Compliance with the budget rule in 2024 is at risk: Carf

The CARF indicated that if full implementation of the programmed budgetary expenditure is achieved, the budget deficit would be 4.4% of the GDPconsistent with the shortage in the Structural net primary balance required by the Budget Rules Act1.4% of GDP.

“Although a deviation is observed in some macroeconomic assumptions, which negatively impacts the… tax income and capital in 2023, adjustments in the cyclical components of the Ruler let alone be compensated with the fiscal space sufficient, without the need to adjust primary expenditure,” the minister said Commission.

However, within this analysis the carafe He stated that major fiscal rule challenges will have to be faced in 2024. One of these is that “expenditure adjustments of about 1.4% of GDP (about $23 trillion) will need to be made to achieve the target of shortage founded by the Rule law (a structural net primary balance of -0.2% of GDP).

Source: El heraldo