Congressional approval of the changes to the Budget Code. The revision will (a) adopt a budget classification according to international standards that fits into the context of Colombia's legal framework; (b) require that the annual budget law include information on tax expenditures, quasifiscal activities, subsidies, contingent fiscal liabilities, medium-term fiscal projections, and a fiscal sustainability analysis; (c) establish a mid-year budget report to Congress; (d) gradually phase out most revenue earmarking not mandated by the constitution by subjecting these earmarking provisions to explicit sunset provisions; (e) limit the budget carry over by eliminating the "reserva presupuestal;" and (f) limit the power of the government to make spending commitments for future years on projects not authorized under the Development Plan.
At P1R1, not observed, and waiver granted. Several of these issues have been addressed in the context of the Fiscal Responsibility Law approved in 2003. The authorities are reducing the budget carry over, and will begin to limit revenue earmarking in the context of a decree and draft legislation.