The data showed an improvement after several months of decline and were in line with what the government expected.
He fiscal deficit managed to drop in December 2023 and get closer to the government’s perspectives compared to the month of November of last year and remained at 3.2% of the GDP, without counting the income Social Security Trust (FSS), according to the Public Sector Result report prepared by the Ministry of Economy and Finance (MEF).
The survey specified that the result of the Central Government – Social Security Bank (GC-BPS) for the last 12 months stood at 3.2% of GDP, while the inflow of funds to Social Security Trust (FSS) was 0.1%, moving away from the government’s goal at the beginning of an election year.
These are extraordinary income that will be affected in the future with the payment of retirements of people today are fifty years old and who came out of the AFAP. These people were under 40 years old when the mixed pension system in 1996 and had to join a AFAP because of their salary level. However, although there is an extraordinary fund provided by the State to pay them, the income to pay this age group their retirements They are not going to be enough.
If these incomes are excluded, the fiscal deficit consolidated during the month of December last year was 3.2% of GDP, while in November it had been 3.8% of GDP and in 2022 it was 3.3%, which is equivalent to a total of 2,442 million dollars.
The history of the deficit since September 2022 had a character of deterioration, going from 2.5% to 4% in the twelve months ended in the month of October in 2023, an event that several economists warned of its severity. However, when it was possible to get out of the extraordinary expenses that required the month of December in the year 2022, the deficit managed to reduce to 3.2% of GDP.
For his part, the primary deficit, that is, that prior to the payment of debts, managed to reach 1% of GDP, about 757 million dollars. Meanwhile, the payment of interests debt was 2.2% of GDP. For its part, the payment of Covid-19 Solidarity Fund “They were almost zero in relation to GDP,” according to the MEF.
Source: Ambito
