This Tuesday afternoon, the Ministry of Finance revealed that, as of July this year, the fiscal deficit was 3.79% of GDP, a figure 0.46% higher than last year.
Interest payments continue to be the main problem of public finances. For last July, 2.25% of GDP corresponded to the payment of this indicator, so the interest item increased 0.36% last July compared to the same month of 2018.
Another important indicator, income, also increased 0.18% in this period. In this way, the primary deficit (income minus interest-free expenses) was 1.54%, growing 0.11% compared to the previous year.
Rocío Aguilar, Minister of Finance, says July was an important month at the tax level, but there is still a road ahead.
July constitutes a historic milestone for the strengthening of public finances, with the entry into force of the value-added tax, the approval of the Eurobonds project in the Legislative Assembly for $1.5 billion, the signing of the budget support loan with the Inter-American Bank for Development for $350 million and the modification in the growth of 95 salary pluses of 127,000 Central Government officials,”
said Aguilar.
The Minister was emphatic that interest payments continue to be the biggest challenge facing the country, so Eurobonds and access to budget support credits are essential.