Caribbean & Central America - December 2011 (ISSN 1741-4458)

President Lobo has partially defended the fusion of the defence and security portfolios on cost grounds. The 2012 budget is due before congress for final approval the week of 12-17 December. According to Deputy Guillermo Guillén of the ruling Partido Nacional, next year’s plan will come in at HNL144bn (approx. US$7.6bn), up from HNL133bn in 2011, with 80% funded via local sources and 20% from external sources, including donations. Guillén said that nearly all of the increased expenditure in 2012 is destined for teachers, with HNL1.1bn set aside for inflation-adjusted salary increases for the sector. Public sector salaries in Honduras are nearly equivalent to tax collection. Under the country’s stand-by program with the IMF, the government has committed to reducing budget deficit to 3.1% of GDP in 2011, from about 4.8% of GDP in 2010. The IMF expects real annual GDP growth of 3.5% in 2011. The index of economic activity compiled by the central bank rose 5.3% year-on-year in the first nine months of 2011, led by the financial sector (+15.9%).

End of preview - This article contains approximately 182 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial