SALVADORAN BUDGET DATA FOR MCC

UNCLAS SAN SALVADOR 002336 SIPDIS STATE PASS MCC, USAID, AND USTR COMMERCE FOR 4332/ITA/MAC/MSIEGELMAN COMMERCE ALSO FOR 3134/ITA/USFCS/OIO/WH/DDEVITO/BARTHUR E.O. 12958: N/A TAGS: ECON KMCA EAID ES SUBJECT: SALVADORAN BUDGET DATA FOR MCC Reftel: MCC EMAILS/CABLES ¶1. The Salvadoran Ministry of Finance, in coordination with the Technical Secretariat, provided seven-years' of budget data to the MCC in response to reftels. Emboffs who worked with Salvadoran officials on this task were impressed by the professional effort they put forth to compile the data in less than a week. The data provided is a good faith effort to respond accurately to the MCC request. The Salvadorans have said they are willing to answer any questions MCC might have regarding the information provided. They are prepared to provide back-up documentation if provided. They also commented that they found the exercise useful in initiating additional self-examination of government spending and intend to make this information available on a government website. The following paragraph includes data for the most recent five years as provided by the Salvadorans. ¶2. Salvadoran Budget Data (millions of dollars) 2001 2002 2003 2004 2005 Total revenue and grants 2,041 2,196 2,406 2,489 2,750 Grants 55 49 70 74 61 Government domestic 1,986 2,147 2,336 2,416 2,688 revenue Total expenditures 2,447 2,481 2,762 2,880 3,211 Underlying balance -406 -285 -356 -390 -462 Overall balance -600 -657 -572 -453 -519 (including grants) Domestic financing -15 -616 129 206 9 External financing 615 1,274 444 246 511 Disbursements 964 1,779 622 615 793 Amortization -349 -505 -178 -369 -282 GDP 13,803 14,312 14,941 15,802 16,602 Health expenditures 515 534 565 555 688 Percentage of GDP 3.7% 3.7% 3.8% 3.5% 4.1% Education expenditures 480 510 494 499 519 Percentage of GDP 3.5% 3.6% 3.3% 3.2% 3.1% Primary education 261 287 284 297 310 expenditures Percentage of GDP 1.9% 2.0% 1.9% 1.9% 1.9% Barclay