Retirements and contributory pensions had an increase of 60.5% and explained most of the increase in total outlays, since they represented more than a third of the total.
From the portfolio led by Martín Guzmán, they explained that the increase was due to “the impact of the current mobility formula (Law No. 27,609), which provides updates in line with the recovery of collection and wages in the economy.”
The second item that most influenced the increase in spending was wages, which showed an advance of 74.1% as a result of joint increases, added to the fact that some advance payments of the remunerations corresponding to the month of February were made by virtue of the carnival holidays.
Thirdly, he highlighted a 94.4% jump in energy subsidiesone of the hottest points in the debate on how to reduce the fiscal deficit within the framework of the agreement with the International Monetary Fund (IMF).
“Energy subsidies continued to grow in February, in a context in which tariff-cost coverage fell to 33% (-10 percentage points). In the last twelve months they exceeded US$11.3 billion, expanding 62% annually (in dollars)“, deepened the economist Santiago Manoukian.
In Economy, they also highlighted the greater spending on programs such as Enhance Work, PROGRESAR or Previaje, on food policies and on family allowances, which added more than $50,000 additional million to total spending, explaining about 15% of the variation compared to a year ago. .
Despite the rise in the deficit, the director of the Argentine Institute of Fiscal Analysis, Nadin Argañaraz, remarked that in the first two months of 2021 the negative result represented 0.13% of GDP, a figure similar to that of the years 2018 and 2020 . “Although the execution of the fiscal accounts is not linear, it can be pointed out that said primary deficit is equivalent to 41% of the goal for the first quarter according to the agreement with the IMF and only 5% of the annual goal”narrowed down
On the income side, an annual increase of 61.5% was observedlower than spending but higher than inflation for the period.
Tax revenues, which accounted for more than 90% of the total, rose 60.5%, driven by the dynamics of taxes related to economic activity, Social Security and foreign trade.
VAT collection, the main tax of the national tax structure, exhibited an increase of 66.6% ($59,461.8 million), while the tax on Credits and Debits had a jump of 122.8% ($42,267.1 millions).
Regarding foreign trade taxes, an expansion of 53.2% was observed in Export Duties ($32,882.7 million), also known as withholdings.
On the other hand, the income corresponding to Contributions and Contributions to Social Security showed an increase of 63.9%, as a consequence of the increase in the average salary, after the different joint agreements and the recovery of registered employment.
Finally, the payment of interest on the public debt, net of intra-public sector payments, was $60,615.3 million, resulting in a financial deficit of $136,898.8 million.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
