Back PUBLIC POWER
Chapter I
Fundamental Provisions
Section One: General
Provisions
Article 136: Public Power is distributed among Municipal Power,
that of the States Power and National Power.
National Public Power is divided into Legislative, Executive, Judicial,
Citizen and Electoral.
Each of the branches of Public Power has its own functions, but the organs charged with exercising the same shall cooperate with one another in attaining the ends of the State.
Article 137: The Constitution and the law shall define the
authorities of the organs, which exercise Public Power, and the activities
carried on by such organs shall be subject to the same.
Article 138: An usurped authority is of no effect, and its acts
are null and void.
Article 139: The exercise of Public Power gives rise to individual
liability for abuse or misapplication of power, or for violation of this
Constitution or the law.
Article 140: The State shall be financially liable for any damages
suffered by private individuals to any of their property or rights, provided the
harm is imputable to the functioning of Public Administration.
Section Two: Public Administration
Article 142: Autonomous institutions can be created only by law.
Such institutions, as well as public interests in foundations or organs
of any nature, shall be subject to State Control in such form as may be
established by law.
Article 144: Statutes governing public functions shall be enacted
by law, with rules concerning entering, promotion, transfers, suspension and
removal of employees of Public Administration, and will provide for their
incorporation into Social Security.
The
duties and requirements that are to be met by public employees in the exercise
of their official functions shall be determined by law.
Article 145: Public officials or employees serve the state, and
not any partisan interest. Their appointment and removal shall not be determined
based on political affiliation or orientation. A person who is in the service of
the Municipalities, the States, the Republic, or any other State public or
private juridical persons, shall not be permitted to enter into a contract of
any kind with them, either directly or through any interposed person, or as
representative of another, with such exceptions as may be established by law.
Article 146: Positions in the organs of Public Administration are
to be filled by career personnel. Exceptions
are those elected by popular vote, those whose holders may be appointed and
removed freely, those contracted for, laborers in the service of Public
Administration and any others determined by law.
Engagement
of public officials to fill career positions shall be by public competition,
based on principles of honesty, capability and efficiency.
Promotion shall be governed by scientific methods based on the merit
system, and transfer, suspension and removal shall depend on performance.
Article 147: In order for paid public positions to be filled, it is necessary that the pertinent compensation be provided for in the pertinent budget.
Public
Administration salary scales shall be established by regulation, in accordance
with law.
The
pertinent organic law may establish reasonable limits on the compensation earned
by national, state and municipal public officials.
The
national law shall establish the pension or retirement system for national,
state and municipal public officials.
Article 148: No one shall be permitted to hold more than one paid
public position, except in the case of academic, temporary, care giving or
teaching positions, as determined by law. Acceptance
of a second position not included among the exceptions stated in this article
shall imply resignation from the first, except in the case of substitutes, as
long as they do not permanently replace the regular holder of the position
concerned.
No one shall be permitted to enjoy more than one set of pension or retirement benefits, except in the cases expressly determined by law.
Article 149: Public officials shall not be permitted to accept
employment, honors or rewards from foreign governments without authorization
from the National Assembly.
No
contract in the municipal, state or national public interest s determined shall
be entered into with foreign States or official entities, or with companies not
domiciled in Venezuela, or transferred to any of the same, without the approval
of the National Assembly.
In
contracts in the public interest, the law may demand certain conditions as to
nationality, domicile or other matters, or require special guarantees.
Article 151: In the public interest contracts, unless inapplicable
by reason of the nature of such contracts, a clause shall be deemed included
even if not expressed, whereby any doubts and controversies which may raise
concerning such contracts and which cannot be resolved amicably by the
contracting parties, shall be decided by the competent courts of the Republic,
in accordance with its laws and shall not on any grounds or for any reason give
rise to foreign claims.
Article 153: The Republic shall promote, and encourage Latin American and Caribbean integration, in the interest of advancing toward the creation of a community of nations, defending the region's economic, social, cultural, political and environmental interests. The Republic shall have the power to sign international treaties that implement and coordinate efforts to promote the common development of our nations, and to ensure the welfare of their peoples and the collective security of their inhabitants. To these ends, the Republic may transfer to supranational organizations, through treaties, the exercise of the necessary authorities to carry out these integration processes. In its policies of integration and union with Latin America and the Caribbean, the Republic shall give privileged status to relations with Bier American countries, striving to make this a common policy throughout our Latin America. Provisions adopted within the framework of integration agreements shall be regarded as an integral part of the legal order in force, and shall be applicable directly and with priority over internal legislation.
Article 154: Treaties agreed to by the Republic must be approved
by the National Assembly prior to their ratification by the President of the
Republic, with the exception of those which seek to perform or perfect
pre-existing obligations of the Republic, apply principles expressly recognized
by the Republic, perform ordinary acts in international relations or exercise
powers expressly vested by law in the National Executive.
Article 155: In the international agreements, treaties and
conventions entered into by the Republic, a clause shall be inserted whereby the
parties agree to resolve by peaceful means recognized under international law or
agreed upon in advance between them, where this is the case, any controversies
that may arise between them in connection with its interpretation or
implementation, if not inappropriate and if it is permitted by the procedure to
be followed in entering into the treaty, agreement or convention.
Chapter II
Competence of National
Public Power
(1)
The international policy and actions of the Republic.
(2) Defense and supreme vigilance of the general interests of the Republic, public peace keeping and the proper enforcement of the laws throughout the national territory.
(3) The flag, coat of arms, national anthem, holidays,
decorations and honors of a national nature.
(4)
Naturalization, admission, extradition and expulsion of
foreign nationals.
(5)
Identification services.
(6)
The national police.
(7) National security, defense and development.
(8) The organization and governance of the National Armed
Forces.
(9) The governance of risk and emergency management.
(10) The organization and governance of the Capital District
and the federal dependencies.
(11) Regulation of central banking, the monetary system, foreign currency, the
financial and capital market system and the issuance and mintage of currency.
(12) The creation, organization, collection, administration
and control of taxes on income, inheritances, donations and other related areas,
capital, production, value added, hydrocarbons and mines; duties on the
importing and exporting of products and services; taxes on the consumption of
liquor, alcohol and other products containing alcohol, cigarettes and other
tobacco products; and any other taxes, assessments and revenues not expressly
assigned by this Constitution and the law to the States and Municipalities.
(13) Legislation to guarantee the coordination and harmony
of the various different taxing powers and define principles, parameters and
limitations, especially for purposes of determining the tax rates and aliquot
parts for state and municipal taxes, and to create specific funds that ensure
inter territorial solidarity.
(14) The creation and organization of land taxes or taxes on
rural properties and on real estate transactions, the collection and oversight
of which is the responsibility of the Municipalities, in accordance with this
Constitution.
(15) The governance of foreign trade and the organization
and governance of customs.
(16) The governance and management of mines and
hydrocarbons, the governance of vacant lands and the conservation, development
and exploitation of forests, soil, water and other elements of the country's
natural wealth.
The National Executive shall not grant mining concessions for an indefinite period. The law shall establish an economic system of special financial assignments for the benefit of States within whose territory the assets mentioned in this section are located, without prejudice to the possibility of also establishing special appropriations for the benefit of other States.
(17) The system of legal weights and measures and quality
control.
(18) National censuses and statistics.
(19)
The establishing, coordination and unification of
technical standards and procedures for engineering, architectural and city
planning projects, and city planning/zoning legislation.
(20) Public works in the national interest.
(21) The macroeconomic, financial and fiscal policies of the
Republic.
(22) The governance and organization of the Social Security
System.
(23) National policy and legislation in the fields of
health, housing, food safety, the environment, waters, tourism, zoning and
shipping.
(24) National education and health policies and services.
(25) National policies for agricultural, livestock,
fisheries and forest production.
(26) The national transportation and shipping system and
air, overland, ocean, river and lake transportation of a national nature; ports,
airports and their infrastructure.
(27) The national highway and railway systems.
(28) Governance of postal and telecommunications services,
as well as governance and management of the electromagnetic spectrum.
(29)
General governance of residential public utility
services, including in particular electricity, drinking water and gas.
(30) Management of border policy with an overall vision of
the country, such as to permit a Venezuelan presence and the maintenance of
territory and sovereignty in these areas.
(31) The organization and administration of justice at the
national level, as well as the Office of General Prosecutor and the People
Defender.
(32) Legislation in the fields of constitutional guarantees,
rights and duties; civil, mercantile, criminal, penological, procedural and
private international law; election law; expropriation in the public interest or
in the interest of society; public credit; intellectual, artistic and industrial
property; cultural and archaeological heritage; agriculture; immigration and
population; native people and the territories they occupy; labor, Welfare and
Social Security; animal and vegetable hygiene; Notarial and public record
offices; banks and insurance; lotteries, racetracks and betting in general;
organization and functioning of the organs of National Public Power and other
organs and institutions at the national level; and all matters of national
competence in general.
(33)
Any other matters which the present Constitution may
assign to National Public Power, or which by their nature or type come under its
competence.
Article 157: The National Assembly, by a majority vote of its members, shall have the power to delegate to the States or Municipalities certain matters under national competence, in order to promote decentralization.
Article 158: Decentralization, as a national policy, must add
depth to democracy, bring power closer to the people and creating optimum
conditions both for the exercise of democracy and for the effective and
efficient Fulfillment of government commitments.
Article 159: The States are politically equal and autonomous
organs with full juridical personality, and are obligated to maintain the
independence, sovereignty and integrity of the nation and to comply with and
enforce the Constitution and the laws of the Republic.
Article 160: A Governor is in charge of the government and
administration of each State. A
Governor must be a Venezuelan over the age of 25 who is not a member of the
clergy. The Governor shall be
elected for a term of four years by a majority vote.
The Governor can be re-elected to an additional term only immediately
and only once.
Article 162: Legislative Authority shall be exercised in each State by a Legislative Council-consisting of no more than fifteen and at least seven members, who shall proportionally represent the population of the State and the Municipalities. The Legislative Council shall have the following powers:
(1)
To legislate matters within state competence.
(2)
Pass the state's Budget Law.
(3)
Any others vested in it by this Constitution or by the law.
The
requirements for being a member of the Legislative Council, the obligation to
give a yearly accounting and immunity within the territorial jurisdiction, shall
be governed by the rules established by this Constitution for deputies of the
National Assembly, insofar as applicable. State
legislators shall be elected for a four-year term, being eligible for
reelection for only two terms. The
organization and functioning of the Legislative Council shall be regulated by
the national law.
Article 163: Each State shall have a Comptroller's Office which
shall enjoy structural and operating autonomy.
The State Comptroller's Office shall exercise, in accordance with this
Constitution and in accordance with law, control, vigilance and auditing
authority over state revenues, expenses and assets, without prejudice to the
scope of the functions of the Office of the General Comptroller of the Republic.
This body shall act under the direction and responsibility of a
Comptroller, whose qualifications to serve in this position shall be determined
by law, guaranteeing his capability and independence, as well as the neutrality
of his appointment, which shall be by public competition.
Article 164: Is of the States exclusive competence:
(1)
Promulgating their Constitution to organize public
authority, in accordance with the provisions of this Constitution.
(2) Organization of their Municipalities and other local
organs and the territorial and political divisions between them, in accordance
with this Constitution and in accordance with law.
(3) Management of their assets and investment and
management of their resources, including those deriving from transfers,
subsidies or special assuagements from National Power, and those assigned to
them as a share of national tax revenues.
(4) Organization, collection, control and administration of
their own taxes, in accordance with provisions of national and state law.
(5) The governance and exploitation of non-metallic
minerals that are not reserved to National Power, as well as salt deposits and
oyster beds, and the management of vacant lands within their jurisdiction, in
accordance with law.
(6) Organization of the police and determination of the
branches of this service to be assigned to municipal jurisdiction, in accordance
with applicable national legislation.
(7) Creation, organization, collection, control and
management in the fields of sealed paper and tax documentary stamps.
(8) Creation, governance and organization of state public
services.
(9) Construction, preservation, management and exploitation
of overland travel routes within the states.
(10) Conservation, management and exploitation of national
expressways and highways, as well as ports and airports in commercial use, in
coordination with the National Executive.
(11) Any matters not placed, in accordance with this
Constitution, under national or municipal jurisdiction.
Article 165: Matters involving concurrent competence shall be
regulated by laws enacted by National Power and implementation laws passed by
the States. This legislation shall
be guided by the principles of interdependence, coordination, cooperation,
shared responsibility and subordination.
The
States shall decentralize and transfer to the Municipalities the state services
and powers which the Municipalities are capable of exercising, as well as
management of the associated resources, in the areas in which concurrent
jurisdiction exist as between these two levels of Public Power.
The transfer mechanisms shall be regulated by the legal system of the
State concerned.
Article 167: Are revenues of the States:
(1) Those deriving from their property and the management
of their assets.
(2) Charges for the use of their goods and services, fines
and penalties, and any charges allocated to them.
(3) Proceeds from the sale of State-owned commodities.
(4) The resources to which they are entitled by virtue of
constitutional revenue share (situado
constitutional). The revenue
share is equivalent to up to 20% of total ordinary revenues as estimated
annually by the National Treasure, which is to be distributed among the States
and the Capital District as follows: 30% of the aforementioned percentage in
equal shares, and the remaining 70% in proportion to the population of each of
such entities. During each fiscal
year, the States must invest at least 50% of the amount to which they are
entitled by way of revenue share. During
each fiscal year, the Municipalities of each State shall be entitled to at least
20% of the revenue share and of all other ordinary revenues of the State
corresponding.
(1) In the event of changes in the revenues of the National
Treasury that require an adjustment to the National Budget, the constitutional
revenue share shall be adjusted in the same proportion.
(2) Principles, rules and procedures with a view to ensure
the proper and efficient use of the resources deriving from the constitutional
revenue share and the share of the Municipalities therein shall be established
by law.
(3) Any other taxes, charges and special contributions that
may be allocated to them by national law for the purpose of helping to develop
the state treasuries. Laws creating
or transferring tax revenues to the States may offset these allocations by means
of changes in the other revenue categories indicated in this article, in order
to preserve interterritorial fairness. The
percentage of estimated ordinary national revenues allocated to the
constitutional revenue share shall be no less than 15% of estimated ordinary
revenues, taking into account the financial position and sustainability of the
National Public Treasury, without neglecting the ability of the state
administrative authorities to provide adequately for the services for which they
are responsible.
(4)
Resources deriving from the Interterritorial
Compensation Fund and from any other transfer, subsidy or special appropriation,
as well as those allocated to them as a share of national tax revenues, in
accordance with the pertinent law.
(1) Election of municipal authorities.
(2) Management of affairs within the scope of its
competence.
(3) Creation, collection and investment of its revenues.
The
actions of a Municipality within the scope of its competence shall be carried
out by incorporating citizen participation into the process of defining and
managing public affairs and monitoring and evaluating the results achieved, in
an effective, sufficient and timely manner, in accordance with law.
The
actions of Municipalities may be contested only before the courts of competent
jurisdiction, in accordance with the Constitution and the law.
Article 169: The organization of Municipalities and other local
entities shall be governed by this Constitution, by the rules established by
national organic laws to implement constitutional principles, and by such
provisions of law as may be enacted by the States in accordance with the
aforementioned.
Legislation
enacted to implement constitutional principles relating to Municipalities and
other local entities shall establish various structures for the organization,
governance and administration of the same, including as regards the
determination of their powers and resources, taking into account conditions
relating to population, economic development, ability to generate their own tax
revenues, geographical location, historical and cultural elements and other
relevant factors. In particular,
such legislation shall establish the options for organizing the system of local
administration and government that shall be adopted by Municipalities with
native populations. In all cases,
the municipal structure shall be democratic and consistent with the inherent
nature of local government.
Article 170: Municipalities shall be permitted to associate in
commonwealths, or to agree among themselves or with other territorial political
divisions on the creation of types of intergovernmental associations for
purposes in the public interest relating to matters within their competence.
The rules concerning the grouping of two or more Municipalities into
districts shall be determined by law.
Article 171: When two or more Municipalities belonging to the same
federal organ have economic, social and physical relations that give the group
the characteristics of a metropolitan area, they may organize themselves as
metropolitan districts. The organic
law enacted for the purpose shall guarantee the democratic and participatory
character of the metropolitan government and shall establish its functional
competence, as well as its tax, financial and control regime. It shall also ensure that the Municipalities have adequate
participation in the entities of the metropolitan government, and shall indicate
the manner in which the public consultations that are to decide upon affiliation
of the Municipalities with the metropolitan district.
Various
regimes may be established by law for the organization, governance and
administration of the metropolitan district, taking into account population
conditions, economic and social development, geographical location and other
factors of importance. In all
cases, the delegation of competence for each metropolitan district shall take
into account these conditions.
Article 172: The state Legislative Council, after a favorable
decision by public consultation of the affected population, shall define the
boundaries of the metropolitan district and shall organize the same in
accordance with the provisions of the national organic law, determining which
metropolitan powers are to be assumed by the governmental organs of the
pertinent metropolitan district.
When the Municipalities wishing to form a metropolitan district belong to different federal entities, the creation and organization of the same shall be the responsibility of the National Assembly.
Article 173: A Municipality shall have the power to create
parishes on such terms as may be determined by law. The legislation enacted to implement constitutional
principles relating to the organization of Municipalities shall establish the
premises and conditions for the creation of other local entities within the
territory of the Municipality, as well as the resources that shall be available
to them, depending on the functions assigned to them, including their share in
the Municipality's own revenues. Their
creation shall take into account neighborhood or community initiative, in order
to provide for the decentralization of the administration of the Municipality,
citizen participation and the providing of better public services.
In no event shall parishes be assumed to be the only possible divisions,
or to be required divisions, of the territory of a Municipality.
Article 174: The Mayor shall be in charge of the government and
administration of a municipality, and shall also be the head of civil
government. A Mayor must be
Venezuelan, over the age of 25 and not a member of the clergy.
The Mayor shall be elected for a term of four years by majority vote,
and may be re-elected immediately and once only, to an additional term.
Article 175: The legislative function in a Municipality is vested
in the Council, made up of council members elected in the manner established in
this Constitution, in such number and on such terms of eligibility as may be
determined by law.
Article 176: The Office of the Municipal Comptroller shall be in
charge of control, vigilance and auditing of municipal revenues, expenses and
property, as well as transactions relating to the same, without prejudice to the
scope of the attributions of the Office of the General Comptroller, and the
official in charge of the office shall be the Municipal Comptroller, designated
by the Council through a public competition to guarantee the capability and
ability of the person designated* to hold this office, on the terms established
by law.
Article 177: Principles, residence requirements and conditions,
prohibitions, grounds for disqualification and conflicts of interest for the
candidacy and exercise of the functions of mayors and councilmen members may be
established by national law.
Article 178: A Municipality has competence to govern and
administrate its interests, as well as over the management of those matters
which are assigned to it by this Constitution and national laws as regards local
life, in particular the ordering and promotion of economic and social
development, the equipping and providing of household public utility services,
the application of policy with respect to these matters on a basis of fairness,
justice and social interest content, according with delegation established on
law related to this matter, the promotion of participation and improvement, in
general, of living conditions in the community, in the following areas:
(1) Territorial zoning and city planning matters; historic
heritage; housing in the interest of society; local tourism; parks and gardens;
plazas; bathing and other recreational areas; civil architecture, nomenclature
and public ornament.
(2)
Urban roadways; circulation and ordering of vehicular
and pedestrian traffic on municipal thoroughfares; urban public passenger transportation services.
(3) Public spectacles and commercial advertising, to the
extent pertinent to specific municipal interests and purposes.
(4) Protection of the environment and cooperation with
environmental sanitation efforts; urban and household sanitation, including
cleaning, waste collection and treatment and civil protection.
(5)
Healthiness and primary health care; services for the
protection of infants and children, adolescents and senior citizens; preschool
education; family services to integrate the disabled into the development of the
community; cultural and sports activities and facilities.
Prevention and protective services; surveillance and control of property
and activities relating to matters within municipal competency.
(6) Drinking water services, electricity and gas for
household use, sewers. channeling and disposal of wastewater; cemeteries and
funeral services.
(7) Small claims courts, neighborhood prevention and
protection and municipal police services, in accordance with applicable national
legislation.
(8)
Any others with which Municipalities may be charged
under the Constitution and by law. The
actions that Municipalities have the power to take within the scope of their
competence are without prejudice to national and state competence as defined by
law in accordance with the Constitution.
Article 179: Municipalities shall have the following revenues:
(1) Those deriving from their capital assets, including the
proceeds from their common lands and other property.
(2) Charges for the use of their goods or services; administrative charges for licenses or authorizations; taxes on economic activities in the areas of industry, business and services, or those of similar kind, with the limitations established in this Constitution; taxes on urban real property, vehicles, public shows, games and lawful wagering; advertising and commercial publicity; and, the special tax on increased property values generated by changes in use or intensity of exploitation from which they benefit because of zoning plans.
(3) The rural territorial tax or tax on rural estates;
sharing in the tax on improvements and other national and state taxes, in
accordance with the laws creating such taxes.
(4) Those deriving from the constitutional revenue share
and other national or state transfers or subsidies.
(5) The proceeds from fines and penalties imposed within
the scope of their competence, or delegated
to them.
(6) Such others as may be determined by law.
Article 180: The taxing power that is vested in Municipalities is
different from and independent of the regulatory powers over certain fields or
activities conferred by this Constitution or laws on National or State
Authority.
Immunities
from the taxing power of Municipalities in favor of other territorial political
entities extend only to public sector juridical persons created by such organs,
and not to concession holders or other parties entering into contracts with the
administrative arm of National or State government.
Article 181: Municipal common lands are inalienable and not
subject to the law of limitations. Title
to them can be conveyed only subject to compliance with the formalities provided
for under municipal ordinances and under the circumstances provided for
thereunder, in accordance with this Constitution and such laws as may be
promulgated to develop the principles container herein.
Ownerless land located within the urban area of towns in a municipality is municipal common land, without prejudice to legitimate and validly constituted rights of third parties. Vacant land located within the urban area also becomes common land. However, this does not include land which is part of native communities. The mechanism for converting other public land into common land shall be established by law.
Article 182: The Local Public Planning Council is hereby created,
presided over by the Mayor and consisting of municipal Council members,
Chairpersons* of Parish Boards and representatives of neighborhood organizations
and other organized social groups, in accordance with such provisions as may be
established by law.
Article 183: States and Municipalities shall not have the power
to:
(1) Create customs authorities or import, export or transit
duties on domestic or foreign goods, or on other revenue sources under national
competence.
(2)
Tax consumer goods before the same are marketed within
their territory.
(3)
Prohibit the consumption of goods produced outside
their territory, nor tax the same differently from those produced within their
territory.
States
and Municipalities have the power to tax agriculture, livestock, fishing and
forest activities only at the times, in the manner and to the extent permitted
by national laws.
Article 184: Open and flexible mechanisms shall be created by law
to cause the States and Municipalities to decentralize and transfer to
communities and organized neighborhood groups services the latter manage and
demonstrate the ability to provide, promoting:
(1) The transfer of services in the areas of health,
education, housing, sports, culture, social programs, the environment,
maintenance of industrial areas, maintenance and upkeep of urban areas,
neighborhood prevention and protective services, construction of works projects
and providing of public services. To
this end, they shall have the power to enter into agreements, whose content
shall be guided by the principles of interdependence, coordination, cooperation
and shared responsibility.
(2) Participation by communities and citizens, through
neighborhood associations and nongovernmental organizations, in the formulation
of investment proposals for presentation before the state and municipal
authorities in charge of preparing the pertinent investment plans, as well as
participation in the execution, evaluation and control of works projects, social
programs and public services within their jurisdiction.
(3) Participation in economic processes, stimulating
manifestations of the social economy, such as cooperatives, saving funds, mutual
funds and other forms of association.
(4) Participation by workers and communities in the
running of public sector business enterprises, through self-management and joint
management methods.
(5) Creation of community service enterprises,
organizations and cooperatives as mechanisms to generate employment and social
Welfare, providing for their permanent existence through the design of policies
whereby these groups are given means of participating.
(6) Creation of new decentralized organs at the parish,
community, ward and neighborhood levels, with a view to guaranteeing the
principle of shared responsibility in the public administration of local and
state governments, and developing process of self-management and joint
management in the administration and control of state and municipal public
services.
(7) Participation by communities in activities to establish
closer ties with penal institutions and ties between the latter and the general
population.
Chapter V
The Federal Council on
Government
Article 185: The Federal Council on Government is the organ
charged with planning and coordination of policies and actions to develop the
process of decentralization and transfer of powers from National Authority to
the States and Municipalities. It shall be presided over by the Executive
Vice-President and shall consist of the Cabinet ministers, the Governors, one
Mayor from each State and representative s of organized society, in accordance,
with law.
The Federal Council on Government shall have a Secretariat made up of the Executive Vice-President, two Ministers, three Governors and three Mayors. The Federal Council on Government shall have a dependency known as the Interterritorial Compensation Fund, intended for the purpose of financing public investments with a view to promoting the balanced development of regions, cooperation and complement among the development policies and initiatives of the various public territorial entities, and in particular supporting the providing of works projects and services in regions and communities with relatively low levels of development. The Federal Council on Government, based on regional unbalances, shall discuss and approve annually the resources to be allocated to the Interterritorial Compensation Fund and the priority investment areas to which these resources are to be applied.