Between January and June 2022, the State obtained tax revenues of 58,209.3 million córdobas, which exceeded the scheduled goal for that period by 14,325.1 million (32.6%), despite the economic crisis, according to data published by the Ministry of Finance and Public Credit (MHCP), in the Budget Execution Report corresponding to the first semester of the year.
At the end of the first quarter of 2022, 31,577.5 million córdobas had been collected in tax revenue, which exceeded the programmed goal for that period by 34.6% (8,110.0 million) and 23.1% (5,930.2 million) over what was observed in the same period from 2021according to the same Treasury Report, corresponding to that period.
While the companies denounce the existence of a scheme designed to extort them through the imposition of high fines and the collection of large bribes to free them from the fines that were imposed on them, the Ministry of Finance defends that overtaxing it is due to the “consolidation of a fair and efficient tax system”, whose goal is to “guarantee fiscal sustainability in the short and medium term”.
The 58,209.3 million córdobas collected in the first semester indicate that 68.6% of all the taxes expected to be collected throughout the year have already been collected, at the same time that it exceeds by more than a fifth (20.6% or 9,948.0 million córdobas). ) to the amounts collected between January and June 2021.
Almost half of the proceeds corresponds to IR
When making the detail by type of taxes, it stands out that almost half (C$28,527.3 million) comes from income on income (IR). Other C$12,894.3 million are sourced from the imported value added tax (VAT), while C$5,637.8 million were collected as internal VAT, plus C$3,253.5 million from the selective consumption tax (ISC). The combined tax on fuels generated revenues of C$3,546.4 million.
The rest comes from the sale of goods and services (C$1,957.5 million); property income (C$868.8 million); public sector transfers and donations (C$135.0 million); other non-tax income (C$1,486.3 million) and capital income (C$76.6 million).
The income of the observed period represents a coverage of 121.6% of the total expense accrued in the first half of 2022, which exceeds the performance observed in the same period of 2021, which was 112.7%, “result of the increase in collection and management prudent public spending,” says the Treasury.
Nearly C$9.9 billion in loans and grants
Along with the greater ‘efficiency’ in the collection from companies, the 403-page Report shows that the ‘generosity’ of countries and multilateral organizations continues to be decisive in maintaining the level of expenses budgeted by the dictatorship, especially, for the 9,243.9 million córdobas received as loans, which represents 59.9% of the total loans budgeted for 2022.
First place goes to the Central American Bank for Economic Integration (CABEI), which contributed 5,412.2 million córdobas, that is, 67.7% of the 7,993.5 million committed for this year, while the Inter-American Development Bank (IDB), disbursed 1,495.6 million, which is 43.6% of what is scheduled to be delivered in the course of 2022.
The 1030.2 million from the World Bank (WB), represent 43.2% of its support for this year, while the International Monetary Fund (IMF; 772.6 million and 98.7% of the total), and the Korean Export Bank, with 213.9 million , or 92.5% of their commitment for this year, close the list of the first resource providers for 2022.
The Budget Execution Report also shows the receipt of 621.6 million córdobas in concept of external donations, (33.0% of the total for this year), while it is expected that in the second semester the 1262.1 million offered by various institutions and countries, among those that stand out the World Bank, the rejected taiwanthe European Union, the World Food Program (WFP), and CABEI.
This ‘generosity’ made it possible to incorporate an additional 3,822.5 million córdobas into the 2022 budget, of which 341.9 million come from external donations, including C$106.5 million for the Ministry of Health to build the Chinandega Hospital; C$43.2 million for various programs of the Ministry of Agriculture, and C$33.7 million for the National Police, from the remainder of Taiwan’s contribution.
The amount of loans incorporated in the period was C$3,240.9 million, of which almost two thirds come from CABEI, the IDB, the IMF and the World Bank, so that the Treasury can finance the program to face COVID – 19, (despite that systematically the regime underexecutes those funds) in addition to another C$192.8 million from the World Bank, for the strengthening of property rights.
The Ministry of Transportation and Infrastructure received an additional C$1,194.5 million, provided by the IDB, the World Bank, CABEI and OPEC, for the improvement and construction of highways on the Atlantic Coast, and the Muy Muy – Matiguás – Río Blanco highway, between others; The Ministry of Education received C$24.1 million from the World Bank to support the education sector and to improve educational quality in the country.
And while the Emergency Social Investment Fund (FISE) received C$96.3 million from CABEI for rural water and sanitation, and for an infrastructure program in the North Caribbean, on the other hand the provision of funds increased by C$18.1 million from the Bank World and the IDB, so that the Ministry of Health improves the ‘Gaspar García Laviana’ Hospital (Rivas); and the ‘Bello Amanecer’ Hospital (Quilalí), plus a health program in the dry corridor.
