Investor Presentaiton
2
The government has met the three pillars of the fiscal rule for three
years in a row, underpinning fiscal credibility; targets for 2023 were
set in the Annual Accountability Budget bill sent to Congress in June.
Indicative target on structural
fiscal balance, to account for
business cycle fluctuations
and one-off/temporary
spending and revenue items.
Structural balance (1)
(In % of GDP)
-1
Indicative target cap on real
growth in primary expenditure
in line with estimated potential
real GDP growth
Legally binding maximum level
of annual net indebtedness in
dollar amount.
Net indebtedness (3)
(USD mm)
Primary spending (2)
(Annual real change, in %)
3
Real primary spending growth
Indicative target
4,000
Net Indebtedness
Legal limit
-2
2
-3
-2.7
1
-2.7
-4
-5
-6
2020
2021
Structural balance
Indicative target
2022
2023*
-1
2020
2021
2022
-0.6
2.1
3,000
2023*
2,000
1,000
2,860
2,370
2020
2021
2022
2023*
Source: Ministry of Economy and Finance of Uruguay, based on the "Proyecto de Ley de Rendición de Cuentas 2022", submitted to Congress by end-June,
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(1)
(2)
(3)
(*)
2023.
Structural balance refers to the fiscal outcome adjusted for fiscal items impacted by economic cycle fluctuations and one-off/temporary spending and/or revenues.
Potential real GDP growth rate for 2023 estimated at 2,1% (i.e. the indicative target for real primary spending growth is 2.1%). For subsequent years, potential real GDP growth estimated at 2,8%.
For 2023, the legal net indebtedness cap was increased from USD 2,200 million to USD 2,860 million due to the water deficit emergency, invoking the use of the legal escape clause in the fiscal rule.
Government Net Indebtedness is defined as gross indebtedness (bond market issuance and disbursed loans) net of amortizations of market debt and loans, and the accumulation of Central Government's
financial assets, during the fiscal year.
Projections for 2023.
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