Page Seven / La Paz
Ronald MacLean Abaroa, former Minister of Finance, warned that the high spending of the General State Budget (PGE) 2022 will be difficult to finance because this year there were already problems to place sovereign bonds abroad.
He explained that for next year the 2,000 million dollars that are expected to be issued in sovereign bonds will not be possible either and will have to request the support of the International Monetary Fund (IMF), but with conditions.
“It seeks to suffocate companies and people with more taxes because there is nowhere to get more resources, since external credits were closed,” he said.
The former authority criticized the high current spending and millionaire investments in uneconomic state companies and the high payroll of public employees that, he said, has tripled to half a million.
“The worst thing in Bolivia is that the PGE is the total size of GDP. All goods and services in a year are the value of GDP, but the government budget is equivalent. A PGE has been designed with such high expenses so that there is no limit, but there is no income. And 15% to 20% goes to public companies that lose money ”, he specified.
The plenary session of the Chamber of Deputies approved yesterday morning the PGE 2022 which provides for 5.1% growth, an inflation rate of 3.4%, a deficit of around 8% of GDP and 5,015 million dollars of state investment.
