February 24, 2021

Uruguay says that the reduction of the fiscal deficit in 2020 “comes to the background”

The reduction of the fiscal deficit and the saving of some 900 million dollars in public spending in 2020, two of the main campaign promises of the Uruguayan government, will come to “second place” after the impact on the economy by the arrival of COVID-19 .

This was stated by the president of that country, Luis Lacalle Pou, during an interview with local media Channel 4, in which he also assured that the blow to unemployment rates since the announcement of the first cases on March 13 “is great “

“The savings of 900 million dollars, went to the background, and obviously lower the deficit in the first year, step to the background, it will go up,” he said.

In relation to unemployment, Lacalle said that the March figures will show “significant growth” although he was optimistic with the series of measures that his Government has been announcing as an extension of unemployment insurance, credits for SMEs and subsidies for freelancers, for which the Executive disposed of 2.5 billion dollars.

“There are three elements that we have to conjugate and combine, investment, collection and job creation. We are willing to give up tax instruments to resign in the collection of tax exemption, to reactivate the economy,” he added.

For the Uruguayan president, with these initiatives, the aim is to “reward someone who puts a peso, two pesos, a thousand pesos, a million pesos and hires people”, for which they are “convinced” that, in addition to setting wages, an stimulus for the creation of job sources.

“Let’s position ourselves in the world, the world became an ointment. The risk rating agencies are not going to be taking notes as if it were a normal season. That enables us and gives us the possibility of taking tax and collection measures to generate jobs “, Held.

In relation to the COVID-19 pandemic, in which this South American country has registered 734 cases and 20 deaths to date, Lacalle Pou said that, despite pressure, she decided not to establish a general quarantine in her country for “philosophical convictions” and defended the work of its authorities in health matters.

However, the Uruguayan president expressed his concern about the situation on the dry borders they share with Brazil.

“I am concerned, and this week the Government acted in that sense, the border with Brazil, I am very concerned about bi-national life (…). If tomorrow Rivera (north) shoots you and there are 50 cases, there we have a binational issue for sure, “he said.

In this hypothetical scenario, Lacalle Pou remarked that “all the economic and social ones would go” backwards “so” it can trigger complications “.


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