New Proposals to the Salvadoran Fiscal Deficit

The National Association of Private Enterprise (ANEP), also suggests that the Executive reduce public expenditure by up to 10% on the purchase of goods and services.

"The ANEP also considers it key to strongly urge the Presidential Chamber to trim its budget, considering it excessive. According to the union, the Presidency has a budget of $11.2 million a month", published Elsalvador.com

President ANEP Jorge Daboub, said that there are solutions to the fiscal deficit "What is needed is savings and more effectiveness in handling resources."

Source: elsalvador.com

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.

El Salvador: 2011 Budget is Not Enough

September 2011

Over $350 million has been spent this year that was not included in the initial budget.

Increased costs and reduced government revenues have resulted in a delicate financial situation, which is embodied by a growing fiscal deficit.

This situation has led the Ministry of Finance to recognize that there is $350 million that was spent this year on subsidies such as gas and electricity, which were not budgeted for and for which no resources are available.

El Salvador has Fiscal Deficit of $900 million

January 2012

Natural disasters and other factors have influenced the situation in 2011; agreements with the IMF are to be reviewed.

Salvadoran state expenditures were $900 million more than the total revenues in 2011, according to preliminary estimates by the Ministry of Finance in December (MH), reported the online edition of La Prensa Grafica.

Guatemalan Deficit Doubles

November 2010

In the past 3 years, the fiscal deficit rose from $ 595 million in 2008 to $ 1,226 million in 2010.

The rapid growth of public spending was financed with more debt and bonds. Experts consulted by El Periódico noted that this scenario will force the next administration to push for a tax reform.