24hoursworld

Inflation and fiscal management, the MEF’s axes when defending accountability in Parliament

Inflation and fiscal management, the MEF’s axes when defending accountability in Parliament
Inflation and fiscal management, the MEF’s axes when defending accountability in Parliament

The Minister of Economy and Finance, Azucena Arbeleche, defended the last Accountability of the government headed by the president Luis Lacalle Pou, with the focus on the successes of the monetary politics, mainly focusing on the low inflation and management fiscal.

Although the Executive admitted that this year it will fail to meet fiscal goals, Arbeleche focused on the government’s performance between 2020 and 2023, years characterized by the pandemic, the drought, the invasion of Russia to Ukraine and the price gap with Argentina.

In a document, the MEF assessed that, despite these difficulties, the GDP is 2.7% higher than in 2019, while the level of investment increased by 22% and the employment created exceeds what was lost during the pandemic, while the wage bill is 6.4% higher.

Diego Labat, Azucena Arbeleche.jpg

Inflation and fiscal management

As regards the IPC, where the director of the Central Bank of Uruguay (BCU), Diego Labat, It was highlighted that last year the rate of inflation lowest since 2005, while today the indicator has been within the target range for 13 months.

Regarding the management of the accounts, the economic team highlighted the “fiscal improvement with a decrease in taxes and prudent increase in spending”, while they assessed that the fiscal deficit fell from 3.9% to 3.3%.

Regarding taxes, they pointed out that there was a reduction in Personal Income Tax which benefited 75% of taxpayers, while the reduction of the IASS positively impacted 179,000 people. In this regard, they valued the compliance for four consecutive years of the fiscal rule, which boosted the improvement of the credit rating.

Clashes between the National Party and the Broad Front

From the National Party, deputy Alvaro Rodriguez He said that “as far as macroeconomic figures are concerned, the government made the necessary effort in the face of the crises that occurred, always taking care of the fiscal figures.”

Meanwhile, the Broad Front He questioned the management of public accounts. “It shows worrying elements in terms of fiscal deficit and indebtedness,” said the deputy. Gustavo Olmos.

In this regard, Olmos pointed out that “this government has focused on the new fiscal rule, which it has failed to comply with and questioned: “It has not achieved its objectives and has been moving the goalposts so that the numbers are in line with its predictions.”

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts