The first quarter of government is usually affected by low execution, according to data from the Integrated Accounting System (Sicoin). In the last three administrations, the trend shows that there was less than 35 percent use of funds, which some political actors consider to be due to the contexts of those years, as well as the time that new officials take when arriving at office. an entity to know the real state.
The current administration, is no exception, has the lowest percentage in recent years with 28 percent, although having a higher budget ceiling the figure in millions of quetzales is higher. They have used just over Q33,038 million in this first quarter. This might eventually affect the approval of a budget expansion.
Contexts
In the first four months of former president Alejandro Giammattei, Q32,324 million were used, which corresponded to 30 percent of that year’s budget. And in the case of former president Jimmy Morales, the percentage was 33 percent, which corresponded to Q23,498 million.
In that sense, the deputy of the Central American Parliament and former vice minister of Finance, Carlos Barreda, explained that budget execution is subject to political contexts.
For example, regarding Bernardo Arévalo’s government, the review of contracts to combat corruption has been prioritized. In Giamattei’s case, it was in March when the Covid-19 pandemic affected him and regarding Morales’ case he added that the Ministry of Communications (CIV) was affected by the corruption cases of the previous government.
“There is also – in the Arévalo government – an event and it is breaking with at least eight years, trying to bring regarding a change in the political forces in Congress and in the Executive,” added Barreda.
To which he added that the three governments began with the narrative of reforming the State Contracting Law under the premise that it does not allow processes to be streamlined. In addition to that, in the first quarter it also affects execution because the new authorities enter the institutions to review the contracts and financial statements.
The ministries that manage the largest budget are Communications, Health and Education. The first for the infrastructure works and the other two for the extended workforce of workers they manage.
The Communications, Infrastructure and Housing (CIV) portfolio is the second ministry – only surpassed by Energy and Mines – that has the least execution so far, as it has only used 12 percent of the funds.
The CIV, Education and Health together have more than Q30 billion, an aspect that is relevant because the three portfolios can increase the execution of the entire Executive, according to Barreda.
While in other ministries, such as Social Development, there are programs in which funds are no longer available, such as the corresponding one for the Temporary Development Law, which contemplates payment for reforestation work to former soldiers who served in the Armed Conflict.
The current deputy and former Minister of Finance, Julio Héctor Estrada, said that execution might be low because there are some programs that, probably, have not yet started due to the review that is carried out in all portfolios.
He added that in the two previous governments not only was the budget less, but also now Q15 billion is available in cash balances, something that did not happen in those contexts.
“It is not a problem of funds, it is a problem of management and execution,” he said.
Although an institutional position was requested from the Secretariat of Social Communication of the Presidency for execution, this was not shared by the closing of the edition.
Questions
Since the beginning of the government, the authorities have stated that they need a budget expansion of Q13 billion, however, this has not yet been presented. The low execution might be a reason for questions in Congress when the initiative is presented, as agreed by Barreda and Estrada, the latter who chairs the Legislative Finance Commission.
“Why will an expansion be necessary? If they execute little of what they have, why do they need more? That doubt is not mine, it is a doubt that is heard in the corridors of Congress,” commented Estrada.
The congressman pointed out that when the Executive presents it, they must explain this need in detail before the Finance Commission, so that the deputies can understand the requirement for more funds.
In the same way, he added that it may happen that the holders of the portfolios are “trapped in a complex decision” because they have not finished defining how much of this expansion they are going to allocate for such priorities.
“Politically it does make it more difficult to understand why they need more resources and why they want more ceiling and more allocations to Development Councils and entities when they go below the ordinary execution line,” Estrada insisted.
Barreda also considered that the execution might have an impact on the way in which the expansion may be received, which will represent a new challenge for the independent deputies elected by Movimiento Semilla, as they will have to reach the necessary agreements.
“The president wants to break with the incentives for corruption in Congress, which is the right thing to do, but he must also seek agreements with other politicians to see how he maintains the votes and that is only giving up spaces of power,” said the Parlacen deputy. .
Along the same lines, Barreda declared that it adds to the doubts that most of the budget that has been executed is for operation or payment of public debt, but not for investment.
The Sicoin portal shows that Q23,157 million have been used in operating expenses, Q5,999 million in payment of public debt and only Q3,881 in investment, making it the area in which they have executed the least.
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