Maurice Reinaresearch associate of Fedesarrollosaid the fiscal imbalance drastically accentuated during the pandemic is leading the budget deficit to be more than this year 7% of GDP, which has translated into high rates and a large percentage of government revenues spent on covering debt service.
“That means we had to do something about the amendment fiscaland the tax reform is the answer to that need, but it is not enough to have the reform, but it is necessary that the budget addition (in 2023) is lower than the amount of the taxheld.
Reina added that if all 2023 collection goes directly to social spending, absolutely nothing would be done from a fiscal point of view.
“You have to keep an eye on this budget addition and its necessity $19.7 billion be split between financing social spending and paying debt along with adjusting the Public finances”, emphasized Queen.
For his part, he Fiscal Observatory of the Pontificia Universidad Javeriana He said it is still “ironic” that the expected collection from the tax reform almost coincides with what is expected for the fuel consumption subsidy for 2023.
“Without the subsidy, no tax reform would be necessary. The resources saved With the abolition of the subsidy (for fuels) they would be enough to fund the social programs that are thought to be paid for with the reform”, the report stressed.
Source: El heraldo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
