According to the Diario Libre, the government does not discard the possibility of more modifications to the 2004 budget, although the total amount will not vary. Technical Secretary to the Presidency Carlos Despradel told reporters that the government may concede on the application of the suggested 30% tax on many items such as electrical appliances, and leave the new tax on cigarettes and alcohol in place. Late on Friday (26 December), Despradel, Finance Minister Rafael Calderon and Budget Director Luis Perez Cuevas met with legislators for several hours in an attempt to hammer out agreements on budget entries for the legislature. In today’s Diario Libre, the Budget and Finance Committees of the Senate will present the government’s economic team with the proposals that have been settled. In spite of an agreement not to talk to the press, the Diario Libre learned yesterday that the money for the new proposal, which includes increases for the UASD and the Plaza de la Salud (hospital center), will come from the allocations originally destined for the ministries of Environment and the Armed Forces & Interior.
Jose Alfredo Rizek, the executive director of the Foundation for Institutionalism and Justice (FINJUS), explains that Congress has until 12 January to pass 2004’s National Budget, which may or may not include increases in the luxury tax. If it does give the budget its stamp of approval by that date, the financial plan for 2003 will be enacted and the government will be able to use any surplus at its discretion. By law, the budget needs to be ratified during the second legislature of the year. This closed on 13 November, but was extended for 60 days, bringing the budget deadline to 12 January.