What is the relationship between the Ministry of Finance, the Budget Office and State-Owned Enterprises (SOEs)?
SOEs must adhere to an annual cash budget, which must be approved no later than December 31 of the year prior to its effective date, through a joint decree of the Ministry of Finance and the Ministry of Economy, Development and Tourism, which must also bear the signature of the ministry through which they are related to the government. This budget includes an operating budget, an investment budget and a budget for contracting, disbursement and amortization of credits (Art. 11 Law N° 18,196).
All indebtedness, direct or indirect, must be previously authorized by the Ministry of Finance (Article 44 D.L. Nº1,263, of 1975, on Financial Administration of the State, with the exception of Banco Estado, which is excluded from the application of this rule (44 DL 1263, final paragraph).
They may only place funds in the capital market with the prior authorization of the Ministry of Finance (D.L. No. 1,056 of 1975).