Paraguay budget sees 3.5 percent growth in 2011

ASUNCION, Aug 31 (BestGrowthStock) – Paraguay’s government forecast
economic growth of 3.5 percent in 2011 and a bigger fiscal
deficit when it presented its budget bill for the year on
Tuesday.

Paraguay, the world’s No. 4 soy exporter, continues to
rebound from last year’s global economic crisis and a drought
that hit output in the key agricultural sector.

The government raised its 2010 economic growth forecast
last week to 9 percent, which would be the country’s biggest
annual expansion in 29 years, due to an improved agricultural
production outlook. [ID:nN24253185]

State spending is seen rising 13.5 percent to 40.3
trillion Guaranis ($8.47 billion), with a fiscal deficit of 1.5
percent of gross domestic product (GDP) compared with 0.4
percent in 2010, according to the bill presented to Congress.

“It’s a balanced budget. We don’t want Congress to get out
of this deficit range,” Economy Minister Dionisio Borda told
reporters. He added that revenue was seen rising 10.8 percent.

The budget bill proposes the sale of about $200 million
worth of domestic bonds.

It also envisions a 5 percent salary hike for state
employees, including police and military officials, as well as
enforcement of a minimum wage for all workers.
($1 = 4,760 Guaranis)
(Reporting by Daniela Desantis; Writing by Luis Andres Henao;
Editing by Andrew Hay)

Paraguay budget sees 3.5 percent growth in 2011