On the one hand, if we consider that the current budget deficit is around 158 million dollars, that the service of the foreign debt, the deficit of the Fiscal Department and the resources destined to pay salaries of government employees are financial obligations that absorb a large part of the current collections of the State and also are future obligations with increasing tendency, the conclusion would seem obvious: “it is an unreachable amount for the country.”

On the other hand, if we consider that the public budget has to be designed and applied from the point of view of priorities, the conclusion about the feasibility may be totally different:
“The required additional amount is indispensable and can not be postponed.”

POSSIBILITIES OF THE BUDGET

It is proposed to start allotting funds to advance toward the accomplishment of the Objectives of the Millennium with amounts feasible in the short term and then increase them in the following years.

The following graph poses the disbursement of around 70.7 million dollars in 2004; the following years (2005-2008), 86 million, 102 million, etc.

The new authorities expect to increase the tax collections by 25%, initiate the process of reform of the Fiscal Department, reduce the number of government employees, reduce the informality and initiate the battle against poverty.

According to these measures that are announced we present as an illustration a series of comparisons that may help reorient budge priorities.

• The estimated fund to attend to the indicative plan of investments for 2004 is equivalent to 5.7% of the budget of the Central Administration of 2003.

• The additional required amount to attend to Initial and Basic School Education during 2004 is equivalent to 1.2% of the budget allotted to Personal Services of the year 2003. (It is the approximate cost of 1,870 government jobs)

• If 1.5% of the royalties of the Binational Companies is destined during 2004, 2,800 children with global malnutrition, 11,000 children with risk of malnutrition and 4,600 pregnant women with malnutrition can be attended to.

• With 62% of the tax exemptions of 2002, the access to drinking water of 170,000 people during 2004 can be financed.

• With 4.3% of the Deficit of the Fiscal Department (2003) 247,000 people can be provided with a package of basic health services during 2004, to which they do not have access today.

• With 1.5% of the Tax Collection 92 thousand extremely poor people can be assisted during 2004.