The Accountability that the government of Yamandú Orsi will present next June 30 it will not be zero expensegiven that will include an increase of US$31 million, in addition to the US$ 50 million that were already provided for in the National Budget approved last year.
This was announced in a press conference after the meeting by the Minister of Economy, Gabriel Oddone.
The economist assured that the project will not be “single item” or “zero spend.”
“It is for several items and with an increase in spending, because we are talking about an additional US$ 31 million compared to the previous Budget and a refocusing of priorities based on emergencies that have been appearing,” said Oddone.
This way, He recalled that the Budget already provided for an allocation of US$ 50 million to be executed in 2027.
The An additional US$31 million, then, will be allocated to “financing the unification of the transfer system.”
Despite this increase, Oddone assured at the conference that there will be “no revision of fiscal targets“that were drawn up in the Budget and that will be maintained.
“These are goals set in fiscal matters that you already know,” he said in relation to the fiscal rule, the fiscal result and the debt limit. “Those goals are all maintained“.
Oddone also explained that Accountability will have four priority axes: childhood, security, education and care for people in street situations.
Regarding childhood, it’s about the “heart” of the project and the “priority of reallocations” that will be made.
With the exception of the proposed changes in childhood, the other axes will be financed with budget reallocations and rationalization of spending, Oddone reported.
Reduction of child poverty by 25%
The government will promote a “profound transformation of the social protection system associated with childhood and adolescence“said the director of the Planning and Budget Office, Rodrigo Arim, at the press conference.
This will create a “single allowance for childhood and adolescence“, instead of the four transfers for this population that exist today (contributory allocations, Equity Plan, Uruguay Social Card and Bono Crianza).
Among these changes, furthermore, will expand the amounts of the allocations “depending on the degree of vulnerability to which the children are associated.”
“We are going to build a unified transfer system where the amount will be differentiated depending on the income decile to which the households belong,” Arim explained.
Oddone, on the other hand, detailed what the increase will be like for each of the deciles:
- First decile: today the allocation is $5,371, it will become $10,000.
- Second decile: today the allocation is $4,400, it will become $10,000.
- Third decile: today the allocation is $3,032, it will be $6,600.
- Fourth decile: today the allocation is $3,332, it will be $6,600.
- Fifth decile: today the allocation is $2,796, it will be $3,300.
The Minister of Economy maintained that these changes will impact approximately 50 thousand children.
They will begin to be applied next year for children born in 2025, 2026 and 2027, but then the government plans to include those born later.
Arim stressed that the increase in transfers is “substantive”, above “80% of the level of transfers that households currently receive”, so “it is expected that this transformation will have a direct impact on the poverty of these groups.”
“Our estimate indicates that the associated poverty reduction would be in the order of 25%“said the OPP director.
