New Ministry of Economy and Finance

By Martín Carlevaro and Pedro Lacasa, BKM - BERKEMEYER

On August 23, 2023, Law No. 7158/2023, titled "Establishment of the Ministry of Economy and Finance" (referred to as "the Law"), was officially published in the Official Gazette of Paraguay.

This legislation introduces the creation of a new Ministry within the Executive Branch, known as the Ministry of Economy and Finance. This Ministry is set to encompass three existing entities: i) the Ministry of Finance; ii) the Public Function Secretariat; and iii) the Technical Planning Secretariat.

As outlined in Article 2 of the Law, the Ministry of Economy and Finance is established as a public, normative, and strategic institution tasked with the responsibility of planning, coordinating, and managing sustainable economic development policies. Additionally, it will oversee public sector personnel policies, the organizational development of state agencies and entities, and the administration of state resources.

The Ministry's organizational framework will include the Cabinet of the Minister of Economy and Finance, the Vice Ministry of Economy and Planning, the Vice Ministry of Financial Administration, the Vice Ministry of Human Capital and Organizational Management, and the Treasury Advocacy, as detailed in Article 3.

Among its various functions, the newly established Ministry of Economy and Finance will take on the following responsibilities, in addition to those legally assigned to the entities it absorbs:

-Formulating and defining national economic policy, coordinating it, and monitoring its implementation in collaboration with other state agencies and entities.

-Defining fiscal policy, with a focus on preserving the sustainability of public policies and the financial well-being of the state.

-Regulating the state budgetary and financial processes.

-Managing, leading, administering, and implementing the internal and external borrowing policies of the public sector.

-Interpreting budgetary provisions and ensuring the effective execution of operational processes.

-Exercising sectoral leadership over institutions and units with responsibilities in fiscal and financial management.

-Establishing guidelines and issuing directives to state agencies and entities.

-Formulating, designing, and evaluating sustainable national development plans at both territorial and sectoral levels.

-Designing and updating national development plans.

-Coordinating international technical cooperation programs.

-Developing and monitoring indicators to assess the quality of public expenditure.

-Providing advice and making recommendations to the Executive Branch concerning private initiatives and other entities outside the purview of the Executive Branch.

The Law also specifies that Paraguayan state representation will be handled by the Treasury Advocacy, particularly in matters related to:

-Administrative acts concerning pension rights.

-Legal representation in administrative contentious proceedings for the General Directorates of Persons and Legal Structures, Beneficiary Final, and Cadastre.

-The collection of fines established by law.

-Judicial proceedings related to injunctions, precautionary measures, and constitutional guarantees.

The Law will come into effect on the day following its publication in the Official Gazette, as stipulated in Article 20.

For further information, please contact Martín Carlevaro at martin.carlevaro@berke.com.py and/or Pedro Lacasa at Pedro.Lacasa@berke.com.py.