Bolivian Fiscal Deficit Drops To Low

Bolivia’s fiscal deficit as a percentage of GDP fell to a 15-year low last year at only 1.6% as at year-end and well below the official initial target of 5.2%. In 2004 the deficit reached 5.5% of GDP. The remarkable improvement in the deficit was certainly helped by a 32% tax levied on foreign oil and gas companies. Meanwhile cumulative inflation for the year reached 4.91% and GDP growth was estimated at 3.9%.