Gustavo Petro presents that the end of gasoline subsidies would be important to increase government revenue to promote social programs
247 – The newly elected president of Colombia, Gustavo Petro, considered one of the main faces of the “new left”, alongside Gustavo Boric, from Chile, announced an unpopular measure this week. Gasoline prices will start to rise. The country has one of the lowest prices in South America, just above Venezuela and Bolivia.
The government’s main economic project is a new tax reform, which has been praised throughout the international corporate press. The government, to increase its revenues, will cut public subsidies on gasoline – which keep the price so low.
Knowing that the measure is unpopular, Petro announces the question this way: “Is it worth subsidizing gasoline for 40 billion pesos (R$ 48 million) when the infant mortality rate from malnutrition is doubling?” That is, the end of gasoline subsidies would be important to increase government revenue to promote social programs.
CONTINUES AFTER RECOMMENDATIONS
“We would have a deficit of 28 billion pesos (R$ 33.6 million) if we don’t start to raise fuel prices strongly, which is a very complex issue”, announced a few weeks ago the Minister of Finance, José Antonio Ocampo.
As much as it proposes to carry out social programs, the rise in fuel prices around the world has been the reason for several popular insurrections, as it increases general inflation. To exemplify with more recent, close and regional cases, it is enough to cite the Paraguay it’s the Haiti.
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