The government announced on Monday that terminated its financing plan through the issuance of TES debt securities of this year, not only because what is collected in this way, about 33.75 billion pesos and through taxes, are enough to meet cash needs.
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“This sum represents 90 percent of what was expected to be obtained in the local public debt market at the beginning of the year, which was 37.5 billion pesos,” the Ministry of Finance said in a statement.
In the same communication, he added that tax revenues have behaved favorably. “These two circumstances allow the National Budget to be financed for the remainder of 2022 and wait until 2023 to make new TES issues,” said the Treasury portfolio.
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As recalled, in the first seven months of this year, tax collection in the country exceeded 136.1 billion pesosas indicated by the Directorate of National Taxes and Customs (Dian).
These resources represented an increase of 36 percent compared to the same period of the previous year, as well as an overachievement of 15.8 percent of the goal set for this moment.
Notwithstanding the Government’s announcement to the effect that it will no longer be necessary to go out for the remainder of this year to obtain resources from the local capital market, due to meeting the needs, some experts interpreted this as a sign that the Executive they are running out of room for maneuver that the fiscal rule gives them.
On his Twitter account, Juan Camilo Restrepo, former Minister of Finance, stated: “Minhacienda reports that TES placements are suspended for the remainder of the year. It means that we are close to reaching the maximum debt limits allowed by the fiscal rule and prudence. The new public spending cannot continue to be financed with more debt”.
However, José Antonio Ocampo, Minister of Finance, said: “The decision not to issue more TES, in the remainder of 2022, allows the consolidation of a less expensive public debt, on the one hand, and to follow reasonable public debt rules, consistent with the objective of complying with the Fiscal Rule”.
For Felipe Campos, manager of Economic Research at the Alianza Group, “the purpose is to give a positive signal to the extent that they say that they no longer need that money for financing since the collection is going well. And additionally, they are not interested in issuing at such high rates.”
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