The budget must be free of political costs

The crisis that the Government is experiencing has led to the appointment of ambitious general budget for 2024which is 20% more compared to the current tax period.

And this moment is ideal, according to the consulted analysts, for political costs remain aside and is closer to the current fiscal reality.

The general budget for next year foresees 32,754 million dollarsnot counting the recommendations of the representatives, which are still unknown exactly, because they were made without access to the media.

It was not approved at regular sessions and The government has until the end of the year to convene extraordinary sessions and for the Assembly to approve it.

The last projections, before the protests, indicated that it would the economy will grow by 6% this year.

“That probably won’t happen, but it’s not like we’ll fall into a recession either,” he said economist Felipe Argote.

However the 2024 budget is beyond reality current tax collections.’

300

million dollars could increase the parliamentary budget in 2024, with adjustments.

780

million dollars would be what the representatives recommended in the budget corrections for 2024.

That’s what he said economist Rául Moreirawho does not know what kind of economic growth financial planning was based on, because the budget grows faster than the economy.

“Is it is difficult to meet such an ambitious budget, given that the state administration changes in a year; consumption could be rationalized, not necessarily income and investments,” the expert pointed out.

Policy

What has drawn criticism is high political nuance which comes with next year’s budget.

There is already experience from 2019, when this Government inherited a budget that excluded payments to state suppliers, whose the debt was close to 2 billion dollars.

This absence the government of Juan Carlos Varela This is why the current government asked for a loan in order to be able to pay the businessmen.

Argote stated that before the outbreak of the current crisis the budget had to be adjusted by at least $4 billion.

Inside the account There is a line that allows you to adjust that amountif collections and other income do not meet the budget.

“It must be clear to the government It’s not blowing the budget and giving away turkeys and prosciutto how will it stay; They don’t stand a chance anymore,” Argote said.

He added that the rulers should be responsible and finish their mandate in the best way, eliminating multi-million dollar purchases to create clientelismincluding the reduction of the planned budget for the Assembly.

What to reduce?

In addition to the budget of the Assembly, Argote proposes that a considerable amount of exempting the rich from paying taxes.

“People talk about subsidies for the poor, not exemptions for the rich; It cannot be that the middle class is the only one paying taxes“, He said.

You also have to the balance of agricultural subsidies so that small producers have more opportunities and gradually eliminate solidarity bonus It seems they don’t give it to those who need it, “but to those campaigning for an MP,” he said.

In the meantime, Moreira recommends that Decentralization Authority expenses that are not in accordance with the law.