The recalibration of the agreement will reach the second and third trimester goals. The hardest objective will be for the end of the year, to give the Argentine government more time to take the necessary measures to put the fiscal front on track and end up at 2.5% of GDP as scheduled.
According to the OPC, the total income of the Government was driven by tax collection and social security, although this time the problem appeared on the side of non-tax contributions. These fell 52% due to the fact that the income from the Solidarity Contribution was exhausted, which decreased 96%.
On the expenditure side, the Government had expenditures on pensions for $449,714 million, with a real rise of 7.7%. Family Allowances payments cost $66,813 million, with a growth of 17.3%. Programs such as Work Promotion, Progress Scholarships and food policies, totaled $151.77 billion, which implied a real growth of 22%. According to the OPC, this explains part of the growth in the deficit.
The economic subsidies in total took $150,073 million, with a year-on-year growth of 29.8% real year-on-year, and that is what explains the other leg of the deficit. Those corresponding to energy represented $118,144 million, with a real year-on-year increase of 49.5%. The increase is basically explained by the rise in the cost of energy at a global level and the delay in the increase in rates.
While discussing with the Government of the City of Buenos Aires the transfer of bus lines that circulate only within the Federal Capital and the withdrawal of transportation subsidies in the metropolitan area, lExpenses in subsidies of the national administration were in this item of $24,904 million with a real advance of 13.7%. Obviously, a large part of it stays in the capital and suburban districts, and a smaller proportion goes to companies in the interior of the country.
Meanwhile, personnel expenses represented $112,702 million, with an increase of 13.4% year-on-year.. These do not include the 60% wage increase agreed in parity that came into force on June 1st.
Source: Ambito
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