José Francisco Pacheco, deputy minister of Expenditure, declared on September 19th that government’s debt is starting to be unstable.
It’s like a snowball. The government is paying a great amount of money on interests. It endangers the economic support of the country. It has a great socio-economic impact,
stressed the official.
Pacheco explained that the debt by the end of the year will be equal to 45% of the gross domestic product. That figure is near the 50% that international organizations consider alarming.
According to him, this is just a consequence of outdated laws that facilitate tax evasion.
The deputy minister declared that if the tax bill is not passed, the country would use 12% points from the GDP 2017 to pay interests.