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Bolivia
Expenditures
Bolivia
Expenditures
As a result of the profound changes in fiscal policy
during the
late 1980s, government spending was greatly curtailed and
was
directly budgeted according to projected revenues and
external
financing. Moreover, government expenditures, including
systemic
review processes for investment, became more responsible
and
targeted. In 1987 public sector expenditures equaled about
30
percent of GDP, and the budget deficit of nearly 11
percent was
financed almost completely with official external finance.
The
budget was typically divided into four spending
components:
central government, financial and nonfinancial state-owned
enterprises, departmental budgets, and municipalities.
Over 60
percent of expenditures went toward government salaries
and debt
payments. Debt payments, which were as high as 30 to 40
percent
of expenditures in the early 1980s, were below 20 percent
by the
late 1980s because of the rescheduling of Bolivia's debt
terms.
Capital expenditures had reached dangerously low levels as
a
consequence of the fiscal crisis. Although budgeted at 13
percent
of GDP in 1987, actual capital expenditures were
approximately 5
percent of GDP, indicating that long-term development
projects
lacked financing. Over half of all government capital
expenditure
in the 1987-90 fiscal plan was destined for investment in
transportation and hydrocarbons.
Data as of December 1989
