Page 97 - Revista del Centro de Investigación y Desarrollo del INEI - Economía, Sociedad y Estadística N° 9

The “Government at a Glance: Latin America and the LAC countries reported an average deficit level of 4.3% of
Caribbean 2020” recognises that governments are major GDP in 2018, which was higher than in OECD countries
actors in modern societies. Every citizen throughout his or where it reached on average 2.9% of GDP. Compared
her life interacts with governments from the issuance of to 2007, when it was on average 0.9% of GDP the fiscal
a birth certificates to the provision of health, education deficit in LAC countries increased by 3.4 p.p., portraying
and social benefits. Furthermore, as societies reach an overall deterioration of the fiscal and economic outlook
higher development levels, expectations of quality public in the region when comparing these two points in time.
services tend to increase, while their objectives become Such deterioration results from the combination, in
more complex. recent years, of fewer resources from commodities
and sluggish economic growth coupled with political
uncertainty in many countries of the region. In 2018,
PUBLIC FINANCE AND ECONOMICS
Jamaica (1.2%) and Honduras (0.2%) were the only LAC
countries that reported a fiscal surplus. Over the past
A. General government fiscal balance two of years, Honduras has made important efforts to
reduce macroeconomic imbalances and institutionalise
The fiscal balance is the difference between government macroeconomic prudence (IMF, 2019)2. In contrast, the
revenues and spending, indicating if governments raise general government fiscal deficits were the highest in
enough resources to cover their expenditures. This Bolivia (8.1%), Brazil (7.2%) and Suriname (7.2%).
balance could be negative, resulting in a deficit, or positive,
resulting in a surplus. Consecutive large fiscal deficits may Given the size of its economy, what happens in Brazil in
lead to debt accumulation. When the level of outstanding economic terms has consequences in many countries of
debt is high, the cost of servicing that debt (interest the LAC region. The recession that started in 2015 has
payments) can push a country further into deficit, thereby demonstrated the existence of considerable imbalances in
hindering fiscal sustainability. Conversely, improvements the fiscal accounts, triggered by increased public spending
in the fiscal balance over time signal good fiscal health. needed, among others, to cope with an ageing population
Such improvements may result from a combination of the as well as subsidies to companies that have been losing
following factors: political commitment to fiscal discipline, competitiveness (OECD, 2018) .
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sound institutional arrangements for budgeting and/or 2.1. BALANCE FISCAL DE LA ADMINISTRACIÓN PÚBLICA
a favourable performance of the economy.
FIGURE 1: GENERAL GOVERNMENT FISCAL BALANCE AS A PERCENTAGE OF GDP, 2007 AND 2018
2.1. Balance fiscal de la administración pública como porcentaje del PIB, 2007 y 2018
2007 2018
10

5

0

-5

-10
BOL BRA SUR CRI TTO ARG GUY NIC COL SLV DOM MEX URY PAN HTI PER GTM CHL PRY ECU BLZ BRB HND JAM ALC OCDE
Source: Data for the LAC countries, IMF, World Economic Outlook database (IMF WEO) (October 2019). Data for the OECD average: OECD National Accounts
Fuentes: Datos para los países de ALC: FMI, base de datos de World Economic Ooutlook (WEO, por sus siglas en inglés) (octubre de 2019). Datos para el
Statistics (database).
promedio de la OCDE: Estadísticas de Cuentas Nacionales de la OCDE (base de datos). Statlink https://doi.org/10.1787/888934091144
12 http://dx.doi.org/10.1787/888934094146
2 IMF (2019), “Staff report for the 2019 Article IV Honduras”, IMF Country Report, No. 19/236, IMF Publishing, Washington, DC.
OECD (2018), OECD Economic Surveys: Brazil 2018, OECD Publications, Paris. http://dx.doi.org/110.1787/eco_ encuestas-
3
2.2. Balance primario de la administración pública y gasto de intereses netos como porcentaje del PIB,
bra-2018-en. 2007 y 2018 97
% Balance primario, 2018 Intereses netos, 2018 Balance primario, 2007 Intereses netos, 2007
14
12
10
8

6
4
2
0

-2
-4
-6

-8
BOL SUR TTO GUY CRI ARG NIC HTI BRA CHL PER GTM PAN PRY COL DOM URY HND SLV ECU MEX BLZ BRB JAM ALC OCDE
Fuentes: Datos para los países de ALC: FMI, base de datos de World Economic Ooutlook (WEO, por sus siglas en inglés) (octubre de 2019). Datos para el
promedio de la OCDE: Estadísticas de Cuentas Nacionales de la OCDE (base de datos).
12 http://dx.doi.org/10.1787/888934094165

PANORAMA DE LAS ADMINISTRACIONES PÚBLICAS: AMÉRICA LATINA Y EL CARIBE 2020 © OECD 2020 57