Argentina has the highest public spending in Latin America
Argentina is the country in the region with the highest inefficient public expenditure. The State has deficiencies in purchases, costs of salaries, subsidies and transfers
According to a report by the Inter-American Development Bank (IDB), public spending in Argentina is equivalent to 7.2% of GDP. The figure is alarming because it places the nation above the inefficiency average of the region, estimated at 4.4% of GDP.
Argentina, Brazil, Ecuador, Trinidad and Tobago, Ecuador and Uruguay are the countries that rank among the top of those that spend the most, over 35% of GDP. At the other extreme, Chile is the country with the lowest inefficient expenditure in the region, calculated at 1.8% of output.
Correcting these inefficiencies would be more than enough to eliminate the extreme poverty gap and even to reduce moderate poverty in various countries.
The efficiency of three key elements of government production costs was analyzed, among which emphasis is placed on spending on acquisitions, cost of goods and services, costs of salaries of public employees, subsidies and part of the transfers. Aspects that may end up favoring people who are not poor.
Errors, fraud or corruption reduce economic efficiency and decrease the amount of money allocated to beneficiaries. The IDB states that Argentina was one of the few countries that continued with subsidies until 2016, especially energy, when the government allowed the rates to rise.
Source: La Nación
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