Financial Crime World

Fiscal Sector Maintains Balance, Revenue Grows Amid Economic Challenges

Improved Consolidated Public Sector Balance

The consolidated public sector balance in [current year] showed a significant improvement, with a surplus of 0.1% of GDP, compared to the -3.8% deficit recorded in the previous year.

Revenue Growth Driven by Tax Revenues

Revenue increased to 33.2% of GDP, driven by a growth in tax revenues and grants. The main contributors to this growth were:

  • Income taxes, which increased by 15.6%
  • Value-added taxes (VAT), which grew by 10.9%

Expenditure Growth Due to Increase in Public Spending

Expenditure grew to 34.9% of GDP, up from 32.3% in the previous year, driven mainly by an increase in public spending. The main contributors to this growth were:

  • Social security expenditures, which increased by 15.6%
  • Education expenditures, which grew by 10.9%

Cash Reserves Improve

The government’s cash reserves improved significantly, with:

  • Gross international reserves increasing to US$5,153 million, equivalent to 4.7 months of imports excluding maquila
  • Net international reserves also improving, increasing to US$3,818 million

Public Sector Debt Remains Under Control

Public sector debt remained under control, decreasing slightly to 49.6% of GDP. The breakdown is as follows:

  • Domestic public debt decreased by 10.5%
  • External public debt decreased by 12.4%
  • Private sector external debt increased by 15.6%

Economic Outlook

The government is expected to continue implementing policies aimed at promoting economic growth and stability. However, the outlook for the economy remains uncertain due to external factors such as trade tensions and global economic volatility.

Conclusion

In conclusion, the consolidated public sector balance improved significantly in [current year], driven by an increase in revenue and a decrease in expenditure. The government’s cash reserves improved, and public sector debt remained under control. Despite uncertainties in the economy, the government’s fiscal discipline and sound economic management are expected to help promote economic growth and stability.