Natural Disasters Testing The Government

The twin blows of tropical storm Agatha and the eruption of Pacaya volcano have prompted the Guatemalan government to examine the possibility of increasing the ceiling for the 2010 fiscal budget, as well as re-directing international loans and donations towards relief efforts. These natural crises are a severe blow for the economy which is still recovering from last year's food shortage. This will be another test of the government's fiscal management and President Álvaro Colom's own political capital, both of which saw a significant deterioration in 2009.

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