The government of President Nayib Bukele decided to intervene in the economy through fiscal policy as part of the 11 measures against inflation announced last Thursday by the president.
According to Finance Minister Alejandro Zelaya, the measures are supplemented by cuts in current spending but not in public investment.
“Sacrificing public investment would mean losing the momentum that we gave our economy and that we have been giving it during the first quarter of this year” Alejandro Zelaya stated.
The reduction in current spending is a sign of austerity on the part of the government administration against the inflation generated by the war between Ukraine and Russia, the container crisis and the COVID-19 pandemic.
The consequences of the government’s failure to intervene in the economy could be doubled. The decision has been to do it in a timely manner.
El Salvador is the first country to take these measures to reduce the impact of inflation on the economy of Salvadoran families.