Advanced Search

LatinNews Daily - 02 September 2021

Click here for printer friendly version
Click here for full report

In brief: Paraguay presents 2022 budget initiative

* Paraguay’s government has presented its 2022 budget proposal for G$92.1trn (US$13.3bn), which finance minister Oscar Llamosas said can be expanded to G$96.1trn if a request is approved to raise the cap on the fiscal deficit from 1.5% of GDP, as stipulated in the fiscal responsibility law (LRF), to 3% of GDP. Paraguay’s fiscal deficit rose to 6% of GDP last year amid an unprecedented increase in spending on public healthcare and social programmes to fight the coronavirus (Covid-19) pandemic, and it is expected to total around 4% of GDP this year. Llamosas said that the budget proposal was based on estimates that Paraguay’s GDP would grow 3.8% in 2021 (after contracting 0.6% in 2020) and that inflation would close at 4%.