Argentina seeks to close against the clock a refinancing of more than 40,000 million dollars with the Fund, amid conditions that include reducing the fiscal deficit.
The total Income of the National Public Sector (SPN) rose by 47.8% year-on-year to $895,581 million. In turn, tax revenues grew 38.5%, a figure that is extraordinarily affected by a higher comparison base referring to Foreign Trade taxes in January 2021, explained Economy. This was a product of accumulation of sworn export declarations and a circumstantial improvement in the terms of trade in that period.
Income associated with Social Security showed an increase of +70.3% yoy, and those associated with economic activity once again exhibited growth above the price level, VAT (+53.8% yoy) and Debits and Credits (+53.4% yoy).
Finally, the collection associated with Earnings presented a variation of +$28,862.4 million (+55.0% yoy)
EXPENDITURES
SPN expenditures reached an increase of 56.8%. This expansion of spending is driven both by capital investment and by the different inclusion and social containment measures of the National Government
Current transfers reached $298,089 million. Those corresponding to the private sector showed a growth of +$89,679 million (+62.3% yoy; +62.2% yoy net of COVID expenses). The increases in programs such as Food Policies (+$11,517.1 million) stand out, as a result of the initiative of the National Government to increase the allocation and expand the universe of beneficiaries up to 14 years, inclusive; and the increase in the payment of Family Allowances (+$17,633.1 million), which contemplates the granting of the monthly supplement provided by decree No. 719/21. At the same time, increases were observed in transfers to the PROGRESAR program (+$5,233.8 million).
Regarding energy subsidies, assistance to CAMMESA stands out (+$24,795.0 million) within the framework of the program Formulation and Execution of the Electric Power Policy and higher payments from the Formulation and Execution of Hydrocarbons Policies program (+$3,084.4 million) mainly due to higher expenditures under the Plan Gas program.
Current transfers to the public sector showed a variation of +17,008.5 million (+37.9% yoy). The transfers to the Autonomous City of Buenos Aires and the province of Buenos Aires in respect of the Fiscal Strengthening Fund provided for in Resolution 524/2020 are highlighted here. Likewise, there were increases in transfers to Provincial Governments (+$4,073.7 million) by the Ministry of Education within the framework of FONID.
Social security benefits amounted to $381,933 million (+63.5% yoy). This dynamic is explained by the impact of the current mobility formula (Law No. 27,609), which yields higher increases in line with the recovery of revenue and wages in the economy. In the same sense, remunerations registered a variation of 55.7% yoy as a result of the increases granted according to the current salary parity, added to a remainder corresponding to the payment of the extraordinary sum of $20,000 granted in December 2021.
As for spending on goods and services, this registered an increase of +14,255.7 million (+57.6% yoy), which includes expenditures from the Ministry of Education for the acquisition of educational materials (+$2,743.6 million ) and the acquisition of COVID vaccines (+$1,796.0).
Capital expenditure registered an increase of +$27,993.5 million (+83.2% yoy) compared to the previous year. The growth was driven by higher Capital Transfers, among which those made by the Ministries of Public Works (+$3,035.2 million), Agriculture, Livestock and Fisheries (+$1,448.5 million) and Territorial Development and Habitat (+$1,233 million) stand out. ,6 millions).
In addition, there was an increase in Direct Real Investment, which highlights the investment made by the National Highway Administration for the construction and maintenance of highways, roads and highways (+$2,733.1 million), and the expenditures made by the Ministry of Education in the framework of the implementation of the Juana Manso Federal Plan (+$1,896.0 million).
The country registered a primary fiscal red of 1.4 trillion pesos in 2021, equivalent to 3% of GDP.
Source: Ambito
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