on External Deposits 3,824,207,978 17400 INTEREST ON SECURITIES AND ASSETS 12,395,427,433 17401 Interest on Internal Securities and Assets 9,897,220,190 17402 Interest on External Securities and Assets 2,498,207,243 17500 BENEFITS FROM BUSINESS INVESTMENTS 460,500,000 17501 Dividends from Shares 460,500,000 17600 RENTS 256,911,858 17601 Rent of Land and Terrain 85,819,349 17603 Rent of Buildings, Premises and Facilities 162,416,297 17605 Other Rents 8,676,212

- 22 - CODE INCOME BY TYPE OF ITEM RECOMMENDED 2026 18 CURRENT TRANSFERS AND DONATIONS TO PUBLIC SECTOR INSTITUTIONS 11,970,554,012 18100 CURRENT TRANSFERS FROM GENERAL GOVERNMENT 11,596,923,012 18101 Current Transfers from Central Administration 11,547,219,894 18102 Current Transfers from Decentralized Institutions 728,000 18103 Current Transfers from Social Security Institutions 48,804,118 18104 Current Transfers from Universities 171,000 18200 CURRENT TRANSFERS AND DONATIONS FROM THE EXTERNAL SECTOR 265,000,000 18205 Current Donations from Foreign Governments 265,000,000 18400 CURRENT TRANSFERS AND DONATIONS FROM COMPANIES 345,000 18402 Current Transfers from Public Companies 345,000 18500 CURRENT TRANSFERS AND DONATIONS FROM PUBLIC FINANCIAL INSTITUTIONS 108,286,000 18501 Current Transfers from Public Financial Institutions 108,286,000 21 OWN CAPITAL RESOURCES 70,522,490 21100 SALE OF REAL ESTATE 64,000,000 21101 Sale of Land and Terrain 64,000,000

- 23 - CODE INCOME BY TYPE OF ITEM RECOMMENDED 2026 21400 SALE OF FIXED ASSETS 6,522,490 21499 Sale of Various Assets 6,522,490 22000 CAPITAL TRANSFERS AND DONATIONS 2,570,352,474 22100 CAPITAL TRANSFERS FROM GENERAL GOVERNMENT 2,570,352,474 22101 Capital Transfers from Central Administration 2,570,352,474 23 FINANCIAL ASSETS 30,611,412,720 23100 SALE OF SECURITIES AND ASSETS 12,372,580,119 23111 Sale of short-term securities and assets to the private sector 2,580,802,438 23121 Sale of long-term securities and assets to the private sector 9,791,777,681 23300 RECOVERY OF SHORT-TERM LOANS 15,242,070,756 23301 Recovery of Short-Term Loans to the Private Sector 15,242,070,756 23400 RECOVERY OF LONG-TERM LOANS 2,271,402,502 23401 Recovery of Long-Term Loans to the Private Sector 2,243,419,780 23402 Recovery of Long-Term Loans to Central Administration 27,982,722 23900 DECREASE IN OTHER FINANCIAL ASSETS 725,359,343

- 24 - CODE INCOME BY TYPE OF ITEM RECOMMENDED 2026 23901 Decrease in Available Resources from Previous Years 725,359,343 32 LOANS 6,965,082,392 32200 OBTAINING LONG-TERM LOANS 6,965,082,392 32201 Obtaining Long-Term Internal Loans from the Private Sector 6,965,082,392 Total Income Decentralized Administration 180,528,712,401

Approve as an estimate of the Expenditures of the Public Administration by type of administration, institution and source of financing for the Fiscal Year 2026, the sum of FOUR HUNDRED FORTY-FOUR THOUSAND THREE HUNDRED THIRTY-FIVE MILLION EIGHT HUNDRED TEN THOUSAND NINE HUNDRED FORTY-SEVEN LEMPIRAS EXACT (L444,335,810,947.00) in accordance with the following detail: Summary Budget Public Administration Type of Administration 11 - National Treasury 12 - Own Resources Credit and Internal Donations (13 and 14) External Sources (21, 22, 23, 26 and 27) Total Centralized Administration (CA) 221,413,552,594 3,911,681,093 6,510,074,845 31,971,790,014 263,807,098,546 Decentralized Administration (DA) 12,315,305,836 159,181,057,641 6,965,082,392 2,067,266,532 180,528,712,401 Total, Public Administration 233,728,858,430 163,092,738,734 13,475,157,237 34,039,056,546 444,335,810,947 CENTRAL ADMINISTRATION - 24 - CODE INCOME BY TYPE OF ITEM RECOMMENDED 2026 23901 Decrease in Available Resources from Previous Years 725,359,343 32 LOANS 6,965,082,392 32200 OBTAINING LONG-TERM LOANS 6,965,082,392 32201 Obtaining Long-Term Internal Loans from the Private Sector 6,965,082,392 Total Income Decentralized Administration 180,528,712,401

Approve as an estimate of the Expenditures of the Public Administration by type of administration, institution and source of financing for the Fiscal Year 2026, the sum of FOUR HUNDRED FORTY-FOUR THOUSAND THREE HUNDRED THIRTY-FIVE MILLION EIGHT HUNDRED TEN THOUSAND NINE HUNDRED FORTY-SEVEN LEMPIRAS EXACT (L444,335,810,947.00) in accordance with the following detail: Summary Budget Public Administration Type of Administration 11 - National Treasury 12 - Own Resources Credit and Internal Donations (13 and 14) External Sources (21, 22, 23, 26 and 27) Total Centralized Administration (AC) 221,413,552,594 3,911,681,093 6,510,074,845 31,971,790,014 263,807,098,546 Decentralized Administration (AD) 12,315,305,836 159,181,057,641 6,965,082,392 2,067,266,532 180,528,712,401 Total, Public Administration 233,728,858,430 163,092,738,734 13,475,157,237 34,039,056,546 444,335,810,947 CENTRAL ADMINISTRATION

Approve as an estimate of the Expenditures of the Public Administration by type of administration, institution and source of financing for the Fiscal Year 2026, the sum of FOUR HUNDRED FORTY-FOUR THOUSAND THREE HUNDRED THIRTY-FIVE MILLION EIGHT HUNDRED TEN THOUSAND NINE HUNDRED FORTY-SEVEN LEMPIRAS EXACT (L444,335,810,947.00) in accordance with the following detail: Summary Budget Public Administration

- 25 - Administration / Institution 11 - National Treasury 12 - Own Resources Credit and Internal Donations (13 and 14) External Sources (21, 22, 23, 26 and 27) Total Total, Central Administration 221,413,552,594 3,911,681,093 6,510,074,845 31,971,790,014 263,807,098,546 Institution Code State Secretariats 145,864,425,376 1,011,921,706 - 12,356,010,937 159,232,358,019 State Secretariat in the Offices of Governance, Justice and Decentralization (SGJD) 11,466,429,475 8,758,016 - 360,313,478 11,835,500,969 State Secretariat in the Office of the Presidency (SEPRE) 1,906,055,817 - - 595,348,559 2,501,404,376 State Secretariat in the Offices of Foreign Relations and International Cooperation (SRECI) 1,783,670,865 128,272,857 - - 1,911,943,722 State Secretariat in the Office of Finance (SEFIN) 1,992,415,258 500,890 - - 1,992,916,148 State Secretariat in the Office of Human Rights (SEDH) 200,811,736 - - - 200,811,736 State Secretariat in the Offices of Childhood, Adolescence and Family (SENAF) 359,068,505 101,534 - - 359,170,039 State Secretariat in the Office of Women's Affairs (SEMUJER) 143,403,743 - - - 143,403,743 State Secretariat in the Office of Social Development (SEDESOL) 2,372,591,384 - - - 2,372,591,384 State Secretariat in the Office of Health (SESAL) 26,240,390,578 111,177,028 - 5,045,879,592 31,397,447,198 State Secretariat in the Office of Education (SEDUC) 45,969,764,152 6,717,666 - 463,679,795 46,440,161,613 State Secretariat in the Office of Economic Development (SDE) 441,251,232 7,135,968 - - 448,387,200 State Secretariat in the Offices of Labor and Social Security (SETRASS) 416,289,681 300,000 - 209,982,031 626,571,712 State Secretariat in the Offices of Agriculture and Livestock (SAG) 3,363,080,308 31,049,826 - 1,285,168,094 4,679,298,228 State Secretariat in the Offices of Natural Resources and Environment (SERNA) 336,685,661 34,708,706 - - 371,394,367 Decentralized (AD) 12,315,305,836 159,181,057,641 6,965,082,392 2,067,266,532 180,528,712,401 Total, Public Administration 233,728,858,430 163,092,738,734 13,475,157,237 34,039,056,546 444,335,810,947 CENTRAL ADMINISTRATION

- 26 - Administration / Institution 11 - National Treasury 12 - Own Resources Credit and Internal Donations (13 and 14) External Sources (21, 22, 23, 26 and 27) Total 310 State Secretariat in the Office of Energy (SEN) 7,122,459,960 16,338,750 - 860,159,371 7,998,958,081 State Secretariat in the Office of Security (SESEGU) 12,577,893,282 621,986,280 - 137,359,819 13,337,239,381 State Secretariat in the Office of Defense (SEDENA) 12,324,720,011 44,329,383 - - 12,369,049,394 State Secretariat in the Offices of Infrastructure and Transport (SIT) 14,380,807,125 65,498 - 3,214,314,596 17,595,187,219 State Secretariat in the Office of Housing and Human Settlements (SEVIAH) 229,734,231 - - - 229,734,231 State Secretariat in the Offices of Risk Management and National Contingencies (COPECO) 472,649,198 - - - 472,649,198 State Secretariat in the Offices of Cultures, Arts and the Heritages of the Peoples of Honduras (SECAPPH) 585,837,930 479,304 - - 586,317,234 State Secretariat in the Office of Tourism (SETUR) 342,001,990 - - - 342,001,990 State Secretariat for the Development and Monitoring of Projects and Agreements (SEDESPA) 35,180,930 - - - 35,180,930 State Secretariat in the Office of Strategic Planning (SPE) 647,639,189 - - - 647,639,189 State Secretariat in the Offices of Transparency and Fight Against Corruption (STLCC) 93,244,950 - - - 93,244,950 State Secretariat in the Offices of Community Development, Water and Sanitation (SEDECOAS) 60,348,184 - - 183,805,602 244,153,786 Sub Total Deconcentrated Institutions 14,309,902,396 2,457,548,457 - 3,028,602,515 19,796,053,368 22 Honduran Social Investment Fund (FHIS) 176,591,972 - - 775,706,770 952,298,742 24 Institute of Property (IP) 749,467,533 396,652,631 - - 1,146,120,164 National Program for Prevention, Rehabilitation and Social Reintegration (PNPRRS) 14,801,325 - - - 14,801,325

- 27 - Administration / Institution 11 - National Treasury 12 - Own Resources Credit and Internal Donations (13 and 14) External Sources (21, 22, 23, 26 and 27) Total 26 National Youth Institute (INJUVE) 34,659,909 - - - 34,659,909 National Institute of Conservation and Forest Development, Protected Areas and Wildlife (ICF) 461,056,179 34,365,431 - 49,069,353 544,490,963 32 Institute of Access to Public Information (IAIP) 65,000,000 - - - 65,000,000 Housing and Human Settlements Program (PVAH-CONVIVIENDA) 45,950,149 - - - 45,950,149 Honduran Institute of Geology and Mines (INHGEOMIN) 54,448,402 140,000,000 - - 194,448,402 37 Tax Administration Service (SAR) 1,005,501,832 53,462,862 - - 1,058,964,694 National Service for Entrepreneurship and Small Businesses (SENPRENDE) 286,437,927 1,140,000 - - 287,577,927 42 Fire Department of Honduras (CBH) 446,682,314 234,141,038 - - 680,823,352 43 National Graphic Arts Enterprise (ENAG) 15,000,000 170,573,229 - - 185,573,229 44 National Penitentiary Institute (INP) 3,481,726,096 - - - 3,481,726,096 45 National Migration Institute (INM) 1,201,272,450 - - - 1,201,272,450 National Institute for the Care of Juvenile Offenders (INAMI) 243,767,551 - - - 243,767,551 National Center for Work Education (CENET) 27,399,092 - - - 27,399,092 Regulatory Body for Drinking Water and Sanitation Services (ERSAPS) 23,701,106 23,475,529 - - 47,176,635 62 Health Regulatory Agency (ARSA) - 325,000,000 - - 325,000,000 Police Disciplinary Affairs Office (DIDADPOL) 71,186,711 - - - 71,186,711 91 Honduran Civil Aeronautics Agency (AHAC) 349,937,024 36,419,116 - - 386,356,140 National Telecommunications Commission (CONATEL) 245,926,354 - - - 245,926,354 Administrative Commission Free Tourism Zone Bahia Islands (ZOLITUR) - 162,424,788 - - 162,424,788 104 National State Property Office (DNBE) 49,735,741 - - - 49,735,741

- 28 - Administration / Institution 11 - National Treasury 12 - Own Resources Credit and Internal Donations (13 and 14) External Sources (21, 22, 23, 26 and 27) Total 121 General Directorate of Merchant Marine (DGMM) 60,212,942 120,000,000 - - 180,212,942 123 Honduran Land Transport Institute (IHTT) 537,277,890 154,078,788 - - 691,356,678 Directorate of Agricultural Science and Technology (DICTA) 120,440,554 574,000 - - 121,014,554 National Program for Sustainable Rural and Urban Development (PRONADERS) 899,374,065 - - - 899,374,065 National Service for Agricultural Health and Food Safety (SENASA) 220,139,364 74,446,943 - - 294,586,307 153 Electric Energy Regulatory Commission (CREE) - 136,500,000 - - 136,500,000 Garifuna Culture Center of Honduras (GARINAGU) 25,599,074 - - - 25,599,074 National Parks and Recreation Directorate (DPR) 2,045,093 - - - 2,045,093 National Directorate of the Woman City Program (DNCM) 134,852,107 - - - 134,852,107 Inter-institutional Commission Against Commercial Sexual Exploitation and Trafficking in Persons (CICESCT) 36,074,630 - - - 36,074,630 400 Honduras Customs Administration (AAH) 655,737,286 371,544,642 - 261,270,015 1,288,551,943 404 General Directorate of Cinematography (DGC) 9,621,912 - - - 9,621,912 National Commission of Sports, Physical Education and Recreation (CONDEPOR) 1,765,551,146 22,749,460 - - 1,788,300,606 414 Results-Based Management Directorate (DIGER) 208,785,258 - - 191,451,277 400,236,535 415 Solidarity Network Program (PRS) 103,106,564 - - 1,751,105,100 1,854,211,664 417 Solidarity Action Program (PROASOL) 77,405,551 - - - 77,405,551 418 National Civil Service Administration (ANSEC) 121,468,573 - - - 121,468,573 National Inter-oceanic Railway Commission (CONFI) 100,000,000 - - - 100,000,000 422 Presidential Office of Foreign Trade (OPCE) 181,960,721 - - 181,960,721 Sub Total Constitutional Bodies 11,833,043,309 442,210,930 55,455,355 185,860,518 12,516,570,112 1 National Congress (CN) 1,530,300,000 - - - 1,530,300,000 2 Superior Court of Accounts (TSC) 778,065,682 725,651,412 52,414,270 - - National Commissioner of Human Rights (CONADEH) 155,415,781 - - - 155,415,781 4 National Electoral Council (CNE) 334,964,590 - - - 334,964,590 5 Electoral Justice Court (TJE) 72,602,345 - - - 72,602,345 10 Judiciary (PJUD) 4,139,923,500 256,500,000 - - 4,396,423,500 20 Presidency of the Republic (PREREP) 832,950,606 - - - 832,950,606 180 National Registry of Persons (RNP) 893,666,055 71,861,980 - 185,860,518 1,151,388,553 190 Public Ministry (MP) 2,829,283,987 - - - 2,829,283,987 200 General Prosecutor's Office of the Republic (PGR) 318,285,033 61,434,680 55,455,355 - 435,175,068 Sub Total Public Debt, Financial Services of the CA 49,041,181,513 - 6,454,619,490 16,401,316,044 71,897,117,047 220 Public Debt (DEPU) 43,857,236,417 - 6,454,619,490 16,295,917,242 66,607,773,149 Administration of Contingent Liabilities and Unforeseen Expenses (APCI) 5,121,475,857 - - 105,398,802 5,226,874,659 Financial Services of the Central Administration (SFAC) 62,469,239 - - - 62,469,239 Sub Total Other Entities 365,000,000 - - - 365,000,000 405 Special Protection Unit (UEP) 365,000,000 - - - 365,000,000

- 30 - DECENTRALIZED ADMINISTRATION Administration / Institution 11 - National Treasury 12 - Own Resources Credit and Internal Donations (13 and 14) External Sources (21, 22, 23, 26 and 27) Total Total, Decentralized Administration 12,315,305,836 159,181,057,641 6,965,082,392 2,067,266,532 180,528,712,401 Code Subtotal Autonomous Institutes 2,096,965,089 2,928,486,710 - 910,348,559 5,935,800,358 500 National Agrarian Institute (INA) 637,197,182 59,001,910 - - 696,199,092 501 Honduran Tourism Institute (IHT) 333,271,035 89,540,529 - 265,000,000 687,811,564 National Institute of Vocational Training (INFOP) 1,188,950 1,558,301,777 - 50,000,000 1,609,490,727 Educational Credit Institute (EDUCREDITO) - 23,330,056 - - 23,330,056 Honduran Institute of Anthropology and History (IHAH) 109,630,205 41,821,240 - - 151,451,445 National Cooperative Supervisory Council (CONSUCOOP) 38,500,000 91,281,385 - - 129,781,385 Honduran Institute for the Prevention of Alcoholism, Drug Addiction and Pharmacological Dependence (IHADFA) 170,057,795 3,227,500 - - 173,285,295 508 National Patronage for Children (PANI) - 1,043,972,313 - - 1,043,972,313 Autonomous Sports Confederation of Honduras (CONDEPAH) 464,218,289 - - - 464,218,289 513 National Institute of Statistics (INE) 118,416,516 1,700,000 - 595,348,559 715,465,075 Commission for the Defense and Promotion of Competition (CDPC) 64,404,000 16,310,000 - - 80,714,000 Honduran Institute of Science, Technology and Innovation (IHCIETI) 141,655,061 - - - 141,655,061 National Committee for Prevention Against Torture, Cruel, Inhuman or Degrading Treatment (CONAPREV) 18,426,056 - - - 18,426,056 Subtotal Social Insurance and Pension Institutes 182,650,932 80,565,501,461 - - 80,748,152,393 601 Honduran Social Security Institute (IHSS) 8,068,000 21,861,794,942 - - 21,869,862,942

- 31 - Administration / Institution 11 - National Treasury 12 - Own Resources Credit and Internal Donations (13 and 14) External Sources (21, 22, 23, 26 and 27) Total National Institute of Pensions and Allowances of Employees and Officials of the Executive Branch (INJUPEMP) - 14,593,800,000 - - 14,593,800,000 National Teaching Profession Insurance Institute (INPREMA) 4,369,309 29,738,872,820 - - 29,743,242,129 604 Military Insurance Institute (IPM) 170,213,623 12,061,989,141 - - 12,232,202,764 Social Insurance Institute of Employees of the National Autonomous University of Honduras (INPREUNAH) - 2,309,044,558 - - 2,309,044,558 Subtotal National Universities 9,176,294,015 427,634,723 - - 9,603,928,738 National Forestry Sciences University (UNACIFOR) 195,597,685 24,508,821 - - 220,106,506 National Autonomous University of Honduras (UNAH) 6,846,653,714 314,009,907 - - 7,160,663,621 Francisco Morazán National Pedagogical University (UPNFM) 911,561,242 38,500,000 - - 950,061,242 703 National University of Agriculture (UNA) 1,222,481,374 50,615,995 - - 1,273,097,369 Subtotal Public Enterprises 856,685,194 56,784,769,288 6,965,082,392 860,159,371 65,466,696,245 National Electric Energy Company (ENEE) 170,000,000 51,518,611,933 6,965,082,392 860,159,371 59,513,853,696 803 National Port Enterprise (ENP) - 2,216,221,934 - - 2,216,221,934 Honduran Telecommunications Company (HONDUTEL) - 1,155,581,165 - - 1,155,581,165 National Autonomous Service of Aqueducts and Sewers (SANAA) 446,883,649 122,765,310 - - 569,648,959 Honduran Agricultural Marketing Institute (IHMA) 2,789,000 229,611,000 - - 232,400,000 National Basic Products Supplier (BANASUPRO) 106,234,663 1,425,223,670 - - 1,531,458,333 808 National Railroad of Honduras (FNH) 7,500,000 14,892,309 - - 22,392,309

- 32 - Administration / Institution 11 - National Treasury 12 - Own Resources Credit and Internal Donations (13 and 14) External Sources (21, 22, 23, 26 and 27) Total Honduras Postal Enterprise (HONDUCOR) 123,277,882 101,861,967 - - 225,139,849 Subtotal Banking and Non-Banking Financial Institutions 2,710,606 18,474,665,459 - 296,758,602 18,774,134,667 Honduran Production and Housing Bank (BANHPROVI) 2,710,606 3,053,142,062 - - 3,055,852,668 902 Central Bank of Honduras (BCH) - 12,196,885,983 - - 12,196,885,983 National Agricultural Development Bank (BANADESA) - 2,004,973,454 - 296,758,602 2,301,732,056 National Commission of Banks and Insurance (CNBS) - 1,219,663,960 - - 1,219,663,960 SEFIN is authorized through the use of the Budget Modification Form (FMP-05) of the Integrated Financial Administration System (SIAFI), to make the necessary adjustments to the General Budget of Income and Expenses of the Republic for Fiscal Year 2026, affecting the structures that are necessary, based on what was approved by the chamber. CHAPTER III BUDGETARY EXECUTION OF INCOME Income Generated or Received by Institutions

All institutions of the Central Administration that generate or receive income, whether from their own activities, contingent or provided for by law, and categorized as own resources in source 12, shall deposit the same in the SEFIN is authorized through the use of the Budget Modification Form (FMP-05) of the Integrated Financial Administration System (SIAFI), to make the necessary adjustments to the General Budget of Income and Expenses of the Republic for Fiscal Year 2026, affecting the structures that are necessary, based on what was approved by the chamber. CHAPTER III BUDGETARY EXECUTION OF INCOME Income Generated or Received by Institutions

All institutions of the Central Administration that generate or perceive income, whether from their own activities, contingent activities, or those provided for in the laws, and categorized as own resources in source 12, shall deposit them in the General Income Account that the General Treasury of the Republic (TGR) maintains in the Central Bank of Honduras (BCH), using the official online receipt TGR-1. The State Secretary in the Finance Department (SEFIN) may authorize up to fifty percent (50%) of own resources (Source 12) generated in the Central Administration from property income and financial assets, for use by the departments that generated them, after first verifying the collection of these. The following institutions are excepted from the provision in the previous paragraph:

The National Registry of Persons (RNP) one hundred percent (100%) of income received for services provided. These will be incorporated after verification of the existence of corresponding deposits in the Integrated Financial Administration System (SIAFI), by the State Secretary in the Finance Department through the General Budget Directorate. According to Chapter II of RNP Assets, article 116 of the Creation Law. The National Registry of Persons is a Constitutional Entity of National Security and not a public company.

The National Center for Education for Work (CENET) one hundred percent (100%) of income received for services provided according to the Creation Law Decree No. 84-2001 article 11 CENET Assets, numeral 3. Funds from the sale of technical services to institutions and development organizations, as well as income and products from its assets. Agreement No. 0042-PE-04 Regulations for the Administration of Own Resources.

Free Tourist Zone of the Bay Islands (ZOLITUR) one hundred percent (100%) of income received for services provided according to Decree No. 181-2006, Chapter II Numeral 3.

The Judicial Branch (PJ) one hundred percent (100%) of income from the sale of Special Notarial Paper and other services provided such as issuance of background certificates, authentication services and various fees (processing of summons, notifications, requirements, among others) according to Decree No. 75 of April 7, 1911 and its reforms, Law of Financial Balance and Social Protection, article 26. Agreement No. 1-2008 of the Authentication Law Regulations, Agreement No. 1-2016 reforming article 60 of the Electronic Documentation and Information Center Regulations, regarding the cost of background certificates, and Agreement No. 09-2017 regulations for the processing of summons, service of process, notifications and requirements.

The National Graphic Arts Company (ENAG) one hundred percent (100%) of income received for services provided according to Legislative Decree No. 023-99, Chapter III, Article 9.

The Fire Department of Honduras (CBH) one hundred percent (100%) of income received from various training, inspection, studies, seminars and fee services according to Legislative Decree No. 294-93 Creation Law of the Fire Department of Honduras Chapter VIII article 40, Legislative Decree No. 134-90 article 83 Law of Municipalities, and Legislative Decree No. 56-2019 article 75.

The General Directorate of the National Merchant Marine (MARMER) one hundred percent (100%) of income from registration in the Ship Registry and from the issuance of Navigation License collected abroad, as well as any other own income generated according to the Organic Law of the Merchant Marine Decree No. 167-94 and its reform according to Decree No. 200-97, of January 31, 1998, Gazette No. 28,478 which establishes in Article 84 that the fees referred to in this Chapter shall be paid to the General Treasury of the Republic or to the banking institution that it has authorized for that purpose.

The Health Regulatory Agency (ARSA) one hundred percent (100%) of income received for services provided according to Executive Decree No. PCM 032-.

The Electrical Energy Regulatory Commission (CREE) one hundred percent (100%) of income received for services provided according to Legislative Decree No. 404-2013, article 3 literal G and Legislative Decree No. 61-2020, article 3.

The Public-Private Alliance Regulation Superintendency (SAPP) one hundred percent (100%) of income received from the contribution for regulation of Public-Private Participation Contracts according to Legislative Decree No. 143-2010, article 29.

The State Secretary in the Health Department (SESAL) one hundred percent (100%) of income received through Primary Health Care Units (UAPS), Comprehensive Health Centers (CIS), Polyclinics, Hospitals, and the Sanitary Regulatory Framework Monitoring Department within its jurisdiction. These resources shall be allocated to cover operating expenses, in accordance with the regulations and procedures approved between the Health Department and SEFIN.

The State Secretary in the Education Department (SEDUC) one hundred percent (100%) of income received through official educational establishments. These resources shall be allocated to cover operating expenses, in accordance with the regulations and procedures approved between the Education Department and SEFIN.

The National Institute for Forest Development and Conservation, Protected Areas and Wildlife (ICF) one hundred percent (100%) of income from the various activities carried out by its departments according to the Forest Law, Protected Areas and Wildlife Decree No. 156-2007, article 32. All income generated by the institute, whether from its own or contingent activities, must be deposited in the account that the General Treasury of the Republic maintains in the Central Bank of Honduras.

The Regulating Entity for Drinking Water and Sanitation Services (ERSAP) one hundred percent (100%) of income from the collection of supervision, monitoring and advisory services, collected by Drinking Water and Sanitation providers according to Legislative Decree No. 118-2003 Framework Law of the Drinking Water and Sanitation Sector in Chapter VIII, art. 34; of the Regulations, Chapter IV, art. 15, 17 and 18 and Chapter XII art. 50.

The Security Department (SSEGU) one hundred percent (100%) of income from:

• 1)

  Fines imposed as a result of the application of control of private security services;

• 2)

  income received from fees, fines, taxes, rights for authorizations and licenses under private security services;

• 3)

  issuance of licenses, permits, imposition of fines and others generated by the application of the Firearms, Ammunition and Related Materials Law according to Agreement SSEGU No. 013-2009 containing the regulations of the Organic Law of the Security Department and National Police, Legislative Decree No. 18-2017, article 124; article 65 of the regulations for the control of private security services; and articles 103, 104, 105 and 106 of Legislative Decree No. 101-2018 containing the Law of Firearms, Ammunition, Explosives and Related Materials.

  The Defense Department (SEDENA) one hundred percent (100%) of income received by the Military Industry of the Armed Forces, the Military Hospital, the Defense University of Honduras; the Aeronautical Services Sales Unit of the Honduran Air Force (UVESAFAH), the Honduran Naval Force, Army, Joint Staff and Honduran Air Force. For the use of these resources, the Defense Departments shall present to the State Secretary in the Finance Department (SEFIN) the Budget and Spending Plan, which must include prevention programs according to Opinion D005-(C-3)-2022, of June 28, 2022 and Creation Agreement S.D.N. No. 056-2022 of July 1, 2022. Based on articles 104 and 126 of the Constitutive Law of the Armed Forces, SEDENA shall maintain and sustain immovable and movable property.

  The Economic Development Department (SDE) one hundred percent (100%) of own income generated by the National Quality System according to Executive Decree No. PCM-042-2017, published August 5, 2017, Gazette No. 34,409 and Legislative Decree No. 29-2011 National Quality System Law.

  The State Secretary of Foreign Relations and International Cooperation (SRECI) one hundred percent (100%) of income received from Consular Registration Fees and income from the various activities carried out by its departments, including the implementation of electronic apostilles according to Decree No. 263-2011, which establishes that all consular fees for services provided by Consular offices must be paid by prior payment and shall enter entirely into the General Treasury of the Republic.

  The State Secretary in the Finance Department (SEFIN) one hundred percent (100%) of income received by the PPICPU through collections made for Artistic Presentations, Sale of Artistic Products, Donations, among others. Likewise, income received from services provided by the Comprehensive Pilot Program to Combat Urban Poverty (PPICPU) belonging to the Finance Department, Program 01, Administrative Management 01 and Activity 04 according to resources granted based on these Provisions.

  The Normative Office of State Contracting and Acquisitions (ONCAE) and the State Secretary in the Departments of Culture, Arts and Heritage of the Honduran Peoples (SECAPPH) one hundred percent (100%) of income from services provided according to Creation Law Executive Decree No. PCM-005-2022.

  The Energy Department (SEN) one hundred percent (100%) of income received for services provided and shall be recognized through deposits made with TGR-1 and validated by the General Budget Directorate of the State Secretary in the Finance Department (SEFIN) according to Executive Decree No. PCM-048-2017 of August 7, 2017 (Creation of the Energy Department); Agreement No. 002-2019 published April 10, 2019 (Agreement for Categorization and Creation for Services Provided) and Agreement SEN 159-2022 of November 28, 2022, Agreement SEN 118-2023 of January 10, 2024, Agreement SEN 110-2024 of October 29, 2024.

  The Agriculture and Livestock Department (SAG) one hundred percent (100%) of income generated by DIGEPESCA and PRONAGRI Programs, from land rental for shrimp farming, commercialization licenses, sport fishing, sale of fry, fishing law fines, artisanal fishing licenses, laboratory service provision, among others according to resources granted based on these Provisions.

  The Honduran Customs Administration (AAH) one hundred percent (100%) of income generated from company deposits as operational fees for these resources shall be allocated to cover contract salary payments and collateral benefits, labor benefits of human resources working in the supervision and customs monitoring service provided by the Honduran Customs Administration (AAH) to companies under special regimes, deposit warehouses, temporary deposits, and other resources generated by the AAH from its own activities performed occasionally or arising from current laws, which do not include interest on deposits in guarantee and transferred to the receiving account of the General Treasury of the Republic, and likewise concerning income established according to article 50 of Decree No. 17-2010 dated March 28, 2010 and published in the Official Journal "La Gaceta" on April 9, 2010, Edition No. 32,183. extraordinary hours, per diem, transportation expenses and any other expense necessary to perform supervision work directly or through third parties. Similarly, it may dispose of what is necessary to implement control mechanisms in the supervised companies and any other expense required for the proper functioning of the institution.

  The Property Institute (IP) one hundred percent (100%) of income received for services provided and shall be recognized through deposits made with TGR-1 and validated by the General Budget Directorate of the State Secretary in the Finance Department (SEFIN) according to Legislative Decree No. 82-2004, article 7, Property Law.

  The National Commission for Sports, Physical Education and Recreation (CONDEPOR) one hundred percent (100%) of income received from services provided according to Creation Law Executive Decree No. PCM-11-2022.

  The Superior Court of Accounts (TSC) one hundred percent (100%) of income received for services provided through audits under interinstitutional cooperation agreements, Fines or Findings and any other income received for services. These resources shall be incorporated after verification of the existence of corresponding deposits in the Integrated Financial Administration System (SIAFI), by the State Secretary in the Finance Department through the General Budget Directorate and shall be incorporated into the TSC budget to cover contract personnel salary payments, labor benefits, overtime, field work transportation and mobilization expenses, among others.

  The State Secretary in Economic Development (SDE) one hundred percent (100%) of income received from the Economic Concentration Verification Fee that the State Secretary must transfer to the Commission for the Defense and Promotion of Competition (CDPC) according to Decree No. 4-2015, article 63-B. The State Secretary in Economic Development (SDE) must transfer these funds in their entirety and immediately to the CDPC.

  The Direction of Agricultural Science and Technology (DICTA) ninety percent (90%) of income received from the sale of goods and services provided to the agricultural sector according to Decree No. 1046 of October 15, 1980, in article 35 regarding Resources, which besides those assigned in the General Budget of the Republic, shall have collections for services that can be provided to individuals or private companies.

  The State Secretary in the Departments of Natural Resources and Environment (SERNA) ninety percent (90%) of income received from environmental fees, royalties, certifications or statements and any other income related to its competencies. The TGR1 presented by SERNA to the State Secretary in the Finance Department (SEFIN) from the Other Licenses item shall be validated with the date of presentation of the taxpayer within the present Fiscal Year. The TGR1 from other items shall be validated based on the Article of the Present Law.

  The Honduran Institute of Geology and Mines (INHGEOMIN) ninety percent (90%) of income from the various activities carried out by its departments according to the Mining Law of Honduras through Decree No. 238-12 and its reform through Legislative Decree No. 109-2019 of November 25, 2019.

  The Honduran Civil Aeronautics Agency (AHAC) eighty percent (80%) of income from the Flight Protection Services Fee, fees, tariffs, air navigation services and others caused by administrative actions in accordance with article 101 of its Law; these resources must be invested in operational expenses. The State Secretary in the Finance Department shall facilitate its connectivity to the Integrated Financial Administration System (SIAFI) to operate directly according to Decree No. 55-2004, reformed through Decree No. 65-2017, article 27.

  The National Defense Department (SEDENA) eighty percent (80%) of income from SEDENA, PMOP, Ecological Support Directorate (C-9), Institutional Support Command (C-11). For the use of these resources, the Defense Department shall present to the State Secretary in the Finance Department (SEFIN) the Budget and Spending Plan, which must include prevention and rehabilitation programs, and shall also inform the National Congress.

  The General Attorney's Office of the Republic (PGR) eighty percent (80%) of income from the various activities carried out by its departments according to the Organic Law of the PGR, Decree No. 74, article 7. The functions of the General Attorney's Office of the Republic are autonomous, except in cases where, in accordance with the law, it must follow special instructions. The Budget of the General Attorney's Office of the Republic and its departments shall appear in a special section of the General Budget of the Republic.

  The Honduran Land Transportation Institute (IHTT) eighty percent (80%) of income received for services provided according to Legislative Decree No. 155-2015, article 64.

  The State Secretary in Economic Development (SDE) seventy percent (70%) of income received from fines, which shall be allocated to institutional strengthening according to the Consumer Protection Law, Decree No. 24-2008, article 88.

  The State Secretary of Foreign Relations and International Cooperation (SRECI) sixty-eight percent (68%) of income from the replacement of DNI abroad according to Interinstitutional Cooperation Agreement, between the National Registry of Persons and the State Secretary in the Departments of Foreign Relations and International Cooperation of 2022.

  The National Registry of Persons (RNP) thirty-two percent (32%) of income from the replacement of DNI abroad according to Interinstitutional Cooperation Agreement, between the National Registry of Persons and the State Secretary in the Departments of Foreign Relations and International Cooperation of 2022.

  The State Secretary in Economic Development (SDE) twenty percent (20%) of own resource incorporation received from Fines by the Commission for the Defense and Promotion of Competition (CDPC) that through procedures established in the Law and its Regulations are applied and must be transferred by the State Secretary to the CDPC according to Decree No. 4-2015, article 63-C. The General Treasury of the Republic (TGR) must immediately prioritize the F01 generated against the previously indicated resources. The State Secretary in the Finance Department (SEFIN) must apply the collection service deduction percentage according to the contract executed with the banking institution solely to those institutions that use the National Financial System.

In duly justified cases, the State Secretary in the Finance Department (SEFIN) may authorize in the present Fiscal Year to institutions of the Central Administration, the incorporation of fifty percent (50%) of own resources that have been received, incorporated and not executed in the previous period, and these shall be charged against the approved budget.

All institutions of the Central Administration to which a percentage is assigned based on the own resources mechanism established in Article 10 of the present Law must present to the General Budget Directorate. The General Treasury of the Republic (TGR) must immediately prioritize the F01 generated against the previously indicated resources. The State Secretary in the Finance Department (SEFIN) must apply the collection service deduction percentage according to the contract executed with the banking institution solely to those institutions that use the National Financial System.

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

All institutions of the Central Administration to which a percentage is allocated based on the own resources mechanism established in Article 10 of this Law must present to the General Directorate of Budget (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 General Treasury 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 Courts or national or international tribunals, arising from the 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 10 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 of December 21, 2013, published in the Official Gazette "La Gaceta" dated December 30, 2013, said income shall be distributed between both institutions up to ten percent (10%) of the total received. Income received from the intervention of the Office of the Attorney General of the Republic (PGR), at the request of other institutions, must be deposited in the Single Account of the General Treasury of the Republic (TGR) and they shall be granted up to ten percent (10%) of such income. In the case of penalties imposed by the Secretariat of State in the Offices 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 preceding paragraph. When the income is due to an audit adjustment that caused detriment to the assets of a Municipality or Institution created by it, ninety percent (90%) of the recovered funds must be returned to the Municipality or Institution.

Resources generated from the sale of passports at the national and international level, fees, tariffs, sanctions and other income generated by migration and foreign services, as a result of the regulation of stay and migration control, under the responsibility of the National Migration Institute, including those from the foreign service and Airport Fee in the percentages indicated by Article 4 of Decree No. 48-2021, which shall finance the budget with source 11 of the National Treasury of said Institute. Financial availability shall be enabled through the commitment quota as revenues are collected up to the amount approved in the budget of expenses of that institution. Official Payment Receipts (TGR-1) and deposits to account presented by the National Migration Institute before the Ministry of Finance (SEFIN) for the Passport Booklets item shall be validated with the date of presentation of the taxpayer of the Current Fiscal Year. The TGR-1s of the other items shall be validated based on Article 12 of this Law.

Decentralized Administration institutions that generate their 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 projection of approved income in the revenue item subject to the increase has been collected at one hundred percent (100.0%). In the event that incorporation of income generated and recorded in previous years and not executed in Decentralized Administration institutions is required, the procedure for incorporation of cash and bank availabilities established by the Ministry of Finance (SEFIN) for the use of these resources must be applied.

The Ministry of Finance (SEFIN) may authorize in the present Fiscal Year to Public Sector Institutions the incorporation of one hundred percent (100%) of the own resources received through Inter-institutional Agreements agreed upon for the provision of services prior to incorporation in the CUT. Likewise, SEFIN may authorize in the present Fiscal Year the incorporation of one hundred percent (100%) of the own resources that remained available at the close of the previous fiscal year coming from these Agreements, prior to the review of the available financial balance in the General Treasury of the Republic (TGR) ledger.

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

The funds collected by hotel companies, vehicle rental companies for tourism purposes, and tourism operators in 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" dated May 20, 1998; must be deposited by the companies in the General Treasury of the Republic (TGR) or in the authorized collecting agency for such purpose. The obligation must be fulfilled within ten (10) days of the month following when the tax was incurred, based on what is established in Article 43 of Decree No. 131-98. The State Secretariat in the Office of Finance (SEFIN) shall transfer to the State Secretariat in the Office of Tourism (SETUR), so that it in turn transfers said resources to the Honduran Tourism Institute (IHT), said funds may be used for the promotion and development of the country's tourism, as well as for the self-sustainability of the Institute, including administrative, management, and necessary operational support activities for its efficient functioning; the regulation of the provisions shall establish guidelines for the application of this provision.

Of the 4%, 25% shall be allocated to the creation of a fund for the promotion of municipal tourism projects.- The IHT and AMHON are instructed, once this Decree is published, to proceed to execute the pertinent regulation for the execution of municipal tourism projects. The values incorporated and not executed at the close of the previous fiscal year shall be incorporated for their execution in the current fiscal year before the end of fiscal period 2026.

Without prejudice to the limit established in Article 51 of the Organic Budget Law and for the purpose of expediting the financial investments of Social Security Institutions, these institutions are authorized to incorporate the surpluses and surplus to their Income and Expenditure Budget for the current fiscal year, prior to Legal Opinion and Resolution of the Board or Governing Council, and to invest these resources in securities and financial instruments with high security, profitability, and liquidity.

Any additional requirement for resources by Public Sector Institutions, aimed at satisfying unavoidable needs not foreseen in the Objectives and Results of the Annual Operating Plan (POA) and the approved Budget, must be addressed 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 aforementioned reprogramming, counterparts of projects being financed with External Funds should not be considered.

Own resources from the concept of sale of services and others generated by the (ENAG) must be deposited in the Single Account of the General Treasury of the Republic (TGR) in compliance with Article 363 of the Constitution of the Republic and whose execution must be carried out online in the Integrated Financial Administration System (SIAFI) and carry out the payment of salaries and collaterals through the SIARH in compliance with the provisions of articles 4, 5 numeral 8 and 47 numeral 5) of the Organic Budget Law, where it is established that all institutions of the Central Government, State Secretariats, Decentralized Entities, Decentralized Institutions and Public Companies, must be operating in SIAFI. INCORPORATIONS

When the Current Income of the Central Administration is greater than the amounts estimated in the General Budget of Income authorized in Article 7 of this Law, the Executive Power is authorized to carry out, through the State Secretariat in the Ministry of Finance (SEFIN), the budgetary and financial operations that are necessary to periodically incorporate the surpluses into this General Budget of Income and Expenditures of the Republic through the procedure of Expansion and use of FMP-05 "Document of Budgetary Modification" generated by the Integrated Financial Administration System (SIAFI) which will have the same effect as an Internal Resolution; these operations must be notified to the National Congress through the First Secretariat. The surpluses to be incorporated shall be allocated only for:

• 1)

  To pay the Debt Service;

• 2)

  To cancel the debt balance that has less favorable conditions;

• 3)

  To reduce the use of internal or external credit;

• 4)

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

• 5)

  To address Investment Projects and Programs; and, 6. To resolve unforeseen emergency situations. The surpluses shall be incorporated in accordance with the institutional budgetary classifier, in Institution 109 Management of contingent liabilities and unforeseen items and where the budgetary allocations established in Article 40 of the Organic Budget Law are also included.

Resources generated as a Toll Road Usage Fee with source 11 National Treasury as a result of toll collection under the responsibility of Concesionaria Vial Honduras, S.A. de C.V. (COVI), shall be transferred in full (100%) to that Concessionaire through the State Secretariat in the Offices of Infrastructure and Transportation (SIT). Financial availability shall be enabled through the commitment quota as revenues are collected, up to the amount approved in the Budget of Expenditures of that institution. In the event that revenues exceed the approved budget, they shall be incorporated into the present fiscal year in accordance with collections. From the funds generated as a product of the Toll Road Usage Fee, the State Secretariat in the Offices of Infrastructure and Transportation (SIT) is authorized to incorporate them into its approved budget, both for income and expenditures, in the month following collection within the present Fiscal Year, and must present the necessary documentation to verify that the amounts have been registered in the General Treasury of the Republic (TGR). Failure to comply with the established deadline shall be sanctioned with the loss of the right to claim the resources. Revenues generated in the month of December of the previous fiscal year may be requested for incorporation by no later than April 30 of the present fiscal year or shall be enabled through the commitment quota upon request of the State Secretariat in the Offices of Infrastructure and Transportation (SIT).

The Percentage of resources generated as a Fee for Airport Services based on article 4 of Legislative Decree No. 48-2021, with source 11 National Treasury as a result of the collection of the Airport Fee, shall be transferred to the State Secretariat in the Office of the Presidency (SDP) through the National Directorate of Investigation and Intelligence (DNII) for the operation of the Airport Security Division (DSA); financial availability shall be enabled through the commitment quota as revenues are collected. From the funds generated as a product of the Airport Fee, the State Secretariat in the Office of the Presidency (SDP) is authorized to incorporate them into its approved budget, both for income and expenditures, in the month following collection within the present Fiscal Year, and must present the necessary documentation to verify that the amounts have been registered in the General Treasury of the Republic (TGR). Failure to comply with the established deadline shall be sanctioned with the loss of the right to claim the resources. Revenues generated in the month of December of the previous fiscal year may be requested for incorporation by no later than April 30 of the present fiscal year and shall be enabled through the commitment quota upon request of the State Secretariat in the Office of the Presidency (SDP).

The State Secretariat in the Office of Finance (SEFIN) is authorized, on a one-time basis, to incorporate into the present budget the financial resources from the refund made by the Institute of Pensions and Retirements of Employees and Officials of the Executive Branch (INJUPEMP) to the Health Regulatory Agency (ARSA). These resources correspond to the payment for the purchase of land that ARSA made from INJUPEMP in 2023, but which was not completed; therefore, these resources shall be incorporated into the Budget of Income and Expenditures of ARSA with source 12 own resources for the present fiscal year, prior to the deposit of these into the Single Account of the General Treasury of the Republic (TGR). To operationalize the foregoing, the State Secretariat in the Office of Finance (SEFIN) is authorized to perform the budgetary and financial operations necessary for the incorporation.

Income from fees, 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 State Secretariat of the Office of Finance (SEFIN) for the use of the Official Payment Receipt (TGR-1). Income received abroad from the issuance of Radio Licenses paid by ship and vessel owners and lessees to the National Telecommunications Commission (CONATEL), as well as income from registration in the Ship Registry and from the issuance of the Navigation Patent collected by the General Directorate of the Merchant Marine (DGMM), shall be transferred by these institutions to the Single Account of the General Treasury of the Republic (TGR).

Operators of Public Telecommunications Services and Information and Communications Technologies (ICTs) must make a Monthly Contribution of one percent (1%) of their gross income from the provision of Public Telecommunications Services, within the following ten (10) calendar days following the close of the month to which the payment corresponds, which shall be collected through the National Telecommunications Commission (CONATEL) and shall be used to finance programs and projects for universal access to information and communications technologies (ICTs) in the national territory. CONATEL must present to the General Directorate of Budget (DGP), in the month following the generation of such income, the necessary documentation to verify that the amounts have been recorded in the General Treasury of the Republic (TGR); likewise, it must transfer to the Single Account the amount of Four Hundred Million Lempiras Exact (L400,000,000.00). From this amount, up to the amount of TWO HUNDRED MILLION LEMPIRAS EXACT (L200,000,000.00) shall be transferred to the Honduran Telecommunications Company (HONDUTEL) subject to approval by the National Congress. TGR-1 PAYMENT RECEIPT

The TGR-1 online non-tax income payment receipt must be used as the official 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 the review and control processes of the TGR-1 more efficient, Institutions must request the enablement of consultation and institutional users in the TGR-1 module before the State Secretariat of the Office of Finance (SEFIN) through the General Directorate of Budget; this will allow for the change of status from "Paid" to "Requested" in each TGR-1 processed by citizens or institutions.

TGR-1 receipts, once paid by citizens, have no expiration date; therefore, every public institution is obligated to provide the corresponding service at the moment it is requested, with the only requirement being the presentation of the original duly paid TGR-1, without requiring additional procedures or validations related to its validity. Non-compliance with this provision by any public entity may be subject to administrative sanctions, in accordance with the principles of the duties and rights of public servants. NET INCOME

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

• 1)

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

• 2)

  Internal and/or external transfers and donations;

• 3)

  The recovery of loans;

• 4)

  The values generated by the application of the Population Security Law contained in Legislative Decree No. 105-2011 of June 23, 2011, published in the Official Gazette La Gaceta dated July 8, 2011, amended by Legislative 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 amounts paid to the national banking system for collection services;

• 7)

  Tax refunds;

• 8)

  Refunds for overpayments made in prior Fiscal Years;

• 9)

  The applicability of Credit Notes;

• 10)

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

• 11)

  The collection of Airport Fee Income;

• 12)

  The collection of Income from Toll Road Use Fee (TUVC);

• 13)

  Percentage allocated to Port Municipalities;

• 14)

  Percentage allocated to Telecommunications Services;

• 15)

  Percentage corresponding to the ECOTAX;

• 16)

  Values assigned to cover payments of the Governmental Civic Center;

• 17)

  Allocation for operating expenses of the State Collection Entities. NATIONAL PROPERTY CANON

The National Directory of State Property (DNBE) is ordered to proceed with the reassignment or, if this is not possible, to proceed with the sale of movable and immovable national property that does not provide any utility to the State, in accordance with the technical report issued by said Directory in order to determine the viability or non-viability of the auction. The total amount collected from sales generated through public auction shall be distributed as follows: fifty percent (50%) for the promoting institution, thirty percent (30%) for the General Treasury of the Republic, and the twenty percent (20%) canon for the National Directory of State Property (DNBE). In the case of public auctions promoted by State Secretariats and Decentralized Institutions, the winning bidder shall pay to the General Treasury of the Republic (TGR) one hundred percent (100%) of the resources generated by auctions, which shall be distributed in accordance with the provisions of the previous paragraph; the same mechanism shall be used for Constitutional Bodies. When it comes to public auctions promoted by Decentralized Institutions, the winning bidder shall deposit fifty percent (50%) of the total amount auctioned in the Treasury of the institution; the remaining fifty percent (50%) shall be paid to the General Treasury of the Republic (TGR), from this amount, fifty percent (50%) corresponds to the National Directory of State Property twenty percent (20%) and the remaining thirty percent (30%) to the General Treasury of the Republic. The National Directory of State Property (DNBE) is authorized to proceed with the public auction sale of property owned by the State Secretariat of the Finance Office (SEFIN) transferred in payment in kind from the forced liquidation of banks, without prejudice to the activities that SEFIN must perform as owner; the foregoing is applicable to all those public auctions that include property received in payment in kind in articles 14, 15, 16, and 17 of Legislative Decree 274-2010. From the resources generated by the sale through public auction of property transferred in payment in kind to the Secretary of Finance (SEFIN), the equivalent of fifty percent (50%) shall be used for the amortization of the State's internal debt, thirty percent (30%) shall be used to finance social development projects, and the remaining twenty percent (20%) as canon for the National Directory of State Property (DNBE). From the funds generated as a result of the Canon referred to in the previous paragraphs, the State Secretariat of the Finance Office is authorized to perform the necessary budgetary and financial operations in order to incorporate said resources in the month following collection to the approved budget of both income and expenses of the National Directory of State Property (DNBE); the resources shall be allocated by the DNBE to the hiring of appraisers certified 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 Maximum Authority of the DNBE determines.

The Honduran Customs Administration (AAH) is ordered to coordinate with the National Directorate of State Assets (DNBE) to proceed with the direct sale of merchandise that has fallen into abandonment (auction surplus) in the various customs offices of the country, as well as in customs warehouses in the following cases: 1) Merchandise not awarded in public auction conducted by the Customs Administration Entity, which due to its physical conditions cannot be donated to state institutions or public charity organizations; and, 2) Vehicles that entered the national territory whose importation is prohibited by Law, in accordance with Article 21 of the Law for the Strengthening of Income, Social Equity and Rationalization of Finances, contained in Decree No. 17-2010, of March 28, 2010, published in the Official Journal "La Gaceta" dated April 22, 2010. Prior to 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, with the buyer being obligated to dismantle them, which shall be carried out under the supervision of the Customs Authority. In no case may vehicles that have been sold in parts or as scrap circulate in the national territory. The Institute of Property (IP) is prohibited from authorizing the registration of these vehicles. Only the engine, chassis or cabin may be registered. The merchandise that has fallen into abandonment referred to in the first paragraph of this Article, as well as merchandise donated to state institutions, shall be exempt from storage charges or demurrage fees that may have occurred in the customs warehouses of the country. The Honduran Customs Administration (AAH) in coordination with the National Directorate of State Assets (DNBE) must comply with Executive Agreement No. 009-2023 published in the Official Journal "La Gaceta" No. 36,187 dated March 23, 2023, containing the Regulation for the direct sale of merchandise that has fallen into abandonment in the country's customs offices and surplus from auctions, as well as in customs warehouses. The financial resources generated from the sales established in this Article shall be deposited in the Single Account of the General Treasury of the Republic (TGR) and the DNBE shall obtain a fee equivalent to twenty percent (20%) of the total of these sales. DONATIONS AND CREDITS

In compliance with Articles 83 and 84 of the Organic Budget Law and Article 27 of its Regulations, the Secretary of State in the Office of Finance (SEFIN) is authorized, through the General Treasury of the Republic (TGR), after prior coordination with the General Directorate of Public Credit (DGCP), to transfer to the Single Account of the General Treasury of the Republic (CUT), the available resources at the end of Fiscal Year 2025 in the accounts opened in 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 Organizations, for the purpose of strengthening the capacity of the CUT. The General Treasury of the Republic (TGR) shall request through the National Banking and Insurance Commission (CNBS), the bank statements of 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 opening a bank account for public sector institutions, the authorization of the General Treasury of the Republic (TGR), so that it may provide the movements of bank statements, given that the accounts opened will receive transfers of public funds.

Public sector institutions that receive Non-Reimbursable External Cooperation resources must incorporate 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, using the mechanism established in Article 200 of this law and in compliance with Article 84 of the Organic Budget Law and Article 363 of the Constitution of the Republic. Likewise, the Secretary of State in the Office of Foreign Affairs and International Cooperation is instructed to coordinate with the Secretary of State in the Office of Finance all management of registration and execution of such resources in the General Budget of Income and Expenses of the Republic in favor of the different public institutions. The execution of Non-Reimbursable External Cooperation resources registered in SIAFI shall be carried out in accordance with the following cases: 1) Regularization, if they are direct payments or in kind, through the simultaneous registration of the income execution form (F-02) of accrued and received type and the expense execution form (F-01) of in-kind regularization type. 2) Regularization of funds that are received in an account outside the CUT; for which it must request by letter to the General Treasury of the Republic the registration of the bank account in SIAFI with supporting documentation, through the registration of the income execution form (F-02) of accrued and received type and subsequently the expense execution form (F-01) of regularization type; both forms shall affect the bank account previously registered by the TGR.

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 included in the Poverty Reduction Strategy, which is part of the Budget of Income and Expenses of the Republic, Fiscal Year 2026.

Without prejudice to what is prescribed in Article 68 of Decree No. 17-2010 of March 28, 2010, published in the Official Gazette "La Gaceta" dated April 22, 2010, containing the Law for Strengthening 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 total outstanding external debt portfolio maintains a minimum weighted concessionality of fifteen percent (15.0%). In the event that a lower percentage than established is required, the Public Credit Commission constituted in Article 66 of the Organic Budget Law (LOP) may modify said percentage in the Public Debt Policy (PEP). New borrowing should preferably be contracted in the same currency in which Honduras' international reserves are denominated. The Executive Branch through the State Secretariat of the Finance Office (SEFIN) is authorized to execute loans within the debt ceilings established in the Public Debt Policy and in line with the Medium-Term Macro-Fiscal Framework (MMFMP), and must be forwarded to the National Congress for subsequent approval.

The State Secretariat of the Finance Office (SEFIN) is authorized to execute Financing Agreements with public enterprises under the same conditions as said debt is acquired or on a non-reimbursable basis. The State Secretariat of the Finance Office (SEFIN) and public enterprises must create the necessary budgetary items for income and expenses in the General Budget of Income and Expenses of the Republic Fiscal Year 2026, for the recording of operations derived from the application of this provision, during the term of said obligations. Likewise, when permitted by the conditions of the respective operation, amendments may be executed to record and transfer resources on a non-reimbursable basis to public enterprises, from public investment programs that are under execution.

Fluctuations due to exchange rates or inflation affecting the amounts of securities/values and disbursements placed against the amount authorized in this Law shall only be considered on the date of placement or disbursement in foreign currency (or denominated) and indexed to inflation. The Secretary of State in the Ministry of Finance (SEFIN) may issue government securities up to the net credit ceiling authorized in Article 7 of this Law, understanding by net credit the value to be collected/paid, which results from the nominal value placed minus discounts, plus earned premiums and interest. The Secretary of State in the Ministry of Finance (SEFIN) is empowered to increase or decrease the nominal value of internal debt securities as appropriate, provided that the value collected/paid for the placement does not exceed the net credit limit authorized by the National Congress, and shall not require an opinion from the Secretary of State in the Ministry of Finance (SEFIN). Said amount shall be formalized through Ministerial Agreement, and once signed, the Secretary of State in the Ministry of Finance (SEFIN) shall make the corresponding budget modifications.

Public indebtedness authorized through bond issuance and loan acquisition is considered fungible from internal to external source and vice versa, with respect to the domestic or external market, financial organization, source, item, type of currency, terms and other matters that impact financing, provided that it does not exceed the total amount authorized in Article 7 of this Law, for which purpose the Secretary of State in the Ministry of Finance (SEFIN) shall make the corresponding budget modifications, once the resources are received.

The trading of securities shall be governed by the General Regulation for Trading of Government 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 with the purpose of maintaining a stable and sustainable level of indebtedness in the medium and long term.

Municipalities, Companies Related to Municipalities, Decentralized and Autonomous Institutions, prior to the formalization of new indebtedness, are obligated to request a Debt Capacity Opinion from the State Secretariat of the Finance Ministry (SEFIN) through the General Directorate of Public Credit (DGCP). Municipalities, Companies Related to Municipalities, Decentralized and Autonomous Institutions that request a Debt Capacity Opinion for obtaining loans, renegotiation or refinancing of debt with national and/or international entities, must submit 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 Debt Capacity Opinion issued by the DGCP must comply with the established indicators and shall not constitute a guarantee on the part of the Central Administration. The State Secretariat of the Finance Ministry (SEFIN) shall issue debt capacity opinions within a maximum period of sixty (60) days counted from the delivery of complete information by the applicant; in case complete information is not presented within the aforementioned period, the request shall be ruled negative and shall be returned to the applicant. Municipalities, Companies Related to 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 Electric Energy Company (ENEE) is authorized to make placements of available balances of already authorized indebtedness, through Legislative Decree No. 4-2025. Likewise, ENEE may issue new securities, contract loans, lines of credit or other legally viable financial mechanism up to an amount of TWO BILLION LEMPIRAS (L2,000,000,000.00). Resources raised for this purpose shall be used to pay debts with delays exceeding forty-five (45) days to energy suppliers. The indebtedness authorized in articles 8 and 43 of this Law and the available unplaced balances of Legislative Decree No. 4-2025, are fungible and may change from internal to external source and vice versa, financial institution, instrument, source, item, type of currency, terms and other aspects that impact financing, provided that it does not exceed the total authorized amount, and may access the domestic and international market. The State Secretariat of the Finance Ministry (SEFIN) and the National Electric Energy Company (ENEE), shall make the corresponding budgetary modifications once resources are received. Similarly, the National Electric Energy Company (ENEE) is authorized to conduct liability management operations of current obligations, with the purpose of minimizing risk and improving the debt portfolio profile. Operations carried out shall not count against the budgetary ceiling for indebtedness authorized for the current year and may be conducted through swap operations, refinancing, early redemption of securities, contracting of loans or other legally viable financial mechanism, and may access the domestic and international market. The new indebtedness and liability management conducted by the National Electric Energy Company (ENEE) in 2026 shall have Sovereign Guarantee of the State of Honduras. The authorization of the President of the Republic to constitute Sovereign Guarantee shall be granted when the Executive Power sanctions this Law, based on what is established by article 215 of the Constitution of the Republic and for its formalization the State Secretariat of the Finance Ministry (SEFIN) shall be competent. 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 45 of this law, shall not be required from the National Electric Energy Company (ENEE). 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 case of having budgetary support resources in the Central Administration, the State Secretariat of the Finance Ministry (SEFIN) is authorized to subscribe with the National Electric Energy Company (ENEE), a Reassigned Loan Agreement under the same conditions as the financing is acquired or on a non-reimbursable basis. The State Secretariat of the Finance Ministry (SEFIN) and the National Energy Company (ENEE), must create budgetary items for income and expenses in the General Budget of Income and Expenses of the Republic, for the recording of operations derived from the application of this Law and during the term of said obligations. ADMINISTRATION OF THE SINGLE NATIONAL TREASURY FUND

In order to optimize the process of preparing daily, weekly, and monthly programs; the institutions of the Public Sector that are part of the Single Account System of the Treasury (CUT) must submit their cash programming to the General Treasury of the Republic (TGR) at the beginning of the fiscal period, which must be updated monthly as appropriate, in accordance with the procedures established for such purpose. Within the framework of this cash program and the monitoring of its execution, the TGR shall assign periodic payment quotas to all Public Sector institutions included in the CUT and financed with Treasury resources. The periodic payment quotas corresponding to the use of own income by the Special Treasury Services, contemplated in article 86 of the Organic Budget Law, as well as by decentralized institutions, shall be defined by each institution according to its cash programming. These must be communicated to the TGR during the last week of the month prior to their execution. With the objective of managing the liquidity generated by temporary cash surpluses of the CUT, the TGR may carry out financial investments in accordance with the policies, strict compliance with investment criteria and recommendations approved by the State Secretariat of the Finance Office (SEFIN), at the proposal of the TGR. Said investments shall not require budgetary authorization, except in the following cases: (i) That their maturity exceeds the budgetary period, and; (ii) That the resources generated as interest from treasury investments or from institutions not excluded in this article must be incorporated into the General Budget of Income and Expenses of the Republic. 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 Account of the Treasury (CUT). To guarantee transparency, the investments and the financial income derived from them must be recorded accounting-wise in accordance with International Public Sector Accounting Standards (IPSAS) and what the governing body in accounting matters provides.

The State Secretariat of the Finance Office (SEFIN) is authorized through the General Treasury of the Republic (TGR), to carry out the necessary operations to transfer available resources between bank accounts opened at the Central Bank of Honduras (BCH) for temporary use of financial availability. The resources must be returned in their entirety to the accounts of origin of the collection of income from the current fiscal year. These operations shall be carried out with the purpose of guaranteeing the liquidity of the Single Account System of the Treasury (CUT) and the fulfillment of payment obligations based on the priority and order established in the Technical Standards of the Treasury Subsystem. Bank accounts of funds for seizures, guarantees, programs and projects with external financing are excepted from this provision.

The General Treasury of the Republic (TGR), by constitutional mandate, is empowered to collect, safeguard, manage and disburse public financial resources; therefore, for purposes of transparency, supervision, evaluation and effectiveness of budgetary execution, the General Treasury of the Republic (TGR) shall require through the National Banking and Insurance Commission (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, movements of savings accounts, checking accounts, fixed-term deposits and any other financial product that maintains or involves public financial resources. The institutions of the national or international financial system (public or private) are obliged to submit the information that may be requested by the General Treasury of the Republic (TGR) within no more than three (3) calendar days and failure to comply shall generate administrative responsibility, which shall be sanctioned in accordance with applicable regulations, without prejudice to civil or criminal responsibilities that may apply. In line with the above, all values as own resources, transfers and any other concept of income that have been received by institutions of the Non-Financial Public Sector (SPNF) that were not used at the end of the previous fiscal year or in Previous Fiscal Years, must be reintegrated or transferred to the Single Account System of the Treasury (CUT) no later than the thirtieth (30) of April of the current fiscal year and in accordance with the technical guidelines determined by the General Treasury of the Republic (TGR) in compliance with articles 363 of the Constitution of the Republic, 83 and 84 of the Organic Budget Law (LOP). This provision shall also be applicable to private institutions that have received financial resources from Public Sector institutions, who must present the liquidation of expenses incurred. For the above, the Executive Branch is authorized so that through the State Secretariat of the Finance Office (SEFIN), it carries out the budgetary and financial operations that are necessary to incorporate into the present General Budget of Income and Expenses of the Republic the resources returned by the institutions based on this article. Excepted from the return of resources established in the preceding paragraph are the Court of Accounts, the Special Unit for Protection of Honduras (UEP), the Heroic and Deserving Fire Department of Honduras, institutions that receive transfers based on the Constitution of the Republic, Law of Municipalities and Law of the Cooperative System, as well as the following Public Enterprises and Social Security Institutions:

• 1)

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

  • a)

    Public Ministry (MP);

  • b)

    National Autonomous University of Honduras (UNAH).

• 2)

  The independent Powers enumerated in the Constitution of the Republic: a) Judicial Branch; and, b) Legislative Branch.

• 3)

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

• 4)

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

• 5)

  Public Enterprises:

  • a)

    National Electric Power Company (ENEE);

  • b)

    Honduran Telecommunications Company (HONDUTEL);

  • c)

    National Port Company (ENP);

  • d)

    Postal Service of Honduras (HONDUCOR);

  • e)

    National Railroad of Honduras (FNH);

  • f)

    Honduran Institute of Agricultural Marketing (IHMA);

  • g)

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

• 6)

  Social Security Institutions:

  • a)

    Honduran Social Security Institute (IHSS);

  • b)

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

  • c)

    National Institute of Social Security 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 exception described above, the Central Bank of Honduras (BCH) is authorized so that at the request of the General Treasury of the Republic (TGR) it transfers to the Single Account System of the Treasury (CUT), the resources existing in accounts opened by Public Sector institutions in the Central Bank of Honduras (BCH) outside the Single Account System of the Treasury (CUT). Similarly, any natural or legal person is ordered that has received resources from Public Sector institutions not included in the exception described above, so that at the request of the General Treasury of the Republic (TGR) they reintegrate to the Single Account System of the Treasury (CUT) the resources existing in accounts opened by Public Sector institutions. Failure to comply 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 apply due to the improper retention of public financial resources.

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

The Ministry of State in the Office of Finance (SEFIN) and the Central Bank of Honduras (BCH) are ordered to establish, in a coordinated manner and in accordance with current regulations, the mechanisms for the management, control and execution of external resources from international organizations and other external sources.

The Ministry of State in the Office of Finance (SEFIN) is authorized to transfer, through the General Treasury of the Republic (TGR), to the Single Treasury Account the available resources at the end of the fiscal year in the accounts opened at the Central Bank of Honduras (BCH) and the income received in national banking as interest on guarantee deposits, in compliance with articles 363 of the Constitution of the Republic, 83 and 84 of the Budget Organic Law (LOP).

No public sector institution may enter into commitments or obligations of any kind, enter into contracts, or authorize them without having the respective budgetary and financial availability, in compliance with the provisions of article 34 of the Organic Budget Law. The commitments shall be maintained until the works are completed, the goods are delivered or the services are provided. In the event that contracts extend beyond the fiscal year, the corresponding budgetary allocation for each year must be provided in the respective expense items, with the Executing Unit and Administrative Management being responsible. If the term of the contract extends beyond the government period, the contract must be ratified by the National Congress. In the last quarter of the year, it shall not be permitted for Public Institutions to incorporate items into their Annual Plan of Purchases and Contracting (PACC), that is, to initiate processes for the execution of work contracts, consultancy or the acquisition of goods or services, in view that these, in accordance with the process they must follow, cannot be executed (executed being understood as the good or service received and payment made) before the close of the fiscal year, and these must be considered for the formulation of the PACC for the following fiscal year. Exempted from this restriction are processes financed with resources from cooperation or external credit, provided that they are contemplated in Acquisition Plans approved by the financing agency, do not generate additional financial commitments against the National Treasury, and their publication is guaranteed in accordance with existing transparency mechanisms.

The registration in the F01 of the execution of expenses of Pre-commitment, Commitment and Accrued, must be completed in the name of the final beneficiary within a maximum period of forty-five (45) days counted from the pre-commitment status. All F01 expense documents that have not been completed 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 any damages and losses caused to the State by any commitment registration or accrued registration that does not have the supporting legal documentation, without prejudice to the corresponding administrative, civil and criminal liability.

Every supplier and/or contractor of the State at the time of the purchase order or start of work must demand a copy of the Expense Execution Form (F01), registered in the Integrated Financial Administration System (SIAFI), in the approved commitment stage; to ensure availability, otherwise the State of Honduras shall not be responsible for payment. The Ministry of State in the Office of Finance (SEFIN) shall allocate the requested funds in the quarterly expense quota (CGT) in accordance with the Annual Plan of Purchases and Contracting (PACC). The allocation ensures that the contracting institution has budgetary availability to effectively fulfill the commitments to be acquired. Officials who violate the provisions of this Article shall be jointly and administratively responsible for the fulfillment of the debts incurred.

Under the framework established in Agreement No. 645-2024 dated October 28, 2024, published in the Official Gazette "La Gaceta" No. 36704, which defines the functions for the Budget Execution Programming and Cash Management Committee, COPEPGC, as well as with Executive Agreement No. 106-2025, the pilot phase will continue for the implementation of Budget Execution Programming, therefore the public institutions that are part of this pilot phase must comply in a timely and proper manner with the following:

• a)

  Prove that they have the necessary financing sources to address their execution (income and expenses);

• b)

  Prove that they have budget allocations in the expense items to be executed;

• c)

  Prepare and present, in a timely and proper manner, the monthly spending program (PGM);

• d)

  Report quarterly budget commitment quotas, following the dates established by the regulations;

• e)

  Request modifications to budget commitment quotas, in accordance with the requirements set forth in the respective regulations.

In line with the strengthening and improvement of the quality of public spending, it is necessary to harmonize the systems of public procurement, budget, accounting records, physical inventory of goods and services that the State requires to achieve its objectives for the benefit of the population, therefore, the Secretary of State in the Finance Department (SEFIN) is instructed to coordinate through its Directorates: Budget, Transparency, ONCAE, the General Accounting Office of the Republic, with the National State Property Directorate (DNBE) the reactivation of the inter-institutional committee to continue with the implementation of the link between expense items and the Unique Code of Goods and Services, CUBS. PERSONNEL EXPENSES

Employees and officials of the Decentralized Administration Institutions and Deconcentrated Entities, whether permanent in nature, by contract, or any other modality that enter public service, must receive remuneration equal to that established for employees and officials of the Central Administration institutions of the same category, according to group and position classification level of the Civil Service System, the same measure must be applied to new jobs to be filled or created in any public institution. If there are positions in the Central Administration of the same category, according to group and level that have lower salaries, they must be adjusted to those already existing, provided that there is budget availability and sustainability over time.

The salaries earned by State Secretaries and Under-Secretaries must be those approved in the Itemized 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.

Public sector institutions are authorized to create positions resulting from division or merger; however, in none of these cases may positions that are subject to judicial proceedings be used.

The elimination of positions in public sector institutions shall be permitted provided that: a) they are vacant, b) they have no judicial proceedings pending, and c) they are not positions classified in article 3 of the Civil Service Law and those necessary for the normal functioning of an institution. Exceptions are made for those resulting from restructuring or elimination processes.

Any position governed by Professional Statute must be created with the corresponding base salary and when it becomes permanently vacant, the salary automatically reverts to the base, therefore, the Administrative Management through the Human Resources Sub-management must adjust the salary and collateral benefits within the Detailed Annex of Salaries and Wages. Positions subject to Statute Laws cannot be created under another Regime, nor can they receive its benefits.

Personnel appointments for the Central Administration (includes decentralized entities) and indefinite-term contracts for the Decentralized Administration in vacant positions must be made in compliance with what is established by articles 55 and 203 of this Law.

No official or employee may be appointed permanently in the Central Administration (includes decentralized entities) or in the Decentralized Administration without the position being created or vacant within the Detailed Annex of Basic Salaries and Wages of the Institution or its equivalent and may not be appointed with a salary higher than the ordinary salary established within the Annex. In the same manner, they may not be appointed permanently in a position that is in the process of judicial litigation or vacant due to leave; however, interim appointments or contracts may be made in the disputed position until a final judgment ordering reinstatement of the Public Servant is issued.

Retirees from any State institution may be hired with national or external funds through expense subgroup 24000 to conduct consultancies, or expense subgroup 12000 corresponding to contract personnel, and may also be appointed on an interim basis without causing payment for vacation and benefits and without suspension of their retirement payment. Likewise, retired teachers and those in health assistance services, as a consequence of the provisions in article 258 of the Constitution of the Republic, may be appointed in the public administration without suspension of their retirement payment. Any collection, repair or administrative or civil economic liability that is being executed by any social security or retirement institute for this circumstance shall not be permissible. In this sense, the authority ex officio or at the request of a party must proceed to close the collection, repair or administrative or civil economic liability that is being executed.

Payroll sheets, collaterals and benefits of all employees and officials of Public Sector institutions must be validated month by month in the Registry and Control System of Servers (SIREP), in accordance with their payment mechanism (biweekly, monthly, fortnightly, among others), contracting modality, expense object and source of financing to be charged, excepting the payment of per diems. In accordance with Executive Decree PCM-021-2016, personal records do not represent authorization or approval by the Secretary of State in the Office of Finance (SEFIN), regarding the appointments, hiring or personnel movements carried out by institutions. The integrity and truthfulness of the information contained in such records and in the validation of payroll sheets is the exclusive responsibility of each institution, as well as the execution of its spending budget. Likewise, each institution prior to uploading payroll must update personnel records (including additions, new hires, modifications and removals) in the Server Registry Module, for which supporting documentation will be required in each case, without prejudice to its source of financing. This provision applies to the Group of Personal Services and all transactions, both of the records and payroll sheets of each institution, for all its administrative departments must be channeled and sent to SIREP in a centralized manner through a single authorized link which must be designated by the Maximum Authority of the Institution, by means of an official letter, who in turn may delegate according to the type of process for each System module, by Contracting Modality or type of transaction depending on the number of public servers and processes it handles. 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 in any circumstance as permanent or temporary employees of State institutions.

The Heads of institutions, Chiefs of Executing Units, Administrative and Human Resources Managers (or their equivalents) are responsible for the registration of payroll and its updating in the Server Registry Module, for which supporting documentation will be required in each case. Without prejudice to its source of financing, this provision applies only to the Group of Personal Services and its non-compliance entails administrative and civil liability. The General Treasury of the Republic (TGR) shall not be able to transfer payroll payments of Institutions until the omission or non-compliance is remedied.

Severance compensation for civil servants of the Central Administration who have worked consecutively for the State shall in no case exceed twenty-five (25) months of salary according to years of service worked. Likewise, the benefit shall apply to civil servants who have worked consecutively for the State and hold positions of excluded service provided that they have administrative career status, the calculation shall be made 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.

State Institutions may not allocate funds from external loans or donations to grant bonuses, make salary supplements, or salary increases to civil servants.

For the payment of salaries to diplomatic and consular personnel and any other person holding a representation position abroad, the Law of Diplomatic and Consular Service of Honduras shall apply, 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 have been made. In the case of the Secretariat of State in the Office of National Defense (SEDENA), the salary of personnel assigned to Defense Attaché offices accredited in the foreign service is authorized, being mandatory to make the deductions that laws and regulations establish. 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 considered as part of the comprehensive salary of the employee or official.

All employees and officials of the Central Government and Decentralized 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 vacations in accordance with the periods established by said Law. This right is acquired after completing the first (1) year of continuous service. If due to work requirements the vacation period is suspended or not granted, employees and officials shall have the right to payment for these.

All Public Sector Institutions shall submit to the State Department of the Treasury Office (SEFIN), through the General Directorate of Budget (DGP), no later than April 30 of the present fiscal year the Detailed Annex of Basic Salaries and Wages corresponding to Fiscal Year 2026, in accordance with the format provided by the State Department of the Treasury Office (SEFIN) through the General Directorate of Budget (DGP) identifying the changes that were generated and authorized after the formulation of the Draft General Budget of Income and Expenses of the Republic, of the present fiscal year. The Detailed Annex of Basic Salaries and Wages must be updated periodically with information on positions of permanent personnel, trust positions, temporary positions (contracts and daily wages only for decentralized institutions), collateral positions and other benefits granted independently of the source of financing. All permanent personnel positions of Public Sector Institutions contemplated within the Detailed Annex of Basic Salaries and Wages must be coded, the code must be unique and cannot be transferred to another position under any circumstance. Municipalities are excepted from this provision.

The obligations derived from the employment relationship, such as recognition and payment for labor benefits, severance pay and indemnifications by final judgment or extrajudicial settlements, regardless of their nature, are the responsibility of the institution where the employee or public official was providing services and must be assumed with its own budget. Similarly, it must finance with its budget the payment obligations for judicial proceedings with final judgment or extrajudicial settlements of a nature other than the employment relationship. In the case that the State is defeated in court regarding payment for the concepts referred to in the first paragraph of this Article; the head of the payroll unit, the officials and/or employees who intervene in the administrative acts that give rise to payment, shall not be responsible in a personal or joint manner.

Public Institutions are authorized to, when a public servant resigns, is dismissed or laid off, and the payments for the Thirteenth Month of Salary as a bonus, Fourteenth Month of Salary as social compensation, vacation or any other benefit that corresponds under Law or Collective Bargaining Agreement have not been made; immediately effect the proportional payment for these items at the time the resignation, dismissal, or layoff occurs.

The payment of the Thirteenth Month of Salary as a bonus and Fourteenth Month of Salary as social compensation shall also be granted to officials, personnel by daily wage and by contract of the Public Sector, who are included in Group 10000 of Personal Services, with the exception of expenditure 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 shall be made within the Validity and/or Resolution of the contract and in proportion to the time they were in service of a determined State Institution.

The process of creating positions or any modification of the structure of positions (reassignment, elimination, merger, division, classification, salary changes, transfers among 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 body responsible for the administration of human resources under the civil service regime being approved via prior ruling before initiating the process of issuance of the Resolution, the structure of positions and the assigned budget must be available, which must be confirmed by the State Secretariat of the Finance Office (SEFIN) through the General Budget Directorate (DGP). The body responsible for the administration of human resources under the civil service regime, with the resolution of SEFIN, shall issue the effectiveness ruling as appropriate, this document supports the incorporation of the position or positions into the Integrated Human Resources Administration System (SIARH). In the case of teaching personnel, this process shall be carried out through the General Sub-directorate of Teaching Talent and the procedure determined for the Integrated Teaching Human Resources Administration System (SIARHD) must be followed.

The process of creating positions or any modification of the position structure (elimination, merger, division, salary changes, transfers, among others) whenever it implies a budgetary impact on Decentralized Administration, must be requested from the State Secretariat of the Ministry of Finance (SEFIN) through the General Directorate of Budget (DGP), for the issuance of the corresponding opinion on availability and internal resolution. The request must be accompanied by certification of the board meeting minutes from its higher body. This certification requirement is excepted for institutions in which the Head has the rank of Minister based on their Law of creation.

The preparation of payroll for employees of the Centralized and Deconcentrated 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 overseen by the body responsible for human resources administration under the civil service regime as a module of the Integrated Financial Administration System (SIAFI). The incorporation into SIARH is excepted for 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" of February 22, 2012, and the Statute of the Honduran Teacher, contained in Decree 133-97 of September 11, 1997. 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 as excluded in positions under the Civil Service Regime is prohibited; excluded positions are those specified in Article 3 of the Civil Service Law, contained in Decree 126 of October 1, 1993, published in the Official Gazette "La Gaceta" of 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 body responsible for human resources administration under the civil service regime.

Every action for the transfer of a position must have the person who will replace it, and must previously notify the State Secretariat of the Finance Office (SEFIN) so that it issues the Internal Resolution, the budgetary modification and the Detailed Annex of Basic Salaries and Wages. For this purpose, the justification of the movement must be attached. Any 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. Positions are excepted for which the body that accepted the transfer assumes budgetary responsibility, without prejudice to that originally carried out by the appointing authority.

The State Secretariat of the Finance Office (SEFIN) is ordered to, in coordination with the body responsible for the administration of human resources under the Civil Service Regime, regulate the restructuring, organization and administration of human resources and their budgetary effect, in accordance with the guidelines established in the Budget Policy, contained in Executive Agreement No. 237-2025, article 8, numeral 8.2 subsections a) and b) referring to employment, salaries and professional services, as well as the provisions of this Law regarding human resources. SALARY INCREASES, LEVELING AND MINIMUM WAGE

For salary adjustments of various kinds prior to their application, the State Secretariat of the Finance Office (SEFIN) shall issue the Internal Resolution of authorization; financing and sustainability over time must be covered by the budget of each requesting Institution. General salary adjustments agreed in favor of public employees subject to the Civil Service Regime, Teaching Statutes and Minimum Wage are excepted from the above, in cases where these are financed wholly or partially with resources from the national treasury. In the case of decentralized institutions, increases or leveling prior to their application and for the purpose of determining their budgetary availability shall be authorized by SEFIN through an Internal Resolution; these institutions must present with the request the certification of the minutes point with the authorization of the superior body, excepting from such certification those institutions in which the Head has ministerial rank based on their Law of creation. Salary adjustments of various kinds do not apply to: a) positions with unpaid leave; and, b) public servants who are appointed on an interim basis. Leveling may not exceed the salary of positions of equal category or competence whether in the Central Administration or Decentralized Administration, as applicable where such leveling is to be applied. Any modification of position structure, including salary adjustments of any kind that are made in the institutions of the Public Sector (central, deconcentrated or decentralized) must be updated in the Detailed Annex of Basic Salaries and Wages based on what is established by Article 69 of this Law.

In accordance with what is established in the first paragraph of the preceding article, every Institution of the Non-Financial Public Sector (SPNF) prior to granting salary adjustments of various kinds must present to the State Secretariat of the Office of Finance (SEFIN), the corresponding request that must include the Budget and Financial Study that proves the sustainability of the benefit. Increases may not exceed the Year-over-Year Consumer Price Index (CPI) published by the Central Bank of Honduras (BCH) at the close of 2025, except in cases of restructuring, general salary adjustments agreed for employees of the Civil Service Regime, application of the Minimum Wage Law, and collective agreements financed with Own Resources (source 12) which may exceed the CPI provided that sustainability is demonstrated. The application of the benefit for salary adjustments of various kinds shall be carried out when verified by SEFIN through the General Directorate of Budget (DGP), that the institution formulated the financing of said benefits in the additional expenditure item 11400, in compliance with Budget Policy Guidelines. Notwithstanding the foregoing, in the event that the institution requires additional financing, it must comply with what is established in Article 20 of this Law, provided that such financing is sustainable over time, does not affect the institution's operations, and complies with applicable legal regulations. Exempted from this provision are the Legislative Branch, Judicial Branch, other constitutional bodies, and the Financial Public Sector.

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

Every Decentralized Institution that undertakes new collective negotiation or revision of economic clauses, must request prior to the Denunciation of the Collective Agreement before the State Secretariat of the Offices of Labor and Social Security (SSTS), the Opinion of the State Secretariat of the Office of Finance (SEFIN) through the General Directorate of Decentralized Institutions (DGID). The institutions must accompany the Opinion request with the budgetary and financial study that proves the sustainability of the benefit to be granted, as well as the information requested by DGID; if this requirement is not met, DGID will return the requests made. The Opinion issued by DGID shall be exclusive regarding the content of the articles referred to in the collective negotiation, this Opinion issued by DGID must be attached to the Budget Modification and Budget Availability Opinion request that will be issued by the General Directorate of Budget of SEFIN. The State Secretariat of the Offices of Labor and Social Security (SSTS), must request as part of the documents accompanying the Minutes of the new Collective Agreements negotiations, the Opinion issued by the State Secretariat of the Office of Finance (SEFIN) through DGID, prior to granting authorization or denunciation of the new collective negotiation, which must consider only salary increases that can be covered budgetarily and financially by the requesting institution; and in the case of institutions that finance their personnel expenses with resources from the National Treasury (source 11), salary increases must not imply an increase in the amount of the approved transfer.

All public sector institutions are ordered to conduct an annual review and adjustment of the Minimum Salary of personnel working in the Public Administration based on the last authorized minimum salary negotiation to be applied in 2026 in category 10 Community and Social Services in the last salary scale of a maximum of 151 employees and above for all public institutions; 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 that does not affect the institution's operations and complies with applicable legal regulations. The State Secretary in the Office of Finance (SEFIN) is authorized to carry out the budgetary and financial operations necessary to operationalize the adjustment described above. Municipalities and the banking and non-banking financial sector of the public sector are exempted from this provision and shall apply their regulations regarding minimum salary.

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

The contract period for teachers appointed as interim teachers, except for the holding of competitive examinations and the assignment of positions in accordance therewith, is established from the month of February through the month of November 2026, with the payment of December and January of the following year recognized as vacation, proportional according to the months worked and without discrimination if they do not hold a degree.

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

In the Teaching Sector (teaching staff), the division of teaching positions shall be permitted, arising from retirements, deaths, resignations, cancellations and dismissal by final court 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 difference in salary complementing class hours of teachers who have 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 teachers hired through deposits in their respective bank accounts. For this purpose, it must have the technological platform that enables the payment processing and connectivity with the Financial Administration Systems (SIAFI) and human resource 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 (SEDUC) through the program administration is directly responsible for compliance with this provision. Likewise, teaching positions that become vacant due to retirement at SEDUC must be considered to hire at least 25% of teachers in the PROHECO system who have a minimum of 5 years of work under this system and meet the legal requirements.

Authorization is granted for the cancellation and transfer of positions in the Teaching Directive function, exclusively and only in those educational centers that are closed or have excess appointed personnel, prior to the opinion of the State Secretaries in the Departments of Education and Finance. Likewise, SEDUC is ordered to proceed with the cancellation of all personnel movements in technical assistant positions, which were appointed during the government period 2022-2026 without meeting the legal requirements, within a maximum period of three months. Redirecting this budget toward the appointment of teaching personnel who are in active service in front of students where it is required. Non-compliance with this provision shall result in legal liability. An compliance report must be submitted within a maximum period of one month, after the respective cancellations.

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

The heads of institutions, the chiefs of Executive Units, and the Administrative Managements shall be directly responsible for the personnel selection process that is contracted under the expense subgroup 12000 (Non-Permanent Personnel), which must be carried out based on competencies, skills, abilities, academic merits, integrity, and suitability. The employment relationship shall be formalized through a contract executed between the institution and the worker. Due to the nature and temporality, this type of contract has the following characteristics:

• a)

  does not include payment of vacation bonuses;

• b)

  are valid only within the current Fiscal Year; and,

• c)

  its effectiveness shall be counted from the date the candidate signs the contract and takes possession of the position. Prior to the signing of the contract and initiation of service provision, the authority responsible for the hiring must consult the System of Registration and Control of Public Employees (SIREP) to determine whether the applicant has any employment relationship with another institution.

It is prohibited to hire non-permanent personnel (12000) when in the Itemized Annex of Basic Salaries and Wages of the Secretariats of State or its equivalent in the rest of the Institutions of the Public Sector there exist approved positions for the performance of the functions subject to the contract, except in those cases where the nature of the position is required for the normal functioning of the institution and it is in judicial proceedings. 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 subject to free appointment and removal by the President of the Republic.

The specific Object 12200 daily wages shall be exclusive for paying personnel under this modality and in no case should it be used to pay personnel that perform administrative, technical, and professional functions. Prior to hiring and initiating the provision of service under this modality, the Public Servants Registry System (SIREP) must be consulted to determine if the candidate has any employment relationship with another institution. It is prohibited to hire personnel whose functions are different from those corresponding to the nature of work as daily wages.

The Specific Object 12910 special contracts, allocation for personnel contracts for a period not exceeding ninety (90) consecutive days in the fiscal period, are personnel contracts that complement the proper activity of each institution and require monthly payments. Prior to hiring and initiating the provision of service under this modality, the institution must consult the Public Servants Registry System (SIREP) to determine if the candidate has any employment relationship with another institution, including hirings to cover absences of personnel due to the enjoyment of acquired rights in accordance with current regulations such as: Leave due to illness, maternity, scholarships, paid leaves, as well as special cases to cover emergency declarations, medical personnel while concluding the competitive hiring process, or other cases that according to the type of operational nature of the institution, are duly justified and approved by the Secretariat of State in the Office of Finance (SEFIN). Due to the temporary nature of the contract, the right to vacation, thirteenth month as a bonus concept, fourteenth month as social compensation and other rights inherent to employees financed through the other objects of Subgroup 12000 are not considered.

Public Servants who have been dismissed and have sued the institution in which they worked may work under temporary contract modality in any institution of the Public Sector during the time the case is in process and pending sentence. In the case of a final sentence in which the State is condemned to pay indemnification or reinstatement with payment of damages and lost wages, the salaries received by the contracted worker during the course of the lawsuit shall form part of the quantification of the indemnification for lost wages set forth in the condemning sentence, and consequently shall form part of the final payment settlement made effective to the contracted worker. The official who violates what is established in the first paragraph of this Article and makes an appointment under the modality of agreement shall be subject to the application of a fine equivalent to ten (10) minimum salaries. USE OF BASIC SALARY SAVINGS

The savings from basic salary allocations of permanent personnel, arising from the cancellation of positions, positions temporarily vacant, positions that earn a salary lower than what was budgeted, cancellation of supernumerary personnel in the Public Sector, may be used solely for the following:

• 1)

  Creation of positions subject to a favorable opinion from the body responsible for human resources administration under the civil service regime, and the Secretary of State in the Office of Finance (SEFIN), through the General Directorate of Budget (DGP), when it is personnel that, by the nature of their functions, is required for the normal functioning of the State;

• 2)

  Creation of positions subject to a favorable opinion from the Secretary of State in the Office of Finance (SEFIN), through the General Directorate of Budget (DGP), when it is personnel that, by 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, decreed by the President of the Republic;

  • b)

    Internal unrest or public calamity;

  • c)

    Payment of labor benefits and/or severance;

  • d)

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

  • e)

    Payment of Sentences from Labor Claims or of another nature ordered judicially, in cases where there is no other source of financing;

  • f)

    Cover the Minimum Salary from a new negotiation or in case it has not been adjusted in 2025;

  • g)

    Revaluation of five-year bonuses in case they have not been covered in 2025;

  • h)

    Cover the indemnifications 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 severance assistance, including personnel assigned to Program 01 Central Activities, of the Secretary of State 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 prior process, Collective Bargaining, Professional Statutes and budgetary availability to cover the benefit;

  • j)

    Cover any other expense instructed by the President of the Republic through an Executive Agreement to address government priorities; and,

  • k)

    Cover debts from wage statements pending payment from previous fiscal years. PAYMENT OF OVERTIME

Overtime payment is recognized for Air Traffic Service personnel (Air Traffic Controllers) and Aeronautical Information Services (Flight Plan), dependent on the Honduran Civil Aviation Agency; drivers assigned to the highest institutional authority; as well as Security, Transport, Issuance and Treasury personnel of the Central Bank of Honduras (BCH) and the National Agricultural Development Bank (BANADESA), who participate in official missions for the transfer of valuables; personnel working on the macroeconomic indicators update projects of the BCH, without prejudice to the provisions of article 31 numeral 1), subsection 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. To maintain transparency and adequate control of these payments, the overtime record shall be made through electronic attendance control systems (time clock) or, failing that, through the registration mechanisms officially used by the institution, with verifiable documentary support. The procedure to be followed for the calculation of overtime hours shall be established in the Regulation of this Law.

Employees who take the oath of Law in accordance with article 322 of the Constitution of the Republic are excluded from overtime payment, including Presidents, Executive Presidents, Executive Secretaries, Executive Undersecretaries, Executive Directors, Executive Subdirectors, Presidential Commissioners, Commissioners, Rectors, Vice-rectors, Directors and General Subdirectors, Heads and Subheads of Internal Audit, Administrative Managers, General Managers, General Submanagers. 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, investiture and responsibilities. They are determined as non-liquidable and non-taxable and are different from those referred to in the Regulations on 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 and in cases of provision of Ad honorem services, in the following positions and amounts:

• 1)

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

• 2)

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

• 3)

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

• 4)

  Commissioners of 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)

  General Subdirector or General Submanager of Decentralized Institutions and Deconcentrated Bodies, Ten Thousand Lempiras (L10,000.00). Likewise, in the case of those Heads of Deconcentrated Institutions who earn a salary greater than or equal to that of State Secretaries; or in the case of Sub-heads of Deconcentrated Institutions who earn a salary greater than or equal to that of Undersecretaries of State, representation expenses shall not be granted to them. In those cases where deficiencies are evident in covering expenses linked to the Itemized Annex of Basic Salaries and Wages and the operational expenses of public institutions, the Heads must prioritize these expenses before requesting the benefit for 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, with each body having to establish its own table. EMPLOYER CONTRIBUTIONS AND PAYMENT OF CONTRIBUTIONS WITH BONDS

The employer contribution calculated on 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. Once employer obligations are met and there is budgetary availability resulting from savings due to vacant positions, these allocations may be redirected to cover employer contributions to other Institutes and/or reallocated to address what is established in article 96 of this Law. Employer and personal contributions, as well as deductions for loans that are applied to the payroll of public servants, must be paid in full to the social security institutes in accordance with the Law. The use of these resources for other purposes is prohibited. The Heads, Administrative Managers or delegated authority who fail to comply with this provision are jointly responsible, civilly and administratively for all obligations that arise.

The employer contribution to the National Institute of Professional Training (INFOP) corresponds to the allocation recorded as a transfer in the State Secretariat in the Offices of Labor and Social Security (STSS).

The Executive Power through the State Secretariat in the Office of Finance (SEFIN) may pay through bonds the contributions that the State must make to the Social Security Institutes in its capacity as employer. Likewise, the State Secretariat in the Office of Finance (SEFIN) is authorized to pay through bond issuance the pending employer contribution obligations from previous fiscal years. CONTRACTING THRESHOLDS AND MODALITIES

In compliance with the provisions of Article 360 of the Constitution of the Republic and Article 38 of the State Contracting Law (LCE), which define the procedures and forms of contracting for contracts of public works, supplies and services, purchase and sale or leasing of goods, the following types of contracts and contracting modalities are established, as well as the required amounts and minor purchases:

- 112 - No. Type of Contracts Amounts in 2026 Contracting Modality 1 Public Works Contracts L6,000,000.01 and above Public Bidding L4,000,000.01 to L6,000,000.00 Private Bidding L2,000,000.01 to L4,000,000.00 Minor purchase with three (3) valid quotations L500,000.01 to L2,000,000.00 Minor purchase with two (2) valid quotations L0.01 to L500,000.00 Minor purchase with one (1) valid quotation 2 Consulting Contracts L3,500,000.01 and above Public Competition L2,000,000.01 to L3,500,000.00 Private Competition L1,000,000.01 to L2,000,000.00 Three (3) valid technical and economic proposals L500,000.01 to L1,000,000.00 Two (2) valid technical and economic proposals L0.01 to L500,000.00 One (1) valid technical and economic proposal Supply of Goods and Services Contracts L1,500,000.01 and above Public Bidding L450,000.01 to L1,500,000.00 Private Bidding L250,000.01 to L450,000.00 Three (3) valid quotations L100,000.01 to L250,000.00 Two (2) valid quotations L0.01 to L100,000.00 One (1) valid quotation

The amount of contracts subscribed by the State includes the payment of corresponding taxes, except for current exemptions and tax benefits established in national or international regulations. In compliance with Article 37 of the State Contracting Law (LCE), registration in the Providers and Contractors Registry shall not be necessary when dealing with contracts whose amount does not require bidding or competition. With respect to contracts for remodeling and maintenance of diplomatic, consular seats and residences owned by the Government of Honduras, these shall be carried out through a comparative price process, selecting the lowest cost and best quality for the State, of which a record shall be kept in the respective file. Procurements financed with national resources shall be governed fully by the national ceilings and modalities. In procurements financed with resources from cooperation or external credit, the methods, thresholds and procedures established in the respective financing agreement and in the policies of the financing agency shall be applied preferentially, maintaining publication in HONDUCOMPRAS for transparency purposes. Any guidance and/or guidelines that Public Sector Institutions require in relation to purchases and procurements should be directed to the Normative Office of State Contracting and Acquisitions (ONCAE). If upon the entry into force of this Decree the bidding process required for a new contract has not been completed, exceptionally and without prejudice to the responsibility that corresponds in those cases in which there is a serious risk of harm to the public interest, continuation may be authorized by Agreement or motivated Resolution issued by the competent superior authority

of the effects of the contract for the time that is strictly necessary up to a maximum of three (3) months, within which period said procedure must be completed, except in cases where said process has been declared void or failed in accordance with law, in which case the aforementioned contract may be extended under the same conditions and up to a final period of three (3) months more. The extension shall be made by agreement reached between the parties, prior to the opinion of the administration containing legal, technical and financial opinion of the respective Institution and shall be formalized by Agreement or Resolution of the Institution, as appropriate. The foregoing shall apply provided it does not contravene the provisions established in Articles 122 and 123 of the State Contracting Law. Likewise, exclusively for this fiscal year, Municipalities of category B, C and D are excepted from the presentation of the Annual Plan of Purchases and Procurements (PACC) and use of HONDUCOMPRAS, which shall conduct their processes under the current State Contracting Law. Likewise, this article does not apply to direct contracting for:

• 1)

  The State Secretariat in the Offices of Infrastructure and Transportation (SIT), in its capacity as the entity responsible for developing and managing national infrastructure projects, to proceed with the construction of buildings of the National Autonomous University of Honduras (UNAH) in the Departments of Valle, Santa Bárbara and Gracias a Dios. In order to ensure that the works comply with the institutional technical and academic standards, UNAH shall act as the governing body for the technical and administrative supervision of said projects, making use of its own budget. SIT shall coordinate with UNAH the execution schedules and ensure that the funds allocated for these social infrastructure investments are used

  efficiently, aimed at strengthening human capital and regional development.

• 2)

  The National Congress of the Republic to proceed with the execution of the following strategic projects aimed at institutional strengthening, technical modernization and legislative transparency: a. The State Secretariat in the Offices of Infrastructure and Transportation (SIT), in its capacity as the entity responsible for developing and managing national infrastructure projects, shall proceed with direct contracting of the design, construction and supervision of the remodeling, modernization and conditioning of the buildings of the National Congress, in order to ensure adequate and functional physical facilities for the exercise of the legislative function. b. Comprehensive Technological System of Legislative Management and Public Portal of the National Congress. This system shall constitute the central axis for the digitalization of legislative processes, and it shall obligatorily include its respective supervision, control and monitoring contract. c. In keeping with the exception of Article 238 of this Law, direct acquisition and implementation of a state-of-the-art technological platform dedicated exclusively to the voting process with all its components, computers, sound in the Plenary, through an international agency such as UNDP, UNOPS or others is authorized. This investment authorizes the purchase of all its infrastructure components, the licensing of specialized software and the supply of electronic hardware devices, ensuring the reliable identification of deputies and the auditable recording of votes. This system shall have cybersecurity protocols and guarantee interoperability with transparency portals

  for the immediate publication of results. The State Secretariat in the Office of Finance (SEFIN) shall finance this project from its contingency allocations. d. Satellite signal services for state media: Resources allocated to ensure the operability and national broadcasting of the activities of the channels of the Powers of the State.

• 3)

  Likewise, the purchase of fuels shall also be excepted and shall not be subject to the contracting modalities provided in Articles 360 of the Constitution of the Republic and 38 of the State Contracting Law (LCE) by virtue of the fact that prices are established through a formula approved by the Government of the Republic, for which reason, fuel purchase is not part of the PACC.

• 4)

  Authorization for the contracting of advertising services.

• 5)

  Finally, the processes conducted by ENEE and HONDUTEL are excepted from the application of contracting thresholds; and the provisions of the Law of Reactivation and Human Development contained in Decree No. 17-2026 shall apply.

To fulfill the objectives of national defense plans and in application of the laws and regulations governing the Armed Forces, the State Secretariat of the National Defense Office (SEDENA), is authorized to execute its budget allocations under operational decentralization, according to Agreement SDN 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 purchasing and contracting process must provide evidence that the purpose of the activities is the urgency of the contracting.

Given the nature of the services provided by the State Secretariat of the Security Office (SESEGU) and the State Secretariat of the Health Office (SESAL), especially due to the immediate attention demanded by the population, the acquisition of goods and services allocated to the expenditure items: Food and Beverages for Persons (31100) and its auxiliary (31110) Food Products and Beverages; and Instruments, Materials and Minor Medical and Laboratory Supplies (39500) and its auxiliaries (39510) Minor Medical Surgical Instruments and (39520) Instruments and Materials for Laboratory; fuels and lubricants, fats, oils, spare parts, accessories and services for security equipment, may be carried out by the administrations of departmental health regions and hospitals; and the Departmental and Metropolitan Police Station Units. When a tender does not meet previously registered conditions or due to legal circumstances a contracting process for hemodialysis and peritoneal dialysis services is declared void or unsuccessful, the State Secretariat of the Health Office (SESAL), through the departmental regions and hospitals, may contract said emergency services through quotations; to guarantee the right to health and the right to life of patients requiring the public service. Those responsible for the purchasing and contracting process must provide evidence of the urgency and that the subdivision is not being done in order to evade contracting ceilings. Similarly, decentralized public Universities may conduct Direct Contracting of goods and services that for their normal operation require products classified in expenditure items 311 (Food and beverages for persons), 394 (kitchen and dining utensils), and 391 (Cleaning and personal hygiene items) intended to provide food service to students in a boarding system, as well as food and veterinary products for animals (large livestock, small livestock, poultry, fish and others) whether in confinement or in grazing or otherwise. Classified in expenditure items 312 (Animal feed) and 357 (Specific veterinary and miscellaneous products for animals). Regarding budget allocations and expenses made by Institutions 1, 20 and 413, based on what is established in Article 17 of Legislative Decree No. 170-2006, it is classified as reserved information and for the expenditure item (Benefits, Compensation, Emoluments, travel allowances) corresponding execution regulations will be issued for sworn statements in institution 2. Budget allocations contained in the structures described above and which by the nature of their functions require an expedited administrative procedure, may be transferred to bank accounts at the Central Bank of Honduras or another financial institution that will be opened for each Institution, based on the disbursement plan that must be presented quarterly in accordance with the annual plan that is presented to the State Secretariat of the Finance Office and whose management will be in charge of the Administrative Manager of the respective Office or Institution.

In all contracts financed with external funds, the suspension or cancellation of the loan or donation shall give rise to the rescission or termination of the contract, with no 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 apply in the cases provided for in Article 39, first paragraph of the Organic Budget Law. The provisions of this Article must be included as a requirement in the specifications, terms of reference and Contract.

The Annual Plan for Purchases and Contracting (PACC) may be modified or updated for the purpose of guaranteeing compliance with contracting needs for goods, works, consulting services, and services in order to comply with the Annual Operating Plan (POA).

The Institutions of the Centralized and Decentralized Public Sector, with the exception of Municipalities, prior to the acquisition of information systems and/or development of computer systems in administrative, financial, and accounting matters, shall require a Technical Opinion from the Ministry of Finance (SEFIN) through the General Directorate of Information Technologies (DGTI) in coordination with the different governing bodies, to ensure that they do not duplicate the Integrated Financial Administration System (SIAFI), the Integrated Municipal Administration System (SAMI), the National Public Investment System of Honduras (SNIPH), the Human Resources Administration System (SIARH), and other national-level systems administered by SEFIN. Interested institutions must submit their request attaching detailed specifications and functional requirements of the systems they wish to acquire; if the information is incomplete or insufficient, SEFIN may request additional information prior to issuing an Opinion, and the deadlines shall be 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 guarantee interoperability or information exchange in case it exists between systems. A Technical Opinion is not required for the acquisition of Hardware, Licenses, and Software for the operation of technology platforms or services unrelated to the functionalities that the systems described above have, as well as those related to the operation of Customs operations of the SARAH System of the Customs Administration of Honduras (AAH).

All centralized public institutions, including Project and Program Executing Units, must apply the Regulations on travel allowances 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 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 Travel Allowances 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 regulations on travel allowances and travel expenses different from the Regulations on Travel Allowances and Other Travel Expenses for Officials and Employees of the Executive Branch.

The President of the Republic or the person he delegates shall authorize the Titular Officials of the Secretariats of State and Decentralized Entities; Travel Allowances and Other Travel Expenses outside the country. For the Heads of Decentralized Institutions, said authorization shall be granted by the Board of Directors or its Superior Body. In the cases of other public servants or employees, the authorization for Travel Allowances and Other Travel Expenses outside the country shall be granted by the Head of the institution itself. Every official or public employee who has received Travel Allowances and Other Travel Expenses outside the country must settle the use of resources with the receipts they receive in accordance with the determination of categories, zones, mission periods and limits for travel allowances contained in the Regulations on Travel Allowances 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 that falsifications or alterations therein are verified, the total return of the amount stated 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 travel allowances and other travel expenses must be deposited in the General Treasury of the Republic (TGR) for institutions of the Central Administration or Institutional Treasury for institutions of the Decentralized Administration, accompanied by the respective deposit receipt and the settlement of the trip. If a trip is not carried out, the value of the travel allowances and other expenses that have been granted shall be returned within a period not exceeding ten (10) business days after receipt, under no circumstances may these resources be used for other purposes and the corresponding procedures must be followed to carry out the financial and accounting records.

It is prohibited to enter into first-class air transport contracts using 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 duly documented; and, 2) When the public official requests this alternative air transport, having to pay out of pocket the difference resulting from the cost of the ticket.

State purchases of goods and/or services in which the Sales Tax applies, the value thereof shall be 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 make use of these resources to finance expenses of any nature. The provisions in the preceding paragraph are applicable to Decentralized Institutions, Deconcentrated Institutions, and Project Executing Units without any exception, who as Withholding Agents must deliver to the provider of goods and/or services the withholding receipt, so that it may be credited before the Tax Administration Service (SAR) the amounts paid for this item. In the case of the Central Administration and Decentralized Institutions operating in the CUT, the transaction is automatic at the time of 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 employees, must be paid in full by the respective institutions, no later than 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 Holders and Administrative Managers or delegated authority who fail to comply with this provision are jointly and administratively liable for all obligations generated, without prejudice to the sanctions provided in Article 4 of this Law.

Central Government, Decentralized and Deconcentrated Government entities are prohibited from entering into real estate rental contracts within the country in a currency other than the Lempira. 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 Management or the authority serving as such must verify that the requesting entities attach the necessary quotations and comply with the standards established in these Dispositions. 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 103 of this Law.

The extension of real estate rental contracts entered into by public sector institutions on an annual basis is authorized when these represent greater costs to the institution due to mobilization, price, location and quality of service. Extensions may not exceed the Presidential Government period and shall be formalized through Ministerial Agreement in the case of State Secretariats or Resolution for Decentralized or Deconcentrated Institutions.

The Secretary of Foreign Relations and International Cooperation (SRECI) is authorized to enter into lease contracts abroad for the operation of Embassies, Permanent Missions, and Consular Offices of Honduras for a period of up to four (4) years, provided that the monthly rent value remains unchanged and/or free from indexation during said period. Regarding 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, by the real estate market. The same condition shall apply to the residence of Mission Chiefs. It may also contract security services to protect diplomatic and consular offices.

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

All Institutions of the Central Government, Decentralized and Deconcentrated entities, as well as their attached programs, including the Legislative and Judicial Powers, and constitutional entities, that require services from the Honduran Postal Company (HONDUCOR), the National Company of Graphic Arts (ENAG), the Honduran Telecommunications Company (HONDUTEL), the National Supplier of Basic Products (BANASUPRO), and the Military Industry of the Armed Forces (IMFFAA) are obligated to request quotations for said services in those places where these companies have coverage. In cases where state enterprises do not have coverage of the required services, institutions may enter into contracts with other companies within the framework of what is established in the State Contracting Law and these provisions. Prior to the processing related to the acquisition of services, Administrative Managers must verify that in the corresponding administrative file it is certified that the required services cannot be provided by state enterprises, and compliance with what is established in the State Contracting Law and its current regulations.

Public Service Companies are ordered to continue and conclude the process of settling outstanding accounts receivable for the provision of services, having the option to perform subrogation for the recovery of defaulted debt or to arrange a payment plan. The results of these actions must be reported quarterly to the Superior Court of Accounts (TSC), to the Institute for Access to Public Information (IAIP), and to the State Department of 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 companies shall be responsible for the execution of the actions established in this article and their non-compliance shall be sanctioned in accordance with the provisions of Article 4 of this Law.

The State of Honduras and the entire institutional framework, including the Legislative and Judicial Powers, 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 Company (HONDUTEL), the National Autonomous Service of Aqueducts and Sewers (SANAA), the Municipal Water and Sanitation Unit (UMAPS), the National Electric Power Company (ENEE), the Honduran Postal Company (HONDUCOR), and any other public institution that provides services. Institutions are authorized to honor their debts with Municipalities under Compensation agreements. This compensation must be reconciled no later than the last business day of June 2026.

The State Department of the Office of Finance (SEFIN) is authorized to conform to the account statements presented of the amounts owed between institutions of the Central Administration, to perform account compensations and, if necessary, affect through the "Budget Modification Form" the budget items approved in this law; without prejudice to subsequent reconciliation of outstanding balances, which may result in credits. Institutions of the Decentralized Public Sector must submit to the General Directorate of Decentralized Institutions (DGID) of the State Department of 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.

Public Sector Institutions that within the scope of their competencies require making use of information from the platform of the National Identification System (SIN) administered by the National Registry of Persons (RNP), may request accessibility services to the system according to the needs of the entity for the fulfillment of its functions. The RNP is ordered to provide cooperation in a timely manner, based on the needs of the requesting institution, without any charge, which must be formalized through an interinstitutional cooperation agreement.

The hiring of consultants charged to Expenditure Subgroup 24000 -- Specialized Services, shall be carried out under the responsibility of the head of each institution, provided that there is budgetary availability and the nature of the services required is in accordance with the classification of the budget item to be charged.

The hiring of External Legal Consultants is prohibited if institutions have a Legal Department or Office for the processing of lawsuits filed in the Courts and Tribunals of the Republic as a consequence of the exercise of the functions and powers of the institution. This provision is excepted for the Honduran Bank for Production and Housing (BANHPROVI) and the National Bank for Agricultural Development (BANADESA), due to their banking operations for portfolio recovery and lawsuits for arrears; and for the Central Bank of Honduras (BCH) for the recovery of eventual assets that it has received or may receive as a consequence of payments from cases of illiquidity of institutions in the financial system or insurance and reinsurance institutions, the hiring of law professionals as external consultants must be carried out following an agreement on professional fees.

Any natural or legal person contracted under the modality of Personal Services group of expense 10000 and Consulting Services for Professionals and Technicians (national or foreign) in the Expense Subgroup 24000, financed with resources from any source of financing, is subject to the tax obligations contained in Honduran tax regulations.

Public Sector Institutions may contract the provision of professional services or consulting services with national or international consultants under the following conditions:

Public Sector Institutions may contract the provision of professional services or consulting services with national or international consultants under the following conditions: National International 1. A National Consultant shall be understood as the professional who performs their activity with permanent residence in the national territory; 1. An International Consultant shall be understood as the person who has performed consulting work in a country other than their nationality and whose permanent residence is outside the national territory. 2. The services are provided by companies, professionals and specialists without a relationship of dependency 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 contracting 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 a relationship of dependency; 3. Foreign national consultants may not perform functions of a directive, administrative, technical, operational or support nature, typical of employees with a relationship of dependency in the institution; 4. The contracting of international consultants for programs or projects with national funds shall be made based on the conditions of the professional field and in accordance with the availability of budgetary and financial resources; 5. If there is no document indicating the contracting regime for this type of consultant, the State Contracting Law and its Regulations shall apply; - 133 - National International 6. The setting or estimation of fees shall be stated in the budgets agreed upon between the executing entity and the financing agency or cooperating organization.

The Consulting Contract, expense group 24000, by its nature does not include vacations, thirteenth month as a bonus, fourteenth month as --

The Consulting Contract, expense group 24000, by its nature does not include vacations, thirteenth month as a bonus, fourteenth month as social compensation and other rights inherent to employees that are 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 Secretary of State in the Offices of Foreign Relations and International Cooperation (SRECI) is authorized to finance fifty percent (50%) of the medical insurance contracted in the Foreign Service by officials and civil servants incorporated or not into the diplomatic career ladder while they are accredited in the foreign service, from the operating expenses. The internal control mechanisms for this partial payment shall be those established by the Administrative Management of the Secretary of State within the framework of the Law. In the case of Ambassadors, Heads of Mission, and Consuls, one hundred percent (100%) of the medical insurance contracted shall be financed, for which the Secretary of Finance is authorized to provide the necessary funds for its financing.

State Secretariats, Deconcentrated and Decentralized institutions are authorized to contract, at the expense of their respective budgets, individual fidelity bonds in favor of each natural person who administers public goods and resources, to protect State funds and assets, determining the amounts of such 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 shall collect from bonded public officials and employees, the payments made in favor of the State as a consequence of the misuse and infidelity in the handling of public goods. Collection actions carried out by both the State and the insurance company must be performed in accordance with the reports submitted by the Internal Audit units of each institution and/or the Superior Court of Accounts (TSC). The payment made by the insurance company in compensation for the infidelity of the public official or employee in the handling of public goods or resources does not exempt him from the civil, administrative or criminal liability that corresponds under 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 the immediate medical care of Armed Forces personnel that includes: Officers, non-commissioned officers, soldiers and other members who perform various functions in military service, provided that the Military Hospital cannot provide the services. VEHICLES AND FUEL

The Presidency of the Republic, through Executive Agreement, shall designate the Public Institutions authorized for vehicle rental. They shall not be able to rent luxury vehicles, except for armored vehicles, which are considered strictly security vehicles, and the contracting process that is carried out must be joint and in accordance with the terms, conditions and procedures established in the Executive Agreement issued by the Presidency of the Republic, in which additionally the extension of up to three (3) additional months of the previous vehicle rental contracts can be authorized, even if they have expired before the approval of this Decree, in order that within that period the joint contracting process related and authorized here can be executed, and if this joint contracting is perfected before the expiration of the term of the extended contract, the joint contracting would immediately substitute the extended contract.

The use of official vehicles is prohibited during non-working hours and days; however, in exceptional cases that are duly justified, the heads of the departments may authorize their use. The lack of authorization or permission 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 State Secretariats, 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, except for authorization granted by the Superior Court of Accounts (TSC). The following institutions are exempt from this provision: Supreme Court of Justice (CSJ), National Congress of the Republic, Public Ministry (MP), National Police (PN), State Secretariat of the Office of National Defense (SEDENA), National Directorate of Investigation and Intelligence (DNII); and, the Special Protection Unit (UEP) under the protection of 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 reforms.

The State Secretariat in the Offices of Foreign Affairs and International Cooperation (SRECI) is authorized to, using its budget, proceed with the purchase and/or lease of motor vehicles for the Embassies, Permanent Missions and Consular Offices that do not have their own vehicle for official use, which shall be carried out through a comparative price process with a minimum of three (3) quotations. Each vehicle must be acquired in the countries or places where Honduras has Diplomatic representation; the contracts entered into under this article are exempt from the bidding procurement procedure; therefore, the Embassy, Permanent Mission and Consular Office must open a procurement file, in which it shall document the entire process, attaching to said file at least 3 quotations from companies engaged in the sale or lease of vehicles. Likewise, the procurement processes for goods and services related to embassies, permanent missions and consular offices are exempt from the bidding procurement procedure, for which a comparative price process shall be carried out, choosing the one with the lowest cost and best quality for the State, which shall be recorded in the purchases file maintained by said missions.

Based on the Lease Agreement with Option to Purchase dated October 17, 2012, published in the Official Gazette "La Gaceta" dated November 15, 2012, which has a validity of thirteen (13) years starting in 2013 and ending in 2026, the budgetary allocation approved for the State Secretariat in the Defense Office (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 option to purchase 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.

Institutions that formulate public investment projects and are in the design and pre-investment stage must send through the Planning and Management Evaluation Units (UPEG's) the proposals for investment initiatives that are considered priorities for the country's socioeconomic development, as well as supporting documentation to the General Directorate of Public Investments, in order to continue with the corresponding actions for resource management.

Programs financed with external funds shall be registered in the System of External Loan Executing Units (UEPEX) and must consider in the formulation of their budget the programming of income and expenses in accordance with the disbursements received in the previous fiscal year.

All Public Sector Institutions that execute investment programs and projects registered in the National Public Investment System of Honduras (SNIPH), formulated based on 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 physical and financial information updated throughout the entire Project cycle through the National Public Investment System of Honduras (SNIPH) and adjust their programming of commitments and payments to the Current Budget. In the same manner, they must keep financial information updated in the System of External Loan Executing Units (UEPEX). The supervision of projects must be carried out by Public Sector institutions 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 imposing the administrative sanctions provided for in Article 4 of this Law.

The institutions executing public investment projects must present to the Secretary of State in the Ministry of Finance (SEFIN), regardless of the source of financing:

• 1)

  Annual Plan of Purchases and Contracts (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 in execution; and,

• 5)

  Any other information requested by the General Directorate of Public Investments.

In order to keep all information updated on the Honduras Investments platform, all Project Executing Units must keep updated all information requested by the Secretary of State in the Ministry of Finance (SEFIN) in the Systems of the SNIPH, UEPEX, SIAFI and the Public Procurement System Administered by the Normative Office of State Contracting and Acquisitions (ONCAE), among others. Said platform must contain productive investment.

Institutions that execute programs and projects financed with external credit must have budgetary provision in the present Fiscal Year prior to disbursement requests. The Ministry of State in the Office of Finance (SEFIN) through the General Directorate of Public Credit shall verify that disbursement requests in cash, direct payment, or direct charge have said budgetary provision and/or are contemplated in the disbursement schedule, which it shall confirm in writing prior to its submission 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 it. Cash disbursement requests (other than direct payment or charge), scheduled for the last quarter of the fiscal year, must consider the budgetary availability contained in the draft budget of the following fiscal year. Once a direct payment or charge has been made, the Institution that executes 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 with the Financing Organization. Likewise, the Ministry 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 scheduling of new external credit disbursements, until the Executing Unit registers the direct payment/charge made. Similarly, it shall refrain from issuing budgetary confirmations of disbursements that may exceed the maximum dates established in the closing regulations.

In order to guarantee the correct use of funds from external credit and donations, subscribed by the Ministry of State in the Office of Finance (SEFIN); the officials authorized to request disbursements shall be the Heads of Public Sector Institutions, 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.

Persons responsible for the administration and execution of programs and projects that authorize ineligible expenses shall be jointly liable, administratively, civilly, and criminally. The Public Sector Institution to which the Executing Unit that presents findings in its audited financial statements belongs shall suspend disbursement requests with the Financing Organization and shall carry out the corresponding actions to reimburse the organization for the ineligible expenses of the project, 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 confirmation of budgetary provision and/or inclusion in the scheduling of new external credit 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 to which the Executing Unit belongs must identify the resources within its budget and carry out the corresponding actions for their reimbursement, unless the Financing 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 Notice 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 Notice does not constitute an obligation for the State of Honduras, it is issued for financing management with a validity of two (2) years from the date of its issuance; upon the expiration of the validity of the Priority Notice, it shall be removed from the National System of Public Investment of Honduras (SNIPH), including its code from the Integrated Bank of Projects (BIP), in case the project activation is required, the Institution must update the Project Document based on the General Methodological Guide and request the Priority Notice again, duly registered and approved in the system.

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

• a)

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

• b)

  change of Executing Institution;

• c)

  coverage and geographic location;

• d)

  increase or decrease in project cost;

• e)

  creation or elimination of components; and,

• f)

  modification of the final deliverable of the project. For the exclusive case of change of source and/or financing agency, only the modification in the National System of Public Investment of Honduras (SNIPH) should be made, prior to the request of the Executing Institution, accompanied by information that accredits the change. For this purpose, it shall be required that institutions of the Public Sector, through the Planning and Management Evaluation Unit (UPEG), attach the supporting documentation that justifies and allows the technical analysis for the issuance of the Opinion that includes accumulated physical and financial progress. In the case that modification of the objective is required, it shall be considered as a new Project. The Ministry of Finance shall not issue a technical opinion of amendment to the priority notice when the request is made in an untimely manner, that is, when the modifications have been made or the works, goods or services in the project subject to the amendment have been executed, the foregoing does not exempt the institution that complies with the payment obligations that correspond, similarly the Ministry of State in the Office of Finance (SEFIN) is empowered to refer the identified cases to the Superior Court of Accounts (TSC) in compliance with what is established in article 4 of this Legislative Decree. Likewise, the Ministry of State in the Office of Finance (SEFIN) through the General Directorate of Public Investments (DGIP) must issue the corresponding report of the projects subject to amendment referred to in this paragraph.

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

The State Secretariat for the Finance Department (SEFIN) is authorized to consider, through the General Directorate of Public Investments, comprehensive disaster risk management indicators, climate change, and gender equity as part of the process of prioritizing new investments. In view of the above, the State Secretariat for Women's Affairs (SEMUJER) shall prepare an annual report on new public investments with a gender approach, using information provided by the DGIP. The report shall be sent to the Presidency of the Republic. Through this report, SEMUJER shall fulfill the function of monitoring, evaluation, and follow-up of the prioritization of new investments with a gender perspective, allowing for the corresponding assessments to be made, corrective measures to be applied in a timely and appropriate manner, and guiding proper decision-making.

Every institution executing public investment programs or projects must consider within its budget the corresponding values for national counterparts when required. The percentage of national counterpart for projects financed with external credit, when required by the financing body, must 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 negotiated in-kind. The Finance Secretariat may authorize a higher percentage when Institutions have budget to develop programs/projects of high national interest.

Administrative expenses of the total project cost shall not exceed ten percent (10%), regardless of the source of financing 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 shall not exceed ten percent (10%) of the total cost of the sum of all projects under their administration. Non-compliance with this provision shall be sanctioned in accordance with what is established in Article 4 of this Law.

For projects in closure, only the necessary administrative and accounting personnel shall be maintained in the executing unit, and three (3) months before the project closure date, the corresponding payroll must be sent to the General Directorate of Public Investments (DGIP). The DGIP of the State Secretariat in the Ministry 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 therewith shall be mandatory. Once the project has been completed, the institution must submit the project closure report and form to the General Directorate of Public Investments. Institutions must contemplate in their annual budget formulation the necessary funds to guarantee the sustainability of works and assets generated by Public Investment projects that conclude physically and financially and that are registered in the National Public Investment System of Honduras (SNIPH), regardless of the source of financing.

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

All Institutions that execute investment programs and projects must identify 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 aimed at mitigation, adaptation, and disaster management related to Climate Change; an activity that must be developed by the Planning and Evaluation Unit of Management (UPEG) of the different Public Sector Institutions in coordination with the General Directorate of Public Investments (DGIP) and the General Directorate of Budget (DGP).

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

In the Case of Public Investment Projects, regardless of the source of financing, the Project Executing Units must not initiate acquisition processes for works, goods, services or supplies without having the Priority Note issued by the Secretariat of State in the Ministry of Finance (SEFIN); in case of carrying out such processes, the contracts derived from these will not form part of the Project cost and will be referred to what is established in Article 4 of this Law.

The Administrative Commission of the Free Tourist Zone of the Bay Islands (ZOLITUR) in fulfillment of its mandate, related to the promotion of sustainable tourism development, the generation of economic opportunities and the consolidation of a normative framework that guarantees the orderly and responsible growth of the region, constituted by the communities established in the Islands of Roatán, Útila and Guanaja, must carry out an equitable distribution of all the programs and projects that must be developed for the benefit of its communities, promoting initiatives that contribute to the progress and welfare of the local population in general. To guarantee the principle of equity, the Secretariat of State in the Ministry of Finance (SEFIN) through the General Directorate of Public Investments (DGIP), shall establish mechanisms for planning, monitoring and evaluation that ensure that programs and projects are distributed proportionally in the three municipalities, preventing benefits from being concentrated in a single territory and promoting balanced development throughout the region, the regulation of this Law shall establish the mechanisms.

In projects financed by Multilateral External Credit Organizations that contemplate municipal counterpart funding from own sources, the fund collection procedure previously endorsed by the Secretary of State in the Ministry of Finance (SEFIN) shall be applied. In this framework, the executing unit shall be responsible for the management, execution, and accounting of the resources deposited in the project's operating account within the Single Treasury Account (CUT). Municipal counterpart resources must be recorded under source 17 (Internal Contributions), through the preparation of Form F-02 for income; simultaneously, the Executing Unit shall make the corresponding adjustments in the SNIPH and SIAFI systems in order to timely reflect the required budget modifications and additions; for this reason, SEFIN may authorize budget increases once the income has been duly validated, culminating with the annual settlement of municipal allocations. SCHOLARSHIPS AND TRANSFERS

Public Sector Institutions that have budget allocation in the transfer expenditure group (50000), object of expenditure national scholarships (51211) and foreign scholarships (51212) for their employees, must follow the following procedure:

• 1)

  The applicant (employee), must submit to the Human Resources Sub-Management or its equivalent, the corresponding scholarship request, accrediting their academic degree and acceptance at the educational institution where they will pursue their studies;

• 2)

  The applicant (employee), must have a minimum of one (1) year working in the institution by Agreement;

• 3)

  The applicant (employee) and the institution must enter into an Institutional Scholarship Agreement, which includes the commitment to work in the institution for twice the time that the scholarship lasts, otherwise the scholarship recipient shall return the amount of money received during the time of duration of the benefit, without prejudice to acts of God or force majeure;

• 4)

  Scholarship authorization must be approved by the highest authority through internal resolution; and,

• 5)

  Comply with the other requirements contained in the Institutional Scholarship Agreement. Exempt from the above procedure are those institutions that have internal regulations and specific procedures to manage, grant, and authorize scholarships to their personnel and that such scholarships are financed with own resources source 12. Institutions must prepare a report on scholarships granted in which all benefits granted to female and male employees in the concept of scholarships are included in a precise, detailed, and transparent manner, including the amount, type of study, distribution by gender, age, and ethnic origin, the same must be available in the single transparency portal, non-compliance with this obligation shall result in sanctions for the institution.

The Secretary of National Defense (SEDENA) is authorized to issue its own Scholarship Regulation that allows the inclusion of low-income civil personnel and administrative personnel under contract to pursue studies in the different academic programs offered by the National Defense University (UDH) and other Universities.

Transfers in favor of institutions of the Public Sector, approved in the General Budget of Income and Expenses of the Republic, are subject to the amounts collected in the present fiscal year, regardless of what was approved, respecting what is established by the Constitution of the Republic, the Organic Budget Law, special laws, regulations, agreements and conventions in force in the Republic. The provisions in the preceding paragraph are applicable to transfers made to institutions of the private sector that are financed with resources from the National Treasury. The State Secretariat of the Office of Finance (SEFIN) shall notify the amounts that will not be granted so that the 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.

Transfer resources with a specific beneficiary cannot be transferred in favor of a different beneficiary, nor reassigned to a purpose other than the one for which they were approved. Excepted from this provision are the remainders from payments of budgetary allocations of ordinary and extraordinary fees to International Organizations; to make use of these remainders, the Administrative Management responsible in each public institution must submit, together with the request for budgetary modification to the State Secretariat of the Office of Finance (SEFIN), the documents that evidence such availability.

State Institutions must publish on their WEB page, through the Administrative Managements, the liquidations presented by the institutions benefiting from the transfers allocated in the budgets, prior to making a new disbursement. Likewise, expenses that are executed through group 90000 Other Expenses of institutions attached to the Executive Branch; and in the case of Superior and Constitutional Bodies, they must submit that information to the Court of Accounts (TSC).

The National Patronage for Children (PANI) is authorized to transfer to the Central Administration and deposit in the General Treasury of the Republic (TGR), a minimum amount of FOUR HUNDRED FIFTY MILLION LEMPIRAS EXACT (L450,000,000.00), for Fiscal Year 2026, resources proceeding 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 reforms. 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 of 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) to the Secretariat of Social Development exclusively for school meal services. From the total amount to be incorporated by the National Patronage for Children (PANI), the Secretariat of State in the Office of Finance (SEFIN) is authorized to carry out the budgetary and financial operations that are necessary for the incorporation of said resources in the General Budget of Income and Expenses of the Republic for Fiscal Year 2026. In case of obtaining higher income from this concept, it must be incorporated into the General Budget of Income and Expenses of the Republic to finance priority social programs within the Government Plan "Together We Will Be Well".

The National Port Company (ENP) must transfer to the Central Administration through the General Treasury of the Republic (TGR), the amount of ONE HUNDRED MILLION LEMPIRAS EXACT (L100,000,000.00), in accordance with the payment schedule jointly prepared by the Company and the Secretariat of State in the Office of Finance (SEFIN), no later than April 30 of the current fiscal year. The maximum payment date must not exceed the last day of each month and the final installment must be deposited on the last business day of November 2026. In case of non-compliance with this obligation, the Secretariat of State in the Office of Finance (SEFIN) is empowered to request the amounts of pending payments, through automatic debit of the bank accounts that the institution maintains at the Central Bank of Honduras (BCH) and/or in the rest of the National Financial System. Based on what is established by Article 269 of the Constitution of the Republic, the Executive Branch through the Secretariat of State in the Office of Finance (SEFIN), may authorize and allocate, in case the financial situation of this Institution permits, additional or complementary funds to address priority programs and projects of the Government.

The resources from the National Port Company (ENP) established in the first paragraph of the previous article shall be allocated to address the following: 1. TWENTY-EIGHT MILLION LEMPIRAS EXACT (L28,000,000.00) to finance the operations of the National Commission for Port Protection (CNPP), in accordance with what is provided in article 2 of Executive Decree PCM-050-2013; The CNPP must adjust its Annual Operating Plan (POA) and 2026 Budget to the amount described above and present monthly reports on physical and financial progress to the National Directorate of Merchant Marine (DNMM) pursuant to article 15 of PCM-004-2026, published in edition No. 37079 of the Official Gazette La Gaceta of February 25, 2026. The reports are essential for making disbursements. 2. TWENTY-FIVE MILLION LEMPIRAS EXACT (L25,000,000.00), to the Secretariat of Agriculture and Livestock (SAG) for the Agri-Food Chains Program executed through the following structure: Institution 140, Administrative Management 01, Executing Unit 31 PRONAGRO Directorate, Program 15 Agri-Food Development Program (PRONAGRO); 3. SEVEN MILLION LEMPIRAS EXACT (L7,000,000.00) to the Secretariat of Investments created by Decree PCM-009-2018, for the generation and development of projects through the Secretariat of State in the Office of the Presidency. 4. FORTY MILLION LEMPIRAS (L40,000,000.00) to finance the Programs or Projects established in the Government Plan Together We Will Be Well, these funds shall be registered in institution 109 Administration of Contingent Liabilities and Unforeseen Items for their subsequent transfer through Budget Modification.

All institutions of the Decentralized Administration that have transfers to the Honduran Institute for the Prevention of Alcoholism, Drug Addiction and Pharmacodependence (IHADFA) appropriated in their budgets must make such transfer effective before the end of October 2026, as well as any other transfer appropriated in their budgets. To carry out the payment management of said transfer, IHADFA must send to each institution the corresponding receipt itemizing the total amount of the transfer or the amount that has been agreed and scheduled between the parties (IHADFA and Institution). In the case of Social Security and Welfare Institutes (IHSS, INPREMA, INJUPEMP, IPM and INPREUNAH), said transfer must be financed with additional resources they receive, other than contributions and/or fees they receive from system members. All institutions of the Public Sector that currently have pending transfers from prior years to IHADFA must make payment of these with the budget of the Present Fiscal Year, making a reprogramming within it, 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), appropriated in the Transfers group (50000) through public institutions, the following rules shall be applied:

• 1)

  Forty percent (40%) the first disbursement;

• 2)

  Forty percent (40%) second disbursement; and, 3. Twenty percent (20%) third disbursement. The review of the utilization of these resources must be done by the TSC a posteriori, and no type of settlement shall be requested prior to the disbursement of the percentages in reference. In the case of social assistance in favor of third parties also appropriated in the Transfers group (50000) through public institutions, these must be approved through an internal regulation, through a ministerial agreement in the case of central administration institutions or internal resolution for decentralized administration, the same must be published in the Official Gazette La Gaceta, in the regulation, the type of assistance to be granted must be determined and specified, to whom it applies, requirements that must be met, the minimum and maximum values of the assistance according to the circumstances in which the beneficiary finds himself and the corresponding settlement mechanisms; the social assistance granted within the framework of collective agreements and statutes is exempted from compliance with this paragraph.

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

The State through the Secretariat of State 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 in equal parts to the municipalities;

• 2)

  TWENTY PERCENT (20%) by projected population in accordance with the most recent Population and Housing Census conducted or projected by the National Institute of Statistics (INE); and,

• 3)

  THIRTY PERCENT (30%) by poverty, in accordance with the proportion of poor population of each municipality, under the methodology of Unmet Basic Needs (NBI) and in accordance with the most recent Population and Housing Census conducted or projected by the National Institute of Statistics (INE). The review of the utilization of these resources shall be conducted by the TSC a posteriori, and no type of liquidation shall be requested prior to the disbursement of the percentages in reference.

Of the total amount of the Transfer established in the preceding article, the Municipalities through their Municipal Corporations 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 Directorate of Municipal Strengthening (DFM) of the Secretariat of State in the Offices of Governance, Justice and Decentralization (SGJD) through the Certification of the Minutes Point. The budgetary allocation shall be distributed as follows:

• 1)

  FORTY PERCENT (40%) under the Social and Community Strengthening Program for investments that improve the living conditions of the population through programs and projects for the comprehensive care of: Children, returned migrant persons, youth, the disabled sector, primary family and community health care, water and sanitation, electrification and improvement of housing for families in extreme poverty situations. In the case of children, investments shall be carried out in accordance with the provisions of the Comprehensive System of Guarantees of Rights of Children and Adolescents in Honduras (SIGADENAH) and the guidelines for municipal investment in children and the guidelines for municipal investment in pre-basic, basic, and third cycle education. Of what is allocated to this Program, Municipalities may invest from five percent (5%) to twenty percent (20%) to address emergencies and disasters, provided there is a declaration of emergency, five percent (5%) to address children within the framework of SIGADENAH and five percent (5%) to strengthen education.

• 2)

  FIVE PERCENT (5%) under the Program for Care of Women for programs, projects or municipal services for full access to women and their human rights, in the different stages of the cycle and spheres of their lives, under the principle of non-discrimination by age, ethnicity, socioeconomic level, origin, opinion, creed, sexual orientation or any other condition that has the purpose of or results in nullifying or undermining the recognition, enjoyment or exercise, under conditions of equality. For the execution of this amount, the Axes of the National Policy on Women must be taken into consideration: a. AXIS FOR VIOLENCE PREVENTION. Twenty percent (20%), prioritizing actions to prevent and address violence against women, with emphasis on training and capacity-building actions in gender and women's human rights, community actions, municipal action plans, campaigns and micro-campaigns to prevent violence, creation of violence prevention networks, leveraging support for shelters, among others. b. ECONOMIC 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 shared responsibility for care and freeing up time for women to exercise other rights. c. AXIS FOR SOCIAL AND POLITICAL PARTICIPATION. Ten percent (10%), considering at least initiatives to achieve women's empowerment in the social, economic and political spheres, for the full exercise of their citizenship; d. HEALTH AXIS. Twenty percent (20%), prioritizing direct attention to the comprehensive health of women in their different stages of the life cycle, with emphasis on sexual and reproductive health and non-communicable chronic diseases and the care of acute illnesses resulting from COVID-19. Access to recognition and exercise of sexual and reproductive rights; e. EDUCATION AXIS. Ten percent (10%), considering affirmative actions in Formal and Non-Formal Education for women in vulnerable conditions; f. ENVIRONMENTAL AXIS. Ten percent (10%), prioritizing at least initiatives to promote agricultural practices with measures to mitigate climate change. The Municipality may review the percentage distribution and adjust it in accordance with the municipal context, and must contemplate the mainstreaming of investment in gender equity in municipal policies, programs and projects through open town halls for women where proposals are socialized with the women's networks of the municipality, and; g. The Municipalities through their Municipal Corporations that carry out this process must inform the Secretariat of State in the Office of Women's Affairs (SEMUJER). Additionally, municipalities with the presence of indigenous peoples, people of African descent and population in vulnerable conditions must address the demands of indigenous and Afro-Honduran women in a differentiated manner.

• 3)

  TWENTY PERCENT (20%) Under the Program for Cultural Strengthening and Social Coexistence to strengthen the social fabric under an approach to prevent violence, aligned with the strategies and objectives of the National Response Plan for the Prevention of Violence against Girls, Boys and Adolescents (VACS), the National Policy for Early Childhood, Children and Adolescence (PONAPINAH) and other national frameworks; 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 for early detection of risk situations and other actions that allow addressing the particular conditions that identify proven solutions based on evidence for the reduction of violence, so that in the short and medium term there are results of impact and measurable in the municipalities;

• 4)

  TEN PERCENT (10%), Under the Program for Strengthening Administrative Development to help improve the municipal investment climate, promoting territorial competitiveness through productive infrastructure works, promoting the Micro, Small and Medium Enterprise (MIPYME) sector in rural and urban areas, for the generation of sources of employment, processes of administrative simplification of municipal procedures, cadastres implementation of programs and projects, through local economic development agendas, that are integrated with the initiatives of the central government seeking public-private coordination, support for the infrastructure of agricultural and tourist corridors and business development centers, among others;

• 5)

  TWENTY-FIVE PERCENT (25%), under the Program for Own Administration Expenses. Municipal Corporations whose annual own income does not exceed FIVE HUNDRED THOUSAND LEMPIRAS (L500,000.00), excluding transfers, may allocate for such purposes up to twenty-nine percent (29%);

• 6)

  Municipalities that enjoy the economic benefit established in Decree No. 72-86 (port municipalities), dated May 20, 1986, may avail themselves of the regime established in this article, provided they renounce before the Secretariat of State in the Office of Finance (SEFIN), the benefit established in the aforementioned Decree; Of the four percent (4%) that Port Municipalities receive, and which is all for investment, they may allocate up to fifteen percent (15%) for operating expenses. OPERATIONS WITH BONDS AND DEBT SERVICE

Bonds acquired by Public Sector Institutions including State Enterprises may be negotiated in the primary or secondary securities market, without intermediaries when they are between institutions of the same Public Sector and the transaction is carried out for the purposes of investment of their own portfolio, without ulterior purposes of speculation in the market. It is explicitly recognized that securities vary in price in accordance with market conditions, for which reason the sale or purchase price may be at par, below par or above par, fluctuating in accordance with the specific conditions on the date of negotiation.

The State Department of Finance (SEFIN) is authorized to issue Sovereign or Thematic Bonds in the international capital market, if necessary, charged against the borrowing amount authorized in this budget, and may use the debt fungibility indicated in Article 39 of this Law, under the modality of reopening or new issuance and financial conditions prevailing in the market at the time of negotiation, and may be placed at a premium, discount, or at par.

Public sector institutions in which the execution of programs, projects, or expenses eligible under the Thematic Bonds Reference Framework is identified shall report to the State Department of Finance (SEFIN) the budgetary and financial information that allows for the preparation of the placement, association, and performance report, as well as the results and impact report, including information from the Integrated Financial Administration System (SIAFI), which shall be presented to the investors of such bonds. The information shall be provided in accordance with the technical guidelines issued and requested by the State Department of Finance (SEFIN).

When it comes to external sovereign bond operations, referred to in Articles 174 and 249 of this Law, the State Department 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, national and/or international printing companies for the offer circular, one or more banks that provide the services of fiscal agent, trustee, custody agent, exchange agent, information agent, closing agent, registrar, and paying agent, legal registration entities, the securities markets that will list the operation, risk rating firms, second party opinion (SPO) issuance firms, audit firms for sustainable, green, and social bonds reports, Bloomberg financial platform and services, for a maximum term equal to the maturity of the bonds and in accordance with market practices. The contracts executed under this article shall be valid and binding once executed by the Head of the State Department 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 indicated in Article 76 of the Organic Budget Law, with its equivalent being the authorization format under the framework of the Indenture Agreement dated January 19, 2017, which will formalize the issuance and shall be executed by the Head of the State Department of Finance (Finance) and the international agent. The Office of the Attorney General of the Republic (PGR) shall issue the opinions required in the external sovereign bonds issuance process, according to the formats of said contracts. The State Department of Finance (SEFIN) is authorized to identify and allocate the necessary budgetary resources for the payment of said services.

The interest received by holders of sovereign bonds, the capital gain from sales in primary or secondary markets, as well as the payments for services rendered mentioned in the previous article, shall be exempt from all classes of taxes, fees, rates, surcharges, levies, contributions, dues, fees, or public, governmental, or municipal contribution, provided that the above is applicable only to natural or legal persons with residence abroad. Notwithstanding the foregoing, natural or legal persons residing in the country shall be subject to complying with the tax obligations, formal and material, determined by the laws in effect in Honduras.

The Secretary of State in the Office of Finance (SEFIN) is authorized to carry out the placement of available balances from the issuance of public debt securities and securities established in the Revenue Budget of the Central Administration of the Previous Fiscal Year. The resources obtained through this concept shall be allocated, when necessary, to finance government priorities contained in the budget of the current fiscal year.

Any 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 to accounts in the name of the General Treasury of the Republic (TGR) and the Secretary of State in the Office of Finance (SEFIN) without express authorization from 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 loans granted to Public Sector Institutions that have the guarantee, bond, or collateral granted based on Article 78 of the Organic Budget Law, notify the Secretary of State in the Office of Finance (SEFIN), through the Public Credit Management Division 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 cash flow programming of the Single Account; and, b) With seven (7) business days in advance, the failure to present the payment notice for debt service by the debtor institution, as well as the availability of funds in its bank accounts.

• 2)

  If funds are available in the accounts and the debtor institution has not initiated the payment process, 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 make the payment directly; and,

• 3)

  In Internal Direct Public Debt, deliver to the Secretary of State in the Office of Finance (SEFIN), through the Public Credit Management Division, copies of the documents supporting the values paid for amortizations, interest, and commissions, disaggregated according to the requirements of said Management Division, each time the operation is generated, for purposes of recording and controlling indebtedness; For each debit that the BCH makes in application of this article, it must immediately inform the General Treasury of the Republic (TGR) and the Public Credit Management Division specifying the concept and basis for proceeding with the corresponding verification.

Public Debt Service originating from agreements under the Heavily Indebted Poor Countries Initiative (HIPC), Multilateral Debt Relief Initiative (MDRI), and Paris Club 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 could be generated by this debt relief concession must be recorded in the Integrated Financial Administration System (SIAFI), and the funds thus obtained shall constitute 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 National Electric Energy Company (ENEE) is prohibited from transferring the value allocated in the following expenditure items: 21120 Electrical 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 in order to guarantee the supply of electrical energy.

Public Sector institutions are prohibited from reducing the value allocated in the expenditure subgroup 16000 referring to Benefits and Compensations and the expenditure item 27500 referring to Judicial Expenses; movements shall only be authorized to increase said allocations. However, if in the third quarter, given the estimate at the close of the fiscal year, it is identified that these allocations have available balances, they may be used to cover other needs. The State Department in the Ministry of Finance (SEFIN) shall not process requests for budget modifications to expand them when these have been reduced in accordance with the second paragraph of this article.

For the execution of the Budget of the present fiscal year, the social security institutes, National Social Security Institute for Teachers (INPREMA), Retirement and Pension Institute 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, 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 opinion must be issued by the CNBS within a period not exceeding 30 days after the request is submitted by the institutes.

The surplus and budget surpluses reflected by the Public Social Security and Social Protection Institutes may be used for financial investments in the purchase of securities, letters of credit from the General Treasury of the Republic (TGR) and Central Bank of Honduras (BCH), fixed-term deposits, purchase of shares and any other instrument classified in the Regulation of Investments of Public Pension Funds, as well as the limits established by instrument in the same Regulation contained in Act 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 Social Protection Institutes must submit in physical and digital (editable) form to the General Directorate of Decentralized Institutions (DGID) and to the General Directorate of Macro Fiscal Policy (DGPMF) of the State Secretariat in the Ministry of Finance (SEFIN), no later than ten (10) business days after the end of each month, the details of the financial investments they maintain in the National Financial System.

Without prejudice to the provisions 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 Regulation of these provisions must determine which other officials are recognized for the payment of cellular telephone service, as well as the authorized maximum monthly limits. When the official responsible for the use of the Cellular Service exceeds the authorized consumption, the administration of each institution shall notify the official responsible for the use of the service, who must make the corresponding payment for the excess and present their respective proof. Payments for cellular telephone services with external sources are prohibited.

To maintain stability in urban transportation fares (buses), in favor of users, an allocation of up to FOUR HUNDRED MILLION LEMPIRAS EXACTLY (L400,000,000.00) is approved as a Subsidy. The State Secretariat of the Finance Office is authorized to allocate this amount in the current fiscal year in the budget of the Honduran Land Transportation Institute (IHTT) and to carry out the necessary financial and budgetary operations. CHAPTER V MODIFICATIONS GENERAL MODIFICATIONS

For the purpose of preventing overdrafts in approved budget allocations, public institutions must make the necessary budget modifications prior to the execution of expenses. In accordance with what is established in article 22, paragraph 1) of the Fiscal Responsibility Law, contained in Decree No. 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, shall not be registered in the Integrated Financial Administration System (SIAFI) nor recognized as public debt. The State Secretariat of the Finance Office (SEFIN) through the General Budget Office (DGP) shall not process any request for budget modification after the Institution has made expenditures that must be charged to the budget objects subject to approval, for which reason the State Secretariat of the Finance Office (SEFIN) shall refrain from issuing an opinion in this regard and shall refer the case to the Superior Court of Accounts (TSC) as established in Article 4 of this Law, and articles 34 and 123 of the Organic Budget Law.

In accordance with the powers contained in article 17 of the Organic Budget Law and 24 of the Technical Standards of the Budget Subsystem, the budget modifications that are managed and authorized by the State Secretariat of the Finance Office shall be registered under the budgetary structure of the Administration of Contingent Liabilities and Unforeseen Expenses (109). Likewise, Budget Modifications shall be processed in all cases through the FMP-05 "Budget Modification Document" generated by the Integrated Financial Administration System (SIAFI), which shall have the same effect as an Internal Resolution or an Opinion issued by the State Secretariat of the Finance Office (SEFIN). An Internal Resolution shall be prepared through the General Budget Office (DGP), only for budget modifications of salaries in the SPNF, modifications of position structures in the Central Administration, Incorporation of National Treasury resources (Source 11) in the Central Administration, and operations related to the Administration of Contingent Liabilities and Unforeseen Expenses (109). Every budget modification request document submitted by public institutions must officially enter the State Secretariat of the Finance Office (SEFIN) in electronic and physical form, directed 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 be followed.

Whenever the Budget Modification affects the Annual Operating Plan, the information from the Integrated Financial Administration System (SIAFI); the Monthly Expenditure Programming (PGM), the Quarterly Expenditure Quota (CGT) or the Annual Procurement and Contracting Plan (PACC), the document or documents must be readjusted.

The Ministry of Finance (SEFIN) is authorized to carry out the necessary budgetary operations in the General Budget of Income and Expenses of the Republic 2026, with the purpose of addressing modifications linked to:

• 1)

  Priorities of the Government of the Republic.

• 2)

  To carry out budget transfers, from capital expenditure to current expenditure in the public sector, with the exception of institution 1.

• 3)

  In the case of budgetary transfers to address emergencies due to natural and non-natural disasters, the Ministry of Finance (SEFIN) is authorized to manage, redirect and allocate the budgetary resources identified in the General Budget of Income and Expenses of the Republic 2026, with the purpose of allocating said resources to public sector institutions that carry out management related to the 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 linked to addressing emergencies decreed by the President of the Republic in Cabinet; likewise, within this framework it may carry out operations with external credit resources and non-reimbursable support, and must carry out the necessary budgetary operations to address the declared emergencies, these funds must be executed in accordance with applicable current laws or what is established in international agreements. With the purpose of identifying and making visible the budget of the actions to be carried out in the cases described above, the institutions that will execute said resources must create a programmatic category at the level of activity or work 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 regarding budget modifications, said structures shall be named as follows as appropriate: a) When it comes to natural catastrophes, the activity or work shall be named: Management for addressing emergencies due to natural disasters; and, b) In case it is for various non-natural emergencies, the activity or work shall be named: Management for addressing various non-natural emergencies.

With the purpose of implementing the Executive Agreements authorized by the President of the Republic based on what is established in Article 37 numeral 2 of the Organic Budget Law, the Ministry of Finance (SEFIN) is authorized to carry out the corresponding budgetary operations.

In order to guarantee and optimize the resources allocated to the State Secretary's Office of Health for transfers to local governments for payment of decentralized health service managers, it is authorized to make budgetary modifications from one transfer beneficiary to another, solely and exclusively at the first level of care (departmental regions). SESAL together with AMHON shall review the management model for purposes of harmonizing it with the National Decentralization Law (DL No. 85-2016), its plan and agenda, as well as adapting it to the requirements of primary care coverage at the municipal level. Transfers to local governments for payment of managers may be reduced in cases where the provision of services is terminated or the agreement is revoked, in order to transfer resources to expenditure items of any nature and Executive Units that correspond to the State Secretary's Office of Health (SESAL).

Public Institutes of Social Security and Welfare, 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 Banking and Insurance Commission (CNBS), following submission of the request along 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, except in those cases where the Law of the Public Institute of Social Security establishes a different methodology for its granting and the Institution must have budgetary and financial capacity, supported by the actuarial technical study.

All State Secretaries' Offices, Deconcentrated and Decentralized Institutions, must register in the Integrated Financial Administration System (SIAFI) the readjustments to their Annual Operating Plan (POA) after approval by the National Congress of the General Budget of Income and Expenses of the Republic and once the SIAFI system is enabled; such readjustments must be completed within a maximum period of ten (10) business days. The Annual Plan of Purchases and Contracting (PACC) must be adjusted as a prerequisite for the allocation of external resources and national counterpart; such readjustments to the PACC must have prior authorization from the Normative Office of Contracting and Acquisitions of the State (ONCAE), as the governing body in matters of state purchases and contracting.

Any modification made to the Programmatic Structures in the Secretariats of State, Decentralized and Deconcentrated Institutions must be submitted with proper justification for review and validation of the production linked to the new programmatic categories as a prerequisite to authorization by the Secretariat of State in the Ministry of Finance (SEFIN). The Secretariat of State in the Ministry of Finance (SEFIN) may recommend adjustments to existing Programmatic Structures for better planning. Excepted from the above are new programmatic structures that by their nature do not contemplate production. MODIFICATIONS OF PROGRAMS AND PROJECTS

Modifications between investment categories and components, as well as extensions of project execution closure periods and disbursement periods, regardless of their financing source, must previously have the Technical Opinion of the General Directorate of Public Investments (DGIP) of the Secretariat of State in the Ministry of Finance (SEFIN).

Extensions of disbursement periods, execution and project closure, regardless of the financing source, must have the Technical Opinion of the General Directorate of Public Investments of the Secretariat of State in the Ministry of Finance (SEFIN), which must be issued within a period of up to 10 business days, provided that it complies with the established requirements. For projects with external financing, the General Directorate of Public Credit will manage with international organizations, within the framework of the executed agreement, the period 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 Secretariat of State in the Ministry of Finance (SEFIN) through its highest authority shall notify directly to the Executing Institution, the applicability or non-applicability of the request for period extension through official letter, attaching the Technical Opinion issued by the General Directorate of Public Investments (DGIP). Prior to the issuance of said Opinion, regardless of the financing source, 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, (Timeline: Maximum, Medium and Minimum) and Scenario without project extension;

• 2)

  Report of accumulated physical and financial execution of the project;

• 3)

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

• 4)

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

• 5)

  Have seventy-five percent (75%) of the committed resources (regardless of the Financing Source) according to contract(s) executed and signed by the highest authority of the institution, of the total project amount (in accordance with the amount established in the Priority Note and/or Amendments); for these purposes, committed resources shall be understood as contracts executed and signed by the highest authority of the institution. Actions undertaken by the Executing Units to advance in all stages of the acquisition process may be considered as part of the commitment; considering from the initial publication of the processes in the relevant media subject to award and contract signature. In the case of projects that have undergone changes in Executing Institution in the current year, regardless of their financing source, the compliance with the requirement stated in the previous paragraph may be excepted, based on an analysis that considers, among other aspects, the percentage of accumulated execution, the causes of delays in the project execution schedule and the prioritization of the strategic axis to which the financing and the project are linked, in order to determine the justification of the period extension or the proposal to cancel uncommitted resources.

• 6)

  Reasoned justification of the request for period extension. The request for period extension must be submitted to the Secretariat of State in the Ministry of Finance (SEFIN), two (2) months in advance of the final deadline for the last project disbursement.

Without prejudice to the provisions established in Article 197 of this Law, the Ministry of State in the Office of Finance (SEFIN) is authorized to request, during the present Fiscal Year, an extension of the deadline from financial organizations for the financial closure of programs and projects financed with external funds, whose closure deadline has expired, and must previously have a request from the Executing Unit. Within the closure operations, the Executing Units must carry out pending payments, reconciliation of financial and accounting records, preparation and presentation of final closure and external audit reports, return of balances in special accounts, operating accounts and/or non-eligible expenses when required by the organism, among others, in order to ensure that the financial closure process is completed by the Executing Unit and the contractual conditions of the financing are met.

Modifications between investment categories and components, regardless of the source of financing, must previously have the Technical Opinion of the General Directorate of Public Investments (DGIP), which will be sent to the executing unit of the project. For projects with external financing, the General Directorate of Public Credit will manage before international organisms the non-objection of the change between Investment Categories and Components within the framework of the agreement signed, 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 availabilities of the project by investment category/component;

• 3)

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

• 4)

  Detailed justification of the request for a Technical Opinion between Investment Category, both of the decreases and increases and their impact on the beneficiary population of the projects. In case of requiring deadline modifications and changes between investment categories for the same project(s), they may be carried out in a single request.

In accordance with the Fiscal Responsibility Law, and for the purpose of expediting the incorporation of external resources from Donations, Non-reimbursable Budget Support and 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 will 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) "Budget Modification Document" generated by the Integrated Financial Administration System (SIAFI) which will have the same effect as an Internal Resolution.

Modifications to the position structure under the Civil Service Regime and Special Laws of the institutions of the Central Administration and Decentralized institutions must be evaluated by the body responsible for human resources administration under the civil service regime and authorized through an Internal Resolution of the Ministry of Finance (SEFIN) following the opinion of the General Budget Office (DGP). These modifications must be financed with the budget approved for each Institution. This provision is excepted only for evaluated modifications that do not present additional financial impact and that maintain the same group and level of the position, and must submit to the Ministry of Finance (SEFIN), through the General Budget Office (DGP), a copy of the Technical Opinion issued and the Detailed Annex of Basic Salaries and Wages of the institution duly updated based on Article 69 of this Law.

All modifications to the position structure made by institutions under the Civil Service regime, regardless of whether or not they present financial impact, must be mandatorily recorded in the Integrated Human Resources Administration System (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 beginning execution.

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

The reassignment of functions and renaming of positions is an administrative management action of each Decentralized institution, therefore it is the exclusive responsibility of the institutional authority to carry out these actions, which must previously have the authorization of the highest decision-making body, ensuring that functions are not duplicated in key positions. The reassignments of functions and renamings must not imply changes in the amount of the position. The Decentralized Institutions that carry out the administrative actions described above must make the adjustments in the Registry and Control System of Public Employees (SIREP), taking into account the current legal regulations. In the case of modifications to the position structure in institutions of the Financial Public Sector, they must be authorized by their Superior Bodies based on Special Laws and must update the Itemized Annex of Basic Salaries and Wages.

The modifications to the position structures in Public Sector institutions that are authorized must be updated in the Itemized Annex of Basic Salaries and Wages or its equivalent. If any modification to the position structure is in process related to current positions or to be created, as long as the process has not been completed and the change has not been applied in the Itemized Annex of Basic Salaries and Wages, the positions cannot be filled, therefore the effectiveness of the appointment will occur on a date following the completion of the process. Once the resolution authorizing the modification to the position structure is issued, if the administrative act is not concluded in the same year in which the Resolution is issued, the processing of the personnel action may continue in the opening of the following fiscal year, using the Resolution issued by the Secretariat of State in the Office of Finance (SEFIN) in the previous fiscal year. If, in the new fiscal year, there is no financing in the corresponding budgetary structures, the Institution must review within its budget and identify the structures that will finance the modification, therefore it must request from the Secretariat of State in the Office of Finance (SEFIN) the authorization of transfers to cover the budgetary impact in accordance with the previously issued Resolution. The violation of this article will be sanctioned in accordance with the provisions of Article 4 of this Law.

During the last quarter of the year, requests for modification of position structure, including salaries in the different Public Institutions will not be received or authorized to be effective within said quarter, due to the formulation, presentation and approval of the Draft General Budget of Income and Expenses of the Republic for the following Fiscal Year. Excepted from this provision are the procedures that were initiated in the previous quarters and that in the last quarter are still pending resolution and in which the effectiveness of the modifications to the position structure must be at the latest September 30, 2026.

With the purpose of strengthening public management and optimizing the use of financial and planning information, the State Secretariat in the Office of Finance (SEFIN), the Management by Results Bureau (DIGER) and other involved institutions are instructed to, in a coordinated manner, develop and initiate the implementation process of a technological development proposal that allows the creation of a comprehensive interoperability interface between the systems available for the evaluation of Public Management, ensuring that physical and financial planning is recorded, processed and consolidated in a unified manner. Likewise, the Management by Results Bureau (DIGER) is instructed to, within the scope of its competencies and in coordination with the corresponding bodies, develop and promote the necessary initiatives to begin the process of creation and strengthening of Digital Government, aimed at the formulation and implementation of programs, projects and technological platforms of the public sector in areas such as connectivity, digital economy, open data, digital talent development, cybersecurity, modernization of procedures and digital public services, systems interoperability and adoption of emerging technologies, in accordance with the priorities, guidelines and allocations established by the Presidency of the Republic.

The Management by Results Bureau (DIGER), as a Deconcentrated Entity of the Presidency of the Republic, shall carry out the monitoring and evaluation process of public management to ensure effectiveness in the formulation and execution of policies, regulations, projects and other results-based management instruments, in accordance with the public value chain, which shall measure the degree of progress of governmental management against the goals established at institutional, sectoral and presidential levels. This Institution shall issue the corresponding instruments to provide the necessary guidelines to institutions in matters of Results-Based Management and Digital Government implementation. The progress of governmental management and Digital Government projects against the goals established at institutional, sectoral and presidential levels shall be recorded in the Public Management by Results and Transparency System, in accordance with the guidelines established by DIGER, and results shall be published annually, through its public version, on the website of the Presidency of the Republic and the Portal designated by DIGER with prior approval by the Presidency of the Republic in Council of State Secretaries. Furthermore, DIGER, in accordance with Executive Decree PCM-004-2026 published in the Official Gazette "La Gaceta" on February 25, 2026, is the entity responsible for governing, executing, supervising, coordinating and managing the framework of plans, policies, programs and projects in digital matters of the public sector for the development and strengthening of Digital Government.

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 Budget, Treasury, Accounting, Public Credit and Public Investment Subsystems, approved by the State Secretariat in the Office of Finance (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, within the first five (5) business days after the end of the month. The institutions of the Central Government, Deconcentrated and Decentralized, must submit to the State Secretariat in the Office of Finance (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, the institutions must take into consideration the information contained in the National Public Investment System of Honduras (SNIPH); Human Resources Management System (SIARH); Public Employees Registry System (SIREP); Teaching Administration System (SAD); and, Debt Management and Administration System (SIGADE), for the performance of their self-evaluation. The State Secretariat in the Office of Finance (SEFIN) shall submit to the President of the National Congress and the legislative blocs through the General Secretariat 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 Court of Accounts (TSC), the Institute for Access to Public Information (IAIP) and the Management by Results Bureau (DIGER). The State Secretariat in the Office of Finance (SEFIN) shall also publish the reports on its WEB Portal, WWW.sefin.gob.hn.

The National Congress through the Ordinary Legislative Budget Commission, together with the representations of the legislative caucuses, shall analyze the reports submitted by the State Department in the Office of Finance (SEFIN) and when required, shall hold Public Hearings with the institutions of the Central Government, Decentralized and Deconcentrated Government, in order to exercise a controlling, financial and operational function.

The Commission may request technical support from the State Department in the Office of the Presidency (SDP), the State Department in the Office of Finance (SEFIN) and the Superior Court of Accounts (TSC). Civil Society Organizations that have conducted oversight processes and social audits or monitoring may participate in Public Hearings to present their findings. The Ordinary Legislative Budget Commission in coordination with the Legislative Commission on Gender Equality and the State Department in the Office of Women's Affairs shall conduct a semi-annual monitoring of the execution of expenses regarding gender equality, through specific public hearings. For this purpose, 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 Gender Equality Commission and the Budget Commission of the National Congress shall coordinate this process with the State Department in the Office of Women's Affairs and representatives of Women's Organizations of Civil Society and at least one representative of the Municipal Boards that are constituted, who shall be mandatorily invited by the National Congress to the public hearings for the review of budget execution. The State Department in the Office of Women's Affairs shall define the format and criteria for the presentation 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 as long as necessary for their development.

The Executing Units of programs and projects financed with external funds must conduct periodic and closing audits according to the financing agreements executed, and must present to the General Directorate of

Public Credit and to the General Directorate of Public Investments of the State Department in the Office of Finance (SEFIN), the results of the audits performed on their financial statements no later than fifteen (15) days after the date of receipt thereof, with the purpose of supervising the proper utilization of resources from external credit. The Executing Unit of external funds is responsible for the execution, supervision and achievement of the objectives and goals with the resources and costs provided; it constitutes the area of a department or entity, with powers to acquire, contract and meet commitments. This organic and functional figure is established for purposes of budget execution. In its broadest sense, it represents the entity responsible for the administration and execution of programs, subprograms and projects.

The Institutions executing public investment projects must present quarterly to the General Directorate of Public Investments (DGIP) a progress monitoring report, for each project, regardless of its source of financing, in compliance with the provisions of article 61 of the Organic Budget Law. This report must be submitted within the first fifteen (15) days of the month following the end of the quarter to be reported in the format provided by the State Department in the Office of Finance (SEFIN) through the General Directorate of Public Investments, and shall contain:

• 1)

  Financial and budgetary execution over the life of the project;

• 2)

  Financial and budgetary execution for the quarter to be reported;

• 3)

  Accumulated physical progress;

• 4)

  Physical progress for the quarter;

• 5)

  Monthly budgetary programming;

• 6)

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

• 7)

  Problems affecting program execution and their respective follow-up actions, attaching the Project Risk Management Plan; and,

• 8)

  Any other relevant information that may be requested.

To effectively monitor and track the salaries and wages of employees and officials of the Institutions of Decentralized Administration and Deconcentrated Entities, the superior authority must send to the General Budget Directorate (DGP) and to the General Directorate of Decentralized Institutions of the State Department of Finance (SEFIN), the complete human resources payroll, containing the description of permanent, trust, temporary (contract) and daily wage personnel, within ten (10) days following the end of each month.

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

Gender Budgeting is an affirmative action tool in the allocation of resources intended to implement actions to close the discrimination gap between men and women, ensuring that funds are used equitably from a gender perspective, for which public sector agencies and entities must incorporate the gender approach based on the following:

• 1)

  In its Institutional Strategic Plan (PEI) at the level of objectives and results, the commitment to reduce gaps and inequality previously identified in the institutional diagnosis;

• 2)

  In the Annual Operating Plan (POA) Budget, at the level of final and intermediate products and all those actions to reduce gender gaps and address causes of substantive inequality between women and men;

• 3)

  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;

• 4)

  Design, define and apply gender indicators prioritized in the National Policy for Women;

• 5)

  Label the budgetary structures that identify the resources allocated to actions with a gender approach, in accordance with SEFIN guidelines. The foregoing as a mandatory technical-normative mechanism for all public institutions, which allows identifying, classifying and monitoring budget allocations aimed at promoting equality and gender justice, without modifying the general structure of the institutional budget, ensuring the visibility, quantification and traceability of public investment aimed at this purpose. This mechanism is integrated into the existing budgetary process and is applied through the labeling of programs, projects and actions with a positive impact on reducing gender inequalities. The Secretariat of Women's Affairs will lead the implementation and monitoring of Gender Marking, in coordination with the Finance Secretariat (SEFIN).

Public institutions participating in the Ciudad Mujer Program must provide monthly budget 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 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 institutions participating in 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, it shall send the non-compliance report to the Superior Court of Accounts (TSC). For its part, the Program Directorate is empowered to request and conduct proceedings before the respective institutions.

Quarterly, the Administrative Management offices or their equivalent in Public Sector Institutions must simultaneously send to the National Electrical Energy Company (ENEE), Honduran Telecommunications Company (HONDUTEL), National Autonomous Service of Aqueducts and Sewers (SANAA) or failing that the Municipal Water and Sanitation Unit (UMAPS), Honduran Postal Company (HONDUCOR) and to the General Directorate of Decentralized Institutions of the Secretariat of State in the Office of Finance (SEFIN), sufficient evidence (F01 and other supporting documentation) of the budget and financial execution of budget allocations intended for public services provided by the aforementioned companies. In case of non-compliance with said obligations by public institutions, and at the request of the service provider, the Secretariat of State in the Office of Finance (SEFIN) must retain the commitment quotas as of the date of the request from those institutions that owe the service providers, until the corresponding obligations are fulfilled. It shall be mandatory for public institutions to request from the public service provider companies the suspension of said services in private buildings (where they were renting) once said institutions have vacated the properties. This measure seeks to avoid unnecessary expenses and incorrect billing records in public service provider companies; the management of suspension is the responsibility of Administrative Managers in central administration institutions and their equivalent in the rest of the public sector. The Internal Audit of each Institution must ensure compliance with this provision and communicate to the superior authority and to the Superior Court of Accounts (TSC), so that they may adopt corrective measures. In case of omitting their duty, the internal audit shall be considered jointly and severally responsible in accordance with what is established in Article 119 of the Organic Budget Law.

In order to comply with the provisions of the Fiscal Responsibility Law, contained in Legislative Decree No. 25-2016 of April 7, 2016, published in the Official Gazette "La Gaceta" dated May 4, 2016, and Agreement No. 288 which contains the Regulations of that same Law, all State institutions must submit quarterly, within the first fifteen (15) days of the month following the end of the quarter, the Judicial Process Identification Matrix 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 number of judicial lawsuits in process and lawsuits with final judgment. The presentation of the Judicial Process Identification Matrix 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 Ministry of Finance (SEFIN), shall establish communication channels with all institutions in the public sector for the request of necessary information, while also defining the technical criteria that allow for the construction of a standardized historical database for the estimation and quantification of contingent liabilities from judicial lawsuits in accordance with the fiscal risk valuation methodology. Institutions that fail to comply 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 Gazette La Gaceta dated May 4, 2016, all institutions of the Decentralized Sector must send to the General Directorate of Macro Fiscal Policy (DGPMF) of the Ministry of Finance (SEFIN), within the first ten (10) days after the end of each month, the monthly report on their budgetary execution and balance of accounts in the format of the Unified Chart of Accounts of the General Accounting Office of the Republic. CHAPTER VII BUDGETARY LIQUIDATION

All Institutions of the Public Administration and Constitutional Bodies must send to the Ministry 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, 2025, 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 Expenditure Programming) of each institution that fails to comply with what is established in the first paragraph of this article and to proceed based on what is established in Article 4 of this Law.

In order to comply with the annual settlement of the General Budget of Income and Expenses of the Republic, the State Secretary in the Office of Finance (SEFIN) is authorized to use, through the "Budget Modification Form", the available balances in the institutions of the Central Administration from budget allocations of various kinds that remain at the end of the Fiscal Year, in order to make the budget increases or creations that may be necessary, provided that these do not imply payment operations. The available balances of the budget allocations referred to in the first paragraph of this article must be used at the end of the month of December, so as not to hinder the achievement of the objectives and goals established in the Annual Programming and Operational Plan (POA).

The Municipalities must submit to the General Accounting Office of the Republic, no later than January 29, 2027, their Financial Statements, annexes to the Financial Statements and Budget Settlement for their consolidation, in accordance with the current Accounting Closing Standards issued by the Accounting Office. CHAPTER VIII MUNICIPALITIES COMPLEMENTARY STANDARDS

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

• 1)

  Fire Department. One hundred percent (100%) of the amounts owed by the municipalities that collect the Fire Service fee in the Municipalities where this service exists, provided that the fire department has exhausted the conciliation process to enter into payment plans between both institutions, creating the respective agreement in which it must be established as mandatory by both parties, within a period that shall not exceed two (2) months counted from the first day of delay in payment of the amounts owed. After the agreement is executed, the failure to pay one of the installments shall give rise to the application of the withholding of the total amount owed from the following municipal transfer, with balances reconciled by both institutions;

• 2)

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

• 3)

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

• 4)

  Transfer of one percent (1%) that is deducted in turn from the transfer to the Municipalities in accordance with article 91 of the Law of Municipalities, contained in Decree No. 134-90 of October 29, 1990. The Municipalities benefited by Decree No. 72-86 dated May 20, 1986 (4% or 8% of Port Municipalities), must equally contribute one percent (1%) of their annual transfers, for 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 Secretary in the Office of Finance (SEFIN) and using the automatic expansion procedure in the Integrated Financial Administration System (SIAFI), as disbursements are made to the municipalities; 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 from the State Secretary in the Offices of Infrastructure and Transport (SIT). The withholding shall be carried out after notifying the municipalities that fail to pay the municipal counterpart, agreements and contracts entered into with the State. The State Secretary in the Offices of Governance, Justice and Decentralization (SGJD) is ordered to deduct the amounts owed by the municipalities to the National Electrical Energy Company (ENEE), National Aqueducts and Sewerage Service (SANAA), the Municipal Water Supply and Sanitation Unit (UMAPS), Honduran Telecommunications Company (HONDUTEL), from the budget transferred to it, unless they have entered into a payment agreement, which shall not exceed the current fiscal year. For compliance with the foregoing paragraph, all the aforementioned public companies must notify the State Secretary in the Offices of Governance, Justice and Decentralization (SGJD) of the amounts that the Municipalities owe. Such amounts must be reconciled between the company and the municipality before proceeding with the deduction requested by the service-providing company. The deductions referred to in this article shall be made by the State Secretary in the Offices of Governance, Justice and Decentralization (SGJD) in the respective F01s.

The Superior Court of Accounts (TSC) is ordered to proceed with conducting audits corresponding to all municipalities that do not receive municipal transfers as a result of not having supporting documentation to conduct budget liquidations, account rendering, and other requirements. In the audit process, the Secretariat of State in the Offices of Governance, Justice and Decentralization (SGJD) will receive reports of budget liquidations, account rendering, and other requirements corresponding to the current Government period of the Municipalities, and since due to reasons inherent to previous administrations they have been unable to present them due to lack of supporting documentation, this Secretariat shall generate the F01 (Document of Expenditure Execution in SIAFI) so that the Secretariat of State in the Office of Finance (SEFIN) transfers the corresponding resources in accordance with the Law.

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

In duly justified cases, the Secretariat of State in the Office of Finance (SEFIN) based on the registry that annually the municipalities will maintain of all garnishments in process through the General Treasury of the Republic (TGR) in the present Fiscal Year, shall notify the Secretariat of State in the Offices of Governance, Justice and Decentralization (SGJD), the value of the withholding that must be applied to the transfers of Municipalities that have garnishments against the CUT and applied by the courts and tribunals of the Republic, for a value equal to or greater than its annual 2026 transfer, shall only deduct thirty percent (30%) of the monthly transfer received by the garnished municipality without affecting the one percent (1%) corresponding to the Municipal Transparency Fund, and the one percent (1%) corresponding to the Association of Municipalities of Honduras (AMHON); this mechanism shall be applied monthly until the total payment of the garnishment is completed regardless of whether it extends beyond the Fiscal Year, with the purpose of not affecting the basic needs of its population.

In compliance with the Fiscal Responsibility Law, contained in Legislative Decree No. 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 Secretariat in the Office of Finance (SEFIN), through the General Directorate of Decentralized Institutions (DGID), thirty (30) days after the end of the quarter and in digital form the following: 1) The list of personnel that was requested through Circular DGID-01-2025 of March 5, 2025, which contains information about the human resources of the municipalities; and, 2) The Annual Investment Plan (PAI), 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 the Municipalities, following the methodology used for the Financial Account of the Non-Financial Public Sector (SPNF). Likewise, Municipalities that have implemented the Integrated Municipal Administration System (SAMI) with the support of the State Secretariat in the Office of Finance (SEFIN), must report budget execution figures.

The State Secretariat in the Offices of Governance, Justice and Decentralization (SGJD), shall transfer by monthly allocations to Municipal Corporations, through the Central Bank of Honduras (BCH), the amounts for Capital contributions according to what is indicated in the General Budget of Income and Expenses for the current Fiscal Year; as well as that corresponding to Port municipalities, prior to the accreditation of administrative documents and accountability reports in physical and electronic form in Approved status, before the State Secretariat in the Offices of Governance, Justice and Decentralization (SGJD), in the following manner: Municipalities assigned to the Integrated Municipal Administration System (SAMI) through this system and the rest of the municipalities through the Local Government Accountability Reporting Subsystem (RENDICIONGL). They must also present, prior to requesting the transfer, the following original documents:

• 1)

  Municipalities that are in the process of developing or updating the Municipal Development Plan for Results-Based Management with a territorial planning approach, the progress certificate, issued semi-annually by the General Directorate of Planning and Local Governance (DGPGL) of the State Secretariat in the Offices of Governance, Justice and Decentralization (SGJD), which shall be reviewed in accordance with the schedule of activities that each municipality will present for the development of this;

• 2)

  Municipalities that, on their own initiative, in a professional and technical manner, have developed their Municipal Development Plans for Results-Based Management with a territorial planning approach, duly approved by the Full Corporation and the respective open town meeting, shall be issued certification thereof, in accordance with the established procedure;

• 3)

  Tax Revenue Plan for the current fiscal year, with its respective Certification of Approved Minutes approved by the Municipal Corporation; and,

• 4)

  Cumulative Quarterly Accountability Report in its fourteen (14) forms, electronic and physical for the first, second and third quarters no later than thirty (30) days after the end of each quarter; and the fourth quarter as the maximum date of January 31, 2027. Likewise, present payroll lists of municipal employees, with their respective full names, identification numbers, salaries and wages and dates of employment, the failure to comply with this provision shall subject the municipality to the corresponding sanctions in accordance with the law. The amounts received by Municipalities in the form of 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. Municipal transfers shall not be conditioned to requirements other than those expressly indicated in this Decree and the Law.

All administrative financial documents referred to in the previous article must be presented to the Municipal Strengthening Directorate (DFM) of the State Secretariat in the Offices of Governance, Justice and Decentralization (SGJD), in electronic and physical versions in original documents, attaching the certification of the minutes of approval of the Municipal Corporation. The delivery date shall be the one that appears on the receipt stamp of the DFM. The National Commission of Banks and Insurance (CNBS) must send thirty (30) days after the end of the quarter, in digital form, to the State Secretariat in the Offices of Governance, Justice and Decentralization (SGJD) and to the State Secretariat in the Office of Finance (SEFIN), detailed records of the loans that municipalities have with banking and credit entities in the country, in order to verify the thirty percent (30%) authorized by article 226 of this law, to commit transfer funds to bank loan payments. The National Commission of Banks and Insurance (CNBS) shall send the information on the record of municipal loans at the end of each month or at the request of the State Secretariat in the Offices of Governance, Justice and Decentralization and/or State Secretariat in the Office of Finance (SEFIN).

Any debit that the Central Bank of Honduras (BCH) makes to the accounts of the General Treasury of the Republic (TGR), for payments in accordance with the provisions of article 224 of this Law, shall be applied to the transfers recorded in the present General Budget of Income and Expenses of the Republic.

For purposes of controlling the contingent liability derived from the borrowing obligations acquired by the Municipalities, these shall present to the Secretariat of State 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 entered into with national banks and international organizations, issuance of securities, disbursements and debt service payments, which shall be sent via electronic mail (dgcp@sefin.gob.hn) or other means, no later than thirty (30) days after the operation. Likewise, they shall send the budgetary and accounting information required by the General Directorate of Budget (DGP), General Directorate of Decentralized Institutions (DGID), the General Accounting Office of the Republic (CGR) or the Fiscal Contingencies Unit (UCF) belonging to the Secretariat of State in the Ministry of Finance (SEFIN) via electronic mail UCF@sefin.gob.hn.

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, the Municipalities that have implemented the Integrated Municipal Administration System (SAMI) with the support of the Secretariat of State in the Ministry of Finance (SEFIN), must report figures on budgetary execution.

For the present Fiscal Year, Decree No. 368-2005 is ordered to be held in abeyance, regarding additional monetary transfers in favor of the Municipalities of the Central District and San Pedro Sula. CHAPTER IX TRUSTS

The Trusts established in the present fiscal year by Public Sector Institutions must be reflected in the General Budget of Income and Expenditures of the Republic and the operations derived from these Contracts must be registered in the Integrated Financial Administration System (SIAFI) by each Executing Institution, complying with the Trust Registration procedure approved by the State Department of the Ministry of Finance (SEFIN); SEFIN shall carry out the incorporation of the resources from the various Trusts into the General Budget of Income and Expenditures of the Republic for the present Fiscal Year. The foregoing does not limit the financial flow in the operation of trusts already defined in the contracts executed by the settlor and trustee. The administration of these trusts shall be based on what is established in the Commercial Code and the Technical Standard for the Operation of Public Trusts of the General Directorate of Trusts (DGF). Likewise, from the funds allocated through Trust, up to a maximum of ten percent (10%) of the budget may be used for operational expenses, administrative expenses, accountability, oversight, citizen participation, maximum disclosure and publicity in acts and contracts that by their nature are of public interest for the development of the country, among others that may be necessary.

The Trusts established by Public Sector Institutions with Banking Institutions shall not be able to acquire financial obligations of any nature or other commitments that generate direct or contingent liabilities to the trust funds. Likewise, the trustee must manage the resources exclusively on the basis of equity contributions, transfers, legacies, donations and other income provided for in the Trust Contracts, and any operation implying indebtedness to the patrimony of the trust resources is expressly prohibited.

Tax benefits are granted for fiscal session to trusts contracted, administration contracts and investment funds whose resources come from national sources intended to support the country's economic development, administered by the Honduran Bank for Housing Production (BANHPROVI) as of the 2021 fiscal period, in its capacity as Trustee or Administrator, in compliance with the liquidation mandates contained in Legislative Decrees No. 66-2022 and No. 157-2022; as well as Executive Decree PCM-09-2022. The benefit applies to all types of fines, surcharges and interest calculated on Income Tax and Solidarity Contribution Tax for the periods 2021 to 2025 of said Trusts, Administration Contracts or investment funds administered by the Honduran Bank for Housing Production (BANHPROVI), in its capacity as Trustee and Administrator; as well as any other and those calculated by other processes related to their liquidation or definitive cessation of obligations. During the validity of this Decree, the Honduran Bank for Housing Production (BANHPROVI) may present without administrative penalty for late compliance of the obligation, declarations, formal notifications of any kind, tax statements and notification of cessation of activities and tax obligations. This amnesty shall be valid for ninety (90) business days, from the date of its publication in the Official Gazette "La Gaceta". CHAPTER X MISCELLANEOUS PROVISIONS

Public sector institutions are prohibited from entering into agreements or making transfers to multilateral and international organizations specialized in project management or international technical and administrative cooperation entities without prior opinion from the General Directorate of Budget of the State Department of Finance (SEFIN). In the event that such agreements or transfers are entered into without meeting this requirement, they shall be considered null and shall generate civil, administrative and criminal liability for those who have authorized or executed them. The foregoing is excepted in the case of the National Congress, which may carry out the process for purchasing the technological system, including its components, licenses and necessary devices in the Legislative Chamber, in accordance with Article 103 of this Law.

In compliance with the provisions established by articles 4, 5 and 47 numeral 5 of the Budget Organic Law, the Powers of the State, Constitutional Bodies and all institutions of the Central Government, State Secretariats, Deconcentrated Entities, Decentralized Institutions and Public Companies, must detail the structures of their budget and Operational Plan to be executed with the resources allocated in this fiscal year and operate in the Integrated Financial Administration System (SIAFI).

The Decentralized Public Sector Institutions that are not operating in SIAFI shall coordinate with the General Directorate of Decentralized Institutions (DGID) the actions for system implementation, monitoring compliance with 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; being required to record equity balances and 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 accompanied by process review by the General Directorate of Information Technologies (DGTI) of the State Secretary in the Office of Finance (SEFIN). Non-compliance with System implementation entails the measure of not transferring resources from the National Treasury source and/or the restriction of budgetary modifications. The State Secretary in the Office of Finance (SEFIN) is ordered to coordinate through the General Directorate of Decentralized Institutions (DGID) the training process for municipalities according to their requirements, regarding the operability and modules of the Integrated Municipal Administration System (SAMI), to carry out said process, the DGID shall coordinate with the governing bodies of the different subsystems and the DGTI.

All Public Sector Institutions that finance their budget with source 11 National Treasury, once the General Budget of Income and Expenditures of the Republic for Fiscal Year 2026 is in effect, must enter their original Monthly Expenditure Programming document (PGM) in SIAFI through their Executing Units, based on the planning of their expenses from January to December, for which the institutions must complete adjustments to the Annual Operating Plan (POA) in the Integrated Financial Administration System (SIAFI), in Authorized status. The State Secretary in the Office of Finance (SEFIN) may reduce the allocated amounts of Quarterly Expenditure Quota, as well as reduce the budget pending commitment, when the results obtained are not in accordance with what was programmed, according to the Quarterly Monitoring and Evaluation reports and provided that such reduction does not affect the development of priority programs and projects. The quarterly expenditure quota (CGT) corresponding to external funds, allocated by the General Treasury of the Republic shall be of an indicative and not limiting nature.

When a State institution must make a payment in favor of third parties, these must present a Tax Solvency Certificate issued by the Tax Administration Service (SAR). In the event that the taxpayer obligor is not solvent, they must present to the public institution the corresponding collection notice to collect the taxes owed by the retention agency.

To suspend 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, by virtue of the fact that the criteria of the 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.

In the execution of sentences where centralized and decentralized public administration is condemned to pay a liquid amount, regardless of the subject matter scope of national and international jurisdictional and arbitral bodies, Articles 95 to 100 of Decree No. 189-87 containing the Administrative Contentious Jurisdiction Law shall apply. Officials and employees of the Judicial Branch and members of Arbitration Tribunals, as well as auxiliary and/or enforcement personnel who violate this provision shall be sanctioned with a proportional fine equivalent to an amount equal to and up to four (4) times the value of the executed amount, which shall be applied by the Superior Court of Accounts (TSC), in addition to the corresponding administrative, civil, and criminal liability.

Public funds contained in the General Treasury of the Republic and in the Central Bank of Honduras, as well as budgetary allocations designated for the ordinary functioning of the organs of the Executive Power that provide essential public services, ARE UNSEIZABLE in any procedure for the execution of sentences. Furthermore, public funds contained in the General Treasury of the Republic and in the Central Bank of Honduras are considered unseizable when the execution of sentences derives from the fulfillment of obligations of the institutions that make up the Decentralized Public Administration. Nor shall it proceed against assets or funds, nor any other affectation that impedes or restricts the immediate availability of resources for the fulfillment of essential public obligations. The execution of condemnatory sentences to payment of sums of money against the State or seizure of its future credits shall be subject exclusively to what is provided in the preceding article and to the budgetary incorporation and payment ordered by the Secretariat of State in the Office of Finance (SEFIN), in accordance with fiscal availability and current budgetary regulations. In case of violation of this provision, the sanctions and fines described in the preceding article shall apply.

The Secretariat of State in the Office of Finance (SEFIN), through the General Treasury of the Republic (TGR), guarantees the payment of Final Judicial Sentences as a consequence of claims brought against Public Sector Institutions. When judicial orders are issued for the application of seizures as a result of the execution of said sentences, the corresponding Courts shall issue the Official Letter or copy of the Final Sentence directly to the General Treasury of the Republic (TGR) so that the seized amounts are adjusted to the budgetary availability of each of the sued institutions, without affecting the fulfillment of payments for the concept of public debt service (external/internal), personal services (salary payments and collaterals) and the budget corresponding to their operational function. In case of seizures already applied in the CUT and when the budget of the seized institution is insufficient to cover said seizures, the Secretariat of State in the Office of Finance (SEFIN) is authorized through the General Treasury of the Republic (TGR) to affect the own revenues (Source 12) that these receive and that have not yet been executed, including resources that must be incorporated into these institutions based on article 10 of this Law, the DGP and TGR shall apply a percentage of no less than 20.0% through commitment quotas until the total amount of the seizure is covered, likewise, during fiscal year-end closing operations, the TGR shall identify balances that may be added to what has already been withheld until the total amount of the seizure is completed if necessary. In case of non-compliance, the provisions of Article 4 of these provisions shall apply.

The Secretariat of State in the Office of Finance (SEFIN) is authorized to conduct liability management operations, with the purpose of mitigating financial risks and/or improving the maturity profile of the public debt portfolio. Within liability management operations, forgiveness, conversion, consolidation, renegotiation, refinancing, exchange or swap, advance purchase or redemption and subscription of financial derivatives contracts are contemplated. In case of conducting swap, refinancing or liability management operations of internal or external bonds with maturity within the year 2026, these must be registered as a charge to the present Budget. For bonds with maturity date after the year 2026, the General Budget of the Republic for the present Fiscal Year shall not be affected. The Secretariat of State in the Office of Finance (SEFIN) is empowered to conduct in the current fiscal year, the contracting of loans, lines of credit, bond placements, or other internal or external financing with national or international creditors whose purpose is the liability management of sovereign bonds maturing in January 2027, up to the placed balance of SEVEN HUNDRED MILLION DOLLARS EXACT (USD700,000,000.00), as well as other current sovereign bonds, under the financial conditions obtained at the time of negotiation, for which it is authorized to contract directly the legal or financial services necessary to complete the operation. In the event that, after the liability management process referred to in the preceding paragraph, there is an outstanding balance of sovereign bonds, SEFIN may contract additional indebtedness to the 2026 budget ceilings, said resources may be received in the current fiscal year, registering the income in 2026 with budgetary allocation as a reserve to finance the payment of the aforementioned maturity. Liability management may be conducted partially or fully during the present year and it shall have no budgetary effects for which the Secretariat of State in the Office of Finance (SEFIN) is authorized to make the corresponding accounting entries. Should there be 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 Secretariat of State in the Office of Finance (SEFIN) is authorized to make budgetary modifications. Likewise, the Secretariat of State in the Office of Finance (SEFIN) is authorized to contract Instruments for 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 Ministry of State for the Department of Finance (SEFIN), in accordance with the State of Honduras' accession to the Participation Agreement, is authorized to contract parametric insurance policies for sovereign risk, for climate 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 instruments of protection, including International Jurisdiction and Arbitration (insurance company) and to make payments that derive from the subscription of the aforementioned instruments.

The Institutions of the Decentralized Administration are obliged 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 the International Accounting Standards. The information must be registered and printed in the computer tool for Consolidation of Financial Statements and sent to the Ministry of State for the Department 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 regulations shall apply.

For the purposes of the application of International Financial Reporting Standards (IFRS) in Public Enterprises and the International Public Sector Accounting Standards (IPSAS) in the other institutions of the Public Sector, Financial Statements must be prepared following the bases of recognition, measurement, fair presentation and disclosure established in said normative frameworks. By Resolution No. JTNCA 073-12/2024, the Technical Board of Accounting and Audit Standards (JUNTEC) approved the implementation of IPSAS through a normative convergence process that is executed through the progressive issuance of the Accounting Standards Applicable to the Public Sector in Honduras (NCASPH). This process seeks to harmonize the national accounting framework with international standards, respecting the country's institutional structure and operational capacities. Consequently, public enterprises and other public sector institutions that are subject to the implementation of the standards and that have not yet implemented them must mandatorily present, within the first fifteen (15) business days following the end of each quarter, technical reports on progress to the General Comptroller of the Republic in digital form. In case of non-compliance, the provisions of Article 4 of these regulations shall apply.

Decentralized Institutions operating currently with the Single Account mechanism but not generating their accounting and financial statements from the accounting module of the Integrated Financial Administration System (SIAFI), are ordered to register initial balances in this module for the preparation of their Account Rendering reports for the fiscal year 2026, based on the financial statements presented at the close of fiscal year 2025. Decentralized institutions that have initial 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 fiscal year and register initial balances considering the balances at the close of fiscal year 2025, in such a way that the financial statements to be presented at the close of 2026 are generated from SIAFI and comply with established regulations.

The process described in the previous article must continue its implementation in the present fiscal year and thus allow generating its accounting, even if they have begun operations in the Integrated Financial Administration System (SIAFI) and in the CUT in previous years, this condition does not exempt them from the responsibility of having financial statements corresponding to all fiscal years since their incorporation, including fiscal year 2025, whether generated from their own systems or through the formats established by the General Accounting Office of the Republic. Likewise, institutions must prepare a work plan in accordance with the guidelines issued by the State Secretariat of the Finance Office (SEFIN), through the General Accounting Office of the Republic (CGR), institutions must present said plan during the first semester of 2026 to the CGR. The work plan must contain a detailed description of the process, the sequence of activities, the responsible parties and roles, as well as realistic deadlines and time limits. Any modification will require authorization from the CGR, with corresponding justifications. The Finance Secretariat (SEFIN) is authorized to conduct technical reviews and make necessary adjustments in the Integrated Financial Administration System (SIAFI) to allow decentralized institutions to register initial balances without having to perform accounting closures in SIAFI for previous years. This includes both institutions that have not yet registered their initial balances and those that have already registered them in previous years but have pending accounting closures and the generation of their financial statements.

The State Secretariat of the Finance Office (SEFIN) and the Central Bank of Honduras (BCH) are authorized to refinance or exchange government securities up to a maximum nominal value of THREE BILLION LEMPIRAS EXACTLY (L3,000,000,000.00) to mature in 2026, through the issuance of a new government security under the conditions negotiated between the parties. Likewise, the State Secretariat of the Finance Office (SEFIN) and the Central Bank of Honduras (BCH) are authorized to renegotiate any obligation, security, or agreement that is in effect and subscribed between both institutions.

The operations related to debt service and exchange rate variations, inherent to 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 reported to the State Secretary of the Office of Finance (SEFIN) for purposes of monitoring and control.

Each Secretariat and Institution listed in the following table, participating in the implementation of the Action Plan with a Gender Perspective, must allocate resources for its financing:

Each Secretariat and Institution listed in the following table, participating in the implementation of the Action Plan with a Gender Perspective, must allocate resources for its financing: No. Institution Purpose All institutions of the Public Sector, including the National Electoral Council, Constitutional Bodies, the Judicial Branch and the Legislative Branch Resources for the strengthening and creation of Gender Units for their effective functioning; for this reason the State Secretary of the Office of Women's Affairs and the State Secretary of the Office of Finance (SEFIN) shall provide the technical support necessary to achieve this identification. 2 Judicial Branch Resources for the strengthening and expansion of specialized courts in domestic violence in cities where there is high incidence. For this reason the State Secretary of the Office of Finance (SEFIN) must provide the technical support necessary to achieve this identification. Resources for the creation of the Judicial Facilitators Program to accompany women survivors of violence, and the certification of legal promoters trained by women's organizations. Resources for the strengthening of the Food Debt and Delinquent Debtors Registry. 3 Public Ministry Resources for the strengthening of the

- 230 - No. Institution Purpose unit for investigating deaths of women and femicides, both in the Criminal Investigation Technical Agency (ATIC), and in the Prosecution of Crimes Against Life; as well as those of the Special Prosecution for Women and the Specialized Comprehensive Care Module (MAIE) and Forensic Medicine, likewise the expansion of coverage for new units; for this reason, the State Secretary of the Office of Finance (SEFIN) must provide the technical support necessary. To allocate specific resources for the investigation of violent deaths of persons belonging to the LGBTI community, guaranteeing equitable budgetary treatment to that granted to units specialized in the investigation of violent deaths of women. 50 Secretariat of Education (SEDUC), Program 23: Pedagogical Technical Services, Act/Obj 20: Purple Scholarships, Expense Object 51211: National Scholarships Resources to create the scholarship program called PURPLE exclusively for girls, adolescent women and young women, prioritizing daughters and minor dependent sons of women victims of violent deaths and femicides, as affirmative action for the advancement of women in education and as a measure of redress by the State. For the fulfillment of this Program an

- 231 - No. Institution Purpose Inter-institutional Follow-up Commission shall be created, which will be composed of: State Secretary of the Offices of Education, State Secretary of the Offices of Women's Affairs, National Institute of Youth and three representatives of Women's Organizations including young women. Resources for a specific literacy program for women in areas where there are high levels of women who cannot read and write. Resources for programs to prevent school dropout among girls and boys with early parenthood, the same must be reflected in their POA and will be validated by the State Secretary of the Office of Women's Affairs. State Secretary of the Offices of Social Development and its Decentralized Institutions Resources to create a Comprehensive Social Care System that includes social protection and the inter-institutional care table. For this reason the State Secretary of the Office of Women's Affairs and the State Secretary of the Office of Finance (SEFIN) shall provide the necessary technical support. 6 State Secretary of the Office of Security Resources for the strengthening and creation of Units for Investigation of

- 232 - No. Institution Purpose Violent Deaths of Women and Femicides in the Criminal Investigation Police Directorate (DPI); likewise this Secretariat shall earmark resources for the reopening of the 114-Women Line specific for addressing violence against women. For this reason, the State Secretary of the Office of Finance (SEFIN) must provide the technical support necessary to achieve this identification. Resources for the strengthening and expansion of coverage of rapid reaction units in violence against women and specialized units for investigation in violent deaths and femicides in the DPI; for this reason, the State Secretary of the Office of Finance (SEFIN) must provide the technical support necessary. To strengthen the supervision of compliance with this provision, the aforementioned institutions shall prepare a semi-annual report on the execution of these provisions, which shall be submitted to the Secretariat of Women's Affairs within the first fifteen (15) business days after the end of the semester. To strengthen the supervision of compliance with this provision, the aforementioned institutions shall prepare a semi-annual report on the execution of these provisions, which shall be submitted to the Secretariat of Women's Affairs within the first fifteen (15) business days after the end of the semester.

To facilitate women's citizen participation in the preparation of the national budget, the Working Table on Gender-Sensitive Budgets (PSG) will continue at the highest level, composed of: the State Secretariat of the Finance Office (SEFIN), the State Secretariat of Women's Affairs, the Budget Commission and the Gender Commission of the National Congress, the Superior Court of Accounts (TSC), the State Secretariat of the Office of Governance, Justice and Decentralization (SGJD), the Association of Municipalities of Honduras (AMHON), Supreme Court of Justice (CSJ), Public Ministry (MP), State Secretariat of the Security Office (SEGU), Women's Organizations and International Cooperation in order to make proposals and monitor gender investment. This Working Table will be led by the State Secretariat of the Office of Women's Affairs; the Gender-Sensitive Budget Table (PSG) must create sub-working tables by subject, for example, the analysis sub-table

State institutions involved and participating in the Ciudad Mujer Program are ordered to earmark in their respective budgets sufficient resources to cover necessary expenses (including payment of supplies, purchase of materials and payment of personnel assigned exclusively to the Program), to ensure and guarantee the management model in the different Modules that make up the Program. The budget must be allocated in an earmarked manner at the Activity/Work level and identified in the Annual Operating Plan (POA) of each participating institution. Funds allocated to the different Ciudad Mujer modules must be used solely for expenses related to the operation of such modules. Participating institutions are prohibited from making budgetary modifications to fulfill commitments of a different purpose that would redirect resources intended for Ciudad Mujer.

of fiscal policy with a gender perspective. Both the National and Municipal Gender-Sensitive Budget Working Tables will function in accordance with their respective regulations. From the Municipal Gender-Sensitive Budget Table, the Work Plan of the Municipal Women's Office (OMM) will be prepared, which will be agreed upon with the networks and women's organizations in the municipality.

Public institutions operating outside the Integrated Financial Administration System (SIAFI) must submit to the National Office of State Assets (DNBE) no later than April 30 of the present fiscal year, the inventory of assets in use and existing supplies as of December 31 of Fiscal Year 2025, as well as a detailed account of losses of these inventories, in accordance with current legal regulations and guidelines issued by the DNBE. Responsibility for personal and real property that forms part of the inventory or has been consigned to each institution or department of the public sector corresponds to the heads of administrative management or administration departments of the same public sector institutions or departments. The foregoing is without prejudice to the provisions established in article 4 of these provisions, which empowers the National Office of State Assets (DNBE) to report such non-compliance to the corresponding oversight bodies.

All public sector institutions must register the purchase of movable and immovable property, and once received, they will have ten (10) business days to register them in the National Subsystem of State Assets (SNBE) of the Integrated Financial Administration System (SIAFI) in accordance with the current regulations of the National Directorate of State Assets (DNBE). Likewise, institutions of the Central Administration must prepare and approve manual entries in the accounting module of the Integrated Financial Administration System (SIAFI) for the registration of write-offs, reversions and transfers of assets in use, biological and intangible assets and those related to their reconciliation as of June 30, 2026 and present no later than the first 5 business days of the month of July of the current year, to the General Comptroller of the Republic, the reconciliation of assets in use of the balances of the accounting module and the assets in use module of the national assets subsystem. Non-compliance with the established activities and dates will affect the timely disbursements made by the General Treasury of the Republic (TGR) for each of the institutions. In the case of liquidations, spin-offs, modifications, reorganizations, or suppressions of Public Administration institutions decreed by the President of the Republic in Council of State Secretaries, the users of the Administrative Departments and/or Executing Units of the liquidated, spun-off, modified, reorganized or suppressed institutions shall remain active in SIAFI until a Resolution is issued by the National Directorate of State Assets (DNBE) by means of which it transfers and/or reassigns them to the corresponding Administrative Department 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 that owns or possesses it, provided that it is allocated to the repair of the 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 these were not executed in the previous Fiscal Year, in cases duly justified the State Secretariat in the Office 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 item that corresponds, the institution must make a budgetary modification. The purpose of the expense may not be changed; if additional budget is required to replace or repair the asset, the institution must finance it from its budget.

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

Based on Legislative Decree No. 30-2022, article 274-X, the Fiscal Contingencies Unit (UCF) 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 respect to the Area of Contingent Liabilities for Specific Risks, it must identify, quantify, value, register and publish contingent liabilities arising from:

• a)

  Guarantees and Endorsements granted by the State of Honduras;

• b)

  Municipal Debt;

• c)

  Public Enterprise Debt;

• d)

  Judicial Claims against the State of Honduras. 2) With respect to the Area of Contingent Liabilities for Public-Private Partnerships, the contingent liabilities and firm commitments acquired in Public-Private Partnership Contracts shall continue to be determined by the granting institutions in accordance with the provisions of this Law, and shall be submitted to the UCF for registration, analysis, monitoring, follow-up and publication. The UCF shall provide technical assistance in the following areas: a) In the application of methodological tools that allow the granting institution the adequate identification, quantification and valuation of associated fiscal risks; and, b) In specific technical and legal matters arising from the management of signed APP contracts and in relation to inherent risks identified by the Grantors, with the UCF acting solely as a consultative body. To this end, the Granting Institution must submit a formal request for technical assistance. The UCF shall request all information and technical, legal and financial supporting documents that it considers necessary at its technical discretion, 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 vigent Public-Private Partnership (APP) contracts and their amendments, the granting institutions shall determine:

• a)

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

• b)

  firm commitments contracted in the concession contracts; and, c) commitments contracted through trusts associated with the concession contracts, and must report monthly to the State Secretariat of Finance (SEFIN) through the Fiscal Contingencies Unit (UCF) the behavior of the aforementioned variables. Such information must be delivered in digital format by any available means. In case of 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 Budget Law. Modifications to vigent contracts shall require, prior to their execution, the following:

  • 1)

    Technical report prepared by the Granting Institution, in accordance with the provisions of article 4, subsection g of the Regulations of the Fiscal Contingencies Unit (UCF). The foregoing without prejudice to other technical analyses that the granting institution might consider appropriate.

  • 2)

    The grantors must submit to the State Secretariat of Finance (SEFIN) through the Fiscal Contingencies Unit the aforementioned technical report, in order to effect the corresponding risk registrations. The UCF shall request additional information from the Granting Institution if it deems it appropriate.

  • 3)

    Opinion of the Superintendency of Public-Private Partnerships authorizing or refusing the signature of the amendment, for which the Granting Institution must submit the corresponding technical, legal and financial support. The Granting Institution must submit the Amendment or final modification document together with all corresponding supporting documents to the UCF for updating of the Risk Matrix.

All concessionaires are required to submit, no later than fifteen (15) business days following the end of the month, to the Fiscal Contingencies Unit of the State Secretariat of Finance (SEFIN), the General Comptroller's Office and the Superintendency of Public-Private Associations (SAPP), all financial information of project operations together with monthly supervision reports.

Public-Private Partnership (APP) and Trust Bank modality projects must present quarterly financial statements to the Fiscal Contingencies Unit (UCF), 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 Public-Private Partnership Superintendency (SAPP) and the Superior Court of Accounts (TSC).

Public Companies and government institutions that have been granted a joint guarantee endorsement in credit operations by the State of Honduras must submit, no later than thirty (30) business days after the end of each quarter, to the Fiscal Contingencies Unit (UCF) attached to the Secretariat of State in the Office 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 and at the disposal of institutions on the website of the Secretariat of State in the Office of Finance.

The National Electric Energy Company (ENEE), in addition to complying with the provisions of the preceding article, must report quarterly to the Fiscal Contingencies Unit (UCF) on current renewable energy purchase and sale contracts and those 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 require them to provide additional information that it deems necessary for the estimation of contingent liabilities associated with ENEE and any other public company.

For the purpose of updating the registry of assets in the database required by the natural disasters methodology, the following public institutions: The State Secretariat in the Offices of Infrastructure and Transportation (SIT) through its executing unit, the Honduran Social Investment Fund (FHIS); the State Secretariat in the Offices of Housing and Human Settlements (SEVIAH); the State Secretariat in the Offices of Risk Management and National Contingencies (COPECO), the State Secretariat in the Office of Health (SESAL), the State Secretariat in the Office of Education (SEDUC), and the State Secretariat in the Office of Social Development (SEDESOL) must submit to the Fiscal Contingencies Unit (UCF) sixty (60) days after the end of the previous fiscal year the budgetary execution of emergency response spending following the occurrence of a natural disaster in the formats established by the UCF for the quantification and disclosure of contingent liabilities due to natural disasters; likewise, the list of rehabilitated assets and new infrastructure with their construction variables in accordance with the format established by the UCF. In order to quantify the contingent liability due to natural disasters, the State Secretariat in the Offices of Risk Management and National Contingencies (COPECO) must submit to the Fiscal Contingencies Unit (UCF), thirty (30) days after the end of the cyclonic season, information on natural disaster events that have generated obligations for the State such as threats, geographic areas, affected population, frequency of occurrence, human and infrastructure losses of the current fiscal period, in the format established by the UCF and made available to the institutions on the website of the State Secretariat in the Office of Finance (SEFIN).

The action plans proposed by the Board of Directors of the National Electricity Company (ENEE) are mandatory and must be continuously evaluated, showing the corresponding deviations and justifications. With the objective of ensuring transparency and the correct use of public resources, the ENEE, the SEN and the CREE are instructed to contract management and financial audits for the periods 2024 and 2025 charged to their own budgets. The results of said audits must be presented before the Board of Directors of the ENEE, the SEN and the CREE, and published in a manner accessible to the public, thus guaranteeing accountability. Furthermore, any relevant finding must be addressed promptly through the implementation of clear and documented corrective measures.

The State Secretariats, Decentralized Institutions, Deconcentrated Bodies, the Legislative Branch, Judicial Branch and Constitutional Bodies must require as a documentary requirement to fulfill the economic obligations derived from contracts with providers of goods and services, public works, consulting or professional services, the Fiscal Document as established in the Invoicing Regime Regulation, other documents and printing fiscal records. The administrative management offices or units that perform this function according to the organizational structure of each Institution must verify that the fiscal document related in the preceding 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 issued by State institutions, including the Judicial Branch, shall be issued at no cost, as part of the requirements established by the National Penitentiary Institute (INP).

The Ministry of State in the Office of Finance (SEFIN) is hereby authorized, through the General Directorate of Tax Exemptions and Customs Franchises, to conduct separately or jointly with the Tax or Customs Administration the inspection, verification, confirmation and control of taxpayers who enjoy exemptions to determine if they comply with the objectives and benefits as well as the non-compliance described in articles 20 and 21 of Decree No. 170-2016 containing the Tax Code published in the Official Gazette "La Gaceta" on December 28, 2016.

The Ministry of State in the Office of Finance (SEFIN) is authorized to incorporate into its approved budget and utilize the balance of own resources Source 12 collected, incorporated and not executed by the defunct Deputy Directorate of Customs Revenue (DARA) in fiscal year 2019 that were incorporated into the Ministry 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 remain unpaid, up to the available value of the balances. In case there are additional payment commitments, the Customs Administration of Honduras is ordered and authorized to make the payments authorized by the Liquidating Technical Commission using Source 12 Own Resources from its budget.

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

The National Tourism Promotion Agency is created as a programmatic unit dependent on the Honduran Tourism Institute (IHT), responsible for planning, coordinating and executing the strategy of national and international tourism promotion of Honduras. The Agency shall aim at positioning the country's tourism destinations and attractions in prioritized source markets, under an approach of exporting domestic tourism, oriented toward attracting international visitors, generating foreign exchange and strengthening local economies linked to tourism activity. Its activities shall be carried out in accordance with the national tourism policy and the guidelines approved by the National Tourism Council.

For the fulfillment of the functions of national and international promotion of the National Tourism Promotion Agency, through the IHT, specialized services may be contracted directly linked exclusively to promotion and tourism statistics actions abroad and in strategic source markets, when any of the following circumstances occur:

• 1)

  That these are specialized digital or technological services, such as advertising on digital platforms, social networks, search engines, video platforms, programmatic media, tools based on artificial intelligence, international public relations services and tourism commercialization platforms, tourism intelligence services, whose fees are set directly by the global provider or respond to automated technological conditions.

• 2)

  That there is a sole, exclusive provider or one accredited by the organizer of the event, platform or venue in question.

• 3)

  That the contracting is linked to the official participation of the country in international trade fairs, business rounds or other tourism promotion events, subject to non-extendable calendars, conditions pre-established by the organizer or operational limitations of the venue. Likewise, to strengthen institutional presence in strategic markets, the IHT may contract technical or specialized personnel services abroad, aimed exclusively at tourism promotion of Honduras, institutional representation and support for destination country commercialization; these services shall not be of a permanent nature. Such contracting shall be carried out in accordance with the applicable regulatory framework and in coordination with the State Secretariat of Foreign Affairs and International Cooperation of Honduras (SRECI), observing the provisions that regulate the provision of services abroad, as well as the principles of legality, transparency, control and accountability. The special regime provided for in this article does not exempt compliance with the principles of efficiency, responsibility in the use of public resources and institutional supervision.

In order to guarantee proper administrative review, consumer protection, and timely payment of fees and taxes owed to the State, any natural or legal person intending to conduct raffles, drawings, contests, or promotional campaigns must submit the complete file and formal authorization request to the Department of Departmental Administration belonging to the State Secretariat in the Offices of Governance, Justice and Decentralization (SEGJD), with a minimum of ten (10) business days in advance of the scheduled date for the event or the start of the respective advertising campaign. Late submission of the request will result, without further proceedings, in the denial of authorization for the event or promotional campaign. In the event that the applicant executes the raffle, drawing, or campaign without the duly notified authorization resolution, the competent authority will proceed ex officio to impose the administrative sanctions and pecuniary fines established by Law, without prejudice to any applicable actions and the immediate suspension of the event.

The State Secretariat in the Office of Finance (SEFIN) is authorized to carry out budgetary and financial operations for the incorporation of remaining unused resources from previous years from the letters of understanding for technical cooperation and fund administration executed between the SAG and the IICA, in support of programs denominated productive technological bonus, coffee grower bonus, or others for fertilization in support of small and medium producers and livestock bonus, resources that may be allocated to the same purposes established in the letters of understanding.

The State Secretariat in the Office of Finance (SEFIN) is authorized to carry out the necessary budgetary and financial actions for the incorporation and identification of budgetary resources to make direct payment to the respective concessionaire of the economic differences arising from the non-application to the end user of the tariff adjustments contractually provided for in road concession projects, when such measure has been adopted by the State for reasons of public interest and is contained in the corresponding instrument. Said resources shall be allocated to the budget of the State Secretariat in the Offices of Infrastructure and Transport (SIT), for the present Fiscal Year 2026.

The Executive Branch is authorized to issue an Administrative Act (Executive Agreement or Executive Decree) that it deems appropriate, in order to regulate the identification, inventory, classification, and disposal of merchandise, vehicles, and containers in abandonment that are found in customs facilities, deposits and customs warehouses or port zones, including those under state concession. A single notice shall be published in at least two newspapers of national circulation, in order to provide their owners or those responsible for them the opportunity to remove them within a period not exceeding thirty (30) calendar days and, upon expiration of this period, without the removal having been effected, the Honduran Customs Administration shall dispose of these abandoned merchandise, vehicles, and containers, in accordance with the Administrative Act referred to in the preceding paragraph and other applicable regulations. This includes the possibility of subjecting them to auction proceedings, direct sale, assigning them to donations or allocating them to causes of public value or utility, among other alternatives that are contemplated and/or regulated in that Administrative Act referred to in the preceding paragraph and other applicable regulations and, for all such purposes, the costs of taxes, sanctions, surcharges, storage, dockage and overdockage or other related concepts are hereby exempted and/or relieved. When in accordance with the Administrative Act previously referred to, it becomes necessary to resort to the destruction of merchandise, vehicles, and containers in abandonment due to lacking commercial value, being prohibited or representing a sanitary or environmental risk, and such destruction must be carried out through services provided by a Municipal Mayor's Office on its own or through third parties subcontracted or concessioned by it for such purposes, the cost of destruction shall be exempted and/or relieved as it is a process executed by public institutions or entities and derived from an Administrative Act issued by the Executive Branch and of strict public interest.

Tax exemptions or fiscal benefits granted through Special Decrees or Laws, as to their term and benefits granted, shall be strictly governed by what is established in those Special Decrees or Laws that granted and/or recognized them. The term established in Article 23 of Legislative Decree No. 278-2013 is extended for the present fiscal year. All legal and/or regulatory provisions that contradict or oppose what is provided in the preceding paragraph are hereby repealed.

The Presidential Honor Guard is attached to and depends on the Presidency of the Republic, therefore what is established in Article 23 of PCM-005-2022, published in edition No. 35892 of the Official Journal "La Gaceta" of April 6, 2022, is hereby repealed.

In the budget of the State Secretariat of the Finance Office (SEFIN), the transfer granted to the National Anti-Corruption Council (CNA) shall be allocated.

The dependencies of the Executive Power are authorized to pay as an advance up to thirty percent (30%) of the value of contracts covered under the Emergency Decrees, said disbursement shall be subject to current budget availability, with the contractor required to constitute guarantees in accordance with the State Contracting Law (LCE), their amortization method shall be regulated according to what is established in the executed contract; likewise, the aforementioned dependencies are authorized to be able to constitute letters of credit in institutions of the national or international financial system that guarantee the operation. Likewise, considering that vehicle identification is a matter of national security, the Property Institute (IP) is authorized, under Legislative Decree No. 38-2026, to be able to agree to an advance of funds by the same percentage, in the contracting processes of said Decree.

To interpret numeral 3 of Article 4 of Legislative Decree No. 25-2016 that contains the Fiscal Responsibility Law (LRF) of April 7, 2016, published in the Official Gazette "La Gaceta" dated May 4, 2016, through which it is established that a return must be made in the year 2023 to one percent (1%) of the Gross Domestic Product as the annual ceiling goal for the fiscal deficit of the global balance of the Non-Financial Public Sector (SPNF), 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 goal of the Non-Financial Public Sector (SPNF) was approved within the framework of the exception clause activated by Legislative Decree No. 27-2021 dated May 14, 2021, from that result the fiscal deficit must be reduced by zero point five percent (0.5%) per year at minimum, until reaching one percent (1%) in relation to GDP as established in Article 3 of the LRF.

To 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 MULTI-YEAR 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 Multi-Year 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 two point nine percent (2.9%) of the Gross Domestic Product (GDP) for the year 2026 and shall be reduced by at least zero point five (0.5%) annually until returning to one percent (1.0%) of the 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" dated May 4, 2016. The deficit of the SPNF of two point nine percent (2.9%) of the Gross Domestic Product (GDP) includes a fiscal space for public investment that will make it possible to incorporate in the budget execution of 2026 the priority projects that are part of the Government Plan. During the period of suspension of the Multi-Year Fiscal Performance Rules, the annual increase in primary nominal Current Expenditure of the Central Administration for 2026 may not exceed twelve point three percent (12.3%), as established in Article 3, numeral 1), subsection b) of the LRF.

The beneficiaries of the Temporary Import Regime (RIT) may guarantee their imports through global guarantees, the foregoing in order to ensure the facilitation and simplification of their import processes. The Honduran Customs Administration may issue guidelines or regulatory standards for compliance with this provision.

The State Secretary in the Ministry 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 have no budgetary effect on revenues and expenditures, provided that they are canceled in the same fiscal year and without prejudice to what is established by Article 90 of the Organic Budget Law.

With the purpose of promoting efficient and rational use of public resources, the Secretariat of State in the Finance Office (SEFIN), in coordination with the Secretariat of State in the Education Office (SEDUC) and the Secretariat of State in the Health Office (SESAL), shall promote during Fiscal Year 2026 strategic guidelines aimed at strengthening human talent management, through the articulation of the System for Registration and Control of Public Employees (SIREP) with the Integrated Financial Administration System (SIAFI) and the corresponding sectorial systems. To that effect, the Secretariat of State in the Education Office (SEDUC) and the Secretariat of State in the Health Office (SESAL) are instructed to, within the scope of their competencies, carry out an equitable distribution of teaching and medical personnel at the territorial level, considering the deficit identified in each region and the real demand for services, in strict compliance with current laws and in accordance with the government's administrative decentralization strategy. This distribution shall be carried out as part of an integral strategy that promotes the active participation of municipal corporations in the identification of local needs, the validation of service coverage, and monitoring the effective presence of assigned personnel in their respective territories. These guidelines shall have the purpose of improving the quality of information, planning, and allocation of human resources, favoring a more balanced distribution according to the demand for services and the needs of each sector. To that effect, the institutions involved shall promote:

• a)

  The updating and progressive harmonization of personnel records in the SIREP, SIAFI, and sectorial systems, establishing December 31, 2026 as the maximum deadline to complete the first phase of data reconciliation;

• b)

  The strengthening of human resource planning and allocation processes based on technical criteria, including coverage indicators, personnel density per population served, and identified territorial gaps;

• c)

  The generation of timely and disaggregated information for decision-making in matters of institutional and budgetary management, which must be available in accessible formats for control bodies and the citizenry;

• d)

  The periodic review of payroll information, for purposes of continuous improvement in spending management, including the detection of inconsistencies, duplications, and positions without functional support; and e) The preparation of a territorial distribution map of teaching and medical personnel, updated semiannually, which shall serve as a planning instrument for the allocation of new positions and the reassignment of existing personnel. For purposes of budgetary programming, institutions must consider the information generated in these processes as mandatory input for the formulation, adjustment, and monitoring of their allocations within the General Budget of the Republic. SEFIN shall not process requests for creation of new positions in the education and health sectors that are not supported by the analysis of territorial gaps referred to in subsection e) of this article. SEFIN, together with the sectorial secretariats, shall publish a semiannual report on progress in the implementation of these guidelines, which must include, at minimum:

  • 1)

    The status of reconciliation of records between SIREP, SIAFI, and sectorial systems;

  • 2)

    The number of personnel reassigned or redistributed territorially, disaggregated by department and municipality;

  • 3)

    The inconsistencies detected in payrolls and the corrective measures adopted; and 4) The service coverage gaps identified and the actions proposed to reduce them. This report shall be sent to the National Congress and made available to the public through SEFIN's transparency portal. The implementation of these guidelines shall be carried out gradually, within the framework of current regulations and in coordination with the corresponding bodies of each sector, complying with the principles of transparency, accountability, and citizen participation. Within ninety (90) calendar days following the entry into force of this budget, SEFIN, the Secretariat of State in the Education Office (SEDUC), and the Secretariat of State in the Health Office (SESAL) must sign an inter-institutional agreement that establishes the procedures, schedules, and specific responsibilities for the execution of the guidelines contained in this article. This agreement must be published in the Official Journal "La Gaceta" and in the institutional portals of the secretariats involved.

The resources of each institution participating in the Government Civic Center (CCG) must be registered by the Secretariat of State in the Finance Office (SEFIN) through the General Directorate of Budget (DGP) under the Budget Structure for the Administration of Contingent Liabilities and Unforeseen Events with Institutional Code 109. Therefore, the second paragraph of Article 2 of Legislative Decree No. 165-2015 published in the Official Journal "La Gaceta" dated February 24, 2016 is hereby repealed, as well as that referred to in Articles 17, Chapter II and 18 and 19, Chapter III of PCM 001-2015 published in the Official Journal "La Gaceta" of January 7, 2015.

The Secretariat of State in the Finance Office (SEFIN) shall monitor the evolution of the national and international economic environment, including the effects of geopolitical conflicts and other unforeseen events that may affect the General Budget of the Republic. When significant impacts are identified, SEFIN is authorized to carry out the necessary budgetary modifications and reorientations, in accordance with current legal regulations, in order to guarantee fiscal sustainability and the continuity of public services.

The National Penitentiary Institute (INP) is ordered to, with priority, proceed to make the budgetary modifications that are necessary and make effective the payment of debt in the amount of EIGHTY-FOUR MILLION LEMPIRAS EXACT (L84,000,000.00) for the completion of the maximum security module in the National Female Penitentiary of Social Adaptation (PNFAS).

The Secretary of State in the Office of Finance (SEFIN) is authorized to identify resources in the present fiscal year from the different public institutions of the central administration, for the purpose of supporting the coffee fund up to TWO HUNDRED MILLION LEMPIRAS EXACT (L200,000,000.00).

The Secretary of State in the Office of Finance (SEFIN) is authorized to carry out the financial and budgetary operations that correspond after the periodic review of the budgets of the different institutions of the Central Administration specifically in the National Treasury source and to identify allocations that can be reoriented to the budget of the National Autonomous University of Honduras (UNAH), up to the sum of FIVE HUNDRED FIFTY-NINE MILLION SIX HUNDRED SIXTY-SIX THOUSAND TWO HUNDRED NINETY LEMPIRAS EXACT (L559,666,290.00), value that corresponds to the difference of the national treasury resources and external source approved in 2025, funds that UNAH must direct for the continuity of activity 007 Comprehensive Student Welfare Management "My Welfare-UNAH".

The Superintendency of Public-Private Alliance (SAPP) is authorized to collect from private companies that enter into new public-private participation contracts as of this date, a regulatory contribution to be established through the corresponding contract of two percent (2%) of the value of annual invoicing, after making the corresponding deductions for the payment of Sales Tax.

The Secretary of State in the Office of Finance (SEFIN) is authorized to provide the Superintendency of Public-Private Alliance (SAPP) with the necessary funds from the General Budget of Income and Expenses of the Republic to cover its annual budget, in the following cases:

• 1)

  As long as the corresponding allocated fund for its self-sustainability is not established in accordance with the Public-Private Alliance Promotion Law;

• 2)

  When the income from regulated projects is limited and insufficient to guarantee its self-sufficiency and operation as a regulatory entity;

• 3)

  When its operability and continuity as a regulatory, supervisory and oversight entity of projects under the Public-Private Alliance modality are affected;

• 4)

  When the income received as a regulatory contribution is lower than the projection of the budget approved in the previous fiscal year. The Secretary of State in the Office of Finance (SEFIN) shall make the corresponding budgetary modifications to comply with the provisions of this article.

The National Agrarian Institute (INA) and the Honduran Institute of Anthropology and History (IHAH) are authorized to purchase land as it is a matter of national interest and legal certainty.

The State Department of Social Development (SEDS) is ordered to finance from the same "School Lunch" program, in the amount of TWO HUNDRED MILLION LEMPIRAS EXACT (L200,000,000.00), the Milk Glass program, which is covered under the Milk Glass Law, Decree 54-2010.

To comply with the supervision, inspection and control of concessioned airport services, the Honduran Civil Aviation Agency (AHAC) as the technical regulatory entity of the concession shall receive five percent (5%) of the fee that the airport administrator must pay, funds that shall be deposited with the General Treasury of the Republic (TGR), through the State Department of Infrastructure and Transportation (SIT).

The National Agricultural Development Bank is authorized to incorporate the available resources of this financial institution in the form of remaining balances of national funds from social programs eliminated through PCM 004-2026 up to an amount of TWO BILLION LEMPIRAS EXACT (L2,000,000,000.00). If the amount of the aforementioned remainders is less than TWO BILLION LEMPIRAS EXACT (L2,000,000,000.00), the State Department of Finance (SEFIN) is instructed to identify financial resources that allow this amount to be completed and transferred during this fiscal period to BANADESA for its capitalization and financing of the country's agricultural and livestock activities.

The State Secretary of the Finance Office (SEFIN) is ordered to identify the budgetary and financial resources necessary for the execution of the paving project at the junction of CA11 with the detour to Copinol, Concepción San Rafael Lempira, a project executed through the State Secretary of Infrastructure and Transport (SIT). This project will benefit the communities of: Aldea de Tablones, Gracias Lempira, paving along the Sile, la Lima, Matazano, el Derrumbe until reaching San Rafael with paving.

The State Secretary of Infrastructure and Transport (SIT) is ordered to proceed with contracting the feasibility study, design, and construction of the Puerto Lempira Airport, Department of Gracias a Dios, whose costs shall be paid with funds from the Honduran Infrastructure and Airport Services Company (EHISA). Likewise, the State Secretary of Infrastructure and Transport (SIT) is ordered to pay the administrative claim presented to this secretary by the National Coffee Fund in the amount of FORTY-ONE MILLION THREE HUNDRED TWENTY-SEVEN THOUSAND SEVEN HUNDRED THIRTY LEMPIRAS EXACT (L 41,327,730.00).

In accordance with Legislative Decree No. 14-2026, the State Secretary of Defense (SEDENA) is ordered to make budgetary modifications in the amount of EIGHT MILLION LEMPIRAS EXACT (L8,000,000.00) to the budget of the Honduran Air Force, allocated to the acquisition of aviation fuel for the operation of air ambulance services.

The Secretary of State in the Office of Finance (SEFIN) is instructed to identify resources in the amount of THIRTEEN MILLION LEMPIRAS EXACTLY (L13,000,000.00), for the Intervention Board of the Agricultural University of Catacamas in the Department of Olancho.

The Executive Branch through the Secretary of State in the Office of Finance (SEFIN) must regulate these Budget Provisions within a term 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 Newspaper "La Gaceta". Given in the City of Tegucigalpa, Municipality of the Central District, in the Session Hall of the National Congress, on the twenty-first day of the month of April of two thousand twenty-six. JOSÉ TOMÁS ZAMBRANO MOLINA PRESIDENT CARLOS ROBERTO LEDEZMA CASCO SECRETARY FRANCIS OMAR CABRERA MIRANDA SECRETARY Therefore: Be Published