Latin American Economy & Business - May 2018 (ISSN 1741-7430)

President Lenin Moreno unveiled his government’s multi-year economic plan in early April, which aims to increase productivity, cut the fiscal deficit, promote investment, and generate employment. In mid-April, the government began to table measures in line with these goals, including a consolidation of the bloated public sector. Although the government’s intentions are laudable, it remains highly unclear whether it will manage to reduce the fiscal deficit and arrest a recent sharp increase in public debt without more significant revenue-raising measures, including tax increases.