The fiscal deficit registered an improvement of three tenths compared to the data of the previous month and remained at the equivalent of 4.8% of GDP in the moving year to October, the Ministry of Economy and Finance (MEF) reported on Tuesday. Its about second best performance of public accounts since the current government administration took office. To find a deficit below that level, you have to go back to April 2020 (-4.6%). The current Executive took office with a deficit equivalent to 5% of GDP in March of that year.
According to the MEF statement, in the 12 months ended October the The result of the Central Government – Social Security Bank (GC-BPS), stood at -4.2% of GDP. The result of the GC-BPS improved 0.3% in terms of GDP with respect to the moving year to September of this year. The inflow of funds to the Social Security Trust (FSS) —the fifty-year-old law— was 0.5% of GDP, so the fiscal result of the GC-BPS adjusted for this effect was -4.7% of GDP.
The GC-BPS revenue stood at 26.9% of GDP, increasing 0.4% in terms of GDP compared to the measurement of the last 12 months ended September. The item “Other Income” presented an increase of 0.2% of GDP as a result of extraordinary income from the BROU. This rise is also explained by higher DGI revenues, which grew 0.1% of GDP.
The GC-BPS primary expenditures they were located at 28.9% of GDP, remaining stable in terms of the product compared to the previous month. The higher payment of non-personal expenses, mainly due to the expenses associated with the health emergency, was offset by lower expenses associated with the liability item.
At year ended October, net expenses attributed to the Covid-19 Solidarity Fund were estimated at 1.7% of GDP.
Finally, the interest payment of the GC-BPS was 2.2% of GDP, remaining constant in terms of GDP with respect to the previous month.
The result of Public Companies (EEPP) It stood at 0.3% of GDP, remaining constant in terms of GDP with respect to the 12 months ending in September.
The result of the Non-Monetary Public Sector (SPNM) it was -3.4% of GDP in the 12 months ended October 2021. Excluding FSS revenues, the fiscal result of the SPNM was -3.9% of GDP.
For his part, BCU global result, stood at -0.9% of GDP, remaining constant in terms of GDP with respect to the moving year closed to September 2021. Finally, the result of the Global Public Sector (SPG) It was -4.3% of GDP, which, adjusted for the FSS effect, stood at -4.8% of GDP, according to the MEF.
In the last Accountability of 2020, the government projected to close this fiscal year with a red of 4.9% of GDP. Meanwhile, analysts who responded to the BCU Expectations Survey projected a red equivalent to 5% of GDP.
