Uruguay Faces Persistent Fiscal Deficit: Levels Match End of Previous Administration
The Ministry of Economy, led by Azucena Arbeleche, has explained that the unexpected drop in inflation impacted fiscal revenues
The fiscal deficit in Uruguay has reached levels comparable to those at the end of the previous administration, posing a challenge to the current government a few months before the next elections. The consolidated fiscal deficit stands at 4.4% of GDP, mirroring the figures in 2019.
Fiscal Deficit Trends and Government Efforts
The reduction of the fiscal deficit was a central promise in the current administration’s campaign. However, the deficit remains a concern despite efforts to improve financial health. The Ministry of Economy and Finance has highlighted the impact of unexpected inflation drop on fiscal revenues.
Current Fiscal Situation
The overall fiscal deficit of 4.4% of GDP in May 2024 exceeds previous levels. The Ministry of Economy attributes this to an unexpected decline in inflation affecting fiscal revenues and expenditures. The Fiscal Advisory Council has issued warnings about the structural fiscal position.