The fiscal deficit in 2019 would be close to $ 2 billion, according to government forecasts. “Absolutely manageable,” Economy Minister Richard Martinez said yesterday, in the context of the discussion “Economic Projections and Policies Ecuador 2019” organized by the consultancy Roadmak Solutions at the Sheraton Hotel in Guayaquil.
The business expectation is also focused on the regulation of the Law of Productive Development that will be published in the coming days, according to Martinez.Also, the Executive will deliver this week the response to the observations made by the Legislature on the proforma of 2019.
The first, said the owner of the Economy portfolio, is expected because its essence is to take the burden (of taxes) on the private sector when investing. On the budget, Martinez clarified that the objective is “to reduce publics pending on the basis of understanding that benefits and rights can not be affected”.
Are port from the Inter-American Development Bank, entitled ‘Better spending for better lives’, published last September, points out that the trend in times of austerity in the region has been to cut the budget in social areas to alleviate the fiscal deficit without looking at the quality of the expenditure.
“Indeed,“Martinez said in this regard, “but also the quality of spending implies in some cases less expenditure.”
Although he admitted that there are still large distortions, for example, high salaries in public companies, which are, on average, higher than those of the Central Government, 30% and 40% more, he said.
The call was focused on the fact that the alternative for entrepreneurs is to invest. (I)