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Und 2 - Act 2 - Finanzas Publicas
Und 2 - Act 2 - Finanzas Publicas
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EXERCISE 2: PUBLIC FINANCES
INTRODUCTION
In this work, the matrix will be developed on the factors that create its state and
administrative structure, it will aim to explain these important functions performed by
many different powers. Regulating the laws and histories in our country, therefore, this
problem is also Based on social functions, all actions carried out by state agencies to
achieve their goals. And just to show a delegation or concession, unity, unity; However, it
should be noted that the public function means that state activities can never be invented,
and also related to the economy and the dictatorship to create financial institutions or other
institutions or other institutions or others.
In this activity we will learn about the administrative and financial structure of
Colombia, and realize the importance of each of the functions that each body that composes
it has, since this affects the country economically and socially to all its inhabitants. We will
know the entities in charge of controlling that everything works properly.
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EXERCISE 2: PUBLIC FINANCES
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EXERCISE 2: PUBLIC FINANCES
It changed the transfer model from the Value Added Tax to the transfer of a share in
the current income of the nation in order to increase the budget items of
decentralized entities. This new regime of fiscal decentralization contained a direct
addressing of the transferred budgets, restricting the autonomy of the territorial
entities and chaining a direct budget to each one of the responsibilities.
Law 60 of 1993, consolidated in the country the internal competition between the
different territorial entities for the resources transferred from the Current Income of the
Nation according to the specific and eventual need in order to generate an efficient and
effective system in the allocation of the resources. On the other hand, but in correlation
with fiscal decentralization, the National Royalties Fund was established in which a
payment was established to the different territorial entities for possible environmental
liabilities due to the exploitation of natural resources and the promotion of this sector in the
different territories. Let us remember that this fund has the purpose of harmonizing the
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EXERCISE 2: PUBLIC FINANCES
exploitation of natural resources and in particular the mining-energy resources that were
positioned during the decade of the 90s and the first two decades of the 21st century as the
main sector of exploitation and of tax resources in the country.
This reform of the labor regime, and health and social security contemplated:
Analyzing this reform, we conclude that Law 100 made a total change in the way in
which resources were financed in the country and additionally in how the social
security system was applied, for which it transferred the responsibility of the State
to provide fundamental rights to the laws of the market. The health system reform
was intended to avoid the state's monopoly on health and allow the right of
competition with the incorporation of health providers; The creation of pension fund
management companies was also authorized, in charge of managing the resources
destined to pay the pensions of members who choose to retire with the individual
savings system, which led to an increase in corruption and lack of protection of the
population by territorialized entities. With reference to the labor regime, the policies
focused on the reduction of labor costs, and the flexibility and lack of protection of
the State.
It establishes the categorization of the territorial entities taking into account their
capacity for administrative and fiscal management, according to their population
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EXERCISE 2: PUBLIC FINANCES
and current income of free destination; with the objective of establishing a fiscal
consolidation in the territorial entities, in which the operating expenses of the
territorial entities must be financed with their current income of free destination, in
such a way that these are sufficient to meet their current obligations, provision the
liabilities benefits, pensions and finance, at least partially, their autonomous public
investment. For this reason, during each fiscal term, the operating expenses of the
districts and municipalities may not exceed as a proportion of their current income
of free destination.
We chose this reform because it leads us to analyze the impact that the entry into
force of the aforementioned law has had on the dynamics of the public finances of
all the municipalities of the Colombian state, since before the issuance of said fiscal
adjustment law, the municipalities were categorized according to fiscal income,
including the resources transferred by the Nation. However, from Law 617, it was
established that the categorization of the municipalities will be carried out according
to the current income of free destination, thus generating, that the territorial entities
of the department are obliged to generate greater resources and comply with the
fixed budget ceilings. for operating expenses, to prevent declines in their categories
and thus avoid lower amounts of resources transferred by the Nation in the
following years.
The decentralization process of the transfer system was carried out to delegate
autonomy to the country's territorial entities. Parallel to budget decentralization, the
administration of education, as an elementary public service, moved away from the
exclusive management of the Ministry of Education to deliver the educational
policy to the Secretaries of Education of the country's departments. Said
transformation was carried out in line with multiple theories that suggested that
decentralization would be the best way to improve the effectiveness of the State
through rapprochement with the citizen population.
We chose this law that has given rise to one of the many decentralization processes
of the Colombian state because it proposes a series of important modifications in the
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EXERCISE 2: PUBLIC FINANCES
1.5 Law 1430 of 2010, Law 1739 of 2014 and Law 1819 of 2017.
In these reforms, the taxable margin of wealth and income taxes is extended, new
deductions and reductions are generated for large capitals, in particular the mining-
energy sector, the Value Added Tax is increased from 16% to 19% and the Carbon
tax as income generation of the green economy in Colombia. These reforms
continue with the dynamics of transferring tax burdens and the reduction and
deduction of taxes on capital investment.
These policies widen the margin of decentralization towards the market with partial
privatization of neuralgic public entities and sectors, advance in the deepening of a
fiscal system alien to the dynamics of redistribution, and confront fiscal and
administrative decentralization to generate spaces for virtuous accumulation in
which companies receive state, regional and local support in the exploitation of
natural resources.
Likewise, in the case of the royalty regime, Law 1530 of 2012 was issued in which
the nation's royalties were distributed in a more equitable manner between territorial
entities focused on the extraction of mining-energy resources and those that do not
fundamentally develop these projects. This Law was understood as a loss of
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EXERCISE 2: PUBLIC FINANCES
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EXERCISE 2: PUBLIC FINANCES
⮚ administrative decentralization
⮚ Political Decentralization
It is the capacity that is given to the territorial governments on the election and the
different decision-making on the development of the different policies.
⮚ Territorial decentralization
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EXERCISE 2: PUBLIC FINANCES
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EXERCISE 2: PUBLIC FINANCES
LEGISLATIVE
BRANCH
Pronouncem
Legal ent of Comparative
framework congressmen law
Senators
Constitutional Laws
Constitutional Laws
The function of the legislative branch is to formulate laws, exercise control over the
government and reform the political constitution. “It has a bicameral structure (Upper
House represented by the Senate and Lower House represented by the Chamber of the
Republic) that integrates Congress into the Senate and the House of Representatives.
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EXERCISE 2: PUBLIC FINANCES
Represented by a popularly elected public corporation called the Congress of the Republic.
(Bara,2006).
EXECUTIVE
BRANCH
The role of this branch is enshrined in article 115 of the National Constitution. This
organization Organized at the head of the President of the Republic, it is composed of
governors, mayors and ministries, mainly. As its name indicates, it is responsible for
executing in a coordinated manner.
JUDICIAL BRANCH
Supreme Court
of Justice
Council of state
Supreme Council of
the Judiciary
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EXERCISE 2: PUBLIC FINANCES
CONTROL BODIES
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EXERCISE 2: PUBLIC FINANCES
These are:
● Public Ministry: Office of the Attorney General of the Nation, Ombudsman, and
district and municipal ombudsman.
● Comptroller General of the Republic: welfare fund of the Comptroller General of
the Republic.
● Territorial controllers.
● General Audit of the Republic.
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EXERCISE 2: PUBLIC FINANCES
STATE AGENCIES
The Administrative Department of the Public Function is the technical, strategic and
transversal entity of the National Government that contributes to the well-being of
Colombians through the continuous improvement of the management of public servants
and institutions throughout the national territory, this Administrative Department of the
Public Function Publican issued Decree 952 of 2021, which establishes that 90% of the
experience obtained by law.
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EXERCISE 2: PUBLIC FINANCES
In accordance with Law 617 of 2000, the Colombian state categorizes the territorial
structure as follows:
DEPARTMENTS
The classification will be prioritized by the level of current annual free destination income
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EXERCISE 2: PUBLIC FINANCES
The classification will be prioritized by the level of current annual free destination income
The operating expenses of the departments and municipalities will depend on the
assigned category and can be between 50% and 70% in the departments and between 50%
and 80% for the municipalities.
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EXERCISE 2: PUBLIC FINANCES
Decentralized entities
They also integrate the executive branch and are responsible for fulfilling functions
that correspond to the state. Due to the decentralization of functions, they have autonomy to
carry out their activities and enjoy the prerogatives granted to them by the law that creates
them.
Public establishments
i) legal personality;
iii) independent patrimony, constituted with common public goods or funds, the product of
taxes, contractual rents, own income, rates or contributions of special destination, in the
cases authorized by the Constitution and in the pertinent legal provisions (Law 489, 1998,
article 70). They are entities created by law or authorized by it and that perform
administrative functions.
Characteristic
• They are created by Congress, or by the President, after delegation by the legislative
body.
• They have an independent patrimony that can be constituted with public goods or funds or
with the proceeds of taxes or rates intended for their operation.
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EXERCISE 2: PUBLIC FINANCES
Examples
• National University.
Characteristic
● The regulations of private law apply to them, except for the exceptions determined
by law.
● They are headed by a manager or director who is appointed by the President of the
Republic.
● They have legal status.
● They have administrative autonomy.
● Its capital is made up of public funds or by the yield of taxes or fees intended for
that purpose
Examples
● Ecopetrol.
● Carbocol.
● Servicio aéreo a territorios nacionales SATENA.
Like the industrial and commercial companies of the state, they develop this type of
activity, but they differ from these in that the resources for their operation are constituted
by state capital and private capital.
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EXERCISE 2: PUBLIC FINANCES
Characteristic
• The participation of the state is regulated by the law that creates the entity.
Examples:
● Banco Ganadero.
● Banco Central Hipotecario.
These models apply to both the central state and the territorial state.
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EXERCISE 2: PUBLIC FINANCES
CONCLUSIONS
From this document we can conclude the importance of the structure of the State,
the special functions that each state branch fulfills, the territorial organization from the
functional and the budgetary, facts that directly influence the development of society.
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