Monetary Policy Framework Enhancement
3
...meeting all three pillars of the new fiscal in 2020,
strengthening fiscal credibility.
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 %)
4
Binding maximum level of
annual net indebtedness in
absolute dollar amounts
Net Indebtedness in 2020
(US$ mm)
-1
-2
-3
3
2
-4
-4.3
-5
Headline
Structural
1
-6
(1) Gross Borrowing
(Bonds + Loans)
5,891
(2) Amortizations
(Bonds Loans)
2,205
Fiscal rule cap
0.6
2016 2017 2018 2019 2020
The target for the structural fiscal
balance in 2020 was set at -4.4%
2016 2017
2018 2019 2020
The cap for real expenditure
growth in 2020 was set at 2.3%
(3) Accumulated Financial
Assets
574
Net Indebtedness
- (1) - (2) - (3)
(1) Does not Include extraordinary inflows to the Social Security Trust. Fund.
(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.
3,113
Legal limit on net indebtedness
was set at US$ 3,500 million
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