Member Article

The Ministry of Finance and Public Credit issued Legislative Decree 518 of 2020, which created the Solidarity Income Program in order to meet the needs of households in situations of poverty and vulnerability throughout the national territory, in the context of the State of Economic, Social and Ecological Emergency. The Solidarity Income Program was created under the administration of the Ministry of Finance and Public Credit, through which unconditional monetary transfers will be provided from the resources of the Emergency Mitigation Fund (FOME) in favor of individuals and households in situations of poverty and vulnerability, in addition to those who are not beneficiaries of the Families in Action, Social Protection for the Elderly-Colombian Elderly, Youth in Action or the Sales Tax (VAT) compensation programs, during the period in which the State of Economic, Social and Ecological Emergency was declared.The National Planning Department (DNP) determines the beneficiary households of the Solidarity Income Program. For this purpose, DNP will take into account households in situations of poverty, extreme poverty and vulnerability that are registered with Sisbén. DNP may also use additional sources of information to help target and locate the most vulnerable individuals and households benefiting from the Solidarity Income Program. Once this information has been identified, the DNP may provide or share it with the entities involved in unconditional transfers.Taking into account the information on beneficiaries sent by the DNP, the Ministry of Finance and Public Credit will, by administrative act, order the execution of the expenditure and the direct transfer to the accounts indicated by the different financial entities. This administrative act shall detail the amount of resources to be transferred, the periodicity of the transfers, as well as the mechanisms of dispersion. To this end, the Ministry will coordinate with other entities to define the financial products and the entities in which the beneficiaries will receive the unconditional monetary transfers.Finally, it should be noted that the Ministry may enter into agreements and modify those in force with the banking network and other operators to ensure the dispersal of transfers and increase the capacity for dispersal and money transfers to the population. Likewise, the Ministry may set the prices and tariffs corresponding to the products and services offered by financial institutions, payment systems and mobile operators in the framework of unconditional money transfers. In this case, the beneficiaries shall not pay any kind of commission or fee for the withdrawal or disposal of the transfers.

SEE DECREE518 OF2020