Government delivered proforma 2022 that amounts to $ 33,899.73 million; oil is estimated at $ 59.20

The Executive delivered a few minutes ago to the Assembly the 2022 budget proforma that amounts to $ 33,899.73 million (including the Derivatives Financing Account, CFDD) and which represents an increase of $ 2,438.57 million (2.22% of GDP) in relation to that codified as of August 31, 2021 of the PGE. The CFDD, which is the value destined for the importation of fuel derivatives for the year 2022, is $ 4,323.84 million, that is, $ 1,122 million more than the value that appears in the codified budget as of August 2021.

Total income of the proforma total $ 24,114.62 million and expenses are $ 27,898.12 million, resulting in an overall deficit of $ 3,783.50 million, equivalent to 3.45% of GDP. This figure represents $ 29.70 million more than the deficit registered in the codified budget as of August 2021. In accordance with legal regulations, the proforma does not include any income expected by the Organic Law for Economic Development and Fiscal Sustainability after the COVID-19 pandemic, which has been presented to the National Assembly.

The expenses of the proforma 2022 modify the classification of some items of wages and salaries, purchase of goods and services and current transfers, which were usually recorded as a non-permanent expense and now appear as permanent expense, in order to present transparent budget information according to its economic nature.

Thus, the expenses that have a direct and permanent relationship with the operations of the State, as well as the social protection policy, are presented as permanent expenses. Consequently, the permanent income of the 2022 proforma is lower than the permanent expenses by $ 740 million, a part of the permanent expenses of education, health and justice will be financed with non-permanent income according to the exceptionality provided in Decree 170 in application of the provisions of the Constitution of the Republic.

Meanwhile, the macroeconomic assumptions establish an average price of crude of $ 59.20, while the Government expects the economy to grow 2.85% of GDP. This represents a GDP of $ 109,618.57 million. Inflation (average) calculated for 2022 was set at 1.28%.

Additionally, it is expected to reach a volume of controlled oil production equivalent to 179.88 million barrels per year.

Regarding the financing needs of the proforma 2022 reach $ 9,768.85 million, the figure represents $ 874.74 million more than the value encoded as of August 2021.

The proforma 2022 guarantees the social protection programs for vulnerable families in the country with an allocation of $ 1,470.93 million, the Ministry explained. These are divided as follows:

• Human Development Bonus $ 631.85 million

• Pension for the elderly $ 391.46 million

• Joaquín Gallegos Lara Bond $ 123.51 million

• Pension for people with special abilities $ 109.09 million.

Proforma 2022 will be a instrument that allows progress in the fulfillment of the Economic Plan of the Government of the Meeting to achieve sustained and environmentally responsible economic growth, which generates quality employment, fiscal stabilization with equity, honest management with efficiency and transparency of public resources, said the Ministry of Finance in a press release.

The budget proforma must be dealt with in 30 days and in the first instance by a designated commission. At the moment the tax reform is also pending treatment, which entered last Thursday with an urgent economic nature. (I)