Fiscal deficit
The primary deficit reduction in 2017 was highlighted by the economic authorities. This is an important achievement but a partial one since it is not enough to compensate for the increase in interest payments. This shows that the pace of gradualism adopted in fiscal deficit reduction is inconsistent. To improve, further federalism and a comprehensive pension reform should be established. (más…)
VER
Through a norm thought to be used only in case of emergency –a decree of necessity and urgency– the government made explicit that the public spending is growing out of control. The fiscal deficit is one of the main causes of inflation, which put pressure on the exchange rate. Even with some mitigating measures, such as the introduction of a multiple exchange rate system, the pending problem is still the high fiscal deficit. Since it´s no longer possible to increase the tax burden, the only solution is to reduce subsidies to public and private companies.
VER
