Monetary Policy Framework Enhancement

3 Strong commitment to fiscal discipline based on prudent macroeconomic management... Central Government Fiscal Balance (1) (In % of GDP)) -1 2016 2017 -5 Primary Balance Interest payments Overall Balance -7 2018 2019 2020 (1) Does not Include extraordinary inflows to the Social Security Trust Fund. Source: Central Bank of Uruguay; Ministry of Economy and Finance of Uruguay -4.0 -5.8 The Government met the 2020 target set in the Budget Law, even accounting for the re- basing of GDP (using previous national accounts estimates, which implies a lower nominal GDP, the fiscal balance observed would have been -6.3% of GDP, and the fiscal target was set at -6.6%). 13

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