- PABLO ESCALONA
05 de abril de 2017 08:14 AM
Actualizado el 05 de abril de 2017 08:27 AM
In the first quarter of 2017, real spending in the Venezuelan government declined 23.3% with respect to the first quarter of 2016, and 51% relative to the first quarter last year.
In the opinion of financial firm Torino Capital, “Venezuelan fiscal policy continues to be contractionary,” according to the latest estimates based on the weekly spending projections of the National Treasury (ONT). In any case, they noted that the rate of contraction has slowed from that observed in the first two months of the year. Real primary central government spending fell by 4.4% in March with respect to the same month of 2016, yet had fallen by 33.1% in the first two months of the year.
According to the experts, real primary expenditures of the central government declined by 30.8% in 2016.
“A decline of 20 points of GDP in spending over the course of a two-year period would clearly be one of the largest spending contractions observed the history of fiscal policy,” Torino Capital stressed.