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On April 2, Uruguay’s Ministry of Economy and Finance (MEF) presented its 2025–2030 economic policy framework to Parliament’s Finance Commission, outlining strategic priorities to stabilize public finances and attract investment.
Economy Minister Gabriel Oddone, alongside Deputy Minister Martín Vallcorba and Planning Director Rodrigo Arim, led the presentation, offering a data-driven analysis of Uruguay’s fiscal position and medium-term policy roadmap.
1️⃣ Fiscal Reality: Hidden Pressures Behind the Numbers
The MEF disclosed that Uruguay’s 2024 fiscal deficit was effectively understated due to temporary measures, including deferred expenditures and the early collection of taxes from state-owned enterprises.
“Had these adjustments not occurred, the consolidated fiscal deficit (GC-BPS) would have been 0.5% of GDP higher,” the Ministry confirmed.
For 2025, non-structural (non-endogenous) expenses are projected to reach USD 970 million. This includes:
- USD 360 million in deferred 2024 obligations
- USD 610 million in committed expenditures as of February 28, 2025
2️⃣ Strategic Vision: Investment, Stability & Competitiveness
Minister Oddone emphasized that the government’s top priority is boosting investment to drive economic growth. This aligns with President Yamandú Orsi’s economic agenda.
“Macroeconomic stability and improved competitiveness will be the dual pillars of our investment strategy,” Oddone said.
Planned initiatives include:
- Infrastructure investment in water and sanitation
- Urban mobility improvements in the Montevideo metropolitan area
3️⃣ Public Spending: Targeted Social & Security Goals
The MEF has committed to prioritizing:
- Strengthening Uruguay’s social protection framework, with a child-focused approach
- Improving public safety and social cohesion
4️⃣ Institutional Reform: A Stronger Fiscal Framework
Informed by expert recommendations and recent challenges, Uruguay aims to enhance its fiscal rule and bolster external fiscal advisory councils.
This move signals a longer-term commitment to fiscal responsibility and transparency, positioning the country as a more stable destination for international capital.
What’s Next?
As Uruguay prepares its full quinquennial budget, the government is expected to fine-tune its fiscal rule, provide clarity on tax revenue forecasts, and refine its investment incentives—key information for multinational corporations, rating agencies, and foreign investors eyeing Latin America.
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