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During meeting of the council of ministersPrime Minister Aníbal Torres announced the creation Canon Stabilization Fund, allowances and honoraria.
“The goal is to create this special fund to be sure to provide resources to the regions, regions and districts, even from January. Without this fund, it is necessary to wait for the economy (MEF) to make the transfer, but with this fund there will no longer be this difficulty, because transfers can be made from January of each year and thus speed up the execution,” he said.
about this offer,Minister of Economy and Finance (MEF) Curt Burneo reminded that mining translations for the canon and the surcharge is “certain resourcesand are related to the dynamics of prices for metals. This means that amounts are not set monthly, which creates problems in project management.
“Metal prices are very volatile, and this volatility leads to the generation of these funds and their transfer (…) when there is a lot of volatility in the sources that feed these funds, there are problems in terms of project management,” he explained.
What will the fund be used for?
Since income is unstable, Stabilization Fund This will allow governments to more accurately predict how much money they will have.
“Unlike what is happening now, when, for example, there are no resources in the first month of the year, they can hardly be transferred to subnational funds in this stabilization fund there will be more predictability in the financial part”, accurate.
Letter of guarantee for economic reactivation
The contractor will also prepare emergency decree with emergency measures that are in effect for the remainder of the year to economically revive the national supply system.
The mentioned decree is still under development and aims to give more options to public suppliers who must submit letters of guarantee when they engage in contracting under the traditional scheme. “Because of the current situation that the economy is in, more opportunities need to be provided,” he said.
“The alternative to a deposit is a kind of automatic discount on payments to suppliers. We give one more option so that the processes do not crash, and therefore there is a good chance that more dynamism is not lost. from government spending,” he said.
Source: RPP
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.