State salary expenditures increased by up to 480% in 14 years, according to an economist | Gasto en sueldos estatales creció hasta un 480% en 14 años, según economista

By Ernesto Estremadoiro Flores, El Deber:

Foto referencial

There is high state spending in the country / Photo: ED

Julio Linares exposes a disproportionate increase in state salary spending, attributing it to political clientelism and inefficiency in public management.

Economist Julio Linares, through his digital platforms, questioned the rise in salary expenses within the state apparatus during the last 14 years of the Movimiento al Socialismo (MAS) government. According to him, salary disbursements increased by up to 480%, highlighting what he describes as a process of political clientelism and unnecessary state expansion.

For his analysis, Linares excluded the Ministries of Government, Defense, and Education, arguing that these sectors are essential for national security and academic formation.

However, the data shows that in 2010, salary expenditures for the remaining ministries of the Executive Branch amounted to 500 million bolivianos, a figure that grew to 1.132 billion in 2014 during the economic boom.

Despite the economic crisis, by 2023, spending reached 2.9 billion bolivianos, reflecting a nearly sixfold increase in the ministerial salary budget.

Linares also analyzed decentralized entities under the Presidency. While acknowledging the importance of some, such as the National Institute of Statistics (INE) or regulatory agencies, he questioned the usefulness of others, such as Diremar or the Office for Strengthening Public Enterprises.

In 2010, salary expenditures for these entities were 640.7 million bolivianos, increasing to 2.432 billion in 2014. By 2023, there was a slight adjustment to 1.82 billion, but the 14-year growth remained significant, nearly tripling.

Another critical point lies in the public companies created under the governments of Evo Morales and Luis Arce. In 2010, around a dozen such companies existed, with a payroll of 977.2 million bolivianos. By 2014, the figure soared to 1.962 billion, and in 2023, it reached 2.249 billion, doubling salary expenditures over 14 years.

Linares argues that this growth does not respond to a structural need of the state but rather to a political strategy of expanding the government apparatus to secure loyalties and benefit allies in power.

According to the economist, the country must restore a merit-based culture and efficiency, eliminating unnecessary bureaucracy and prioritizing expenditures based on available resources. “The country must regain the notion of merit and the value of effort. End employment agencies and oversized states,” he concluded.

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