On August 7, President Gustavo Petro reached the halfway point of his term.
Throughout this period, the administration of the first leftist president in the country’s history has had its ups and downs. His victories include the approval of an ambitious tax and pension reform, as well as a reduction in poverty rates and progress in environmental policy.
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And although the Executive has highlighted several achievements, in the two years remaining in the President’s administration, There are challenges to overcome in order to fulfill its promises of change.
Precisely, in his commemorative speech, President Petro presented a balance sheet in which, in addition to the results achieved, he referred to the challenges that his administration has had to faceespecially as it relates to public finances.
According to the president, “The fiscal situation we found was not the most favorable.” In this regard, he highlighted two key factors: public debt and the deficit in the Fuel Price Stabilization Fund (Fepc).
Petro explained that the funds raised through the tax reform were used to pay off the debt left by the government of former President Iván Duque, as well as to fill the gap in the Fepc’s finances.
“We were the only government that was able to go to the trouble of eliminating the gasoline subsidy, which benefits a very small part of the population, but which in recent years meant expenses of nearly 40 billion pesos, almost three tax reforms.”he stressed.
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Fuel
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Added to the difficult fiscal situation is high inflation, which at the beginning of his administration was around 12%. “The cost of living has been decreasing month by month, especially the cost of food, which has allowed us to ensure that the increase in the minimum wage for our workers does translate into a higher income for them. This year, as expected, the cost of living should be around 5%.”he added.
In this context, President Petro emphasized the need to cut interest rates to reduce inflation at the same time. “A lower rate encourages sectors such as housing, commerce, agriculture and tourism,” Indian.
“These have not been two easy years, we have had problems, obstacles, but also achievements and satisfactions. We have two years left in government, the final one, the hardest part and where we will give everything to achieve our goals,” the president stressed.
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