The fiscal deficit was 3.6% of the Gross Domestic Product (GDP) in the 12 months to April, which implied that there were no changes compared to the March measurement, according to data published this Wednesday by the Ministry of Economy and Finance (MEF).
The fiscal deficit has been falling since its peak in 2020 when it stood at 5.9% of GDP, and expectations point to it continuing to do so until 2024 (2.8%). However, yese has been growing since last September when it was at a minimum of 2.6% in the current government.
The Central Government – Banco de Previsión Social (GC-BPS) fiscal result was -3.6% of GDP. Meanwhile, the impact of the income from the Social Security Trust –fifty law-, was 0.1% of GDP. Thus, the fiscal result adjusted for this effect was -3.7% of GDP.
The income of the GC-BPS stood at 25.7% of GDP, remaining stable with respect to the twelve months ending in March.
Meanwhile, the primary expenses of the GC-BPS stood at 27% of GDP. Without considering the advance payment of liabilities, remunerations and transfers (BPS) made in March (due to the tourism week holiday), the primary expenditures of the GC-BPS decreased 0.1% of GDP compared to twelve months closed to March.
This reduction is mainly due to a drop in the Non-Personal Expenses category. Net expenses allocated to the COVID-19 Solidarity Fund[i] were estimated at 0.3% of GDP[ii]remaining stable compared to the previous month, according to the MEF.
Lastly, the GC-BPS interest payment stood at 2.3% of GDP, remaining stable compared to the previous month.
The result of Public Companies (EEPP) was located at 0.2% of GDP.
In this way, the result of the Non-Monetary Public Sector (SPNM) was located at -2.9% of GDP in the 12 months ended April 2023. Excluding the income of the FSS, the fiscal result of the SPNM was -3, 1% of GDP.
For its part, the overall result of the BCU was -0.5% of GDP.
Thus, the result of the Global Public Sector (GPS) was -3.5% of GDP which, adjusted for the FSS effect, stood at -3.6% of GDP.
