Last month the collection dropped 2.4% in real terms. The public administration expenditure dropped 17%.
He “Tax anchor” For the government it is the heart ofl National Economic Program and Therefore, you are willing to carry out the cuts and adjustments that are necessary to maintain it, taking as a premise the idea that taxes cannot be raised.
In the case of August, the collection Tax fell 2.4% in real terms with respect to the same month last year, by adding 15.3 billion, and in front of this, the Minister of Economy, Luis Caputowould be reacting with a higher level of adjustment.
A fact to take into account as reference is that of the National Public Administration (APN), which includes 90% of the national state except public companies. According to data from the Argentine Budget Association and Public Financial Administration (ASAP) last month the central government reacted to the fall of resources with a real adjustment of 17.6% Regarding August 2024.
In the eighth month of the year it authorized expenses for almost $ 10.5 billion. This figure corresponds to the accrual, that is, at the time the provider’s invoice is accepted and validated, which does not necessarily imply that it has been paid.
On the other hand, the APN records income for another $ 10.3 billion, which marked a real 1.7% decline compared to last year. In this case, the APN It does not add as tax collection to social security income.
In 2025, the government had been loosening spending
So far this year, The APN records income of $ 92.3 billion, with a real increase of 14% while the expenditure adds $ 76 billion with a 3% drop.
In August the government would have begun to turn the dynamic that came until the year. He had loosened the “chainsaw” and now he will have to turn it on again.
One of the problems that the economic team will have to face in the remainder of the year is the expense added by Congress, which was not planned for this year, as is the case of the emergency for disabled, whose veto could not sustain.
Some private analysts They begin to question the possibility that the 1.6% surplus goal can be achieved, committed to the International Monetary Fund (IMF) for this year. It is likely to reach 1.3%, which would be a reasonable result given the context of crisis that is going through the economic program after the legislative elections of the province of Buenos Aires.
What are the expenses with the greatest cut
As indicated ASAP, in August the current expenses fell by 17.6% adjusted by inflation. All items showed falls, except social security benefits (+14.9%) and transfers to universities (+2.2%).
The main adjustments of the month were:
- Remuneration spending fell 8.5% compared to August 2024, while the one destined for goods and services did so in 16.7%
- Current transfers decreased by 18.4%. While those destined for the private sector did so at -5.8%basically due to the non -update of the pension complement and by lower transfers to Cammesa, those destined for public companies, fiduciary funds and other Enthes of the SPN, which include much of the economic subsidies, showed a variation of -49.3%, and current transfers to provinces fell for the first time in the year -25.6%.
- In relation to capital spending, in August it suffered an interannual drop of 64.9%, on a very depressed base, since the level of the same month of 2024 had presented an interannual drop of 65.3%. If compared to August 2023, the fall becomes 87.8%.
Source: Ambito
