Monday, May 20, 2024

This is the percentage it has in 2024

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The PGN for 2024 is $502.6 billion, one of the highest in history - credit Getty ImagesThe PGN for 2024 is $502.6 billion, one of the highest in history – credit Getty Images

In the national economy, one of the aspects that has generated greater expectations within the public and private sphere is the execution of the General Budget of the Nation, a fact that generated certain doubts in the past and present due to what the Government of Gustavo Petro does, taking into account that $502.6 billion was approved for 2023, the highest in recent years.

Now, a report from the National Association of Financial Institutions (Anif) highlighted that The current administration recorded a budget execution in the area of ​​investment of only 9.1%, which represents a marked decrease compared to previous years.

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According to the data provided by the Economic Transparency portal of the Ministry of Finance and Public Credit, this figure indicates that Of every 100 monetary units destined for investment, only 37 have been executed to cover government obligations.

This situation becomes even more relevant when considering that, according to the Minister of Finance himself, Ricardo Bonilla, the country is in a key year for economic reactivation, where an acceleration in the execution of these funds would be expected. However, the expectation has been far from reality, which is why the current Government is placed underperformed the 25% execution expected for the first quarter, by a margin of 15.9 percentage points.

Investment budget execution (second year of each government) - Anif creditInvestment budget execution (second year of each government) – Anif credit

A comparative analysis carried out by the economic studies center highlights how budget execution has varied during the first quarter of the second year of government in the last three terms.

For example, during Juan Manuel Santos’ administration a peak of 21.3% was reached and a high precedent was set. For its part, the government of Iván Duque presented an execution of 11.5%, which established a substantial difference with its predecessor. In this context, the current administration of Gustavo Petro has recorded the lowest figure in recent years with its 9.1%according to Anif’s document.

This low percentage not only reflects a significant decrease compared to the previous administration, but also reveals a decline of 2.4 percentage points compared to the same period of the previous year.

“This is equivalent to the fact that the expected execution for the first quarter, which should be 25%, is 15.9 percentage points below,” Anif pointed out, emphasizing the magnitude of the challenge facing the government in terms of budget management.

The academic and business sectors, which harbored hopes of an improvement in budget execution as a driver of economic reactivation, now view the evolution of these indicators with concern. The low execution of the General Budget of the Nation (PGN), especially with regard to investments, It could mean a brake on national economic development and the development of long-term strategic projects.

Budget execution by sector with cut-off to March 2024 - Anif creditBudget execution by sector with cut-off to March 2024 – Anif credit

Anif’s analysis suggests that this situation requires urgent measures to reverse the trend and optimize available resources, thus guaranteeing greater efficiency in the use of the budget.

Improving budget execution is not only crucial to meet the Government’s obligations, but also to send a positive signal to investors and productive sectors about management capacity and economic stability from the country.

In conclusion, the challenge faced by the national government in this area is considerable and requires a firm commitment to improve execution rates, as well as a clear strategy that allows maximizing the impact of public investment in the economic reactivation process. The focus is on how these actions will develop in the coming months and whether they will be enough to correct the current course.

*This note was made with the help of artificial intelligence.

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