Photo: Ministry of Economy and Finance of Paraguay.
As of September of this year, an annualized fiscal deficit of 3.25% of the Gross Domestic Product (GDP) was recorded.
What represents a reduction compared to the records of the last five months of the yearaccording to the results of the Financial Situation report (Situfin), prepared by the Vice Ministry of Economy and Planning (VEP).
He report was presented by the director of Open Government, Felipe González Soley; the director of Macro Fiscal Policy, Rolando Sapriza; and Angélica Pintos, official of the Vice Ministry of Economy and Planning.
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The report details that, January to September 2023 Total income presented a cumulative increase of 4.9%, totaling about G. 31.3 billion, shigher than the G. 29.8 billion registered during the same period of 2022. As for the tax revenue, a cumulative increase of 4.2% is observed.
On the other hand, the report details a 14.9% increase in total expensestotaling about G. 32.9 billion as of the ninth month of the current fiscal year, above the G. 28.6 billion reported in the same period of 2022.
Likewise, it is observed that the Accumulated investment during the analyzed period was USD 592.2 million19.3% below the amount executed from January to September 2022.
In this way, the accumulated fiscal result as of September 2023 was -1.85% of GDP, equivalent to about USD 813 million. On the other hand, the operative result (Total income minus total expenses, excluding investment) shows a result of -0.50% of GDP (USD 220.8 million).
Sapriza explained that the increase in total expenses is explained by the increase in spending for the use of goods and services, payment of interest, remuneration to employees and social benefits.
“Refering to evolution of the accumulated variation of total expenditure“We see that in the month of January we had an increase of 25.6%, then a growth rate of around 17% and 16% was maintained, and currently we are registering a total increase of 14.9%,” he highlighted.
Regarding income, Sapriza recognized that In September, a lower dynamic was observed in tax revenues compared to the estimate for the end of this year (8%).. He mentioned, in that sense, that the current expectation is that the fiscal year would end with a 6% increase in income from tax collection.
For his part, Felipe González Soley added that the dThis acceleration of public investment is due to the fact that the economic activity of Paraguay is in a recovery phase.
“We must keep in mind that we are coming from years where the economy showed a succession of shocks that required a response, both from fiscal policy and monetary policy. Fiscal policy is returning to investment more consistent with a level of growth in economic activity that is close to its potential growth levels.
On the other hand, it must also be taken into account that the public investment levels will be consistent with a gradual return to compliance with the 1.5% of the Fiscal Responsibility Law,” he added.
2023-10-07 19:05:21
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