The minister of Economy and Finance (MEF), Azucena Arbelechespoke this Tuesday within the framework of the forum of the Christian Association of Business Leaders (ACDE) and framed the measures taken during his administration in the concept of a “new economic model.”
The minister mentioned the achievements of her management, adding it to other results from various areas of government, mentioning each of the leaders present in the room, an aspect that caught the attention of those present, resulting in a novelty in its discursive format.
The head of the MEF also assured that there was “a break” in the fiscal policy because “now the increase in spending did not mean an increase in taxes.” “Public money was taken care of and competitivenessmoderating the public spending“, which did not happen in the previous administration,” he mentioned, making a comparison with the management of governments of the Wide Front (FA), a more political tone than usual for his presentations, but which he already adopted in the presentation of fiscal policy last month.
Along these lines he made reference to the fact that the previous government raised the fiscal deficit from 2.1% to 3.9%, and for that reason there was a deterioration in the fiscal accounts.
There the comparison returned. “The result is overwhelming and the model is different. We went from a 4.5% deficit (at the beginning of the period) to 2.7 in our management,” she mentioned based on graphs. “In addition, taxes were lowered: 150 million dollars, distributed mainly between the Income Tax and the IASS”he added.
Arbeleche also referred to the fact that the tax reduction was maintained and made investment grow in infrastructure with road works and in areas such as railways, ports and airports.
Salary must be linked to employment
“The salary cannot go on one side and reality on the other side,” the MEF Minister, Azucena Arbeleche, stated emphatically, defending the government’s policy on this issue.
Using graphs and comparisons, the minister stated that the employment created “recovered the loss of the previous government”, establishing the number of 76,000 new jobs. “We are 1.9 percent above 2019,” she noted.
The referendum on social security: “nonsense”
In the space of the speech where she introduced more powerful political concepts, the Minister of Economy questioned the opposition stating that it does not make its position clear on the plebiscite for social security reform. Arbeleche considered that the possible reversal with the reform would affect the image of the Uruguay and the “clear rules” that represent it before international organizations.
“It would be appropriating the resources of Uruguayans in the pension funds,” he defined. “It is changing the way the game is played, because it is taking the money that is in the pension funds, because it is making the social security system unsustainable, because it is having to get resources from somewhere to pay for retirements that I cannot imagine any other way than.” be a higher tax,” he questioned.
Even when asked by a member of the audience, Arbeleche went further and stated “If we go backwards in the social security reform it is nonsense, if that means increasing taxes, obviously we have a major deterioration in competitiveness.”
Monetary policy and dollar
The minister did not avoid referring to one of the issues that causes the most concern in the business sector, such as competitiveness and exchange delay.
Along the same lines as the president of the Central Bank, Diego Labatfocused his argument on the lowering of the inflation and in the decision of the economic team to keep the dollar in the free floating system supported by the idea of dedollarization of the economy.
Arbeleche gave his explanation about the phenomenon that has been occurring. “What happens to us in the market is that the dollar is abundant in supply. We have a huge capital inflow in terms of foreign direct investmentrecord, in terms of exports, because although in 2023 they decreased, if one looks at the levels compared to other years, the entry of dollars from exports is tremendously significant, therefore, the supply of dollars makes the demand more that surpassed and the price of the dollar is what is determined by the market,” he explained.
International insertion and the need to “open to the world”
Arbeleche was in favor of the idea of make Mercosur more flexible and appreciated the steps taken by the government in that regard. “We have sweated our shirts and the posture of Uruguay is clear on this matter. “We would have liked to achieve more results, but there was progress,” he considered.
He also referred to the environmental issue where he valued that he defined it as changes in paradigms and greater awareness of the productive sector about what is produced and sold almeadas to state policies such as the green bonus.
Concluding his speech and answering some questions, Arbeleche summarized that the economic policies during this government administration have increased consumer confidence and also the business climate.
“If we present a new model with different characteristics it is because we understand that this is the appropriate path for Uruguay reach a higher state of development. Therefore, clearly, it seems to this economic team that as a leap to have greater potential growth, all of these should be state policies. Obviously, in the end it is the population who will decide whether to go for these State policies or choose another economic model,” the minister concluded.
Azucena Arbeleche was accompanied by Alejandro IrastorzaUndersecretary of Economy and Finance; Marcela Bensión, director of Economic Policy; and Mauricio di Lorenzogeneral director of the Economic Secretariat.
Source: Ambito
