Nicaraguan legislators, after a unanimous vote, have approved modifications to the nation’s 2023 general budget, motivated by the continued growth and economic strength of the Latin American country.
“Unanimously, the Plenary approved… a reform to the Annual Law of the General Budget of the Republic 2023 that readjusts the General Budget of Income and Expenditures due to the positive evolution of collection,” detailed the Parliament of Nicaragua.
These reforms aim to strengthen resources allocated to social spending (health, education and housing) and finance public investment projects that play an essential role in the eradication of extreme poverty.
The parliamentarian, Wálmaro Gutiérrez, president of the Production, Economy and Budget Commission, highlighted that “this modification implies the incorporation of more than 18,479.9 million córdobas in income and 15,000 million córdobas in expenditure”, cited in an official statement from the Nicaraguan Assembly.
Gutiérrez emphasized that this fiscal effort translates into the creation of more schools, health centers, hospitals, roads, drinking water projects, sewage, rural electrification and citizen security, in addition to support for the agricultural sector.
Similarly, projections for economic activity in 2023 indicate real growth between 3.5% and 4.5%, with a specific estimate of 4%.
Nicaragua’s economic growth remains strong
The most recent data presented by the Central Bank of Nicaragua indicates an accumulated growth of 4.5% in the monthly index of economic activity until September, led by sectors such as hotels, restaurants, energy, mining, commerce, finance, construction, family remittances and tourism, although product prices show a slowdown.
Gutiérrez highlighted a surplus of more than 3,400 million córdobas, added to an additional fund of 5,000 million córdobas, which amounts to more than 8,000 million córdobas annually, which could cushion any adversity in 2024.
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With the reforms to the General Budget of the Republic 2023, the income budget stands at more than 128,882 million córdobas and the expenditure budget stands at 120,521 million córdobas, reported the Nicaraguan Legislature.
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In that sense, Gutiérrez pointed out that this modification of the budget demonstrates the stability and growth of the national economy, with all sectors generating resources that are allocated to the eradication of poverty and the resolution of challenges.
