The government economic team presented on Tuesday the 15th fiscal data for 2021, comments on the growth of the economy and employment, and data on poverty reduction.
This Wednesday, for his part, the President of the Republic, Luis Lacalle Pou, said that “the commitments that many did not believe in were fulfilled, because people who are in the opposition today said that if the multicolored coalition won, they would put taxes”. He added that many countries imposed taxes to support the expenses of the pandemic, but “Uruguay invested money in the pandemic, no taxes were imposed and, moreover, the fiscal goals were met.”
The statements of both the economic team and the President of the Republic were refuted by legislators from the Broad Front.
Indeed, deputy Gerardo Núñez said that “from the government they keep repeating that taxes did not rise”, and that is “false”.
He remarked that the VAT for debit purchases rose, both the IRPF and the IASS rose due to changes in the calculation base, and also the Specific Internal Tax (IMESI). “It would be nice if they stopped lying.”
No economic and social development agenda
For his part, Senator Mario Bergara stated that the government presented some variables, not all of them, nor all of them shown with the same criteria. “Once again, they choose based on what is going well and what is going wrong.”
“They told us that they had to be evaluated for fiscal deficit and inflation. Today inflation was left aside. Why will it be? The economy is growing faster than expected, as is employment. Good news. But the composition of that growth matters. It is a pure export of items with exorbitant international prices and enormous Chinese demand, aspects outside the government’s policies. That growth is not seen in the domestic market. The ‘gold mesh’ are not there”, questioned Bergara.
He remarked that there, yes, government policies “have led to lower salaries and pensions.”
“Once again, they overachieved their fiscal goals. They happy, it is their obsession. But where are its merits? How do you explain your ‘savings’”? Compared to 2019, revenues increased due to more taxes (changes in BPC definition criteria that impact personal income tax and IASS, more VAT with cards, the COVID tax and energy sales to Brazil thanks to the converter built in previous governments ”, he added.
The Frente Amplio legislator indicated that expenses are falling due to the fall in salaries and investments, a process that is not sustained. “Is that your ‘merit’?”
He said that from the COVID Fund, social assistance does not reach 300 million dollars. “The overfulfillment of its fiscal goals reaches 300 million. They could have given twice as much welfare without missing their own goals. The popular pots might not have been necessary. Fundamentalism behind the backs of those who need it most. They continue adjusting more than what was promised and without an economic and social development agenda”.
