SPECIAL SUPPLEMENT YEAR OF DIALOGUE AND NATIONAL RECONCILIATION Thursday, December 6, 2018

LAW No. 30879 PUBLIC SECTOR BUDGET LAW FOR FISCAL YEAR 2019

LAW No. 30880 FINANCIAL BALANCE LAW OF THE PUBLIC SECTOR BUDGET FOR FISCAL YEAR 2019

LAW No. 30881 PUBLIC SECTOR DEBT LAW FOR FISCAL YEAR 2019

2 LEGAL NORMS Thursday, December 6, 2018 / El Peruano

El Peruano / Thursday, December 6, 2018 LEGAL NORMS 3

LAW No. 30879

THE PRESIDENT OF THE REPUBLIC WHEREAS:

THE CONGRESS OF THE REPUBLIC; Has enacted the following Law:

PUBLIC SECTOR BUDGET LAW FOR FISCAL YEAR 2019

CHAPTER I APPROVAL OF THE PUBLIC SECTOR BUDGET

Article 1. Annual Expenditure Budget for Fiscal Year 2019 1.1. The Annual Expenditure Budget for Fiscal Year 2019 is approved for the amount of S/ 168,074,407,244.00 (ONE HUNDRED SIXTY-EIGHT MILLION SEVENTY-FOUR MILLION FOUR HUNDRED SEVEN THOUSAND TWO HUNDRED FORTY-FOUR AND 00/100 SOLES), which comprises the maximum budgetary credits corresponding to the budgetary units of the National Government, regional governments, and local governments, grouped into Central Government and decentralized instances, in accordance with the Political Constitution of Peru and according to the following detail:

CENTRAL GOVERNMENT Soles Corresponding to the National Government 118,227,641,778.00 Current expenditures 74,811,037,564.00 Capital expenditures 28,983,108,063.00 Debt service 14,433,496,151.00

DECENTRALIZED INSTANCES Soles Corresponding to regional governments 29,915,914,285.00 Current expenditures 22,682,409,515.00 Capital expenditures 6,943,879,789.00 Debt service 289,624,981.00 Corresponding to local governments 19,930,851,181.00 Current expenditures 11,286,922,387.00 Capital expenditures 8,289,344,021.00 Debt service 354,584,773.00

TOTAL S/ 168,074,407,244.00

1.2. The budgetary credits corresponding to the National Government, regional governments, and local governments are detailed in the annexes that form part of this law as follows:

DESCRIPTION ANNEX Distribution of public sector budget expenditure by category and generic expenditure. 1 Distribution of public sector budget expenditure by government level and generic expenditure. 2 Distribution of public sector budget expenditure by government level and functions. 3 Distribution of public sector budget expenditure by government levels, units, and financing sources. 4 Distribution of public sector budget expenditure by National Government units at the level of products, projects, and activities. 5 Distribution of public sector budget expenditure by Regional Government at the level of products, projects, and activities. 6 Distribution of public sector budget expenditure by local governments and generic expenditure. 7 Distribution of public sector budget expenditure by budgetary programs and units. 8

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Financing for the continuity of execution 2019 I of investments and projects that received resources under the framework of articles 13 and 14 and the final complementary provision sixtieth-seventh of Law 30693 Financing for interventions of the Plan of the II Reconstruction with Changes charged to Fondes resources Financing of investments in road, air, and port infrastructure III

1.3. The subsidies and international quotas to be granted during Fiscal Year 2019 by the budgetary units are contained in the annexes: “A: Subsidies for Legal Entities - Fiscal Year 2019” and “B: International Quotas - Fiscal Year 2019” of this law. During Fiscal Year 2019, prior to evaluation and prioritization by the Ministry of Foreign Relations, Annex B may be modified by supreme decree countersigned by the Minister of Foreign Relations, which does not include the inclusion of additional quotas to those contemplated in said annex. International quotas not contemplated in Annex B of this law are approved according to the formality provided in numeral 69.2 of article 69 of Legislative Decree 1440, Legislative Decree of the National Public Budget System.

Article 2. Resources that finance the Public Sector Budget for Fiscal Year 2019 The resources that finance the Public Sector Budget for Fiscal Year 2019 are estimated by financing sources, for a total amount of S/ 168,074,407,244.00 (ONE HUNDRED SIXTY-EIGHT MILLION SEVENTY-FOUR MILLION FOUR HUNDRED SEVEN THOUSAND TWO HUNDRED FORTY-FOUR AND 00/100 SOLES), according to the following detail:

Financing Sources Soles Ordinary resources 105,797,700,000.00 Directly collected resources 14,943,022,743.00 Resources from official credit operations 25,013,136,993.00 Donations and transfers 491,733,793.00 Determined resources 21,828,813,715.00

TOTAL S/ 168,074,407,244.00

CHAPTER II NORMS FOR BUDGETARY MANAGEMENT

SUBCHAPTER I GENERAL PROVISIONS

Article 3. Scope The provisions contained in this chapter are mandatory for the entities comprising the Legislative, Executive, and Judicial Branches; Public Ministry; National Jury of Elections; National Office of Electoral Processes; National Registry of Identification and Civil Status; Comptroller General of the Republic; National Council of the Magistracy; Ombudsman's Office; Constitutional Court; public universities; and other entities and organisms that have a budgetary credit approved in this law. Likewise, they are mandatory for regional governments and local governments and their respective public organisms.

Article 4. Administrative actions in the execution of public expenditure 4.1. Public entities subject the execution of their expenditures to the budgetary credits authorized in the Public Sector Budget Law, approved by the Congress of the Republic and its amendments, within the framework of article 78 of the Political Constitution of Peru and paragraph 1 of numeral 2.1 of article 2 of Legislative Decree 1440, Legislative Decree of the National Public Budget System. 4.2. Any administrative act, act of administration, or administrative resolutions that authorize expenditures are not effective if they do not have the corresponding budgetary credit in the institutional budget or condition the same to the assignment of greater budgetary credits, under the exclusive responsibility of the head of the entity, as well as the head of the Budget Office and the head of the Administration Office, or those acting in their stead, within the framework of what is established in Legislative Decree 1440, Legislative Decree of the National Public Budget System.

Article 5. Control of public expenditure 5.1. The heads of public entities, the head of the Budget Office, and the head of the Administration Office, or those acting in their stead in the budgetary unit, are responsible for the proper application of what is established in this law, within the framework of the principle of legality, collected in article IV of the Preliminary Title of Law 27444, General Administrative Procedure Law, modified by Legislative Decree 1272. It corresponds to the unit head to carry out budgetary management, in the phases of programming, formulation, approval, execution, and evaluation, and control of expenditure, within the framework of what is established in paragraph 1, numeral 7.3 of article 7 of Legislative Decree 1440, Legislative Decree of the National Public Budget System. 5.2. The Comptroller General of the Republic verifies compliance with what is established in this law and the other provisions linked to public expenditure in concordance with article 82 of the Political Constitution of Peru. Likewise, and under responsibility, for expenditure executed through the results-based budget, it must verify its compliance under this strategy. The result of the actions carried out in compliance with what is established in this numeral is reported to the Budget and General Account of the Republic Commission of the Congress of the Republic, in the shortest possible time.

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SUBCHAPTER II PERSONNEL INCOME EXPENDITURE

Article 6. Personnel income It is prohibited in the entities of the National Government, regional governments, and local governments, Public Ministry; National Jury of Elections; National Office of Electoral Processes; National Registry of Identification and Civil Status; Comptroller General of the Republic; National Council of the Magistracy; Ombudsman's Office; Constitutional Court; public universities; and other entities and organisms that have a budgetary credit approved in this law, the readjustment or increase of remuneration, bonuses, benefits, per diems, allowances, retributions, incentives, compensations, and concepts of any nature, regardless of their form, modality, periodicity, and source of financing. Likewise, the approval of new bonuses, benefits, allowances, incentives, stimuli, retributions, per diems, economic compensations, and concepts of any nature with the same characteristics mentioned above is prohibited. Arbitrations in labor matters are subject to the legal limitations established by this norm and current legal provisions. The prohibition includes the increase in remuneration that could be carried out within the range or cap fixed for each position in the respective remuneration scales.

Article 7. Christmas bonuses, gratifications, and school allowances 7.1. Officials and employees appointed and contracted under the regime of Legislative Decree 276, Law 29944, and Law 30512; university teachers referred to in Law 30220; health personnel referred to in numeral 3.2 of article 3 of Legislative Decree 1153; permanent and occasional workers of the Public Sector; personnel of the Armed Forces and the National Police of Peru; and pensioners under the State included in the regimes of Law 15117, Laws 19846 and 20530, Supreme Decree 051-88-PCM, and Law 28091, within the framework of paragraph 1 of article 17 of Legislative Decree 1442, Legislative Decree of the Fiscal Management of Human Resources in the Public Sector, receive in Fiscal Year 2019 the following concepts: a) Christmas bonuses for Independence Day and Christmas, which are included in the payroll corresponding to July and December, respectively, whose amounts amount to, each, up to the sum of S/ 300.00 (THREE HUNDRED AND 00/100 SOLES). b) The school allowance, which is included in the payroll corresponding to January and whose amount amounts to up to the sum of S/ 400.00 (FOUR HUNDRED AND 00/100 SOLES). 7.2. Public entities that have personnel under the private activity labor regime are subject to what is established in Law 27735 for the payment of gratifications corresponding to Independence Day and Christmas in July and December, respectively. Likewise, they grant the school allowance up to the amount indicated in paragraph b) of numeral 7.1, unless, by legal provision, they have been delivering a different amount than that indicated in the cited paragraph. 7.3. Workers contracted under the Special Labor Regime of Legislative Decree 1057, within the framework of Law 29849, receive for the concept of Christmas bonus for Independence Day and Christmas, which are included in the payroll corresponding to July and December, respectively, up to the amount referred to in paragraph a) of numeral 7.1. For this effect, said workers must be registered in the Computer Application for the Centralized Registry of Payrolls and Data of Human Resources of the Public Sector under the General Directorate of Fiscal Management of Human Resources of the Ministry of Economy and Finance. 7.4. It is clarified with respect to numeral 7.1 that, within the framework of what is established by articles 106 and 109 of Law 30512, teachers, assistants, and auxiliaries contracted in public higher education institutes and schools only receive, as applicable, the concepts disposed of in paragraph e) of article 106 and in paragraph d) of article 109 of the aforementioned law, according to the amount established in paragraph a) of numeral 7.1 of this article.

SUBCHAPTER III AUSTERITY, DISCIPLINE, AND QUALITY MEASURES IN PUBLIC EXPENDITURE

Article 8. Measures in personnel matters 8.1. The entry of personnel into the Public Sector for personal services and appointment is prohibited, except in the following cases: a) The designation in positions of trust and senior management freely appointed and removed, in accordance with the entity's management documents, Law 28175 -Framework Law of Public Employment- and other regulations on the matter, while Law 30057, Civil Service Law, is implemented in the respective entities. b) Appointment in budgeted positions when it concerns magistrates of the Judicial Branch and prosecutors of the Public Ministry, teachers of the National Teaching Corps, as well as personnel graduating from the schools of the Armed Forces and the National Police of Peru and the Diplomatic Academy and the surgeons of the Institute of Legal Medicine and Forensic Sciences of the Public Ministry. c) Contracting for replacement due to resignation, for temporary substitution of Public Sector employees, or for the promotion or advancement of personnel, while Law 30057, Civil Service Law, is implemented in the respective entities, in the cases that correspond. In the case of replacements due to resignation of personnel, this includes the resignation that may have occurred since the year 2017, it being necessary to take into account that entry into the public administration necessarily takes place through a public merit competition and subject to the respective management documents. Vacant positions for replacement due to resignation of personnel that do not have the corresponding financing are eliminated from the Centralized Registry of Payrolls and Data of Human Resources of the Public Sector under the General Directorate of Fiscal Management of Human Resources of the Ministry of Economy and Finance. In the case of promotion or advancement of personnel, entities must take into account, prior to carrying out said personnel action, what is established in paragraph b) of the third transitory provision of Law 28411, General Law of the National Budget System. In the case of personnel substitution, once the holder of the position is reinstated, the respective contracts are automatically terminated. The promotion or advancement referred to in this paragraph, for the case of university teachers, is only applicable to those universities that are in the process of constitution or have concluded the process of adapting the government of the public university, as provided in article 29 and the first transitory complementary provision of Law 30220, University Law. It is clarified that what is established in this paragraph does not authorize public entities to contract or appoint personnel in new positions that may be created.

6 LEGAL NORMS Thursday, December 6, 2018 / El Peruano d) Appointment in budgeted positions when it concerns university teachers. What is established in this paragraph is only applicable to those universities that are in the process of constitution or have concluded the process of adapting the government of the public university, as provided in article 29 and the first transitory complementary provision of Law 30220, University Law, respectively. e) The assignment of public managers, in accordance with the corresponding certification of budgetary credit granted by the destination entity and the National Authority of Civil Service (SERVIR), charged to the institutional budget of said units, and until the completion of the implementation process of Law 30057, Civil Service Law, in the respective entities. f) Contracting in validated and budgeted positions of university teachers in public universities that are in the process of constitution or have concluded the process of adapting the government of the public university as provided in article 29 and the first transitory complementary provision of Law 30220, University Law, respectively. g) The appointment of the judges and reporting secretaries of the Tax Court referred to in article 99 of the Single Text of the Tax Code, approved by Supreme Decree 133-2013-EF. h) The temporary contracting of teaching staff in public basic education and technical-productive education educational institutions, within the framework of Law 30328, Law that establishes measures in educational matters and enacts other provisions, and its complementary provisions, which is carried out in vacant positions codified in the Nexus Slot Administration and Control System of the Ministry of Education. i) The temporary contracting in budgeted positions of education auxiliaries, as established in Law 30493, Law that regulates the remuneration policy of the education auxiliary in public educational institutions, within the framework of Law 29944, Teacher Reform Law, and its complementary provisions, which is carried out in vacant positions codified in the Nexus Slot Administration and Control System of the Ministry of Education. j) The temporary contracting of teachers in the labor performance areas of teaching and pedagogical management in public institutes and schools of higher education, included under the scope of Law 30512, Law of Institutes and Schools of Higher Education and the Public Career of their Teachers, and in public schools of artistic higher education, which is carried out in vacant positions codified in the Nexus Slot Administration and Control System of the Ministry of Education. k) The contracting, under the private activity labor regime, of auxiliary inspectors, labor inspectors, and supervising inspectors, of the National Superintendence of Labor Inspection (SUNAFIL). l) The entry of personnel by mandate of judicial sentences in the quality of res judicata.

8.2. For the application of the exception cases established from paragraph a) to paragraph l), it is a requirement that the positions or posts to be occupied are approved in the Personnel Assignment Chart (CAP), the Provisional Personnel Assignment Chart (CAP Provisional), or the Entity Position Chart (CPE), and in the Analytical Personnel Budget (PAP), as applicable, as well as that the positions or posts to be occupied are registered in the Computer Application for the Centralized Registry of Payrolls and Data of Human Resources of the Public Sector under the General Directorate of Fiscal Management of Human Resources of the Ministry of Economy and Finance, and that they have the respective certification of the budgetary credit. Likewise, prior to the call for public competitions when these correspond, in the exception cases established from paragraph a) to paragraph l), it is necessary to have the favorable report of the General Budget Office of the entity that will finance the expenditure, in which it is indicated, among other aspects, that said entity has sufficient budgetary credits to finance said expenditure and its sustainability in the following fiscal years. This obligation is also applicable to the appointment of magistrates of the Judicial Branch and prosecutors of the Public Ministry, under the responsibility of the National Council of the Magistracy, in which case a favorable report from the Budget Office of the Judicial Branch and the Public Ministry, respectively, is required.

8.3. Additionally, for the promotion or advancement established in paragraph c) of numeral 8.1 in the case of teachers of the National Teaching Corps and university teachers, for the appointment of university teachers referred to in paragraph d) of numeral 8.1, as well as for the appointment of magistrates of the Judicial Branch and prosecutors of the Public Ministry, under the responsibility of the National Council of the Magistracy, prior to carrying out said personnel actions, it is necessary the favorable report of the General Directorate of Public Budget and the technical report of the General Directorate of Fiscal Management of Human Resources linked to the information registered in the Computer Application for the Centralized Registry of Payrolls and Data of Human Resources of the Public Sector for the case of the National Government and regional governments.

8.4. It is exceptionally provided that, for the case of the Early Intervention Programs (PRITE) of public Special Basic Education, the evaluation and validation of the needs of the teacher positions of said programs by the Ministry of Education, referred to in paragraph h) of numeral 8.1, is carried out based on the nominative roster of students sent by regional governments and validated by the Ministry of Education.

8.5. It is exceptionally provided that, for the case of the educational institutions referred to in paragraph j) of numeral 8.1 of this article, the evaluation and validation of the needs of new positions by the Ministry of Education referred to in article 16 of Law 30281, Public Sector Budget Law for Fiscal Year 2015, is carried out based on the nominative roster of students registered in the information system administered by the Ministry of Education or, in default, based on the nominative roster of students sent by regional governments, and validated by the Ministry of Education.

8.6. The complementary provisions that are necessary for the application of what is established in paragraphs c), d), f), h), i), and j) of numeral 8.1 of this article are approved by supreme decree countersigned by the Minister of Economy and Finance, and the Minister of Education, upon proposal by the latter.

8.7. Public entities, regardless of the labor regime that regulates them, are not authorized to incur expenditures for the concept of overtime hours.

Article 9. Measures in matters of budgetary modifications at the programmatic functional level 9.1. At the unit level, Expenditure Item 2.1.1 “Remuneration and Cash Complements” cannot enable other expenditure items nor be enabled, except for the enabling that takes place within the indicated item in the same executing unit or between executing units of the same unit. During budget execution, this restriction does not include the following cases: a) Creation, deactivation, fusion, or restructuring of entities. b) Transfer d

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