Tuesday 11 May 2021

Nicaragua Slashes Budget Due To Socio-Political Unrest

The Asamblea Nacional de Nicaragua (Nicaragua’s National Assembly) on Tuesday approved a drastic cut to the national budget because of the economic impact of months of anti-government unrest.

The legislators approved a 9.2% reduction of the Ley Anual de Presupuesto General de la República 2018 (2018 budget), projecting US$180 million less in spending to partly make up for a drop of US$220 million in government income.

- Advertisement -

The vote was 75 in favor, 15 against and zero abstentions.

The cuts will affect government agencies such as the ministries of Education, Health and Public Works like in new roads.

It was the steepest cut seen in the past 11 years that President Daniel Ortega has been in power.

The minister for finance and public credit, Ivan Acosta, blamed the reduction on protesters accused of trying to stage a “coup” against Ortega’s government.

- Advertisement -

Acosta said that before the protests, the economy had been expected to grow 4.3% this year. The government has now lowered that target to 1%.

The minister told the National Assembly that the fallout from the unrest had forced 8,700 small businesses to close.

Acosta added that the socio-political crisis in Nicaragua has left losses of US$525 million between April and July, as well as causing the loss of 119,567 jobs, of which 71,000 were workers affiliated to the Nicaraguan Institute of Social Security (INSS).

The tourism sector along has lost US$235 million, according to Acosta.

The private sector estimates that 200,000 people were left unemployed by the continuing crisis.

- Advertisement -

Acosta said the budget cuts would not affect social spending, public investment or the level of government employment.

“This reform is tough,” he said. “Right now we are working on the premise that the country is returning in the direction of normality and stability.”

Fiscal and tax reform was needed to make up for the diminished growth, he added, warning that “those who must pay will be made to pay.”

That warning appeared to be aimed at Nicaragua’s business owners who have abandoned Ortega because of the deadly violence ordered against the protesters.

Article originally appeared on Today Nicaragua and is republished here with permission.

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Q24N
Q24N is an aggregator of news for Latin America. Reports from Mexico to the tip of Chile and Caribbean are sourced for our readers to find all their Latin America news in one place.

Related Articles

The Economist Sees Ortega Clinging to Power

TODAY NICARAGUA (Confidencial) Six months before the general elections in Nicaragua,...

After 200 years, two women manage to preside over Congress in the same period

QCOSTARICA - It took 200 years, but it was achieved, two...

MOST READ

Today’s Covid News: 1,024 in hospital, 403 of them in an ICU

QCOSTARICA - After three days of nothing, not a word from the Ministry of Health, on the current covid-19 situation, Monday afternoon numbers were...

Improvements begin at Quepos airport

QCOSTARICA - With the objective of boosting connectivity, regional tourism and the economic reactivation of the area, work started this Wednesday on the improvements...

“Ciudad Gobierno” would give a new face to capital with a gigantic complex of buildings

QCOSTARICA - With a mega-complex of more than 153,000 square meters (1.65 million square feet), comprised of 16 ministries would be located in eight...

San José is the queen province of street brawls

QCOSTARICA - Frequently the 911 emergency services receive calls reporting street brawls, "pleitos" in Spanish, and most are made from San José. And many...

Boeing boosts production capacity in Costa Rica

QCOSTARICA - The Cooperativa Autogestionaria de Servicios Aeroindustriales (COOPESA), the Costa Rican company that started as a manufacturer of bus bodies until 1993, and...

Mexico City reduces restrictions due to sustained decline in cases of covid-19

Q24N - Mexico City will reduce social distancing measures as of next week in the face of a continuous decline in the spread of...

Today’s Covid News: 2,555 new cases on Wednesday; 1,123 in hospital

QCOSTARICA - Following a drop of new cases of covid-19 over the long weekend, the ugly head of the virus resurfaced on Wednesday with...

These are the new sanitary measures that will be applied in May

QCOSTARICA - At the press conference from Casa Presidencial that started more than 15 minutes this afternoon, the government announced new sanitary measures that...

Costa Rica received the largest to date batch of covid-19 vaccines

QCOSTARICA - A new batch with 124,020 doses of the covid-19 vaccine landed on national soil this Tuesday night, as part of the weekly...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Article originally appeared on Today Nicaragua and is republished here with permission.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.