“There isn’t as much money as before” | “No hay tanta plata como antes”

Editorial, El Deber:

“There isn’t as much money in the country as there was before,” was the President Luis Arce’s emphatic statement on Sunday in a rural area. It was the first time he admitted this reality, although he may have regretted it since his Minister of Economy, Marcelo Montenegro, held a press conference yesterday to clarify the president’s words. “The president said there isn’t as much money as before, he didn’t say there is no money,” he asserted.

Despite the apparent contradiction between the minister and the president, the truth is that there aren’t economic resources to squander, and what exists must be used strategically to address the most important needs of the population.

During the press conference, the Minister of Economy emphasized that even with little money, there is the highest level of public investment since the last century, that the country has honored its external debt service punctually, and that the growth has been higher than forecasted by international organizations.

President Luis Arce stated that gas has run out. And the minister affirms that the pillars of the economy will be: greater efficiency in the collection of existing taxes, mining, and industrialization, where – according to his statements – public investment is currently directed. Previously, the government also expressed its commitment to domestic demand to stimulate the economy, although business owners feel a slowdown in business activities.

In summary, the expression “There isn’t as much money as before” honestly reflects the country’s reality. In the private sector, the scarcity of dollars and the social cost of employment after the salary increase are leading to less investment, a restriction in formal job opportunities, and an increase in market prices.

Recently, the government and the Bolivian Labor Confederation (COB) approved an increase in the national minimum wage of 5.85% and a basic wage increase of 3%. This measure implies a cost of millions of bolivianos for the private sector and the same for the public sector, at a time when “there isn’t as much money as before.” Conversely, there have been no austerity measures in the central powers, and many believe that spending continues as if there were “plenty of money.”

The reality expressed by the president requires comprehensive measures because the problem is acknowledged. It’s not right to solely blame political opponents and adversaries. It’s true that the Legislative Assembly has stalled laws that would green-light loans, but even if these were approved, it would be futile without a comprehensive austerity policy demonstrating responsibility to the country.

While investments continue in various deficit-ridden companies, there are subnational governments almost bankrupt due to budget cuts imposed by the central powers. While there are still “gifts” to MAS-affiliated unions, there are shortages in all the areas that should be prioritized.

In summary, there isn’t as much money as before, and this presidential confession marks a turning point. It’s necessary for signals of savings and responsibility to emerge from the same national Executive Power. This is what is expected of a statesman president.

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