The narrow margin for increased spending was the central focus of internal discussions within Yamandú Orsi's administration regarding the Five-Year Budget. The draft, which has been in the works for months, will be presented this Thursday in the Executive Tower to the entire cabinet.
Economy and Finance Minister Gabriel Oddone set a ceiling of US$140 million for increased spending. No ministry will be allowed to exceed this amount , despite repeated requests for budgetary reinforcements from various ministries, a common struggle in every administration.
In recent days, Orsi held personal meetings with each Secretary of State to address expectations and close ranks within the Cabinet. According to the Presidency, this strategy managed to dispel initial concerns about the lack of resources. This Thursday will be the last session of the Council of Ministers before submitting the initiative to Parliament on Sunday, due to the constitutional deadline. On Saturday, at Suárez and Reyes Streets, the president will also present the guidelines to the Frente Amplio party.
The budget proposal falls within a critical situation inherited from the administration of Luis Lacalle Pou , whom the ruling party blames for leaving behind "the worst fiscal deficit" in history, as Deputy Secretary Jorge Díaz has repeatedly stated. Therefore, the proposal's main focus is austerity, albeit with specific allocations for key areas.
Of the total authorized funds, 40% will be allocated to social and health policies, with an emphasis on early childhood. Another significant percentage will be allocated to the Ministry of the Interior , with the goal of expanding police forces starting in 2025 by filling vacancies and recruiting new personnel, some of which will be allocated to the National Rehabilitation Institute, in fulfillment of an ORSI campaign promise.
The bill also incorporates tax changes. The slogan is that "those who have more should pay more." Oddone announced that they will seek to tax capital gains earned by Uruguayans abroad, a measure presented as a corrective to the 2011 reforms and aimed at equalizing standards with income generated in the country.
Along the same lines, the Executive will propose applying VAT to purchases made abroad through digital platforms, a measure that responds to local business complaints about the "Temu effect" and aims to protect domestic commerce.
