A Collaboration:
Master in Economics, specializing in public policy management
Fran.sorto @ gmail.com
A recurrent theme of analysis, debate and several proposals in our country, is related to public finances and tax burden, defined as the percentage that the tax revenue compared to GDP, over a given accounting period.
In fact the handling of cash is to cause frequent nightmares for Ministers of Finance, because they must distribute the income received from the taxpayers, mainly among multiple activities undertaken by public or publicly sponsored, including the payment of interest on sovereign debt, the sum of these expenditures is known conventionally as current expenditure.
addition, Ministers are responsible for identifying potential funding sources for the implementation of public investment projects, which represents one of the most important engines for economic growth of any modern society, since, if the projects reported a higher social return to the opportunity cost of resources used in its execution, it can be stated that national wealth would have increased, but if the social cost is lower than the opportunity cost of those resources, could say that national wealth would have declined to run, in other words, the country would be poorer as a whole.
In that sense, the management of credit to finance overspending, read fiscal deficit to simplify the analysis, represents a temporary obstacle to economic growth, worsen the situation if the fiscal imbalance becomes durable, as this will compromise future income from the payment of debt incurred to maintain excessive consumption in the present, especially if it is not for socially profitable investment to the collective imagination.
Therefore, the discussion of public revenue should be considered compulsory and simultaneously, the rationality of expenditures, particularly when selecting projects to be funded by taxpayers, because if these resources are distracted from productive activities and invest projects whose profitability is lower than the alternative use had, the whole society would have made a bad deal.
this investment distinguished Chilean public that his Government have an effective system of social evaluation of projects, you can better prioritize its spending and implement projects socially profitable within the budgetary constraints facing all economic agents, at any given time.
El Salvador has a rating system to evaluate projects or social desirability, and was designed to optimize the allocation of public resources, but is likely to make improvements in a system Basic to develop the General Budget of the Nation, always incorporating, of course, the strategic vision of development promoted by the government of the day. This makes the private company assumes goals, identify projects consistent with these and values \u200b\u200bbetween alternative sources of financing, capital structure that is more convenient.
For the public sector this year should be quite similar, and that development goals are achieved only through the implementation of projects that have a significant positive impact on conditions life of the population that does not mean that all projects must be directed to productive infrastructure (roads, bridges and ports, for example).
The central idea of \u200b\u200bthis analysis revolves around the need to define priorities within certain social performance criteria in making public investment projects, for more money than you have, never will be sufficient to implement a significant development, if not defined by what the priorities and criteria for appraisal of projects which will aim to address. must transcend, then, to a scheme of social assessment of projects that offer greater chances of success in raising the quality of life of the population.
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