Budget 2020: the government expects a dollar of up to 75 dollars – News

The government will send to Congress on Monday the draft budget 2020 forecasting a growth of 1%, inflation of 34% and an average dollar of $ 67, without considering debt refinancing, because it must be decided by Parliament.

Finance Minister Hernán Lacunza, alongside his cabinet, is currently defining the details of the project in order to comply with the formalities required by the Financial Administration Law, which stipulates that the budget must be submitted on September 15 or the first working day of the following day. House of Representatives.

With regard to the exchange rate, the official projection is $ 67 on average and the estimate for the end of 2020 is $ 75.

This year, the treatment will be conditioned by the electoral process and the certain possibility of a change of government. Thus, in the Chamber of Deputies, they expect that the discussion will begin in December, with the new legislative composition and in the framework of extraordinary sessions. .

According to sources from the Palacio de Hacienda, the bill would maintain the target of a primary budget surplus of 1% of GDP, a financial result of 2.5% and a economic growth of 1%, after estimating that the economic slowdown would be the same. 2.6% year.

As a result, the government reduced growth forecasts by 3.5% by sending the budget advance in the middle of the year.

As the government has outstanding negotiations with the IMF and with the opposition for debt restructuring, it will seek political agreement on a project and then integrate it into the budget.

According to Treasury sources, it is estimated that total resources would increase by 47% and expenditures by 36%.

The project estimates that social security spending will increase by 40%, while the rest of the spending items would be located with increases below inflation, according to unofficial sources.

The initiative will enter Congress on Monday, but could be discussed after the October general election.