The government reduces $35.4 million in gas subsidies

Official data from the Ministry of Finance indicate that it deducts an average of $5 million from programmed transfers every month to pay these dues.

by Caitlin Urquilla
June 25, 2024 – at 21:45

While the government receives a torrent of comments on social media from citizens claiming that gas subsidies were lifted months ago, data issued by the Ministry of Finance confirm that it has reduced the budget allocated to pay this subsidy to thousands of Salvadorans. .

According to data on the implementation of spending by budget classification, published on the Treasury Transparency Portal, the funds allocated to support gas for this year reflect a decrease of $35.4 million.

This amount comes after reviewing the budget approved for this purpose, amounting to $113.6 million, and verifying the monthly financial transfers to support gas.

Data indicate that the Treasury Department adjusted the aforementioned budget every month, and, for example, the reductions averaged more than $5 million per month.

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In January this year, $10.7 million was expected to be used for gas subsidies, but this was reduced by $5.4 million. The same thing happened in February, when it was scheduled to spend another $10.7 million, but cut $5.5 million.

In March, expenses were expected to reach $10.6 million, but the reduction exceeded $4.1 million. While the scheduled item in April amounted to $10.7 million, and the decrease amounted to more than $5.3 million. Likewise, in May, of the expected $10.6 million, the reduction was $5.3 million.

This means that from January to May, the government used $28.3 million to pay gas subsidies.
For this month, the government is expected to cut nearly $2 million from roughly $10.6 million. However, of the $8.6 million already programmed with the amendment, the obligation is to use $5.6 million.

Based on the financial transfers scheduled to be made over the next few months of the year to achieve the aforementioned benefit, the government will end up spending just over $78.1 million, out of the $113.6 million approved.

If compared to the $70.3 million implemented in 2023 to support gas, this year’s amount will be $7.8 million higher.

However, reducing the funds for that support in the 2024 budget will be linked to the cessation of many families from receiving support, according to the wave of citizens’ complaints on social media networks, who claim that the support amounts to $8.04 per gas cylinder. It was taken away from them.

Due to multiple comments from citizens, following a publication by the newspaper El Diario de Hoy about the withdrawal of targeted gas subsidies, the Treasury issued a statement on Monday evening.

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“The Ministry of Finance explains that support continues to be provided normally to more than 1.2 million Salvadoran families that are part of the list of beneficiaries, as provided by law,” published in X.

“When we identify violations, such as dual benefits in the same household, identity theft, receiving multiple benefits using the same DUI, etc., violations are identified,” he added. The Directorate General of Support (DGS) investigates and acts in accordance with the law to ensure that the benefit effectively reaches those who need it.

The Treasury indicated in its statement that if a person is a beneficiary and has a problem, he can call 2237-33333 or WhatsApp 7072-2484 to update the data or he can also access the regional service windows.