Uruguay's Pit-Cnt union flags 'budgetary dilemma' amid unmet growth projections

Uruguay's central union, Pit-Cnt, has voiced concerns over fiscal challenges in the national accounts, despite its president, Marcelo Abdala, stating that direct budget cuts are not being implemented. The union met with President Yamandú Orsi and the Minister of Labor and Social Security, Juan Castillo, to discuss the situation.

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Strictly speaking, one cannot speak of a cut, but there is a budgetary dilemma.

Abdala explained that the economic growth projections used to create the national budget have not been met, leading to a "budgetary dilemma." He also criticized the government for rejecting proposals to reform the tax system to ensure higher earners contribute more, which he believes hinders the financing of established priorities.

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The government is rejecting proposals that aim to transform the country's tax system, in the sense that those who have more pay more, and that generates difficulties in financing the established priorities.

The union suggested strengthening the fight against tax evasion, citing existing loopholes in Uruguay. They also proposed a critical review of tax exemptions, arguing that some companies receive them unnecessarily. "If a company sets up, generates quality jobs and also contributes to decentralization, it's fine to have exemptions. But there are places where they are exempted and perhaps don't need them," Abdala stated.

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There are certain needs established in the budget that are good, but the issue is how they are financed. In that sense, a way must be found.

Furthermore, Pit-Cnt reiterated its proposal to implement a surcharge on the wealth tax for high-net-worth individuals. The aim is to allocate these additional resources to accelerate efforts to reduce child poverty. "We have proposed the possibility of implementing a surcharge on the wealth tax of the richest individuals in Uruguayan society to accelerate the reduction of child poverty," Abdala said, highlighting the renewed focus on this proposal.

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If a company sets up, generates quality jobs and also contributes to decentralization, it's fine to have exemptions. But there are places where they are exempted and perhaps don't need them.