The secretariat is empowered to issue prior intervention or opinion on transfers and instructions made to the trustees. However, the interventions or opinions of the Ministry of Finance must be “binding in nature.”
A month ago, the Government gave absolute control of the trust funds to the Ministry of Economy commanded by Luis Caputo. Now, through Resolution 200/2024 published in the Official Gazette, it was delegated to the Legal and Administrative Secretariat new linked tasks. What are the reasons?
According to the document, for reasons of “effectiveness and speed in decision making” The issuance of decisions was delegated to the Legal and Administrative Secretariat. instructions to the trustee, any other action of an operational nature and the exercise of management powers on behalf of the Ministry of Economy. So much so that the secretariat is empowered to issue the prior intervention or opinion, to the transfers and instructions made to the trustees. However, the interventions or opinions of the Ministry of Finance must be “binding in nature.”
New tasks for the Legal and Administrative Secretariat: what things must ask the Economy for authorization
- For the modification of commitment and accrual fees
- Budget credit increases.
- The instructions of the Legal and Administrative Secretariat, directed to the respective fiduciary agents on disbursements to be made with the availability of existing resources, must have the prior intervention of the Ministry of Finance.
- In the case of trust funds, prior to the issuance of payment orders charged to the available budget credit, or to the issuance of any instructions to the trustee that involves affecting the availability of resources in the respective trust funds, the prior opinion of the Secretary of Finance.}
- The secretariats must send to the Treasury within the next 30 administrative business days, the economic and financial programming necessary to coordinate and adapt the development of the actions prioritized in the rule for the creation of the trust funds and will be “subject to the fiscal sustainability objectives “as ordered by the Ministry of Finance.
Without the need for Economy, the Secretariat will have the power to approve and subscribe the models of addendum to the trust contracts, for the purposes of receiving the contractual adjustments that are necessary.
What are trust funds?
They are funds through which the national State grants an entity certain resources with the objective of administering them in favor of itself or a third party. They cannot be used for purposes other than those created and have flexibility in their administration.
Trust funds always have a specific allocation and resources cannot be used for other budgetary expenditures..
The budgets directly affect the provincial governors and, according to data from the Ministry of Finance of the Ministry of Economy of the Nation, represent about 2% of the country’s Gross Domestic Product (GDP).
Source: Ambito
