Public Spending Still Growing in El Salvador

The Government is still unable to curb its current account spending, which in 2013 grew by 8% compared to 2012.

Tuesday, February 25, 2014

Last year, the Salvadoran government used $3,654 million for consumption and operating expenses, $281 million more than in 2012, according to data from Banco Central de Reserva .

"Of the composition of current expenditure in 2013, 37.9% was needed for the payment of public employees, the purchase of goods and services accounted for 17.2% and commitments to public debt accounted for 15.9% of the spending."

" ... In 2013 the government paid $582.7 million in interest and principal to financial institutions, holders of securities and international organizations. The remaining 29% was transfers that the GOES made to public financial institutions, public companies and other institutions ... " .

According to Carolina Alas de Franco analyst at the Salvadoran Foundation for Economic and Social Development, "government spending has focused on the short term, current spending such as wages and payments, but not investment. The increase in current expenditure is equivalent to 3.3% of GDP."

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