Source:
IFIs Latin American Monitor
Wed Nov 09 2005
While the Executive Power is negotiating a new Stand-By agreement with the International Monetary Fund, the National Federation of Health Workers proposes to stop paying 20% of the external debt to be invested on health. According to the Federation “priority should be given to the social debt rather than to external commitments”.
As explained by doctor Desireé Masi, of the Paraguayan Association of Physicians, Paraguay currently allocates one-third of annual revenues to payment of international credits, while investment is still among the lowest in Latin America.
On account of this, health unions gathered in the Federation met with the President of the National Congress, Dr. Carlos Filizzola, to submit a proposal aimed at increasing the health budget, mainly focusing on primary health care and maternal and child health.
At Congress, a bicameral committee is analysing the expense budget for next year submitted by the Executive Power. As it has been presented, 17% of resources will be allocated to debt payment, of which about 80% account for external debt service and amortization. Meanwhile, only 7% of resources are allocated to health and 14% to invesment for the promotion of development.
On the other hand, the Executive Power has extended its agreement with the IMF until September. Economy Vice-Minister, Jorge Von Horoch, explained that by means of this measure a message is sent to the market and international community that the government will go on with its policy aimed at maintaining fiscal balance and macroeconomic stability. The government has already submitted the economic plan until 2008 before the IMF Board, taking into account that the aim is to sign a new agreement extending until the end of President Nicanor Duarte’s term in office.
For this purpose, the Ministry of Economy shows a negative indicator since October’s inflation rate was 1.6%, which leads the annual accumulated inflation to rise to 8.6%. This rate exceeds the target set by the government in its commitment with the IMF within the agreement signed early this year: 7.5%.
Some economic analysts agreed on pointing out that prospects are not encouraging and there is even the risk of increasing this lag taking into account that the last months of the year tend to be usually characterized by a rise in inflation.
To sum up, the government has no simple task and should clearly define its priorities. Health workers and people in general deserve an answer according to their needs, many times put off for the sake of “macroeconomic stability”.
Source: ABC Color and Ultima Hora (Paraguay)
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