Investor Presentaiton
3
...and all three pillars of the new fiscal rule were met
last year, despite rigid government spending structure.
Austerity measures based on more efficient discretionary spending and spending oversight allowed
to meet all three pillars of the newly-adopted fiscal rule
Structural balance target, to
account for business cycle
fluctuations and one-
off/temporary spending and
revenue items
Headline (1) and Structural Balance (2)
(In % of GDP)
Cap on real growth in primary
expenditure in line with
potential real economic
growth
Primary Spending
(Annual real variation, in %)
Binding maximum level of
annual net indebtedness in
absolute dollar amount
Net Indebtedness in 2020
(US$ mm)
-1
N
3
3
2
-4
-4.3
1
Headline
-5
Structural
-6
(1) Gross Borrowing
5,891
(Bonds Loans)
(2) Amortizations
Fiscal rule cap
(Bonds + Loans)
2,205
(3) Accumulated Financial
Assets
574
0.6
Net Indebtedness
- (1) (2) (3)
3,113
Legal limit on net indebtedness
was set at US$ 3,500 million
2016 2017 2018 2019 2020
The target for the structural fiscal
balance in 2020 was set at -4.4%
(1) Does not Include extraordinary inflows to the Social Security Trust. Fund.
2016 2017 2018
2019 2020
The cap for real expenditure
growth in 2020 was set at 2.3%
(2) The Structural Balance is the fiscal balance that accounts for business cycle fluctuations and one-off/temporary spending and revenue items.
Source: Ministry of Economy and Finance of Uruguay.
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