Functions and Powers
The Autonomous Fiscal Council (CFA) is an autonomous body created by Law No. 21,148 of February 16th, 2019, that superseded the Fiscal Advisory Council that was created by Decree No. 545 of April 30th, 2013 of the Ministry of Finance. This Council is of a technical and advisory nature, with legal capacity and own budget, and is related to the President of the Republic through the Ministry of Finance. The Council is subject to the provisions of organic Decree Law No. 1,263 of 1975 of the Ministry of Finance, on the Financial Administration of the State, and under the supervision by the Office of the Comptroller General of the Republic.
The Council is composed of five members, upon agreement of the Senate as voted by two thirds of its members in office, at a meeting especially convened for this purpose. Its members are experts of renowned professional and academic prestige in fiscal and budgetary matters. Council members serve for five years and may be reelected for only one more consecutive term. Members are renewed partially, one per year. The President of the Council is appointed by the President of the Republic from among the Council members, for a term of three years in office or the shorter time remaining as a Council member, and may be appointed for new terms. The Vice President is elected by the Council members and will subrogate the President in case the latter is absent or temporarily unable to exercise his/her duties.
Pursuant to the provisions of the Law, the Council’s purpose is to contribute to the central government’s responsible fiscal policy administration by means of the following functions and powers:
- To evaluate and monitor the calculation of the cyclical adjustment of actual revenues carried out by the Budget Office, pursuant to the methodology, procedures and other regulations established by the Ministry of Finance, in accordance with Article 10 of organic Decree Law No. 1,263of 1975 of the Ministry of Finance, on the Financial Administration of the State.
- To participate as an observer in the procedures established to garner the opinion of independent experts on the factors that determine the trend level of the Central Government's revenues and expenditures, in accordance with the provisions of the paragraph 3 of Article 10 of organic Decree Law No. 1,263 of 1975 of the Ministry of Finance, on the Financial Administration of the State, and to review said calculations and express its opinion on them.
- To make observations and propose to the Ministry of Finance methodological and procedural changes for the calculation of the Structural Balance.
- To express its opinion on possible deviations from the fulfillment of Structural Balance targets and propose mitigation measures.
- To evaluate the medium- and long-term sustainability of public finances and make the results of its evaluationsavailable to the public.
- To advise the Ministry of Finance on fiscal matters expressly entrusted by it and that are related to its purpose.
- To carry out reports in relation to the studies, analyzes and other issues that are incumbent on it in accordance with this law, which shall be prepared in digital format. The Council shall send a copy of such reports to the Finance Committee of the Chamber of Deputies and the Senate within a period of five working days from their preparation.
- To hire any studies and consultancy services that are required for the fulfillment of its functions.
- To propose to the Minister of Finance, once a year, the names of members of advisory committees on the reference price of copper and the trend Gross Domestic Product that will occupy the positions that for some reason have become vacant.