Key facts:
Bukele promises not to issue more debt, although he did not explain what measures he will take or what the role of BTC will be.
“We are not even going to lend money to pay the interest on the debts we inherited.”
“On September 30, we will present to the Legislative Assembly, for the first time in decades, the first fully financed budget without the need to issue a single cent of debt for current expenses,” promised the president of El Salvador, Nayib Bukele.
The announcement was made on September 15, in the midst of the celebrations for the 203rd anniversary of the country’s independence. With this information – ratified by the president through his social networks – Bukele assured that in the 2025 budget the country will no longer spend more than it produces annually.
“We are not even going to lend money to pay interest on the debts that we inherited,” Bukele insisted, citing previous governments and pointing out that El Salvador will be able to cover its current expenses. with its own funds.
In this regard, the president recalled that, in the last five years, El Salvador has achieved great transformations. But, now, “a new stage is beginning in which positive changes require the effort and change of mentality of Salvadoran society to continue consolidating the construction of a better nation.”
This new stage has two major challenges: the first is to overcome the culture of “the smartest” and the second is to understand that important steps are taken step by step, little by little. We all want to live in the best country in the world, but few of us want to change in order to achieve this. Every Salvadoran must work from where he or she belongs.
Nayib Bukele, President of El Salvador.
In this way, even though did not give details on how self-financing will be achieved budget, the president insisted that the measure is part of his plan for economic recovery, an issue that he has given priority to during his second term.
However, as observed in local media, Bukele, did not specify how much the 2025 budget will be, or whether there will be increases in different State portfolios. He also did not explain the measures that will be taken to be able to finance it.
It is therefore not known whether the bitcoin (BTC) and other cryptocurrencies sector will play a role in the budget plan. Although since taking office last June the government has indicated that Digital currency is an important part of its economic project.
As CriptoNoticias has reported, even against the requests of the International Monetary Fund (IMF), Bukele has continued to bet on maintaining BTC as legal tender, integrating it into its economic strategy and continuing to purchase bitcoin to add to the country’s reserves.
Its insistence on the Bitcoin strategy has finally managed to smooth out the differences with the international organisation, reaching preliminary agreements last month for a loan from the Fund. A result that has contributed to reducing its country risk.
It is therefore to be expected that BTC will play some role in the plans with this self-financed budget. Especially taking into account that the Salvadoran government continues to strengthen the adoption of digital currency. It does so through laws favorable to its use, continuing with investments in BTC, bitcoin mining, promoting education and encouraging the arrival of more investors and bitcoiners from all over the world.