Friday, 08 February 2019 15:27

El Salvador spends 10.5% of GDP on salaries of public employees

Written by Dinero

An economic analysis of FUSADES says that salaries are one of the items of current spending that increases the most in El Salvador, and has been increasing in recent years.

The tank of thought emphasizes that in El Salvador this expense is higher than in other countries with a similar level of development. For example, in one IDB study the country is located among those that register the highest level of expenditure.

FUSADES explains that for 209, the expense allocated to the Central Government's remuneration is US $1,901.2 million, which is equivalent to an increase of US $57 million or 3.1% in relation to the estimated closure for 2018, and implies an additional US $84.4 million or 4.6% to the budget voted 2018.

In the case of public companies, in the 2019 Budget the item remains similar to that of 2018, and for decentralized institutions increases US $36.2 million or 4.6% in relation to the budget voted in 2018.

In sum for the non-financial public sector, the 2019 budget incorporates an increase in salaries of US $120.4 million, or 4.4% with respect to the budget voted last year, reaching US $2,840.3 million.

Based on these data, Fusades explains that spending and remuneration as a proportion of GDP has also gained ground since 2007.

FUSADES observes that the relative compensation expenditure for the SPNF has increased from 8.5% in 2007 to 10% of GDP in 2013, and in 2017 it was 10.5%, similar to the projection at the close of 2018, and recorded in the 2019 budget.