While state officials are happy to delegate their responsibilities to the UN Office for Project Services, the Comptroller of Guatemala has declared that its services are "detrimental to the interests of the state".
The arrival in Central America of the UN Office for Project Services (UNOPS) was hailed by many as a factor that would allow the execution of public works which are very difficult or impossible for state institutions in the region to run, for various reasons ranging from lack of qualified personnel to simple negligence.
The third tax bill is now ready; it will tax bank transfers, luxury homes, as well as products used by printing companies.
The Ministry of Finance has not yet said when it will send the plan, which expects to increase revenuea by about $100 million, to the Legislature. According to the chief of Finance, Carlos Caceres, "we are working on the project which will, by 2020, return us to the same pre-crisis debt levels (before 2008).
The project aims to facilitate the arrival of foreign investment in the country, but it remains trapped in Congress.
"The law presented by the government is positive. Hopefully this is a good law, but in itself it is not enough. If conditions (such as uncertainty, bureaucracy, etc..) carry on being reinforced, then the law will not help "said Roberto Rubio, from Funde.
Academics and politicians are proposing an intersectoral agreement from which comprehensive tax reforms can arise in order to make public finances sustainable.
According to an article in Elmundo.com.sv, "The forum called 'Are Public Finances sustainable?', brings together economists and two deputies from the Special Committee on Finance and Budget of the Legislative Assembly to discuss and present their proposals for solutions to the current fiscal situation.
A report by the National Development Foundation said that expectations for 2012 "are extremely worrying."
From a statement from FUNDE:
Balance of the Economy in 2011 and Fiscal Outlook for 2012
In 2011, the Salvadoran economy maintained a low rate of growth for the second year, after a contraction in 2009 following the global financial crisis. Economic growth was close to 1.4% of GDP, which was probably due, among other things, to a considerable deterioration of economic activity in the second half of the year, coupled with the impact of the storm 12-E in agriculture. As a result, in December the Economic Activity Volume Index recorded an annual growth rate of 1.3% when in the first half it had maintained a certain dynamism pointing towards a recovery of the Salvadoran economy after the shock of 2009.
The regulation establishing export incentives for "draw back" substitutes is still pending approval in El Salvador.
During the inauguration of the Third Meeting of Exporters, the Exporters Corporation of El Salvador (Coexport) called on the Government to establish the dates for the entry into force of the regulations on the Law for the Promotion of Production, which establishes new incentives.
Businesses from the National Development Foundation (Funde) indicate that, after two years of rule by Mauricio Funes, the country’s economy lacks clear direction.
With an eye on the threat of a new global recession, the government is being accused of failing to take advantage of the surge in tax revenues and remittances from abroad to do work "that will generate productivity, instead of the contrary, spending all its income on subsidies and salaries for public employees. "
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