Identifier
Created
Classification
Origin
09SANSALVADOR320
2009-04-07 17:10:00
UNCLASSIFIED
Embassy San Salvador
Cable title:
El SALVADOR: BUDGET TRANSPARENCY
how-toVZCZCXYZ0008 RR RUEHWEB DE RUEHSN #0320 0971710 ZNR UUUUU ZZH R 071710Z APR 09 FM AMEMBASSY SAN SALVADOR TO RUEHC/SECSTATE WASHDC 0944 INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
UNCLAS SAN SALVADOR 000320
SIPDIS
STATE FOR EEB/IFD/OMA JJACOBY
E.O. 12958: N/A
TAGS: EAID ECON PREL ES
SUBJECT: El SALVADOR: BUDGET TRANSPARENCY
REF: STATE 028885
UNCLAS SAN SALVADOR 000320
SIPDIS
STATE FOR EEB/IFD/OMA JJACOBY
E.O. 12958: N/A
TAGS: EAID ECON PREL ES
SUBJECT: El SALVADOR: BUDGET TRANSPARENCY
REF: STATE 028885
1. The following is Embassy San Salvador's response to reftel A
questions on fiscal transparency.
2. The Government of El Salvador (GOES) is expected to receive U.S.
foreign assistance using FY09 funds. USAID works with various
Ministries (e.g., Health, Education) as well as the judicial branch.
3. The budget is made publicly available approximately one month
after it is approved by the National Assembly. The budget is
published in the government's "Official Register" and on the
Ministry of Finance's website. The budget includes income and
expenditure levels.
4. For the past few years, the GOES has used very optimistic
projections for overall economic growth and tax revenue. For
example, the 2009 budget, which was approved in December 2008,
assumed GDP growth of 3.5 to 4 percent and tax revenue growth (and
thus overall budget growth) of 8 percent. In March 2009, the GOES
lowered its GDP growth projection to 0.5 percent, while reported tax
revenues are down 12 percent. The 2008 budget both overestimated
growth and underestimated expenses, especially for government
subsidies for electricity and propane gas.
5. A new GOES takes office on June 1.
Blau
SIPDIS
STATE FOR EEB/IFD/OMA JJACOBY
E.O. 12958: N/A
TAGS: EAID ECON PREL ES
SUBJECT: El SALVADOR: BUDGET TRANSPARENCY
REF: STATE 028885
1. The following is Embassy San Salvador's response to reftel A
questions on fiscal transparency.
2. The Government of El Salvador (GOES) is expected to receive U.S.
foreign assistance using FY09 funds. USAID works with various
Ministries (e.g., Health, Education) as well as the judicial branch.
3. The budget is made publicly available approximately one month
after it is approved by the National Assembly. The budget is
published in the government's "Official Register" and on the
Ministry of Finance's website. The budget includes income and
expenditure levels.
4. For the past few years, the GOES has used very optimistic
projections for overall economic growth and tax revenue. For
example, the 2009 budget, which was approved in December 2008,
assumed GDP growth of 3.5 to 4 percent and tax revenue growth (and
thus overall budget growth) of 8 percent. In March 2009, the GOES
lowered its GDP growth projection to 0.5 percent, while reported tax
revenues are down 12 percent. The 2008 budget both overestimated
growth and underestimated expenses, especially for government
subsidies for electricity and propane gas.
5. A new GOES takes office on June 1.
Blau