adoption of new categories of expense in accordance with international practices;
new draft budget law; new budget classifier;
establishment of an integrated computerized government financial management
system (SAFE), resulting in the establishment and harmonization of programming rules and procedures, and the execution, control and assessment of public resources.
The implementation of this integrated and computerized system will provide timely and reliable information on budget execution by means of the new budget classifier2. This in turn will allow civil society to know, monitor, and assess clearly and transparently which program will be implemented, for what purpose, and what results can be expected from its implementation; the executing agency; the inputs used to obtain the output; the scope of government action in which the expenditure will be made; and the source of financing.
4. The law defining the regulations for internal controls was submitted for approval. It is intended to increase the powers of the Inspectorate General of Finance as regards supervision and auditing of the financial operations of central and local government and public enterprises. In order to build the auditing and tax inspection capacity of the Inspectorate General of Finance, a database was established to register and track government financial operations. Those actions resulted in the improvement of public resource management.
Start of the Reform of government procurement in May 2006, also with the support of the World Bank. Creation of a National Coordination and Monitoring Committee (CNCS) to organize and prepare the work. Preparation of a first preliminary report addressing the weaknesses of the bidding system, pending the confirmation and recruitment of an international consultant to participate in the reform activities per se.
Other measures adopted that are worthy of note in the sector are:
Assessment of the capacity to install information and communications technology infrastructure. Planning between the Ministry of Planning and Finance and other ministries, as well as an IT master plan to guide SAFE.
Drafting of the basic law on organization of the arbitration court;
Also pending approval is the legal regime governing customs violations and the
Customs Code, which is intended to reorganize, adjust, simplify and modernize the
This budget classifier was created on the basis of Decree 4/2007 and promulgated on January 17, 2007.