Concession and closure of state-owned companies will generate savings for the country | Concesión y cierre de empresas estatales generará ahorro al país

El Diario:

Economist argues that it will allow reducing fiscal deficit

  • The proposal starts from public-private partnerships to advance in a system of concessions to reduce expenses, according to Monasterio, and he stated that the proposal would only be implemented in 2025. Likewise, he maintained that with the closure of national and decentralized public companies, the fiscal deficit of 7.80% of GDP would be reduced by 2.21%.
Darío Monasterio in his presentation at the “Economists’ Meeting”.

With the aim of reducing the fiscal deficit in the country’s economy, which for the current management will be 7.80% with respect to the Gross Domestic Product (GDP), economist Darío Monasterio proposes to apply a system of concession of works for the private sector and the closure of state-owned companies, which would save more than 10% of the general budget.

Monasterio argues that given the persistent fiscal deficit that the national economy has been experiencing for more than 10 years, a system of concessions for public investment to reduce expenses would be a very viable alternative.

On the other hand, José Luis Evia, as well as Omar Velasco, separately, agreed that greater prominence should be given to the private sector, but let the State apply the corresponding regulations.

The proposal starts from public-private partnerships to advance in a system of concessions to reduce expenses, pointed out Monasterio, and indicated that the proposal could only be implemented in 2025, since the current management is already underway.

At the “Economists’ Meeting,” organized by the Ciudad Humana Foundation last week, Fernando Romero, president of the College of Economists of Tarija, analyst José Luis Evia, Jaime Dunn, Omar Velasco, and Alberto Bonadona participated.

Opinion of Bolivian Thoughts: After more than 74 years of statism, it is difficult to find Bolivian economists who envision a future without the paternalistic presence of the state, whether from the right or the left. We must change paradigms if we want a better future!

Leave a comment