Against poverty and illegal work, the Government prepares a plan to formalize 8 million people

Against poverty and illegal work, the Government prepares a plan to formalize 8 million people

The National Registry of Workers of the People’s Economy marks that in these conditions there is currently about 3 million people. But by scaling up production and expanding activity could be 8 million. They seek to formalize this universe through a productive monotax. Unlike the existing tool, the social monotax, which allows billing up to category “A”, this would allow registering a greater amount of income, up to category “C”.

According to the parliamentary initiative, the State would take charge of the health component for a certain period of time. These funds will not be used in this case for social projects but will be used to strengthen the public health system and beneficiaries will be given access to official programs such as the Remedy. Those who were included in the new tool would also be covered for two years of the retirement component.

At the same time, a group of officials finishes polishing the final letter of a “Development of the Popular Economy” project. According to official sources, the focus will be to strengthen access to credit. It is pointed out that 10% of bank deposits are used to finance units of this type, although the central axis is the creation of a non-bank credit system.

A trust would be created and administered by the Bank for Investment and Foreign Trade (BICE). In all cases the rate would be subsidized and well below what is currently offered on the market, but it would not be used for current spending. It would be destined to the purchase of machinery and to increase working capital.

In the letter of the regulations that will arrive in the parliament in the coming weeks, a new regime is also included that will help facilitate the formalization of the productive units of the popular economy. The figure of associations would be included, which require fewer members than cooperativesand will aim to debureaucratize the procedures.

The bill will also seek modify the state purchase regime to give a higher degree of priority to this type of projects. “It is clear that the social plans are not enough and that the private sector registered today cannot provide a solution to all the demand for employment; making the popular economy grow is the only way to break with structural poverty,” said one of the officials working on the plan that will be presented in parliament.

Source: Ambito

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