The recently approved LHey of Rresponsibility Ffiscal of state institutionsa normative which seeks to control the growth of the debt publicwill be taken into account for the formulation of the General State Budget to be applied in 2025.
The Director General of Budget, Jose Rijo Presbotsaid that, by then, the fiscal rules will be contemplated “from now on.” “The route is that, from now until 2035, we will be below, at most, 40% of the debt on GDP,” he told Free Newspaper.
He reported that this Monday he will hold a meeting to discuss the draft of the regulation of the lawa tool that will have more details on how this new should be applied normative and that work will be done “quickly”.
Meanwhile, it is planned to limit the increase in deficit fiscalkeeping it at the same level as in 2024, in order to keep it below the inflation target, which is 4%.
“He spent will not increase beyond 3% compared to the budget this year,” he explained, pointing out that the essence of a rule fiscal is that the Government is forced to make expenses based on priorities, avoiding increasing the deficit.
The LHey of Rresponsibility Ffiscalintroduced by the Executive Branch last year, was approved last Thursday, in order to give it “certainty and predictability” to the trajectory of the coefficient of debt.
The Minister of Finance, Jochi Vicente, stated that the Government is willing to set “reasonable limits” on the growth of the spent public to fulfill state functions, while ensuring the sustainability of the debt publicthe institution stated in a press release.
Neither so rigid nor so flexible
He economist Nelson Suárez stated that, for this law be successful in its fulfillment, it would need to be a normative to establish guidelines that are neither “so rigid” that they are impossible to implement, nor “so flexible” that they are ignored, emphasizing the importance of carefully studying the already approved piece.
In early July, five other economists spoke with Free Newspaper and agreed that the piece would play an important role in the application of reforms structural.
“The country needs a fiscal rule “that defines how current expenses increase, to avoid any hemorrhage,” said financial consultant José Luis de Ramón Picazo at the time.
For her part, the expert, Magdalena Lizardo, considers that the law should be considered as a component comprehensive of the set of reforms that the authorities want to implement.
The economist specialized in management taxGermania Montás, stated that the authorities They must be committed to complying with the piece and proposed that universities and other civil society actors be involved in its supervision.
Reform fiscal is “imminent”
Luis Reyes, former general director of Budget, considers that compliance with the LHey of Rresponsibility Ffiscal constitutes “an enormous challenge” under current budgetary conditions, defined by high budgetary pressures. spentan investment public reduced and insufficient income.
“If we have restrictions like that and we have such low tax pressure, the only thing one can think is that the reform fiscal “It is imminent,” Reyes said when interviewed last Friday on the radio program El Sol de la Mañana, adding that the Government is sending a signal “in the right direction” and pointing out that it will propose a reform fiscal for the next few days or weeks.
