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 /.
Total revenues from the central government grew by 2% compared to the same period in 2016, while total expenditures fell by 2.1%.
From a statement issued by the Ministry of Economy and Finance:
Total revenues of the Central Government for the first half of the year amounted to B/3,537 million, that is to say they increased by B/.64 million or 1.9% with respect to the same period in the previous year, explained the Minister Of Economics and Finance, Dulcidio De La Guardia today in press conference.
Presenting a fiscal balance as a success while continuing to increase public debt is to disguise the fact that the government is still spending more than it collects.
"Even if a monkey dresses in silk, it is still a monkey"
EDITORIAL
The habit of the governments to spend more than what they earn is as old as the Spanish saying about the monkey dressed in silk. Fiscal indiscipline is a cancer that corrodes the foundations of economies, and in Latin America it has become a habit that even has defenders within the Academy.
The non-financial public sector deficit fell from 3.2% of GDP in 2015 to 1.9% in 2016.
From a statement issued by the Ministry of Economy and Finance:
The non-financial public sector deficit (SPNF), which represented 3.2% of the Gross Domestic Product (GDP) in 2015, decreased to 1.9% in 2016, according to the Fiscal Balance Report corresponding to the official closing of 2016.
In the first quarter total expenditures in the non-financial public sector decreased by 12% compared to the same period in 2016.
From a statement issued by the Ministry of Economy and Finance:
The non-financial public sector (SPNF) recorded revenues of 2,828 million balboas and expenses of 2,623 million Balboas, a positive balance of 204 million balboas in the first quarter of 2017, according to the Fiscal Balance presented today by the Ministry of Economy and Finance.
The agency highlights the country's macroeconomic stability, while noting a slight deterioration of fiscal indicators in recent years.
From a press release issued by Moody's:
New York, October 25, 2016 -- Panama's Baa2 rating with a stable outlook reflects the country's strong economy and its broad macroeconomic stability, says Moody's Investors Service.
A bill has been proposed to create a fiscal council to ensure that the public budget contemplates reasonable assumptions and meets the requirements of the Fiscal Responsibility Law.
The bill is being prepared by the Ministry of Economy and Finance, and its chief, Dulcidio de la Guardia, told Prensa.com that in addition the Fiscal Council, aims to create"...
The countries facing the greatest risk of fiscal unsustainability within three years are El Salvador and Honduras, followed by Costa Rica and with less risk, Nicaragua and Panama.
From the "EconomicOutlook"section of the V Report on the State of the Region 2016:
As in old fashioned patriarchal homes, if there must be suffering, the first to suffer are the stepchildren, and only afterwards, if necessary, the legitimate children.
EDITORIAL
The announcement by the Solis administration that it has a plan B in case it does not manage to get legislative approval for the proposed tax increases designed to address the serious and growing fiscal deficit, highlights the existence in Costa Rica of first class citizens and second class citizens.
While the Northern Triangle countries strive to reduce or at least maintain constant levels of debt / GDP, Costa Rica and Panama move further away from fiscal discipline, the former at the greatest pace.
From the introduction of a report entitled "Macrofiscal Profiles : 4th Edition." by the Central American Institute for Fiscal Studies (Icefi):
In the area of prioritizing economic stability over the availability of resources to finance development, the countries of the northern triangle in Central America, have generally shown a significant effort to reduce or at least maintain constant levels are Debt / GDP and the fiscal deficit, which means that, tacitly, the fiscal rule of zero growth of public debt is being used, despite the impact this may have on the welfare of the people.
Very dark is the future of a country where the rulers do not lift their gaze beyond the few years of the mandate conferred on them by citizens.
EDITORIAL
The president of Costa Rica prefers short-term actions to address the fiscal crisis, while leaving open the tap of privileged public wages by which the future of the nation drowns through.
It is clear that immediate measures need to be taken such as reducing tax evasion and smuggling, and cutting abusive pensions. And it is quite possible that in order to maintain the rule of law taxes also need to be raised. But not closing, RIGHT NOW the growing cascade of state payroll costs that is multiplying every year, means mortgaging the future of the Costa Rican economy. However, president Solis postpones dealing with the topic, because its impact would be felt "only after 15 or 18 years."
"The ongoing economic recovery in the United States and persistence of relatively low oil prices will provide favorable tailwinds to the region.Because of supply constraints, the region is expected to maintain a moderate pace of growth in coming years."
From the press release by IMF:
Central bank governors, finance ministers, and banking superintendents of Central America, Panama, and the Dominican Republic, and senior IMF officials met in El Salvador on July 23-24 to review the economic outlook for the region and strategies to strengthen policy frameworks and raise inclusive growth. The regional conference saw the participation of the President of El Salvador, Salvador Sánchez-Cerén; Governor of the Bank of México, Agustín Carstens; Director of the Netherlands Bureau of Economic Policy Analysis, Laura van Geest; and former Finance Minister of Perú, Luis Carranza.
"Fiscal accounts for 2015 anticipate an additional burden of concerns about the sustainability of the public finances of the governments of the region."
From a report entitled "Macrofiscal Profiles: 3rd Edition" by the Central American Institute for Fiscal Studies (Icefi):
The close of fiscal year 2014 has left more uncertainties than certainties in the current panorama for Central America.
Experts are warning that the rapid growth of public spending could have negative implications if conditions change in the economic environment.
After the Ministry of Finance raised the ceiling on the deficit for the nonfinancial public sector to 4.1% at the end of September 2014, there are now significant differences between income and expenses, resulting in a deficit of $2.07 billion.
The National Assembly has approved raising the maximum limit for government borrowing to 4.1% of GDP, above the 3.9% originally requested by the Executive.
The Assembly amended the project which initially envisaged raising the limit on the fiscal deficit from 2.7% to 3.9%, to bring it up to 4.1% of GDP.
'... This means that in the whole of 2014, the government will spend about $1.945 billion more than it earns, $95 more than was provided for in the text approved in the first debate. "
español
