Treasury presented the proposal yesterday to the Assembly. He was also asked to redirect $ 50 million from a loan that was for COVID in return for Fomilenio II.
It is not what they expected in its entirety, but the opposition deputies considered it a good start for the discussion of the 2021 budgetHowever, they are clear that the debt to cover the budget gap is not shrinking.
The Minister of Finance, Alejandro Zelaya, brought to the assembly three bills, consisting of financing the budget deficit with several loans that the deputies had already approved and were missing to ratify and allocate to combat COVID-19.
According to next year’s draft budget that Zelaya presented last September 30, the estimated budget for 2021 is $ 1,342.4 million.
The official yesterday asked finance deputies for a portion of that pile with the missing credits to allocate for the pandemic.
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Exactly he said that with those resources can be leveraged $ 1,181.2 million of the debt needed to approve to finance the budget deficit that can not be met with tax revenues projected for 2021.
If so, Zelaya made accounts that would only have to cover $ 161 million in loans to reach the full amount of additional funding needed for the budget, which is $ 1,342.2 million.
“The amount of debt initially requested in the 2021 budget of $ 1.342 billion will be reduced to $ 161 million, all funding will be taken COVID which trapped the Finance Committee (of the Assembly) and we are going to transfer them to the financing of the 2021 budget gap.
This gives us the option for the deputies to finally approve the 2021 budget, ”Zelaya said at a press conference in the Assembly. ARENA, FMLN and PDC, do not consider it so, as the initial intention of the opposition is to truly reduce the state debt, due to the galloping growth it has had in recent months of the government of President Nayib Bukele.
The data revealed last Monday in the Finance Committee, deputies from ARENA and the FMLN, reflect that the national debt in relation to the Gross Domestic Product (GDP) already reaches 90%. from 70% to 90% in the last six months.
The sandbox Rodrigo Avila, explained that according to figures that will be handled until October, the state debt exceeds $ 22 billion. “The FMLN has been clear, we have said no more debt for a government that embezzles funds, promotes corruption and also has no planning on how these resources will be used for the benefit of the population,” said Urbina.
According to the FMLN deputy, the government was chosen moderately after this month the left-wing faction took a stand on the cuts to be made to the budget, including spending on consulting, which will amount to $ 57 million and advertising will be carried out at $ 7 million and not $ 13 million planting the spending project.
For the head of the ARENA faction, Carlos Reyes, Zelaya’s motion is nothing new in the Assembly, as deputies prevented injecting outstanding loan funds into the budget gap, but recovered that they would no longer be approved. debt, that is, the $ 161 million that the Minister of Finance is asking for surplus with loans, should jump from reductions in other items other than social spending.
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“We are going to analyze that proposal that we said yesterday (Monday) in the commission of Finance, even as in ARENA we said that we had the possibility to cover the gap, is nothing more than what the Minister of Finance has left .
Here it has been wanted to sell by the government that the gap is lowering to $ 161 million, remains the same “, questioning Reyes.” The FMLN made a serious approach that of the debt funds that are already authorized by this Assembly there sufficient remnants to finance the budget, it seems that this move by the President’s Treasury at this time is to recognize that the FMLN’s approach is correct, in the sense that we have a cup to finance the budget, but not to acquire new debt. another $ 1.3 billion, ”argued Urbina of the FMLN.
Deputies from ARENA and the FMLN expected from the government other proposals such as lowering unnecessary spending on luxury vehicles for officials, the budget of the State Intelligence Agency (OIE), which seeks to affect political rivals, but come with the same budget and say that they have reduced the gap “, said Reyes. According to Reyes, they expected Zelaya to tell them that they would equate the expenditure of the Judiciary to 6% of the GDP that is not contemplated, to give more resources to the Prosecutor’s Office. to modernize, that the Fund for the Development of the Municipalities (Fodes), will be covered and that they will pay the delay that has the government of the Fodes of seven months to the mayorships. “They were exhibited since yesterday (Monday) the parties that studied the draft budget, each made official their reaction within the Finance Committee”, added the deputy Rodolfo Parker, of the PDC.Parker agreed with ARENA in reducing ” the secret departure of the OIE, the propaganda, the unjustified increase for the Armed Forces of $ 28 million and for consultancies of $ 57 million, among others ”, he pointed out.
“Of the decree 608 that gave life to the indebtedness for the $ 2 billion we have authorized the disbursement of $ 559 million, that means that of $ 2 billion we have a little more than $ 1.3 billion”, assuring the president of the Assembly, Mario Ponce , of the PCN.
However, he reiterated that the expenditure is still empty, so they must review that they comply with assignments that must be made by law, as is the case of the assembly assigned to the Supreme Court of Justice, which does not reflect the 6 % of the budget and honor the payment of the Fodes to the mayors. He added that, if the agreement to approve the budget is reached on December 24 or December 25, those days the Assembly will meet to approve.
“There is no strong reason in our agenda that has to do with holidays, there are no holidays for this server, at the time of making the call will have to come (deputies) to submit to a vote the 2021 budget,” said Ponce .