Economic adjustment in 2019

A sound Editorial from El Diario, pictures from the internet:

In the new year an adjustment of the greatest possible magnitude has to be made, so that the management is positive, but essentially to put an end to the fiscal deficits of the past six years.

It is incomprehensible that there has been so much incompetence, if perhaps not irresponsibility, for the national economy to survive from deficit to deficit, much less as if it were a reward, when it is rather a demonstration of a bad management.

The capacity and administrative efficiency of a Government is revealed precisely when fiscal spending is adjusted to income. If they persist in being minors, the effort to overcome these results is to deploy all the necessary efforts to grow or if this is not feasible, then the relevant thing is to spend less, anyway.

No State, institution, company or family can sustain itself adequately if it is in an imbalance of this nature, that is to say that the expenses are greater than the income.

In the event that Bolivia is in such a situation, the responsibility must be attributed solely to the MAS Government, since it has been in this function for 12 years. Having spent so much time in the exercise of power, they should have never let the country fall into deficits. When perspectives of such nature were coming, it was up to them to adopt the necessary provisions so that this does not happen.

Had they been inevitable, given the weaknesses of the national economy, it was appropriate to reduce public spending and even fiscal investment, because, in any case, the primary requirement is to conserve the whole economy, both official and private, in good health.

It is not possible to administer a country with chronic deficits well, nor can this happen in a family economy, because with the persistent deficiencies in the end you reach misery.

In dealing with this very important issue, in all areas, it is incomprehensible that the country has not taken the necessary measures to ensure that such an adverse situation continues for so long, as it is that national deficits have accumulated for six years.

As it is said that it is never too late, then what corresponds to the government’s management of the next five years is to stop the process and then overcome it as soon as possible, with the firmness and responsibility that the case demands.

It is inexplicable that the MAS Government in its first six years would have had surpluses, that is to say between 2006 and 2013, and then decline until reaching the deficits in the last six years.

It is evident that in recent years there has been a fall in the international price of hydrocarbons, but in such a situation it was necessary to adopt measures that increase tax revenue as much as possible, but at the same time it was essential to reduce fiscal spending, as well as to invest only for what is necessary, so in such an adverse circumstance it is necessary to embrace real possibilities.

Published by Bolivian Thoughts

Senior managerial experience on sustainable development projects.

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