Projected Fiscal Deficit of 6% in Honduras

Projections by the Ministry of Finance show that the future Honduran government could be left with an imbalance between expenditures and revenues of more than $1.2 billion .

Wednesday, June 5, 2013

Latribuna.hn reports that "... authorities from the ministry of Finance reported that in the current economic conditions, the fiscal deficit at the end of the year could exceed 6% and not 4.5%, as predicted by the Monetary Program, presented in April by the Central Bank of Honduras (BCH) ".

According to Guillermo Matamoros, president of the Economists Association of Honduras (CHE), the real cost is "about $1.2 billion" a deficit that could be financed with higher taxes and public debt. "The government is funding this with the sovereign bonds and what you saw last year is that the government failed to meet certain payments".

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