Tendencia Económica. Informe Mensual de Fedesarrollo. No. 194

Abstract

In this editorial, we analyze the main policy matters included in the update of the 2019 Financial Plan presented by the MHCP on February 1. Fiscal balance of 2018 fulfilled the fiscal deficit allowed by the Consultative Committee of the Fiscal Rule of 3.1% of the GDP. On the other hand, the updated version of the 2019 Financial Plan incorporates the expected impact of the financing law on tax collection and, therefore, a cut in spending approved by the General Budget of the Nation 2019 which must be submitted by the national government to meet the deficit requirements of the Fiscal Rule - 2.4% of GDP in 2019.

Fedesarrollo advocates to the idea that it is uncertain the sources of the CNG revenues in 2019 and in the medium term. These estimates would suggest then that, in the absence of additional measures by the national government, the path of fiscal deficit would deviate from that established by the Advisory Committee of the Fiscal Rule, implying additional pressures to the CNG’s debt level.

In this Actualidad article, we make a review of the main objectives and priorities of the economic recovery programs PIPE 1.0, PIPE 2.0, Colombia Repunta and the recently launched Reactiva Colombia. These economic reactivation programs, led by the National Government, have sought to implement sectoral and cross-sectoral measures with the aim of helping to solve structural and short-term failures in the Colombian economy. In general terms, the emphasis has been on infrastructure and productivity, however, it is necessary to evaluate the real impact that they had on the economy, so that public spending can be better focused.