The Ministry of Economy and Finance (MEF) and the National Directorate of Tax Revenue (DNIT) are conducting new revenue and expenditure projections to assess the need to ease the fiscal deficit cap, currently set at 1.5% of Gross Domestic Product (GDP) for 2026. The information was released Tuesday during the presentation of the Central Administration Financial Situation report (Situfin).
Nathalia Rodríguez Romero, MEF's economy manager, explained that tax revenue in the first quarter did not keep pace with initial projections. “The accumulated behavior of total revenues is not keeping up with what was expected through the quarter, and, moreover, the priority now is to make payments to regularize the situation with suppliers of medicines and works. Therefore, the fiscal situation has deteriorated relative to the projected trajectory,” she said.
Despite the scenario, Rodríguez Romero noted that it is still necessary to wait for the results of June and the second half of the year for a more accurate projection. “We are drawing up a payment plan with the supplier sectors to regularize debts. We are also allocating resources for payment by assignment of collection rights. As we review the revenue estimate and the expenditure projection, we will be revising the fiscal target if necessary,” she added.
The accumulated fiscal deficit for the year stands at 0.8% of GDP, equivalent to approximately US$ 485.3 million. The annualized deficit — over the last 12 months — reaches 2.2% of GDP, representing a loss of G. 8.6 trillion (about US$ 1.325 billion).
The construction sector, through the Paraguayan Road Chamber (Cavialpa), has been pressuring the government to ease the fiscal cap. Over the weekend, the entity issued a new statement reiterating the request and advocating the implementation of a factoring plan to settle debts with suppliers. Paul Sarubbi, president of Cavialpa, said the cost of factoring should not be passed on to companies but should be borne by the state.
Rodríguez Romero reported that the MEF has already prepared a second version of the factoring plan, following observations from construction and pharmaceutical companies, and expects to finalize a definitive version before the end of the first half of the year.