Minister defends budget report amid opposition's 'failure' claims

Uruguay's Economy Minister Gabriel Oddone defended the government's budget report and economic projections before a parliamentary committee, facing criticism from the opposition regarding the economic plan's perceived failures.

“

Projection deviations are something usual and normal. The projection deviation we had in the first year of government is smaller than all the projection deviations that have taken place in previous years.

During a session of the Budget and Treasury Commission in the Chamber of Deputies, Oddone presented the extensive initiative from the Executive Branch. Following a session lasting over nine hours, Oddone highlighted the quality of the debate with the opposition. He noted three key areas the government could not fully address: the process of de-dollarization and pesification of the economy, potential modifications affecting banking secrecy, and the government's decisions regarding pension fund administrators (AFAPs).

Responding to opposition claims that the government's economic plan had "failed" due to unmet growth projections for 2025 and the absence of a "Plan B," Oddone stated that deviations in projections are common. He explained that economists aim to project frameworks for decision-making rather than predict the future with certainty. Oddone pointed out that the deviation in growth projections for the government's first year was smaller than in previous years. His ministry implemented "corrections" in spending and revenue last year, adjusting expenditures to match lower-than-expected revenue growth, thus avoiding a fiscal deficit.

“

Economists do not guess; they project to have a framework for making decisions.

Oddone asserted that any government, like individuals facing risks, has contingency plans. He noted that the budget report itself details simulated alternative macroeconomic scenarios based on lower growth. He also mentioned that a nearly $31 million budget increase is primarily financed by reducing tax expenditures, such as the IMESI tax on electric vehicles.

“

Any government, as in any instance of life where there are risks and contingent scenarios, has Plan Bs.

Opposition deputies, however, expressed strong criticism. Pablo Abdala of the National Party stated that the "fiscal policy is inconsistent" and that the "government's economic plan has failed." He argued that the country's growth rates did not meet the Executive Branch's projections, a reality the government acknowledges by setting lower growth targets for 2025.

“

The fiscal policy is inconsistent and the government's economic plan has failed.