Government subsidies: an unnecessary expense
5 de May de 2026
Government subsidies: an unnecessary expense
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Strategic analyses on institutional frameworks, the economy, and development published in specialized media.
Government subsidies: an unnecessary expense
In this third installment of the series “Constitutional Safeguards for Fiscal Stability in Paraguay,” we examine a case that marked a turning point in Latin America: the 1980 Chilean Constitution.
When Yamandú Orsi took office in March 2025, returning the Frente Amplio to power after five years in the opposition, Latin American investors were watching closely. Uruguay’s sovereign debt spreads remained stable. The investment-grade ratings assigned by the major agencies remained unchanged. By regional standards, the transition was uneventful. And that is precisely the point.
Fewer losses, a brighter future
Paraguay ended fiscal year 2025 with an official fiscal deficit of 2.0% of GDP, according to the Central Government Financial Situation Report (Situfin) issued by the Ministry of Economy and Finance (MEF). This amounts to G. 7.48 trillion, equivalent to USD 1.047 billion, the best result since 2019 and an improvement over the 2.5% recorded in 2024.
Architect of Latin American economic development.
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