About the problem of Paraguay’s public debt at present

Abstract

In recent years, the increasing trend of Paraguay's public debt has become a recurring and concerning issue, particularly coinciding with the last years of the previous and current government's terms, as it has been observed that, despite criticism of the situation, borrowing has continued to increase without new strategies being established to generate or expand sources or lines of financing for public policies. Additionally, the accumulation of public debts will be inherited by future governments and generations, potentially restricting public financing options. Currently, the country is surviving the climate and economic crisis that began in 2019 and was exacerbated by the coronavirus pandemic in 2020 and the first half of 2021, due to the health emergency and social crisis, in which pressure on deficient hospital services, patient referral to the private health sector, loss of human lives, employment and income in families, led the government to increase spending and public debt extraordinarily. In this work, we aim to present the results of the analysis of public debt in the long term from 2004 to 2021, in the context of greater stability and growth of the national economy (2004-2018), the crisis (2019-2020), and indications of current recovery. In these contexts, we seek to identify the characteristics of public debt, to reflect on persistent problems and alternative solutions.