Law No. 109/VIII/2016, of 8 January 2016, sets forth the legal framework for autonomous funds. Autonomous funds are all State or any other public legal-person organisms that have a special purpose and administrative and financial autonomy, without acquiring legal personality.
The creation of an autonomous fund falls within the competence of the Government, subject to a proposal from the member of the Government responsible for the area relating to the fund. For matters concerning municipalities, competence to create these funds lies with the Municipal Council (“Assembleia Municipal”), acting upon submission of a proposal from the Municipality (“Câmara Municipal”), upon Governmental approval and against a favorable opinion from the governmental department responsible for the Finance area, within 45 days after the date of the application. In the absence of a response, the application shall be deemed to have been tacitly approved.
The aim of autonomous funds, which are governed by the administrative laws in force, are to carry out activities that cannot be performed by existing public administration bodies.
Autonomous funds are subject to the principles of good management of public resources and the principle of legality of expenditure.
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