Political Constitution of Colombia (1991)

The State is the owner of the subsoil and of the natural, non-renewable resources without prejudice to the rights acquired and fulfilled in accordance with prior laws.

Economic activity and private initiative must not be impeded within the limits of the public good. For their exercise, no one may demand prior permission or licenses without authorization of an Act.

Free economic competition is a right of everyone, entailing responsibilities.

The enterprise, as a basis of development, has a social function that implies obligations. The state shall strengthen the joint organizations and stimulate enterprise development.

The State, mandated by an Act, shall check the impediments to or restrictions of economic freedom and shall avoid or control any abuse that individuals or enterprises may create thanks to their dominant position in the national marketplace.

An Act shall delimit the scope of economic freedom when the social interest, the environment, and the cultural patrimony of the nation demand it.

The general management of the economy is the responsibility of the state. By mandate of an Act, the state shall intervene in the exploitation of natural resources, land use, the production, distribution, use, and consumption of goods, and in the public and private services in order to rationalize the economy with the purpose of achieving, at the national and regional level and within the framework of fiscal sustainability, the improvement of the quality of life of the inhabitants, the equitable distribution of opportunities, and the benefits of development and conservation of a healthy environment. The aforementioned framework of fiscal sustainability must function as an instrument for achieving in a progressive manner the objectives of a social State based on the rule of law. In all cases public spending for social purposes shall have priority.

In a special manner, the state shall intervene for the sake of the full employment of the human resources and to ascertain that all individuals, especially those with a low income, may have effective access to all basic goods and services. [It shall] also [intervene] to promote productivity and competitiveness and the harmonious development of the regions.

Fiscal sustainability shall provide guidance to the branches and organs of government, within their competences, in a framework of harmonious collaboration.

When a judgment has been handed down by any of the supreme judicial bodies, the General Prosecutor of the Nation or one of the government ministries may request the initiation of a Financial Impact Assessment, the holding of which shall be obligatory. The explanations of the supporters on the consequences of the judgment on the public finances shall be heard, as well as the concrete plan for its execution, and a decision shall be taken whether to modulate, modify or postpone the effects of the judgment with the objective of preventing serious disturbances to fiscal sustainability. In no case shall the essential core of a fundamental right be affected.

In interpreting the present Article, an authority of an administrative, legislative or judicial character may under no circumstances invoke fiscal sustainability to diminish fundamental rights, reduce their scope of application or eliminate their effective protection.

The financial, stock exchange, insurance, and any other activities related to the handling, exploitation, and investment of the resources referred to in letter (d) of numeral 19 of Article 150 are of public interest and may only be exercised following the prior authorization of the State, in accordance with the applicable statute, which shall regulate the government’s form of intervention in these areas and promote the equitable generalization of credit.

No monopoly may be established except through the free play of the marketplace and to promote the public or social interest and in accordance with applicable statute.

An Act which establishes a monopoly may not be applied before those individuals, who by virtue of it must relinquish the pursuit of a legal economic activity, are fully indemnified.

The organization, administration, control, and exploitation of financial monopolies shall be subjected to a specific regime, determined by an Act of government initiative.

Revenues obtained in the exercise of the monopolies of games of chance shall be earmarked exclusively to the public health services.

Revenues obtained in the exercise of the liquor monopoly shall be earmarked on a preferential basis to the health and educational services.

Tax evasion with respect to revenues originating from financial monopolies shall be sanctioned as a crime within the limits established by statute.

The government shall sell or liquidate the monopolistic enterprises of the State and transfer to third parties the exploitation of their operation when the requirements of efficiency are not met within the limits established by statute.

In all cases the rights acquired by the workers shall be respected.

An Act may establish for the border regions, whether on land or sea, special regulations in economic and social matters tending to promote their development.

In peacetime, only Congress, departmental assemblies, and district and municipal councils may levy fiscal or fiscal-like dues. Statutes, ordinances, and resolutions must determine directly active and passive earnings, the events and bases that are taxable, and the rates of the levies.

Statute, ordinances, and resolutions may permit that the authorities determine the rate of taxes and levies that are collected from taxpayers to offset the costs of the services which the authorities provide or participation in the benefits that pertain to them; but the system and the method to define such costs and benefits and the manner of allocating them must be determined by statute, ordinances, or resolutions.

The statutes, ordinances, or resolutions that regulate levies based on the result of taxable events occurring during a specific period may not be reapplied except from the date following the entering into effect of the respective law, ordinance, or resolution.

There shall be a National Development Plan consisting of a general part and a plan of investments of the national public entities. In the general part the long-term national purposes and objectives, the parameters and priorities for State action in the medium term, and the strategies and general orientations of economic, environmental and social policy to be adopted by the government shall be laid down. The public investment plan shall contain the multi-year budgets of the principal programs and national public investment projects, and the specification of the financial resources required for their execution, within a framework which ensures fiscal sustainability.

The territorial entities shall elaborate and adopt in a concerted manner between them and the National Government development plans with the purpose of ensuring the efficient use of their resources, the development of strategies in the fight against poverty and the adequate execution of the functions assigned to them by the Constitution and statute. The plans of the territorial entities shall consist of a strategic plan and a plan for short and long term investments.

There shall be a National Planning Council made up of the representatives of the territorial entities and of the economic, social, ecological, community, and cultural sectors. The Council shall have a consultative character and shall serve as a forum for the discussion of the National Development Plan.

The members of the National Council shall be designated by the President of the Republic from lists presented to him/her by the authorities and organizations of the entities and sectors referred to in the previous clause which are or have been involved in said activities. Their term shall be of eight years, and every four years the Council shall be renovated in part in the form established by statute.

In the territorial entities there shall also be planning councils, in accordance with the relevant statute.

The National Council and the territorial planning councils constitute the National Planning System.

The government shall elaborate the National Development Plan with the active participation of the planning authorities, of the territorial entities and the Judicial Government Council and shall submit the draft plan to the National Planning Council for its views. After receiving the opinion of the Council, it shall proceed to effect those amendments that it considers appropriate and shall present the plan to the consideration of Congress within six months following the initiation of the respective presidential term.

Based on the report that the joint committees of economic affairs draw up, each House shall discuss and evaluate the plan in plenary session. Disagreements about the content of the general part, if there were any, shall not prevent the government from executing the proposed policies in matters falling under its jurisdiction. However, should the government decide to amend the general part of the plan, it shall follow the procedure indicated in the Article that follows.

The National Investment Plan shall be enacted by means of a law which shall have priority over the other laws; consequently, its mandates shall constitute suitable means for its execution and shall supplement existing ones without the need for issuing subsequent laws. Nevertheless, in the annual budgetary laws it shall be possible to increase or decrease the shares and resources approved in the planning law. If Congress does not approve the National Public Investment Plan within three months following its presentation, the Government may put it into effect through a decree having the force of law.

Congress may modify the Public Investment Plan as long as the financial balance is maintained. Any increase of borrowing authorizations requested in the governmental draft plan or the inclusion of investment plans not considered by the latter shall require the approval of the national Government.

The appropriate Institutional Act shall regulate everything concerned with the procedures of the drafting, approval, and execution of the development plans and shall use the assigned mechanisms for their harmonization and for the alignment of the official budgets with them. It shall also determine the organization and functions of the National Planning Council and of the territorial councils as well as the procedures in accordance with which citizens’ participation shall be effective in the discussion of the development plans and the appropriate modifications, in accordance with what is established in the Constitution.

The national planning entity indicated by the relevant statute shall be responsible for the planning and organization of the systems of evaluation of the management and performance of the public administration, both with regard to investment policies and investment plans under the terms that it defines.

The departmental planning organs shall make the evaluation of management and performance concerning the planning, development, and investment programs of the departments and municipalities and shall participate in the preparation of the budgets of the latter in the limits stipulated by the relevant Act.

In each case, the national planning organ may, in selective manner, carry out said evaluation of any territorial entity.

In peacetime, it is not permitted to collect levies or taxes that are not included in the revenues of the budget or to make payments from Treasury funds which are not included in the budgetary expenditures.

Nor may any public expenditure be incurred that has not been decreed by Congress, the departmental assemblies, or the district or municipal councils, or any credit transferred which is not projected in the respective budget.

The Government shall formulate annually the Revenues Budget and Appropriations Law which shall be presented to Congress within the first 10 days of each legislature. The Revenues Budget and Appropriations Law must be drafted, presented and approved within a framework of fiscal sustainability and be in conformity with the National Development Plan.

In the Appropriations Law, no part whatsoever may be included that does not correspond to a legally recognized credit or an expenditure decreed in accordance with an earlier law or a budget for the Government to duly serve the functioning of the branches of government, the servicing of the debt, or earmarked to implement the National Development Plan.

The economic committees of the two Houses shall deliberate jointly to give the first reading to the proposed Revenues Budget and Appropriations Law.

The appropriations bill shall include the totality of the expenditure which the State plans to implement during the respective fiscal period. If the legally authorized revenues are not sufficient to cover the projected expenditure, the Government shall propose separately, before the same committees that are considering the budget bill, the creation of new revenues or the modification of existing ones to finance the amount of contemplated expenditure.

The budget may be approved without the completion of the bill raising additional revenues which progress may continue in the subsequent legislative term.

During the years 2002, 2003, 2004, 2005, 2006, 2007, and 2008 the total amount of the appropriations authorized by the annual budget law for general expenditures, other than those earmarked for the payment of pensions, health [costs], defense expenditure, personal services, of the General System of Shares and for other transfers determined by the relevant Act, may not be increased from one year to another by a percentage superior to the inflation rate resulting for each of them, plus one point five percent (1.5%).

The limitation of the amount of appropriations shall not apply to those [appropriations] necessary to meet the expenditure decreed by using the powers under a State of Exception.

If Congress does not issue the budget, the one presented by the government shall apply within the limits of the preceding article; should the budget not be presented by the same deadline, that of the previous year shall apply, but the government may reduce expenditures and consequently eliminate or reshuffle jobs when the computations of the revenues of the new fiscal year so mandate.

During the first three months of each legislature and strictly in accordance with the rules of the Institutional Act, Congress shall discuss and issue the General Revenues Budget and Appropriations Law.

Estimates of the revenues, credit resources, and proceeds of the Treasury balance may not be increased by Congress except following the prior opinion and favorable endorsement of the appropriate minister.

The Appropriations Law shall have a component entitled public social expenditure that shall consolidate the parts of such a nature according to a definition made by the respective Institutional Act. Except in case of foreign war or for reasons of national security, public social expenditure shall have priority over any other allocation.

In the territorial distribution of the public social expenditures, account shall be taken of the number of individuals with unsatisfied basic needs, the population, and fiscal administrative efficiency, according to the regulations mandated by an Act.

The investment budget may not be reduced percentagewise compared to the earlier year with respect to the total expenditure of the corresponding Appropriations Law.

The Congress may not increase any of the sections of the estimated budgetary expenditures proposed by the Government or include a new section except with the written consent of the appropriate minister.

The Congress may eliminate or reduce parts of the expenditures proposed by the government with the exception of those needed for the servicing of the public debt, the other contractual obligations of the State, integral funding of the ordinary services of the administration, and the investments authorized in the plans and programs referred to in Article 341.

Should the computation of revenues increase or should some of the parts of the respective estimate be eliminated, the amounts made available in this manner, without exceeding their aggregate, may be applied to other investments or authorized outlays in accordance with what is prescribed in the final clause of Article 349 of the Constitution.

In addition to what is mentioned in this Constitution, the Institutional Act of the Budget shall regulate matters corresponding to the programming, approval, modification, and execution of the budgets of the nation, of the territorial entities, and those decentralized entities of any administrative level and their coordination with the National Development Plan as well as the capacity of the organs and state entities to enter into contracts.

The principles and provisions established in this title shall apply, as far as they are pertinent, to the territorial entities for the elaboration, approval, and execution of their budget.

There shall be a General Accountant, an official of the executive branch, who shall be responsible for the general accounting of the nation and shall consolidate the territories or services of the nation with that of its decentralized entities, no matter what the level to which they may belong, except for the execution of the budget, over which the Office of the Controller has jurisdiction.

The functions of streamlining, centralizing, and consolidating the public accounting system, elaborating on the general balance, and determining the accounting principles that must apply in the country, in accordance with the relevant statute, are the responsibility of the General Accountant.

Six months following the close of the fiscal year, the national government shall send to Congress the budgetary balance, audited by the Office of the Controller General of the Republic, for its information and analysis.

None of the branches or organs of government may decree subsidies or donations in favor of individuals or legal entities in the private sector.

At the national, departmental, district, and municipal levels, the government may, with the resources of the respective budgets, sign contracts with non-profit private entities and of recognized capability in order to promote programs and activities of public interest, in accordance with the National Plan and the sectional development plans. The National Government shall regulate the matter.