2013 Honduras' Fiscal Deficit is 6% of GDP

The government has confirmed the figure, arguing that the increase is due to the economic slowdown and non-adoption of the law on tax exemptions.

Wednesday, December 18, 2013

"We are reviewing the figures. I would have liked it to be 4.5 which is established in the budget, but we have already said that the causes are that the tax revenues which were planned are not going to be able to be executed given that they were not approved in the law on tax exemptions," said Deputy Finance Minister Carlos Borjas.

Added to this is the non-approval of the Mining Act and the slowdown of the Honduran economy. Borjas argues that the deficit could reach $980 million.

In turn, Raf Flores, deputy coordinator of the Social Forum on External Debt of Honduras (Fosdeh) estimated that the fiscal deficit of the country could reach 8% of GDP, meaning that the difference between income and public spending could amount to $1,519 million.

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