Guatemala - Public finance



Fiscal policy loosened after the 1985 elections, but tax reforms in 1987 failed to generate additional income, and governmental expenditures continued to grow. By 1990, the public sector deficit was 4.7% of GDP. The Serrano administration transformed the deficit of 1990 to a slight surplus in 1991 and a virtually balanced budget in 1992. The consolidated public sector deficit amounted to 1.2% in 1991 and 1.0% in 1992. Guatemala's public sector is among Latin America's smallest, and the tax burden is one of the lightest, at about 8% of GDP. The budget deficit grew to 2.5% of GDP in 1998, from only 0.50% in 1997, forcing the government to reevaluate its taxation and customs practices. Continued privatization and trade liberalization should boost public finances.

The US Central Intelligence Agency (CIA) estimates that in 2000 Guatemala's central government took in revenues of approximately $2.1 billion and had expenditures of $2.5 billion. Overall, the government registered a deficit of approximately $400 million. External debt totaled $4.5 billion.

The following table shows an itemized breakdown of government revenues. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above.

Guatemala

R EVENUE AND G RANTS 99.9% 2,098
Tax revenue 87.6% 1,840
Non-tax revenue 9.2% 193
Grants 3.1% 65
Also read article about Guatemala from Wikipedia

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