This is the cost of the value of the lower tax revenues not received, projected in the next 10 years, said the Minister of Finance, José Manuel Restrepo. He pointed out that savings of at least $ 1.8 billion annually must be achieved in the control of public spending.
The fiscal situation of the Government of President Duque continues from bad to worse. Revenues continue to decline and, therefore, together with the economic commissions of Congress, academic and economic forums were scheduled, which have the purpose of explaining the situation of the country’s national accounts and the need to find a source of resources , like a tax reform.
In the first event in the Legislative, the Minister of Finance, José Manuel Restrepo, in a very conciliatory tone, made a worrying revelation: if the income that the government coffers have ceased to receive is projected and brought at present value “it would mean a decrease in collection in these 10 years of the order of $ 119.5 billion. “That was the cost in terms of tax collection,” reiterated the official in the economic legislative cells.
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This situation of weak income, including taxes, means that more debt has to be dumped. “The level of indebtedness rises to about 65%,” Restrepo reiterated. That is to say, that the impact of the pandemic on the finances of the Nation translates into an increase in debt that is not bankable, the minister in charge of managing the country’s economy warned in his presentation.
Minister Restrepo issued a warning, if nothing is done, such as the presentation of a tax reform and work to control public spending, the level of debt will continue to grow “uncontrollably.”
The problem is that “to the extent that the government gets more debt or pays more interest, it leaves much less space in the National Budget of income to meet social expenses or investment expenses,” said Restrepo.
To try to control this overflow of the debt, we all need to work as a nation, “being aware that we are all responsible, in the end, for these finances of our country. That we are all responsible for the need for social spending in Colombia, that we are all responsible for the need for investment in our country. That we are also responsible for contributing to these sources of resources of the Nation to be able to cover these social and investment expenses, “said the Minister of Finance.
He said that one of his first actions was to look at austerity in public spending. “We are making a careful review of our operating expenses, those items that are not going to be used, that deserve a decrease with an austerity program, which cannot be only for this year, which has to be permanent from now on. “, He said.
The State has to be an austerity effort in public spending, reiterated the official in the economic forum. The first action was to prioritize this expense in the acquisition of aircraft in the order of $ 500,000 million, he recalled. These resources were directed to strengthening social programs to help people with lower incomes.
“We have to achieve progress of at least $ 1.8 trillion annually recurring from now on,” in terms of control of public spending, said Minister Restrepo.
The minister promised to fight against tax evasion. “We have to fight against that expression of corruption,” he said. He said that DIAN has an annual commitment that represents almost 1.1% of GDP to improve collection in the fight against tax evasion. As of May of this year, collection has been increased by almost 10% due to the commitment to fight against tax evasion.
For more information of interest: The new tax reform would be $ 14 billion: José Manuel Restrepo, Minister of Finance
He added that DIAN’s proposal is to achieve an effort close to $ 3 billion for next year in the fight against tax evasion. The other source of resources has to do with tax reform.
“Our proposal for social spending with sustainable financing has to be a proposal that comes out of the pockets of the wealthiest and reaches the pockets of the most vulnerable,” said Restrepo, insisting that a reform will not touch the country’s middle class because the class media has been vulnerable.
He repeated once again that the tax base in natural persons will not be increased, nor will VAT be touched and “we have to be careful with the issue of pensions”, the middle class cannot be affected with the issue pension, he insisted.
