Confidence
Starting today, one of the chapters to be controlled by the Fund will be the tariff, where Economy believes it has the papers in order. According to the vision of the Martín Guzmán ministry, it is fully confident that there will be no difficulties this year to close the period of previous resolutions, and to advance in a timely manner from June 1, in the application of the new tariff schemes that derive in a reduction in the amount of general subsidies by 0.6% of GDP. That is, an approximate $400,000 million, a number that would more solidly approach the final goal of an imbalance between income and expenses of 2.5% for the entire year 2022; the goal signed with the IMF on March 25.
This rate increase would be applied to 60 or 65% of users with average increases of between 40 and 60%; and in 10% of users, with a total elimination of subsidies. In this last group will enter those considered by the national State that are located in privileged geographical regions (in areas throughout the country); and, fundamentally, to individuals and families where income is detected that justifies the payment of flat rates.
Revaluations
As this newspaper advanced, this week the progress of the government’s attempt to raise some $65,000 million as a result of the application since this year of an increase in the base values of most homes throughout the country should also be reviewed, for the taxpayers reached by Personal Assets. Then, by 2023, the increase in revenue would double and reach $130 billion. It will be due to the effect that the measure would have on this tax, also affected by the increase that would impact the non-taxable minimum and the rise in assets on which the tax falls.
The agreement with the financial institution includes the following paragraph in the chapter where the promises of higher collections as a result of the tax policy appear: “In close coordination with provincial governments, at the end of September we will complete the process of updating real estate appraisals at the federal level ( structural reference) in order to take effect as of fiscal year 2022. The net income from co-participation of this initiative could reach 0.1% of GDP for fiscal year 2022 and an additional 0.2% of GDP during the next years”.
The final intention is to reach a total contribution of between 0.3 and 0.4% of GDP to reduce the deficit in this way, which would imply an approximate amount of $150,000 million. If we add to the revaluation what would be obtained from the reduction of projected energy subsidies by 0.6% of GDP; In total, the Palacio de Hacienda would reach total savings of more than the $600,000 million deficit; or, measured in another way, a 0.8/0.9% final imbalance for 2022 and 2023. For the technicians of the body led by Kristalina Georgieva, this progress is essential to believe the Executive that the fiscal goal will be met of a deficit of 2.5% this year and 1.9% in 2023.
Source: Ambito
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