09:27 AM
The Government finally presented the 2024 Medium-Term Fiscal Frameworkin whose presentation, the Minister of Finance, Ricardo Bonilla, announced that the fiscal deficit limit was once again raised, but assured that the fiscal rule will be complied with.
The presentation was well received by the financial market, since the dollar fell from highs several months ago and was below $4,200 again.
In context: Attention: due to a drop in income, the Government raises the fiscal deficit projection this year to 5.6% of GDP
Minister Bonilla acknowledged that this year the tax collection goal will not be met and that the Government will have $7.6 billion in less income than last year, but it adjusted its spending, which will be $20.3 billion less than in 2023.
The new Government accounts mean that it has a negative balance of $94 billion and a fiscal deficit of -5.6%, which means that it raised it again from the 5.3% that it expected in the presentation of the Financial Plan at the beginning of the year.
You may be interested: Government would have to cut another $12.3 billion from the Budget to comply with the Fiscal Rule
At that time, the same Ministry of Finance had raised the deficit limit from 4.2% in 2023, and analysts warned that it was already at the limit to comply with the Fiscal Rule.
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