Increased social spending in 2016 budget
News from Nicaragua | Thursday, 29 October 2015 |
On 19 October, Treasury Minister Ivan Acosta presented the government’s proposed 2016 budget to the National Assembly. He explained that the budget retains as its central element the economic policy of the Sandinista government since 2007: macroeconomic stability, attracting investment, and job generation combined with social spending to address poverty.
Fifty-seven percent of the US$2 bn budget will be dedicated to social spending with education rising to US$36 million from US$25 million this year.
Important infrastructure projects will include the completion of the paved road to Bluefields and construction of new hospitals in Managua and Bilwi, Puerto Cabezas.
The budget is based on projected economic growth rate of 4.5%. One source of stability is an anticipated growth rate of 2.3% in the US, the trading partner for one third of Nicaragua’s exports.
Other factors contributing to Nicaragua’s stability are 30% growth in construction as well as growth in service industries. This has helped to compensate for a decline in the prices on the world commodities markets for Nicaragua’s exports.