El Salvador Negotiates Fiscal Pact

The business sector will present proposals to solve the fiscal deficit, which may also be the foundation of a social pact.

Wednesday, June 9, 2010

17 proposals will be presented, aimed at two large areas: reducing spending and increasing revenue.

Jorge Daboub, president of the Salvadoran Chamber of Commerce and Industry, explained: “We understand that the country has a serious fiscal problem, the deficit has worsened due to the country’s negative economic situation. As the private sector, we have produced a document that will give the government tools to correctly address the problem, in a comprehensive and effective way”, reported La Prensa Grafica.

More on this topic

Growing Fiscal Deficit Worries Businesses

October 2011

The National Association of Private Enterprises in El Salvador said the government is not “going on a diet”, but instead is still increasing public spending.

ANEP President, Jorge Daboub, is accusing the International Monetary Fund of having changed their policies regarding austerity recommendations, now that the government of El Salvador is aware of the extension on the limits of subsidies, which passed initial targets of 3.3% and 3.2% for 2011 and 2012 respectively, up to 4.5% and 3.9% compared to the same period.

Is it necessary to raise taxes in Guatemala?

April 2010

Increased economic activity and tax collection imply that increasing taxes will be counterproductive.

The crisis seems to be over. At its worse, fiscal revenue fell, linked to less consumption, exports and imports. This effect teamed with sustained levels of social expenses, and left the government very short on resources, a problem authorities intend to solve via tax hikes.

Salvadoran Businessmen Demand Tax Agreement

April 2010

FUSADES, the Salvadoran Development Foundation, insisted that the country must land a tax agreement including more than tax increases.

Fusades held a forum called “Democracy, Transparency and Development: the road to a fiscal agreement” with the participation of experts and specialists.

Costa Rica Fiscal Deficit Would Reach 10% in 2016

February 2011

Costa Rica forecasts a 10% deficit in 2016 - more than $ 4.000 million – if the current trend continues without a reform.

As noted by Aldesa, the central government deficit amounted to almost $ 1.970 million. The shortfall means 5.3% of the national GDP and a growth of 73% over the total deficit of 2009, according to preliminary data from the Ministry of Finance.

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