THE ECONOMIC SYSTEM

CHAPTER I  OF THE ECONOMIC SYSTEM

Article 328.- The Economic System of Honduras is based on principles of efficiency in production and social justice in the distribution of wealth and income, as well as in the harmonious coexistence of the factors of production that make possible the dignity of work as the main source of wealth and as a means of implementation of the human person .

Article 329.- The State promotes the economic and social development, which will be subject to a proper planning. The law shall regulate the system and planning process with the participation of the powers of the State and political organizations, economic and social, duly represented.

Article 330.- The national economy is based on the democratic coexistence and harmonious coexistence of various forms of ownership and company.

Article 331.- The State recognizes , guarantees and promotes the freedoms of consumption, savings, investment, occupation, initiative, trade, industry, recruitment of company and any other emanating from the principles that inform this Constitution. However, the exercise of those freedoms may not be contrary to the social interest nor detrimental to the moral, health or the public security.

Article 332.- The exercise of the economic activities rests primarily with the individuals. However , the State, for reasons of public order and social interest, may reserve the exercise of certain basic industries, farms and public services and dictate measures and economic laws, prosecutors and public security, to channel, stimulate, to monitor, direct and supplement the private initiative, based on sound economic policies and planned.

Article 333.- State intervention in the economy will have to base the public interest and social, and limit the rights and freedoms recognized by the Constitution.

Article 334.- companies be subject to inspection and monitoring of a Supersociedades , whose organization and operation determined the law.

Cooperatives, will be the agency and in the shape and scope that the law of the matter.

Article 335.- The State ordered their external economic relations on the basis of international cooperation fair, the central American economic integration and respect for international treaties and conventions that subscribes, in what is not opposed to the national interest .

Article 336.- foreign investment will be authorised, registered and supervised by the State. Shall be complementary and never substitute for domestic investment.

Foreign companies are subject to the laws of the Republic .

Article 337.- industry and trade in small-scale, heritage of hondurans and their protection will be the subject of a law.

Article 338.- The law shall regulate and promote the organization of cooperatives of any kind, without any alteration or circumvent the economic and social principles fundamentals of this Constitution.

Article 339.- banning the monopolies , monopsonies, oligopolies, hoarding and similar practices in the industrial and commercial.

They are not considered monopolies individuals the temporary privilege to be granted to inventors, discoverers or authors in concept of property rights scientific, literary, artistic or commercial, patents and trademarks.

Article 340.- declaring of usefulness and public need, the technical operation and rational use of natural resources of the Nation.

The State regulate its use, according to the social interest and determine the conditions of its grant to individuals .

The reforestation of the country and the conservation of forests is declared of national convenience and collective interest.

Article 341.- Law may set restrictions, modalities or prohibitions for the acquisition, transfer, use and enjoyment of property state and municipal, for reasons of public order, and social interest of national convenience .
 
CHAPTER II  OF THE CURRENCY AND BANKING

Article 342.- monetary issue is exclusive authority of the State, that the exercise by means of the Central Bank of Honduras.

The banking system, monetary and credit shall be governed by law.

The State, by means of the Central Bank of Honduras, will have to be responsible for the formulation and development of monetary policy, credit and change of the country, properly coordinated with the economic policy planned.

Article 343.- The Central Bank of Honduras regulate and adopt the granting of loans, discounts, guarantees and other credit operations; commissions, bonuses or rebates of any kind that banking institutions, financial and insurance accord to their shareholders, directors and staff.

Also, regulate and approve the granting of loans, discounts, guarantees and other credit operations to the societies where those take majority stake.

Any infringement to the provisions of this Article shall be punished according to the rules and regulations that the Central Bank, without prejudice to the action of civil or criminal liability to any place.
 
CHAPTER III  OF AGRARIAN REFORM

Article 344.- Agrarian Reform is an integral process and an instrument of transformation of the agrarian structure of the country, intended to replace the landlordism and the minifundio by a system of ownership, possession and use of land to ensure social justice in the field and increase the production and productivity in agriculture.

Declared of need and public utility the implementation of the Agrarian Reform.

Article 345.- Agrarian Reform is an essential part of the overall strategy of development of the Nation , so that the other economic and social policies the Government's approval , should be formulated and implemented in harmony with that, especially those with that view among others, with education, housing, employment , infrastructure, marketing and technical assistance and credit policy.

The Agrarian Reform was implemented in a way to ensure the effective participation of the peasants, on an equal footing with other sectors of the production, in le process of economic development, social and political development of the Nation.

Article 346.- is the duty of the State enact measures to protect the rights and interests of indigenous communities in the country, especially of the land and forests where they settled.

Article 347.- agricultural production duty geared primarily to the satisfaction of the food needs of the population of Honduras, within a policy of adequate supply and fair prices for the producer and consumer.

Article 348.- plans of agrarian reform of National Agrarian Institute and the other decisions of the State in agricultural matters, it was formulated and implemented with the effective participation of the organizations of peasants, farmers and ranchers legally recognized

Article 349.- The expropriation of property with agrarian reform purposes or for the widening and upgrading of populations or any other purpose of national interest as determined by law, will be through compensation justipreciada by cash payments and in his case, bonds of the agrarian debt. These bonds will be of acceptance compulsory, enjoy sufficient guarantees by the State and will have the nominal values, deadlines for redemption, interest rates and other requirements that the Agrarian Reform Law determines.

Article 350.- property expropriated by the end of Agrarian Reform or widening and improving populations, are exclusively the sites rustic and their useful improvements and necessary that they are adhered to the same and whose separation might undermine the productive economic unit.
 
CHAPTER IV  THE FINANCIAL SYSTEM
 
Article 351.- The tax system shall be governed by the principles of legality, proportionality, generality and equity in accordance with the economic capacity of the taxpayer.
 
CHAPTER V  OF THE FINANCE PUBLISHES

Article 352.- form the Public Finance:
1. All movable and immovable property of the State;

2. All of its appropriations assets; and

3. Their availability liquids.

Article 353.- Are financial obligations of the State:
1. The debts legally contracted for current expenses or investment, originated in the implementation of the General Budget Revenues and Expenditures; and

2. The other debts legally recognized by the State.

Article 354.- property tax or property may only be awarded or sold to individuals and in the form and conditions to be determined the laws.

The State reserves the power to establish or modify the demarcation of the areas of control and protection of natural resources in the national territory.

Article 355.- The administration of public funds corresponds to the Executive Branch.

 For the perception custody and distribution of these funds , there will be a service general treasury.

The Executive Branch, however, may delegate to the Central Bank , the functions of collector and trustee.

Also the law may establish services special pagadurías.

Article 356.- The State only ensures the payment of public debt, which entered the constitutional governments , according to this Constitution and laws.

Any rule or act that violates the provisions of this article, will incur the offenders in civil liability, criminal and administrative , which will be barred.

Article 357.- authorisations for external indebtedness and internal central government, decentralized agencies and municipal governments, which include assurances and guarantees of the State, will be regulated by law.

Article 358.- The local governments may conduct operations of domestic credit sole responsibility , but require the authorizations identified by special laws .

Article 359.- taxation, spending and the public indebtedness, must be related to the gross domestic product , according to the law.

Article 360.- contracts that the State held for the implementation of public works, procurement of supplies and services, purchase-sale or lease of goods, should be implemented after tendering, competition or auction, in accordance with the law.

Except for the contracts that aim to provide for the needs caused by a state of emergency and that by its nature cannot be held, but with specific person.
 
CHAPTER VI  THE BUDGET

Article 361.- Are financial resources of the State:
1. The income earned by taxes, fees, contributions, royalties, donations or any other concept;

2. Revenues from state enterprises, joint capital or those in which the State social participation; and,

3. The extraordinary income from the public credit or any other source.

Article 362.- All revenues and expenditures prosecutors be reflected in the General Budget of the Republic, which will be voted annually in accordance with the economic policy planned and with the annual plans approved operational by the Government.

Article 363.- All tax revenues constitute ordinary only a fund.

It may not created any income intended for a specific purpose. However, the law may affect income at the service of the public debt and provide for the product of certain taxes and general contributions , is divided between the National Finance and the municipalities, in proportions or quantities previously identified.

The Law may also, in accordance with the planned policy , authorize certain state-owned enterprises or joint ventures for receiving , manage or invest financial resources from the exercise of economic activities that they are eligible.

Article 364.- may not be any commitment or made any payment outside of the allocations voted in the Budget, or in contravention of the budgetary rules.

Violators will be responsible civil, criminal and administratively .

Article 365.- The Executive Branch , under their responsibility and provided that the National Congress not is met, it may borrow, several the fate of a heading authorized or open additional credits, to meet urgent needs or contingencies in case of war, internal upheaval or public calamity, or to meet international commitments, of all of which will give detailed account to the National Congress in the subsequent legislature.

In the same way proceed in the case of obligations in charge of the State from definitive judgment firm, for the payment of employees, when there is not heading or it is exhausted.

* Article Interpreted by Decree 169/1986

Article 366.- The Budget will be voted by the Legislature with a view to the Project to present the Executive Branch .

Article 367.- The draft Budget will be submitted by the Executive Power to the National Congress, within the first 15 days of the month of September each year.

Article 368.- Organic Law of the Budget establish what concerning the preparation, design, implementation and liquidation of the budget. When the closure of a fiscal year has not been voted the budget for the new fiscal year, will continue in force that for the previous period.

Article 369.- The Law will determine the organization and operation of the Proveeduría General of the Republic .

Article 370.- Article repealed by Decree 268/2002. Repeal ratified by Decree No. 2/2002

Article 371.- The audit preventive implementation of the General Budget Revenues and Expenditures of the Republic, will be in charge of the Executive Branch, to be especially:

1. Check the collection and monitor the custody, commitment and the distribution of public funds; and,

2. Approve any discharge of public funds, according to the budget.

The Law establish procedures and scope of this audit .

Article 372.- control preventive decentralized institutions and municipalities, checked in accordance with what determine the relevant legislation .