Absence of initiatives to cut spending and lack of dialogue with the business sector are the main criticisms of the tax reform bill proposed by the Executive Power.
In addition to the expected impact on the productive activities that will be affected, such as mining, one of the criticisms of the project is the absence of issues related to transparency in the use of resources, a key issue after the corruption cases revealed in 2015.
There is a proposal to exclude the electricity, telecommunications, banking and agribusiness sectors from the law proposal on competition, since they are already subject to regulation.
The proposal put forward by CABI to exclude these sectors is based on the fact that companies operating in these areas are already subject to regulation and supervision. Paulo de Leon, analyst at the CABI, told Elperiodico.com.gt, for example, that in the case of agribusiness, not excluding them, "... would affect rising food prices and cost of the Basic Food Basket, food insecurity, and other things. " In the case of other sectors, according to De Leon, controls to prevent abuse of competition are already made by supervisory bodies such as the Superintendency of Telecommunications.
On December 12th the Ministry of Finance expects to place in the domestic market the remaining 30% of the issue approved in order to finance the 2015 budget.
70% of the treasury bonds that Congress passed have already been awarded, and on December 12th it is expect that the remaining 30%, ie $110 million will be auctioned in the local market.
Carlos Gonzalez, an analyst at the Association for Research and Social Studies, told Diario de Centro America "... The extraordinary bond issue was made due to underfunding of the budget, resulting from low tax revenues. Also, the spending requirements of the Ministries of Health, Education and Government forced Congress to authorize this transaction. "
Increased borrowing costs, a disincentive to foreign investment and distrust of economic performance, are part of the expected scenario if public debt growth is not controlled.
Prensalibre.com reports that "... The draft budget for 2015 presented by the Ministry of Finance, amounting to $9.250 million (Q71 thousand 840.8 million), contemplates taking on new debt of about $2 billion (Q15 billion), of which $1.6 billion (Q12 thousand 334 million) came from bonds and loans. "
In July the MIEA increased by 2.8%, down from 3.19% registered in the same period of 2012.
The growth of the Monthly Index of Economic Activity (MIEA) observed in July recorded only a slight increase of 2.8% when compared to the amount recorded in June which was an increase of 2.67%. However when compared to the same period in 2012, the stagnation is much more clear, since the index was then at 3.19%.
A survey of 355 tourism companies and hotels points to the cost of power and insecurity as the main obstacles for the tourism sector.
Hotel occupancy in 2012 was 52%, down 3% compared to the figures reported in 2011. The survey conducted by the Association for Research and Social Studies (ASIES) reveals that 71% of operators did not have their expectations met last year regarding the number of tourists expected for Oxlajuj Baktun.
According to Andrew Jervis, president of the Board of Directors of the Bank of Antigua, the transaction which has the backing of the Superintendency of Banks (SIB), does not mean a change in the operating model, and continuity of service has been assured for their customers.
If Congress does not approve loans which enable funding of the state budget, the crisis could be severe.
Roberto Villate, head of the Lider back bench group, said that as a block, they do not support the loan approval because from the beginning they did not agree to an underfunded budget and one without any programatic basis. The official said that with each loan "the country takes one more step in the direction of Greece or Cyprus".