For him Government, the result of the session in the Chamber of Deputies on the package of laws that promote the opposition and the governors of the provinces It was less bad than expected, But it is still negative for your tax plans. Until Now he managed to avoid 50% of the increase in spending that implies that package.
Taking into account the impact Annualized in relation to the Gross Domestic Product (GDP), La Libertad advances (lla) managed to keep the veto to the set of pension standards, which included the increase of 7.2% of the assets, the expansion of the moratorium and the increase of the bonus of $ 70,000 to $ 110,000. That represented erogations by the equivalent of 0.87% of GDP in 2026 and 0.36% of GDP in 2025.
Assuming that the rest of the package is approved in the way the opposition wants, so the government would have Achieved to here half of the increase in commitments imposed by Congress. It should be remembered that this year the cost of the package would have been 0.73% of GDP in 2025 and 1.73% of GDP in 2026according to data from the Congress Budget Office (OPC).
So far the cast was approved Among the provinces of the National Treasury Contribution Fund (ATN), which is a sum of around $ 630,000 million annually. They are equivalent to 0.02% of GDP this year and 0.05% next year.
The bill of Emergency in disability that implies an expense of 0.16% of GDP in 2025 and 0.39% of GDP in 2026. Both have to go through the Senate.
The law remains to change the distribution of the Fuel Tax, at a cost of 0.08% of GDP in 2025 and 0.16% in 2026 and a project to reduce export rights by 0.11% and 0.26% respectively.
The primary fiscal surplus falls
In that sense, a Report of the Mediterranean Foundation He maintains that “if all projects are approved and the vetoes of the National Executive Power (effective and potential) FThey are reversed in the Nation Congress, the 2025 primary surplus could result from 0.87% of GDP, instead of 1.6% committed to the program with the IMF, While in 2026 it would be reduced to 0.49% of GDP, instead of 2.2% planned in goals with the body ”.
“In both years, I would imply Go to the financial deficit (0.4% and 1.7% of GDP in 2025 and 2026, respectively), that is, a primary surplus would be generated well below the interest to be paid in the periodso that the nominal debt would increase and put the fiscal sustainability of the economic program at risk, ”says the report.
The Rosada Casa there is little willingness to abide
From the Casa Rosada, they affirm, have little willingness to comply with what the legislative power provides. Prior to the start of the deputies session, the chief of cabinet, Guillermo Francos warned the opposition that the national government will not be able to comply with the expenses package. “We have no resources, they cannot make us enforce us, unless they follow us, that we will not accept because the central policy of this government is not to issue,” Franks warned in radio statements.
The official stated that “If we are going to be absolutely legalistic, the Legislative Power cannot tell the Executive Power to spend money on something, that is the function of the Executive.”
With this, the chief of staff presented the arguments of what could result in an institutional conflict between powers. On the one hand it ensures that the PEN would not comply with the laws if they were sanctioned and the argument is that the expenses are not defined by the legislative.
Source: Ambito
