Bill 634.

First debate (committee stage)
  • TypeBill
  • 634
  • FiledMarch 17, 2026

Summary.

The bill seeks to prohibit the allocation, management and expenditure of discretionary budget funds assigned to public officials. It proposes that state resources be administered exclusively under the General State Budget and the control and audit mechanisms established by law. Its stated objectives include eliminating those allocations from the state budget and ensuring that all public expenditure follows duly approved budget procedures.

The text calls for disbursements of public funds to be justified, documented and subject to fiscal and administrative controls. Its objectives also address transparency, accountability and oversight of expenditure by the competent authorities. It links these measures to eliminating arrangements that allow funds to be allocated without objective criteria or institutional control, managing state resources responsibly, and making their use more visible to the public.

The prohibition would prevent budget allocations whose use is left to the discretion of public officials from being included in the State Budget. It would also bar any authority or public official from directing public resources to individual or collective assistance, subsidies or benefits unless they are supported by institutional programs previously established in that budget. These disbursements would therefore depend on prior inclusion in a budgeted institutional program and remain subject to the general mechanisms for executing and controlling public expenditure.

The provision covers budgets assigned for expenditure by the President of the Republic and the Vice President; ministers and deputy ministers; directors, deputy directors, administrators and deputy administrators of autonomous and semi-autonomous entities; secretaries-general of ministries and those entities; national executive secretaries of the Office of the President; and managers and deputy managers of state-owned enterprises. It also covers directors and deputy directors of ministries, autonomous and semi-autonomous entities, state-owned enterprises, and other public bodies of the Central Government (Gobierno Central) or Local Authorities.

All public entities would have to publish detailed information on the expenditure of public resources on their institutional websites. The information would include budget transfers, supplementary appropriations, social assistance, subsidies, scholarships, transfers, and other benefits granted or received with public funds. The bill leaves the definition of mandatory minimum publication fields to legislation. It provides for strict compliance beginning in the fiscal period following its entry into force, directs the Executive Branch (Órgano Ejecutivo) to issue regulations within three months of promulgation, and sets entry into force for the day after promulgation in the Official Gazette (Gaceta Oficial).

The bill concerns the Central Government, Local Authorities, autonomous and semi-autonomous entities, state-owned enterprises, and the Executive Branch. Its provisions could affect those who administer public budgets and people or sectors receiving social assistance, subsidies, scholarships, transfers or other benefits financed with public funds.

What it proposes.

  • Discretionary budget allocations and public expenditure.
  • Budgetary basis for assistance, subsidies and benefits.
  • Publication of information on public funds by public entities.

Who it would affect.

  • Authorities and public officials covered by the prohibition.
  • Public entities required to publish expenditure information.
  • Individuals or groups receiving assistance, subsidies or other benefits funded with public money.

Key points.

  1. Proposes that state resources be administered under the General State Budget and the controls established by law.Art. 1
  2. Calls for eliminating discretionary allocations and requiring justification, documentation, transparency and oversight of public disbursements.Art. 2
  3. Prohibits discretionary allocations and makes assistance, subsidies and benefits conditional on previously budgeted institutional programs.Art. 3
  4. Extends the prohibition to the listed offices in the Presidency, ministries, autonomous and semi-autonomous entities, state-owned enterprises, the Central Government and Local Authorities.Art. 4
  5. Requires public entities to publish detailed expenditure information, including budget transfers, supplementary appropriations and benefits granted or received.Art. 5
  6. Provides for strict compliance beginning in the fiscal period following entry into force.Art. 6
  7. Directs the Executive Branch to issue implementing regulations within three months of promulgation.Art. 7
  8. Sets entry into force for the day after promulgation in the Official Gazette.Art. 8