The Economic Commission for Latin America and the Caribbean (ECLAC) presented this Thursday the design of a fiscal policy that strengthen collection and improve the progressivity of the tax structure.
(Economies ‘of the left’ in the region register a mixed balance).
This proposal was delivered in the study ‘Fiscal Outlook for Latin America and the Caribbean 2022: Fiscal Policy Challenges for Sustainable and Inclusive Development’.
This design proposed by the UN body seeks that in turn “public spending be strategically oriented to turn it into a development instrument and innovative sources of financing linked to sustainable development are promoted.”
In this way, cites the report, “a paradigm shift in fiscal policy could be proposed to promote sustainable and inclusive development in the region.”
(The consequences for Latin America of the great rise in rates in the US).
It should be noted that this ECLAC initiative takes place in a macroeconomic scenario of low growth and high inflation in the regionwhich has previously been pointed out as a scourge of a consecution of factors, such as the covid-19 pandemic, the disruption of global value chains and more recently, Russia’s invasion of Ukraine.
“The rise in interest rates and low economic growth could generate additional demands for support to productive sectors that have not recovered from the impacts of the coronavirus disease pandemic,” the entity’s text continues.
“The challenges facing fiscal policy call for the establishment of new social and fiscal pacts that make a pro-growth fiscal policy viable. The development needs of the region, as well as the urgency of advancing in the achievement of the Goals of the 2030 Agenda for Sustainable Development”, quoted Mario Cimoli, Acting Executive Secretary of ECLAC.
It is worth remembering that, according to the latest statistical forecasts of the agency, the region would grow at a rate of 1.8% in 2022.
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