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The Ministry of Finance released on Wednesday (June 5) the closing accounts of the execution of the national general budget as of May, from which it can be seen that although there have been improvements, all units are struggling. Utilization of national resources in an economic context where there is a need to inject resources into different productive sectors.
Among the data presented by the portfolio, the first thing that must be emphasized is that current appropriations increased from 502.6 billion to 503.2 (an increase of 606 billion), which clearly shows that the reduction in tax revenues has still not had an impact, a situation that has lasted for two months.
Ricardo Bonilla, Minister of Finance and Public Credit
Presidency
Jairo Bautista, budget director at the Ministry of Finance, explained that of the more than US$500 billion already mentioned, US$206.4 billion has been pledged so far, while obligations (the provision of goods and services) amount to US$159.2 trillion and disbursement resources that ultimately entered the economy amount to US$154.9 trillion.
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Expressed as a percentage, budget execution expressed as a percentage Commitments reached 41%, obligations reached 31.6% and payments reached 30.6%. Despite significant progress, mainly in terms of commitment funds reaching the recommended level and being above average, challenges remain in terms of obligations and payments.
Ministry of Finance and Public Credit.
Photo: CEET – Nestor Gómez
It is worth noting that in April, the commitment and investment ratios of these indicators were 35.8%, while the debt ratio was 27.3% and the payment ratio was 26.4%. At this point, we must remember that the ideal target for these values, with May as the cut-off point, is to exceed 40%.
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“It should be noted that if debt service resources are removed, the current appropriation is $408 billion, of which commitments have reached 41% and obligations have reached 29.9%, which puts us at the average level of execution of the past five governments.” They are in their second year in office. Details of the information and Details of the entire department can be found on our page, Bautista stressed.
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Whenever the government talks about the Budget and its execution, one of the most talked about points is undoubtedly investment, as this is one of the sectors most at risk due to the economic slowdown, despite its importance in facing it.
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Currently, the Treasury Department insists that of the $99.8 billion allocated at the beginning of the year, $49.7 has been committed; that is, 49.7% (one level higher than recommended). However, the debt is $18.4 billion and the payment is USD 18.2 billion, or 18.1%, was still lower than expected.
Building construction and civil engineering.
Courtesy – BBVA Research
Nevertheless, the Ministry of Finance stressed that the level of investment commitments is 32% higher than the amounts pledged in the same period of 2023. On the other hand, if we consider that the resources committed to the project are $ 45, 6 billion, it is clear that the advance payments made in the latest month amount to about $ 4 billion.
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In this regard, Minhacienda Budget Director Jairo Bautista added, “In terms of investment, of the 81.4 billion pesos in national budget execution resources, 18.4 billion have already been executed, which means that we This is $3 billion higher than the par value executed in the same month of May 2023.”
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However, it acknowledged that “it is still important to note that investment execution still lags or is delayed relative to historical indicators (20.5%) and remains relatively low relative to execution in May 2023, which stood at 21.3%.”
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Nevertheless, according to the Treasury’s accounts, There is more than $50 billion of investment available and still being used, which is essential to deal with the economic slowdown that the country has been facing for several months and its impact on all sectors of the economy.
Minhacienda requested more cargo from the tanker in the interest of the country.
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First of all, it should be said that the sectors with the highest execution are education (38.7%), mining and energy (34.6%), science and technology (26.1%), health and social security (25.2%), equality and fairness (24.8%) and work (21.9%).
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Now, in terms of investment, the situation has changed, as the best result is the Ministry of Transport, which has invested $9.4 billion of the $13.9 billion for this task by 2024 ($6.9 billion, or 2% in advance). On the other hand is the Ministry of Social Inclusion and Reconciliation, It has allocated $12.9 billion but committed only $2.3 billion; or 16.6%.
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“Some sectoral details need to be highlighted in the mining and energy sectors, which play an important role in energy subsidies, where in May 51.8% of energy subsidies were fulfilled, which is $2.8 billion out of a total allocation of $4.2 billion and in the natural gas sector, 38.8% of resources were utilized, which is equivalent to 468 billion pesos out of a total allocation of $1.2 billion,” Jairo Bautista added.
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Haven’t felt the drop in collections yet
In presenting the results of the budget execution, the Ministry of Finance consulted on the possible impact of low taxation and said that although This is a monitored issue and they are not aware of the negative consequences yet.
Gustavo Petro
Sergio Acero Yate / Portfolio
“To date, $154 billion has been disbursed out of the $159 billion incurred. This difference is within normal circumstances and we have not seen any impact so far related to the impact of lower tax collections, as it has been achieved prudently and in a timely manner in accordance with the priorities set by the National Treasury,” said the Budget Director.
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