February 8, 2023, 4:00 AM
February 8, 2023, 4:00 AM
What rules is the economic model. For this reason, since 2006, the MAS has been committed to internal demand, consumption and the creation of state companiesdespite the decrease in resources.
Thus, in days gone by, the Minister of Productive Development, Néstor Huanca, reported that Bs 2,547 million will be allocated for this management for industrialization projects, of which Bs 668 million is expected to be used for the creation of new state companies. The idea is to have 50 industries managed by the State, Huanca specified.
In this sense it will also continue fuel subsidy in effect food (corn, wheat flour, meat and dairy) and electricity that in 2022 meant an expense to the State of about $us 1,700 million, when it had been calculated in the General State Budget (PGE) at the end of 2021 to allocate no more than 50% of the indicated amount.
At this point Jorge Richter, at the end of 2022, explained that the subsidy scheme in the hydrocarbons, food and electricity rates in the country, allows the population to have fair prices and proper supply, so that it does not suffer the global impact.
Richter explained that in round figures the State buys a quintal of flour for Bs 100 and sells it for Bs 50, this responds to the Economic, Community, Productive Model (MESCP), which has a structurally social concept and seeks to help improve the competitive capabilities of the business sector, the presidential spokesperson remarked.
However, according to the analysts consulted this model spends more than he has. Well, since 2015 it has been running a fiscal deficit (more expenses and less income) that in 2022 was 7.2% (about $3,000 million).
Is Jaime Dunn, economic analystwho pointed out that the economic model of the administration of Luis Arce relies on spending and the domestic market and looks sideways at private investment and exports.
Dunn stressed that it is not new that the Executive branch continues to create state-owned companies and that, faced with the objection that most of the time they are loss-making, the Government answers that this is not the main thing, but what matters is that jobs are created, he observed. Dunn.
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The economist, Germán Molina, indicated that this model is maintained with debt. Thus, in 2022 it reached $33,000 million and when asked if this is sustainable, the analyst indicated that this situation is not sustainable over time if the State does not diversify its income.
Molina indicated that the depletion of foreign exchange reserves which are located at $us 620 million, the lowest in the last 20 years, is a sign that spending has a limit and more when in the past administration to continue maintaining the subsidy for fuel, some food and the electricity tariff for a sector of the population, $us 1,700 million had to be allocated.
“The pressure is high. not enough with lower the fiscal deficit to 7.2%. The financial gap is about $3 billion. A figure that should lead to reflection, ”Molina said.
For Dunn the call to reality is the percentage of the execution of public investment during the past year it reached 47.6%, which represents $us 2,634 million of the $us 5,015 million planned for that management.
“As you can see there is a selection of spending. You choose what you are going to invest in and that happens because you do not have enough money to comply with political announcements,” Dunn questioned.
In this regard, the Minister of Development Planning, Sergio CusicanquiHe did another reading. He, then, focused his analysis on the $2,634 million, of which the central government executed $2,015 million, that is, 76%.
