It is a big dilemma, hence the proposal to increase the VAT, to finance the war and harmonize the fiscal accounts, the figures of which are alarming: the deficit in 2023 according to 5.5 billion dollars, the debts of the state exceed 4.0 billion dollars, and even more seriously, perhaps worse projection for 2024 (financial needs according to 10 or 11 billion dollars). You must act.
Again “for dollarization”
There are two very distinct visions. On the one hand, we who believe that the essential approach should be based on productivity (better use of resources to create more value), which leads to the reduction of unproductive government spending, should be a priority, anyone would do it or a company, it is difficult to understand why only the state applies a different logic, and the most common explanation “because it has negative social and aggregate effects on the economy” is completely wrong. On the other hand, those who place fiscal balance as an important goal, and consider that the most direct and easiest way for the Government (which neither people nor companies can magically do) is to increase taxes, now VAT. These are two very different visions, although it must be clear that in both cases we citizens are affected, in the second case by direct payment of more taxes, in the first case by the cessation of “receiving those government expenses”. There is no such vision that “the Government is affected”, we always stand behind the flesh and blood people. But with the first vision, the entire economy is improving (making better use of its resources) and contrary to what is feared, neither employment nor economic activity is trending down, quite the opposite; In the second, however, the environment worsens because part of the taxes, new and old, are inevitably wasted and in the end we become poorer.
Company: protection and defense
We are good at making requests, but not at paying
Although there are two expressed visions and I support the first one, I also believe that in society we must build bridges, find agreements, otherwise we end up in a situation like politicians: everyone in his corner, defending “his truths”. That’s why it seems to me that we have to deal with 5 elements at the same time: 1) drastically reduce the non-productive costs of the entire Government (we suffer them every day in contacts with public entities, including GAD) and transfer activities to the private sector (there are many of them); 2) eliminate and target fuel subsidies: it’s a terrible use of resources; 3) raises VAT (gives cash); 4) promote mining and oil (including not closing YasunÃ); 5) collect taxes from those who don’t pay… and hopefully also reform social and labor security and sharply lower income tax while streamlining exemptions and streamlining the process.
Five points of consensus, but on one basis: neither point 2 nor, even worse, point 3 make sense if no progress is made on point 1 at the same time, otherwise there will always be a poor excuse “it will be done later”. .. Yes, he can do, surgically or generally: decide to cut the budget of every public entity (except security) by 10% (or more) and realign priorities (that’s $4 billion down). You can be sure that a number of useless expenses will be eliminated without significantly affecting services, especially in education, health and related fields. Willingness to consent? (OR)
Source: Eluniverso
Mario Twitchell is an accomplished author and journalist, known for his insightful and thought-provoking writing on a wide range of topics including general and opinion. He currently works as a writer at 247 news agency, where he has established himself as a respected voice in the industry.
