The Executive Branch has issued a series of extraordinary economic measures to regulate and boost economic growth in the country, in a responsible and transparent manner, within the framework of the Strengthening of Fiscal Responsibility and Transparency Act.
The emergency decree, which will run until 31 December, 2016, states such actions are intended to gradually return to the ex ante guidance of Non-Financial Public Sector structural fiscal balances.
In this sense, the Government decreed that for fiscal year 2016, the ex ante guidance of Non-Financial Public Sector structural fiscal balances “cannot exceed a deficit of 3.0% of GDP.”
This is why, within a time frame of not more than 180 calendar days, the Executive will submit the Congress of the Republic a bill to establish the ex ante guidance of Non-Financial Public Sector structural fiscal balances for the years after 2016, which considers an annual reduction of more than 0.5% of GDP.
The bill will also set the correspondence between the ex ante guidance of Non-Financial Public Sector structural fiscal balance, referred to in the preceding paragraph, and the Declaration of the Macro-Fiscal Policy, specified in Article 3 of the Strengthening of Fiscal Responsibility and Transparency Act.
The document also refers the Executive will pass and publish the new fiscal regulations on expenditure ceilings, which is consistent with the provision of the said rule.
Use of Resources
The emergency decree point out that the highest possible availability of resources authorized under the said rule is being allocated to finance public infrastructure maintenance projects and public investment projects of the National Government, Regional Governments and Local Governments.
“The resources are not used to pay salaries, pensions or economic benefits of the Public Sector personnel, social program expenditure, among other expenses that have nothing to do with the maintenance of public infrastructure,” the decree states.
(END) JCC/JCC/RMB
Published: 8/29/2015