The government debt and its incidence on the economic growth of Paraguay. Period 2008-2017

Abstract

The public debt is part of the fiscal policy and is defined as the set of liabilities owned by the State to individuals or other countries. The increasing level of public debt observed in Paraguay in recent years has generate discussions among sectors that, encourage the financing of public investments that boost economic growth through debt and others that express their concern about its could exceed the control capacity of the State. In effect, this research focused on de-termining the incidence of the government debt on the economic growth of Paraguay during 2008-2017. The research was carried out under the bibliographical and documentary design and then also it reached an experimental design. Likewise, the methods used were the analyti-cal, deduction and synthesis. As for the research levels reached are mentioned the exploratory, descriptive and explanatory. The data used were extracted from the web sites of the Finance Ministry and the Central Bank of Paraguay. The results obtained show that the government debt has had a positive incidence on the economic growth of Paraguay during the analyzed period, and although there is an increase in Paraguay’s public debt, it is still within the parameters that guarantee of sustainability and a healthy public finance. As well, these results will contribute with other future researches.