The government's financial deficit rose from 3.4% of GDP in September 2016 to 4% in the same month this year, explained by an increase in the financial cost of debt and an increase in capital expenditure.
Tuesday, October 24, 2017
From a statement issued by the Ministry of Finance:
At the end of September, the central government's revenue and expenditure figures reflect the need for comprehensive fiscal reform (via income and expenditure), which will make it possible to sustain the state's finances, as well as stability and continuity of social achievements which the country achieved throughout its history.
The financial deficit up to September 2017 is 4.0% of GDP, while the primary deficit is 1.6%.At the same time last year, these indicators stood at 3.4% and 1.3%, respectively. The increase in the deficit is explained by an increase in the financial cost of debt (interest from 2.1% to 2.4% of GDP from September 2016 to September 2017), the increase in capital expenditure from 0.8% to 1.0% of GDP) and transfers that must be met by legal mandates (increasing from 5.4% to 5.5% of GDP).
Wages, on the other hand, decelerated from 5% of GDP in September 2016 to 4.9% in 2017.Expenditure on goods and services remains at 0.4% of GDP.
At the end of the first quarter of this year, the financial deficit increased to 1.5% of GDP, up from the 1.3% reported in the same period in 2017, accompanied by a slowdown in tax revenues.
According to the Ministry of Finance "...The fiscal results at the end of the first quarter of March show, once again, the need to have a structural reform that allows increasing revenues and slowing down of growth in public spending, an objective sought by the Public Finance Strengthening Project."
Last year, the Central Government's current expenditures amounted to $6.712 billion, 8.5% more than in 2016, while capital expenditures totaled $3.730 billion, or 6.4% of GDP.
From a statement issued by the Ministry of Finance:
As of December 2017, the total revenues of the Central Government (CG) were B /.
The financial deficit up to October 2017 reached 4.6% of GDP, above the 3.9% registered at October 2016.
From a statement issued by the Ministry of Finance:
The fiscal results up to October show the urgent need to have an integral tax reform (via income and expenses), that allows for sustainability in state finances, as well as guaranteeing its operation.Therefore, in order to provide a structural solution to the fiscal problem and reverse the trend of these results, the Government recently presented a new Project for Strengthening Public Finances, which seeks to bring political positions closer to reaching a consensus that will allow for an agreement to be made to clean up the Central Government's economic situation.
As of February total expenditures recorded a slowdown of 1%, having increased by 6.8% compared to the 7.8% increase in the same period in 2016.
From a statement issued by the Ministry of Finance:
The First Vice President and the Minister of Finance, Fallas Helio, presented this week the tax figures at the end of February 2017, which show that both the primary deficit (total revenue less noninterest expense) as well as the financial deficit maintain the same behavior seen in February last year, 0.8% of GDP and 1% of GDP respectively.
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