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Weekly Report - 24 November 2011 (WR-11-47)
PARAGUAY: Budget spat places economic stability at risk
President Fernando Lugo is threatening to veto the budget for 2012 as a result of a major amendment made by deputies in the lower chamber of congress. Lugo said the huge salary increases for public sector workers included by deputies had made the budget “impractical”. He won the support of a visiting mission from the IMF, which warned of a significant deterioration in the public finances as a result of the proposed budget increase.
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