Constitutional Provisions

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TITLE I
THE PERSON AND SOCIETY

CHAPTER I
FUNDAMENTAL PERSONAL RIGHTS

Article 1. Defense of the human person and respect for his dignity are the supreme goals of
society and of the State.
Article 2. All persons have the right:
To life, identity, moral, psychic and physical integrity and to his free de velopment and welfare.
At conception, all are subject to the law insofar as it is to their advantage.
I. To equal treatment at law. No one is to be subject to discrimination for reason of origin, race,
sex, language, religion, opinion, economic condition or any other reason or characteristic.
II. To liberty of conscience and religion, practiced individually or in association with others.
There is no persecution for ideas or beliefs. There is no crime of opinion. Public exercise of all
denominations is free so long as it does not cause moral offense or public disorder.
III. To liberty of information, opinion, expression and diffusion of thoughts through speech, in
writing, or by image, by any medium of social communication whatsoever, without previous
authorization, without censor or other impediments, in accordance with law.
Crimes committed through books, the press, and other mediums of social communication are
specified in the Penal Code and ar e judged by the Judicial Power.
It is a crime to suspend any organ of expressi on or impede its free circulation. The rights to
inform the public and to form an opinion incl ude those based in mediums of communication.
IV. To solicit information that one needs without disclosing the reason, and to receive that
information from any public entity within the period specified by law, at a reasonable cost.
Information that affects personal intimacy and that is expressly excluded by law or for reasons of
national security is not subject to disclosure.
Secret bank information or tax information can be accessed by judicial order, the National
Prosecutor, or a Congressional investigative commission, in accordance with law and only
insofar as it relates to a case under investigation.
V. To be assured that information services, whet her computerized or not, public or private, do
not provide information that aff ects personal and family intimacy.
VI. To honor and good reputation, to personal and fa mily intimacy, both as to voice and image.
Every person affected by untrue or inexact statements or aggrieved by any medium of social
communication has the right to free, immediate a nd proportional rectification, without prejudice
to responsibilities imposed by law.
VII. To liberty of intellectual, artistic, techni cal and scientific creativity, and to hold such
creations and the product of such creations as property. The State favors cultural access and
supports its development and diffusion.
VIII. To the inviolability of th e home. No one may enter the home or make investigations or
entries in the public register wi thout authorization from the pers on living in the home or judicial
mandate, except for crimes in the act of comm ission or very serious possibility of their
immediate perpetration. Exceptions based on health or serious risk of harm are regulated by law.
IX. To secrecy and the inviolability of communications and private documents.
Communications, telecommunications or instruments of communi cation, may be opened, seized,
intercepted or inspected only under judicial authoriza tion and with the protections specified by
law. All matters unconnected with the fact that mo tivates the examination are to be guarded from
disclosure.
Private documents obtained in violation of this precept have no legal effect.
Books, ledgers, and accounting and administrativ e documents are subject to inspection or
investigation by the competent authority in conformity with law. Actions taken in this respect
may not include withdrawal or seiz ure, except by judicial order.

X. To choose one’s place of residence, travel in the national territory, enter and leave the country,
except for limitations based on health or judicial mandate or by application of foreign law.
XI. To peaceful, unarmed assembly. Reunions in pr ivate places or those open to the public do
not require previous notice.Those that are convok ed in plazas or public thoroughfares require
previous notice to the authori ties, and may be prohibited only for proven reasons of public
security or health.
XII. To associate and form foundations and diverse forms of juridical organizations not for
profit, without previous authori zation and in accord with law. Or ganizations formed pursuant to
this article may not be dissolved by administrative resolution.
XIII. To contract for legal ends, so long as they do not contravene laws of public order.
XIV. To work freely, subject to law.
XV. To own property and inheritance.
XVI. To participate, individually or in association with others, in the political, economic, social,
and cultural life of the Na tion. Citizens have, in conformance with law, the right to elect, remove
from office or revoke public authorities, to legislative initiative, and referendum.
XVII. To keep secret political, ph ilosophical, religious and other convi ctions of any character, as
well as to guard professional secrets.
XVIII. To ethnic and cultural identity. The State recognizes and protects the ethnic and cultural
plurality of the Nation.
Every Peruvian has the right to use his own langu age before any authority through an interpretor.
Foreignors have the same right whenever they are summoned by any authority.
XIX. To make petitions, individually or collectively, in writing before the competent authority,
which is required to give a written answer to the interested person within a time period
established by law, under legal responsibility. Members of the Arme d Forces and National Police
may only exercise the right to petition individually.
XX. To nationality. No one may be deprived of his nationality.Neither may he be denied the
right to obtain or renovate his passport within or outside of the territory of the Republic.
XXI. To peace, tranquility, the enjoyment of fr ee time and rest, and to the enjoyment of a
balanced environment, adequate for personal development.
XXII. To legitimate defense.
XXIII. To liberty and personal security. As a result:
A. No one is obligated to do something the law do es not require, nor prohibited from doing what
the law does not forbid.
B. Restrictions of personal liberty are not permitted except in cases specified by law. Slavery,
servitude and the treatment of human beings in any of their forms is prohibited.
C. There is no prison for debts. This precept doe s not limit judicial mandate for failure to pay
child
support.
D. No one may be prosecuted or condemned fo r an act or ommission that at the time of
commission is not previously qualified by law, expressly and unequivically, as a punishable
infraction, nor sanctioned with a penalty not set forth in the law.
E. Every person is considered innoce nt until judicially declared guilty.
F. No one may be detained except by written mandate authorized by a judge, or by police
authority in cases of crimes in the act of commission.
The person detained must be presented to the corresponding judge within 24 hours or at the end
of the time allowed for distance travelled.
These time periods do not apply in cases of terroris m, espionage, or illicit drug traffic. In such
cases, police authorities may detain for purpos es of prevention persons presumed to be
implicated for a period not exceeding 15 natural days. The PublicMinister and the judge must be
informed and may assume jurisdiction before the expiration of this time period.
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G. No one may be subject to solitary confinement except where it is indispensable to solve a
crime, and only in the manner and for the time set by law. The detaining authority is under legal
responsibility to indicate, without delay and in writing, the place where the person is detained.
H. No one may be subjected to moral, psychic or physical violence, nor to torture or inhumane
treatment or humiliation. Any person may order the immediate medical examination of the
aggreived person or those unable to resort to the authorities personnally. Declarations obtained
by violence lack legal force.
Whomever employs violence is responsible at law.
Article 3. The enumeration of rights in this chapter does not exclude others that the Constitution
guaranties, nor does it exclude rights of an an alagous nature or that are founded in human
dignity, or in the principles of the sovereignty of the people, the democratic State of law and the
republican form ofgovernment.

CHAPTER II
SOCIAL AND ECONOMIC RIGHTS
Article 4. The community and the State protect es pecially children, adolescents, mothers and the
elderly in the situation of abandon. They also pr otect the family and promote marriage, both of
which are recognized as natural and f undamental societal institutions.
Marriage and legal cause for separation and dissolution are regulated by law.
Article 5. The stable union of a man and a woman, free of matr imonial impediment, forming a
home in fact, gives rise to comm unity property subject to the societ al regime of profits insofar as
it is applicable.
Article 6. National population policy has as its object to publish and promote responsible
paternity and maternity. It recognizes the right of families and of persons to decide. In this
respect, the State assures edu cational programs and adequate information and access to mediums
that do not affect life or health.
It is the obligation and the right of parents to feed, educate and give security to their children.
Children are obligated to respec t and assist their parents.
All children have equal rights and duties. Mention of the marita l state of the parents and the
nature of filiation in public registers or in any other docum ent of identity is prohibited.
Article 7. Everyone has the right to the protection of their health, the health of their family and of
the community, as well as the duty to contri bute to its protection and defense. Persons
incapacitated, either physically or mentally, have the right to resp ect of their dignity and to a
legal regime of protection, atten tion, re-adaptation and security.
Article 8. The State combats and sanctions illicit traffic in drugs. At the same time, it regulates
the use of social intoxicants.
Article 9. The State determines national health policy. The Executive Power makes rules and
supervises its application, and is responsible for designing and administering the plan in a
decentralized and plural manner in order to assu re equal access to health services for all.
Article 10. The State recognizes th e universal and progressive right of every person to social
security, for protection against th e contingencies determined by law and for the elevation of one’s
quality of life.
Article 11. The State guaranties free access to health benefits and pensions, through public,
private or mixed entities. It supervises the efficient functioning of these entities.

Article 12. Social security funds and reserves ar e intangible. Resources are applied in the manner
and under the responsibility specified by law.
Article 13. The goal of education is the integral development of the person. The State recognizes
and guaranties liberty of instruct ion. Parents have the duty to edu cate their children and the right
to choose educational centers and to part icipate in the educational process.
Article 14. Education promotes knowledge, learni ng and practice of the humanities, science,
technology, arts, physical educati on and sports. It prepares one for life and for work, and
promotes solidarity.

It is the duty of the State to promote the scientific and tec hnological development of the country.
Ethical and civic formation and the teaching of the Constitution and human rights are obligatory
in every civil or military educat ional process. Religious education is imparted with respect for
liberty of conscience.
Instruction is imparted at all levels subject to constitutional principles and to the goals of the
corresponding educatio nal institution.
Mediums of social communication mu st collaborate with the State in education and in moral and
cultural formation.
Article 15. Professorship in official instruc tion is a public career. The law establishes the
requirements for becoming a director or professor of an educational center, as well as the rights
and duties. The State and society procure evalua tion, preparation, professionalism and permanent
promotions.
One obtaining education has the right to an educa tional program that respects his identity, as
well as good psychological and physical treatment.
Every person, natural or juridical, has the right to promote and manage educational institutions
and to transfer property bel onging to such institutions, in conformance with law.
Article 16. The educational system and e ducational regime are decentralized.
The State coordinates educational policy. It formulates general programs of study and specifies
the minimum requirements for the organization of educational centers. It supervises the
fulfillment of these requirements and the quality of education.
It is the duty of the State to assure that no one is impeded from receiving an adequate education
for reason of his economic situation or mental or physical limitations.
Education has priority in the assignment of ordinary resources in the National Budget.
Article 17. Kindergarten, primary and secondary education areobligatory. In State institutions,
education is free. In public universities the State guaranties the right to a free education as long
as students maintain satisfactory grades and lack the necessary resources to cover the costs of
education.
With the goal to guaranty greater plurality in education, in favor of those who cannot pay for
education, the law establishes a method to subsid ize private education in any of its forms,
including communal and cooperative.
The State promotes the creation of educa tional centers where they are needed.
The State guaranties the eradication of illiteracy. At the same time it promotes bilingual and
inter-cultural education, according to the characteristics of each zone or area of the country. It
preserves the diverse cultural a nd linguistic manifestations of the country. It promotes national
integration.
Article 18. University education has as its go als professional formation, cultural diffusion,
intellectual and artistic creati on and scientific and technolog ical investigation. The State
guaranties freedom of professors hip and rejects intolerance.
Universities are promoted by priv ate or public entities. The law establishes the conditions to
authorize their operation.
The university is the community of professors, students, and graduates. Promotors may
participate in accordance with law.
Each university is autonomous in its academic and legal regimes, government, administration
and economy. Universities are gov erned by their own statutes within the framework of the
Constitution and the laws.
Article 19. Universities, superior institutes and other educational centers founded in conformity
with legislation enjoy exemption from all direct and indirect taxation respecting goods, activities
and services proper to their educational and cultural e nds. In the area of import tariffs, a special
appropriation may be established for certain de termined goods. Donations and scholarships with
educational goals enjoy exonera tion and tax benefits in the manner and under the limits
established by law.

The law establishes mechanisms of investigation for the above mentioned institutions, as well as
the requirements and conditions that cultural centers must fulfill so that by exception, they may
enjoy the same benefits.
Private educational institutions that generate income that by law qualifies as profits may be
subject to the payment of income tax.
Article 20. Professional assocoations are autonomous institutions with legal status in public law.
The law specifies the cases in which association is obligatory.
Article 21. Deposits and archeo logical remains, constructions, monuments, places,
bibliographical documents and those from archives , objects of art and testimonials of historic
value, expressly declared cultural goods, and prov isionally those that presume to be so, are the
cultural patrimony of the Nation, rega rdless of whether they are private or public property. They
are protected by the State.
The law guaranties the aforementioned property in the patrimony of the Nation. It promotes, in
conformity with law, private participation in the conservatio n, restoration, exhibition and
diffusion of this patrimony, as we ll as restitution to the country when it has been illegally taken
out of the nati onal territory.
Article 22. Work is a duty and a right. It is th e base of social welfare and a medium for the
realization of the person.
Article 23. Work, in its diverse forms, is the obje ct of priority attention for the State, which
protects particularly mothers, minors, and handicapped persons that work.
The State promotes conditions for social and eco nomic progress, especially through policies that
promote productive employment and education for work.
No labor relation may limit the exercise of c onstitutional rights, nor fail to recognize, or
disrespect, worker’s dignity.
No one is obligated to work without remuneration or free consent.
Article 24. The worker has the right to an equi table and sufficient remuneration, that procures,
for him and his family, materi al and spiritual welfare.
The payment of wages and social benefits of the worker takes priority over all other obligations
of the employer.
The minimum wage is regulated by the State in participation with organizations representing
workers and employers. The ordinary workday is eight hours or 48 hours weekly, as a maximum.
In cases of cumulative or atypical workdays, th e average of hours worked in any corresponding
period may not surpass this maximum.
Workers have the right to a weekly rest and annual compensation. Their enjoyment and
compensation are regulated by law or agreement.
Article 26. In labor relations, the fo llowing principles are respected:
1. Equal opportunity without discrimination.
2. Inability to renounce the rights recogni zed in the Constitution and the law.
3. Interpretation favorable to the worker in cases of doubt a bout the meaning of a legal norm.
Article 27. The law grants the worker adequate protection against arbitrary dismissal.
Article 28. The State recognizes th e right to form labor unions, to participate in collective
negotiation and to strike. It guards democratic exercise:
1. It guaranties liberty to form labor unions.
2. It supports collective negotia tion and promotes methods of peaceful resolution of labor
disputes. The collective agreement has force in the matters relating to its terms.
3. It regulates the right to strike in order that it is exercise d in harmony with social interests. It
specifies exceptions and limitations.
Article 29. The State recognizes the right of workers to participate in the profits of the business
and promotes other forms of participation.

CHAPTER III
POLITICAL RIGHTS AND OBLIGATIONS

Article 30. Peruvians who have attained the age of eighteen years are citizens. Inscription in the
electoral registry is require d to exercise citizenship.
Article 31. Citizens have the right to particip ate in political affairs through referendum;
legislative initiative; removal and revocati on of authorities from office and demand for
accounting. They also have the right to be elected and to freely elect their representatives, in
accordance with the conditions and proce dures determined by organic law.
It is the right and the obligation of neighbors to participate in municipal government in their
jurisdiction. The law establishes a nd promotes direct and indirect mechanisms for participation.
Citizens have the right to vote in enjoyment of their civil capacity.
Suffrage is personal, equal, free, secret, and oblig atory until the age of seventy years. Thereafter,
it is optional.
Any act that prohibits or interferes with the exercise of these ri ghts is punishable at law and is
null and void.
Article 32. The following may be subjected to referendum:
1. Partial or total reform of the Constitution;
2. Approval of rules with the status of law;
3. Municipal regulations; and
4. Matters relative to the pr ocess of decentralization.
The suppression or diminution of fundamental pers onal rights are not subject to referendum, nor
are rules relating to the nationa l budget or taxation, or to international treaties in force.
Article 33. The exercise of citizenship is suspended:
1. By judicial resolution of interdiction.
2. By sentence with a penalty denying liberty.
3. By sentence denying the exercise of political rights.
Article 34. Active members of the Armed Forces and the National Police may not elect nor be
elected. Other incapacities do not exist and may not be created.
Article 35. Citizens may exercise their rights indi vidually or through political organizations such
as parties, movements or alliances, in conformity with law. Such organizations come into being
through the formation and manifestation of popular will. Their inscription in the appropriate
registry confers juridical personality.
The law establishes rules oriented towards the assurance of democratic functioning of political
parties, of transparency as to the source of their economic resources, and free access to mediums
of social communication owned by the State in proportion to the results of the last general
election.
Article 36. The State recognizes political assylum. It accepts the qualification of political
refugees granted by the government offering assy lum. In case of expulsion, the refugee may not
be delivered to the country whose government is pursuing him.
Article 37. Extradition is only granted by the Executive Power after in forming the Supreme
Court, and in compliance with law and treaties, and according to the principle of reciprocity.
Extradition is not granted if the government considers that it is being sought to persecute or
punish for reasons of religion, na tionality, opinion or race.
Excluded from extradition are those being persecuted for political crimes or facts in connection
therewith. Genocide, assassination of political figur es, and terrorism are not considered political
crimes.
Article 38. All Peruvians have the duty to honor Peru and protect its national interests, and to
respect, fulfill and defend the Constituti on and the juridical order of the Nation.

CHAPTER IV
PUBLIC FUNCTION
Article 39. All public officials and workers are in service to the Nation. The President of the
Republic is the highest official in the hierarchy of service to the Nation and, in the following
order, Representatives of Congress, Ministers of State, members of the Constitutional Tribunal

and the Council of Magistrates, supreme magistrates, the National Prosecutor and Public
Defender, in equal category; and the represen tatives of decentralized organs and mayors,
according to law.
Article 40. The law regulates entr ance into administrative careers, and the rights, duties and
responsibilities of public servants. Officials that have political positions or positions of
confidence are not included in this category. No official or public servant may perform more
than one job or paid public position, with the exception of an additional teaching position.
Workers in State owned businesses or mixed economy societies are not understood to be
performing a public function.
Periodic publication in the official paper of the income received by high ranking officials and
other public servants for their service to the public, is obligatory as specified by law.
Article 41. Officials and public se rvants specified by law or that administer or manage State
funds, or that belong to organs that are sustained by public funds, must make a sworn declaration
of their property and income upon assuming their duties, during the exercise of their duties and
upon the termination of their duties. Declarations of this sort are published in the official paper in
the form and under the conditions specified by law.
When illicit enrichment is presumed, the National Prosecutor, on complaints received from third
parties or official solicitation, makes charges before the Judicial Power.
The law establishes the legal responsibility of officials and public servants, as well as the
duration of their incapacity to perform public functions.
The period of incapacity doubles in cases of cr imes against the patrimony of the State.
Article 42. The right to form labor unions and strike is recognized for public servants.
Specifically excluded from this righ t are State officials that have the power to make decisions or
those with positions of confidence or management, and members of the Armed Forces and
National Police.

TITLE III
THE ECONOMIC REGIME

CHAPTER I
GENERAL PRINCIPLES

Article 58. Private initiative is free. It is exer cised within a social market economy. Under this
regime, the State guides the development of th e country, and acts principally in the areas of
promotion of employment, health, education, se curity, public services and infrastructure.

Article 59. The State stimulates the creation of wealth and guaranties freedom to work and free
enterprise, commerce and industry. The exercise of these freedoms must not be injurious to
public morals, health or security. The State offers opportunities of advancement to those sectors
that suffer from any type of inequality; in this respect, it promotes small business in all of its
forms.

Article 60. The State recognizes ec onomic pluralism. The national economy is sustained in the
coexistence of diverse forms of property and enterprise.

Only where authorized by express law, may th e State engage in ancillary business activity,
directly or indirectly, for reas ons of high public interest or manifest national convenience.

Business activities, whether public or not, receive the same treatment in law.

Article 61. The State aids and protects free competition. It combats all practices that limit and
abuse dominant or monopolistic market positions . No law or arrangement may authorize or
establish monopolies.

The press, radio, television and other mediums of expression and social communication and, in
general, businesses, property, and services related to free expression and communication, may
not be the objects of exclusivity, monopoly or dominant market agreements, directly or
indirectly, of the State or of particular
individuals, whether na tural or juridical.

Article 62. Liberty to contract gua ranties that parties may validly agree according to the legal
norms in force at the time of the contract. Cont ract terms may not be modified by law or other
dispositions of any type. Conflic ts that arise from contractual relations may only be resolved by
arbitration or judicial decree, a ccording to the mechanisms of prot ection set forth in the contract
or contemplated by law.

Through specific norms of an obligatory character, contracts-law, the State may establish
guaranties and grant securities. These may not be modified by legislation, without prejudice to
the protection referred to in the preceding parragraph.

Article 63. National and foreign investment are subject to the same conditions. Production of
goods and services and international commerce are free. If another country or countries adopt
protectionist or discriminatory measures that prejudice national interests, the State may, in
defense of national interests, adopt analogous measures.

In every State contract and those made by persons of the public law, with domiciled foreignors,
it is made clear that these are subject to the law and jurisdictional organs of the Republic, and
that all forms of diplomatic claims are renoun ced. Contracts of a financial character may be
excepted from the national jurisdiction.

The State and other persons of the public law may submit cont roversies that arise from
contractual relations to tribunals constituted by vi rtue of treaties in force. They may also be
submitted to national or inte rnational arbitration, in the form directed by law.

Article 64. The State guaranties free posse ssion and disposition of foreign currency.

Article 65. The State defends the interests of cons umers and users. To this end, it guaranties the
right to information about goods and services that are found at their disposition in the market. It
also guards, in particular, the he alth and security of the population.

CHAPTER II
THE ENVIRONMENT AND
NATURAL RESOURCES

Article 66. Natural resources, whet her renovated or not, are patrimony of the Nation. The State is
sovereign in thei r utilization.

The organic law establishes the c onditions of their utilization and the conditions for grants to
individuals. A concession grants to its holder a real right, subject to the aforementioned legal
norms.

Article 67. The State determines national environmental policy. It promotes sustainable use of
natural resources.

Article 68. The State is obligated to promote the conservation of biological diversity and of
protected natural areas.

Article 69. The State promotes sustainable deve lopment of the Amazon region through adequate
legislation.

CHAPTER III
PROPERTY

Article 70. The right to property is inviolable. The State guaranties the right. It is exercised in
harmony with the common good and within the limits of the law. No one may be deprived of his
property except, exclusively, for reason of national security or public necessity, declared by law,
and with prior payment in
cash of its appraised value including compensati on for eventual prejudice. The Judicial Power
has jurisdiction over actions to contest the valu e of property as estimated by the State in the
expropriation procedure.

Article 71. In respect of property, foreignors, whet her natural persons or juridical persons, are in
the same position as Peruvians, except that, in no case, may they invoke exceptions or diplomatic
protection.

Nevertheless, within fifty kilometers of the borders, foreignors may not acquire or possess, by
any title, mines, land, forests, waters, combustib les or other sources of energy, directly or
indirectly, individually or in asso ciation, under penalty of forfeiture to the benefit of the State of
the rights so acquired. Excepted are cases of pub lic necessity expressly declared by supreme
decree approved by the Council of Ministers in accordance
with law.

Article 72. The law may, only for reasons of national security, temporar ily establish specific
restrictions and prohibitions for the acquisition, possession, expl oitation and transference of
determined types of property.

Article 73. Property in the public domain is inalienable and imprescriptible. Property in public
use may be conceded to particular individuals according to law, for their economic use.

CHAPTER IV
TAXES AND THE BUDGET

Article 74. Taxes may be created, modified or de rogated, or an exoneration may be established,
exclusively by law, or by legislative decree in th e case of delegation of authority, except tariffs
and rates which are regulated through supreme decree.

Local governments may create, modify and extingui sh contributions and rates, or exonerate
them, within their jurisdiction and within the limits specified by law. The State, in the exercise of

the authority to tax, must respect principles of reservation in the law, and those of equality and
respect for fundamental personal rights. No tax may have confiscatory effect.

Emergency decrees may not involve tax matters. Laws relative to taxes payable annually take
effect the first of January in the year followi ng their promulgation. Laws regarding the national
budget may not contain legal norms pertaining to tax matters.

Tax norms dictated in violation of this article are without effect.

Article 75. The State only guaranties the payment of public debt contracted by constitutional
governments in conformity with the Constitution and law.

The State’s internal and external debt transac tions are approved in conformity with law.

Municipalities may engage in credit transacti ons charged to their own resources and property,
without requiring lega l authorization.

Article 76. Construction and the acquisition of provisions with publ ic funds or resources and the
acquisition or alienation of property are carried out obligatoril y by contract and public bidding.

Contracts for services and projects whose importance and sum ar e specified in the Budget Law
are made by public bidding. The law establishe s the respective procedure, exceptions and
responsibilities.

Article 77. The economic and financial administ ration of the State is governed by the budget
which is approved annually by Congress. The st ructure of the budget for the public sector
contains two sections: Central Govern ment and decentralized instances.

The budget equitably assigns public resources; scheduling and execution respond to the criteria
of efficiency, basic social necessity and decentr alization. Respective districts, according to law,
receive an adequate participation in the total amount of income and proceeds obtained by the
State in the exploitation of
natural resources in their zone in accordance with law.(1)

Article 78. The President of the Republic submits the Budget Law to Congress within a period
that expires each year on the 30th of August.

On the same date, he also submits legal propos als for contracting debt and on the financial
equilibrium.

The budget proposal must be actually balanced.

Loans from the Central Reserve Bank or the Na tional Bank are not counted as fiscal income.

Permanent expenses may not be covered with loans.

The budget may not be approved without an entry de signated to the service of the public debt.

Article 79. Congressional representatives may not initiate pro posals to create or augment public
expenditures, except as to their own budget.

The Congress may not approve taxes with predetermined ends, except upon solicitation by the
Executive Power.

In all other cases, laws of a tax nature that refer to benefits or exoneration require previous
notification to the Ministry of Economy and Finance.

Taxes that temporarily assign spec ial treatment to pre-determined areas of the country require an
express law approved by tw o- thirds of the representatives of Congress.

Article 80. The Minister of Ec onomy and Finance presents a nd supports, before the Whole
Assembly of Congress, the declaration of income. Each minister supports the expenditures of his
sector. The President of the Supreme Court, th e National Prosecutor and the President of the
National Jury of Elections
support the reports corresponding to each institution.

If the official document approving or making obser vations with respect to the Budget Law is not
signed and remitted to the Executive Power before the 30th of November, the budget proposal
becomes effective, promulgated by legislative decree.

Supplementary credits, qualificatio ns and transfers of entries are negotiated before the Congress,
in the same manner as the Budget Law. During parliamentary recesses, they are negotiated
before the Permanent Commission. The votes of thre e-fifths of the legal number of the members
of the Commission are necessary
to approve.

Article 81. The General Account of the Republic, accompanied by the report of the auditor of the
General Controller, is remitted by the President of the Republic to the Congress during a period
that expires the 15th of November in the year following the execution of the budget.

The General Account is examined and a judgment is rendered by a revisory commission within
ninety days after presentation to the Congre ss. The Congress must pronounce judgment within
thirty days thereafter. If th e Congress does not pronounce judgment within the specified period,
it is elevated from the Revisory
Commission to the Executive Power so that it ma y be promulgated by a legislative decree that
includes the General Account.

Article 82. The General Controller of the Republic is a decentralized entity of the Public Law
that enjoys autonomy in conformity with its organic law. It is the superior organ of the National
Control System. It supervises the legal administ ration of the State Budget, transactions in the
public debt, and the acts of the inst itutions subject to its control.

The Controller General is designated by the Congr ess, at the proposal of the Executive Power,
for seven years. It may be removed by the Congress for serious misdeed.

CHAPTER V
CURRENCY AND BANKING

Article 83. The law determines the monetary syst em of the Republic. The emission of bills and
coinage is within the exclusive power of the St ate. This power is exercised through the Central
Reserve Bank of Peru.

Article 84. The Central Bank is a juridical person of the public law. it has autonomy within the
framework of its Organic Law. The purpose of the Central Bank is to preserve monetary
stability. Its functions are: to re gulate currency and credit in the finance system, to administer
international reserves under its management, and other functions specified in its organic law.

The Bank informs the country, punctually and peri odically, of the status of national finances,
under the responsibility of its Directorate.

The Bank is prohibited from concedi ng financing to the state treasury, except for the purchase, in
the secondary market, of securities emitted by the P ublic Treasury, within the limits specified in
its Organic Law.

Article 85. The Bank may make transactions and ente r into credit agreements in order to cover
transitory imbalances in the position of international reserves.

Such transactions and agreements in excess of the limit specified in the Budget of the Public
Sector require authorization by law, with the responsibility to notify the Congress.

Article 86. The Bank is governed by a Director ate of seven members. The Executive Power
designates four, among which is th e President. The Congress ratifies these four and elects the
three remaining, with an absolute majority of the legal number of its members.

All directors of the Bank are nominated for a constitutional period corresponding to that of the
President of the Republic. None of the directors represent the entity or particular interests. The
Congress may remove them for serious misdeed. In case of removal, new directors complete the
unexpired constitutional term.

Article 87. The State supports and guaranties sa vings. The law establishes the obligations and
limits of the enterprises that receive public savi ngs, as well as the manner and extent of this
guaranty.

The Superintendant of Banking and Insurance ex ercises control over the banking industry and
insurance, and others that re ceive public deposits and that make connected or similar
transactions, as determined by law.

The law establishes the organization and functio nal autonomy of the Superintendant of Banking
and Insurance.

The Executive Power designates the Superinten dant of Banking and Insurance for a period
corresponding to his constitutional period. The Congress ratifies the designation.

CHAPTER VI
THE AGRARIAN REGIME AND RURAL
AND NATIVE COMMUNITIES

Article 88. The State preferentially supports agrarian development. It guaranties the right to own
property in land, in a private form or communa lly or in any other association. The law may
establish limits and the extent of land ownershi p according to peculiar characteristics of each
zone.

Abandoned land, according to legal prevision, escheats to the State for its adjudication in sale.

Article 89. Rural and Native Communities have legal existence and are juridical persons.

They are autonomous in their organization, in their communal work and in the use and free
disposition of their lands, in their economy and administration, w ithin the framework established
by law. Property in their lands is not subject to prescription, except in the case of abandon as set
forth in the preceding article.

The State respects the cultural identity of the Rural and Native Communities.