Asunción, IP Agency.- The accumulated fiscal deficit of 2022 closed at 3.0% of the Gross Domestic Product (GDP), in accordance with what was authorized in the Budget Law for this year and below what was achieved in 2021, which was 3.6%, which makes it possible to advance towards the fulfillment of the fiscal convergence goal of 1.5% in 2024, highlighted the Minister of Finance, Oscar Llamosas.
It was during the presentation of the last Financial Situation Report (Situfin) of the year that took place at the ministerial headquarters, the day before. The presentation was accompanied by the Vice Ministers of Economy, Iván Haas; Financial Administration, Marco Elizeche; and from Taxation, Oscar Orué. Likewise, the director of Fiscal Macro Policy, Rolando Sapriza, participated.
It is worth mentioning that 2022 closes with an accumulated deficit of G. -8,693.1 billion (USD 1,247.6 million). Likewise, a deficit operating result of G. -308.6 billion (USD 44.3 million) was recorded, representing -0.1% of GDP.
During the presentation, Llamosas highlighted that there was a 10.6% growth in total revenue, both tax and from Binationals and other items. While tax revenues registered a positive nominal variation of 13.5%.
The report also reveals that total spending grew 5.9%, mainly explained by the resources allocated to salaries for the Health and Education sectors. However, compared to previous years, this growth is below the average of previous periods.
Regarding public investment, it was possible to maintain a level of G. 8,384.5 billion (USD 1,203.3 million), with a growth of 6.4%, representing 2.9% of GDP.
“Public investment was used as a countercyclical measure to try to mitigate the impacts on the economy, whether due to the drought in 2019, the pandemic in 2020 and 2021, and this year again due to the entire economic situation. It continues to be an important tool as it closes the gaps that our country has in terms of infrastructure”, he added.
He also said that based on the projections of the Central Bank of Paraguay (BCP), this year will close with positive numbers, despite the various situations through which they went through. However, not in the numbers that initially marked a growth of 3.7%, but closer to 0.2%.
“We have very good expectations for 2023, with a growth estimate of 4.5% for our country. With this, Paraguay will be one of the countries that will grow the most next year within the region, driven by the recovery of the agricultural sector and by the good dynamics of the other sectors,” concluded the head of the Treasury.