[Cispes-update] CISPES Update: ARENA's Budget for "Development"

[CISPES National Office]

ARENA's Budget for "Development" in 2007: Less Social Spending and More
Economic Backing from Washington

CISPES Update

December 6, 2006

 

 

On Thursday November 30, ARENA and its right wing allies voted to approve
the 2007 national budget in the Legislative Assembly (see chart below). The
budget they passed is characterized by its cutbacks on social spending and a
lack of transparency, especially around the president's discretionary fund
and other governmental entities like the offices of intelligence.  

 

While the budget for the President has increased by 46% since 2003, Saca has
refused support any shifting of funds that would benefit local development.
The FMLN and other local municipal governments have called for a 2% increase
in the funding to the municipalities, but this budget includes no increase.
Furthermore, the Ministry of Defence will receive more funding than the
Agriculture, Environment and Labor Ministries together.  Meanwhile, despite
all the talk of fighting crime, ARENA refused to give any additional funding
to the National Police or the court system.  

 

The FMLN voted against the budget because it is based on fictitious
calculations of economic growth and increases the country's level of
indebtedness.  The budget reduces funding to public hospitals, which are
already severely under funded, and reduces the spending on public education.
The budget also does not include an increase to financing of the public
University of El Salvador, which will leave an approximate of 12 thousand
students without admission.  

 

Social organizations and unions protested outside the Legislative Assembly
during the budget vote.  They protested the overall mal-distribution of
funds, and especially cited the lack of funding for the Human Rights
Ombudsperson's office and the death threats against her, her family and her
co-workers.  

 

Meanwhile, Saca travelled to Washington D.C. on November 30 to ceremoniously
receive the $461 million "gift" from the Millennium Challenge Corporation.
The money, awarded to nations to supposedly help with development and work
toward the Millennium Goals like alleviating poverty and extending health
care, will be used for the construction of a northern highway, or
("longitudinal del norte"). Officially, the funds will be distributed in 94
municipalities in the northern part of the country, and the funding will
last 5 years.  Far from being a gift, however, the funds represent economic
intervention by the U.S., since these funds will finance the infrastructure
for the implementation of CAFTA. 

 

Police Attacks on Organizing in Rural and Urban Areas

            On Tuesday, November 28, at 3:00 am, more than 600 police and
150 soldiers violently entered the community of San Lorenzo to arrest seven
members of the "Committee of People Affected by the Storm Stan and the
Ilamatepec Volcano Eruption."  The community came together after being left
homeless or devastated by the natural disasters, and it has been highly
critical of the government's ineffective response to these disasters.  The
police and military stormed into people's homes, intimidating both children
and adults.  The community together with ANTA (National Association of
Agricultural Workers) held a press conference the following day to denounce
the arrests and the police intimidation.  

 

            Meanwhile, in San Salvador, members of the CD/DVD Vendors
Movement have also been attacked by police.  The police again are raiding
the "pirated" CD/DVD vendors to enforce the CAFTA laws protecting
intellectual property rights.  In making the confiscation of goods, the
police have beaten and arrested various members of the organized Vendors
movement.  The police also threatened the movement leader for his organizing
as they ransacked his home. 

 

Salvadorans hopeful for change

            In response to the economic and social crisis in El Salvador,
the Public Opinion Institute of the UCA conducted a survey in which 87% of
the population said that the country needs a change.  According to the
survey, it is broad public opinion in El Salvador that violence and the cost
of living has increased during Saca's term in office.  Also, the survey
asked people which party they would vote for if the presidential elections
were now, and the results show a tie between ARENA and FMLN.  The divergence
between the desire for change and tie between the two main parties reflects
the aggressive, dirty anti-FMLN campaign that ARENA is constantly carrying
out.  Nonetheless, many people feel optimistic about a change coming to El
Salvador, especially in light of the recent elections in Venezuela, Ecuador,
and Nicaragua.

 

 

* BUDGET 2007


ENTITY

US$ MILLIONS


Education

$ 526.7


Public Health

$ 324


Ministry of the Interior

$ 201.7


Public Works

$ 122.9


Defence

$ 111.4


Treasury

$ 51.8


Presidency

$ 51.4


Agriculture

$ 35.6


Chancellery

$ 31.6


Tourism

$ 17.5


Environment

$ 10.5


Labour

$ 8.9

Source: Ministry of Treasury website

 

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