
El Salvador’s President, Nayib Bukele, has announced an exceptional measure for January 2025: the government will cover electricity and water bills for 95% of Salvadoran households. This initiative aims to ease the financial burden on families during a month that is notoriously challenging in economic terms.
The government will fully cover electricity costs for households with bills of $80 or less, and up to $30 for potable water. Businesses and commercial entities are not eligible for this exceptional benefit. This measure will benefit over 1.8 million households, providing a significant relief to family budgets.
However, policies like these often ignite debates. Historically, there has been concern that state actions giving away services or subsidies could be used to strengthen governmental control over citizens, thus turning people into dependent servants of the state.
This strategy has frequently been associated with regimes adopting socialist policies, where the government centralizes economic power under the guise of wealth redistribution.
Nonetheless, in the Salvadoran case, the approach appears to be different. According to Bukele, the funds for this initiative do not come from squeezing more from taxpayers or diverting resources from other areas, but from benefits obtained from recent state investments.
This reflects careful governance that seeks to enhance prosperity without compromising the economic freedom of its citizens or subjecting the national economy to an unsustainable system.
This exceptional governmental action for January 2025 is designed as a one-time aid and respects the principle of not taking from one to give to another, which could set a precedent in the responsible management of public policies that benefit the majority without creating unnecessary dependencies.
In a global context where massive subsidy policies are often criticized for their long-term consequences, Bukele’s proposal stands as an innovative solution to provide temporary assistance to those in greatest need, while utilizing the country’s economic achievements for the benefit of the populace.