Economy and Finance Minister Alfredo Thorne has proposed a bill on fiscal consolidation to drive up deficit of GDP to 3% this year and provide greater space for reforms aimed at enhancing economic activity.
Economic activity is underpinned by primary sectors, mainly by mining and increased copper production, which explains the economic dynamism.
The fiscal consolidation proposal brings up the fiscal deficit to 3% of GDP for this year, instead of 2.5%, as expected, the economist said.
According to Thorne, reforms need to be implemented to see further growth in the country.
“Fiscal deficit will reach 3% of GDP in 2016. Tax revenues have declined 19.1% as at July this year, and refunds have been issued,” he continued.
Remarks were made on Wednesday when the minister introduced the Bill to Strengthen Fiscal Responsibility and Transparency at the Congress Budget Commission.
(END) CNA/JJN/RMB/MVB
Published: 8/25/2016