Based on this, the Minister of Economy, Martín Guzmán, will have to obtain financing for a loss in the accounts of $1.91 billion. The Treasury Palace also estimates that this year’s GDP will be $76.5 trillion current nominal, which implies that a growth of 4% is expected.
As detailed in a report by the Argentine Association of the Budget and Public Financial Administration (ASAP), lThe changes imply an increase in the calculation of resources of $4.3 billion and an increase in expenses of $5.5 billion. “This determines a deterioration in the financial result of the National Public Administration of $1.2 billion,” warns ASAP. The report specifies that financial sources will rise $6.6 billion and financial applications, $5.4 billion.
The government included new tax revenues of $3.5 billion due to higher VAT collection, $1.05 billion; Foreign Trade, $973,488.6 million; Earnings, $573,947.6 million; Debits and Credits, $540,234.2 million; Personal Assets, $75,613.8 million; COUNTRY Tax, $74,348.1 million; and Internal, $66,475.7 million. Likewise, higher income from Contributions and Contributions to Social Security for $1.5 billion from Anses and from the respective pension funds of the Argentine Federal Police and the Institute of Financial Aid for Payment of Retirement and Military Pensions are included.
In relation to the financial sources the increase is mainly explained by the Placement of Long-Term Debt in National Currency for $4.8 trillion and the obtaining of Loans from the Foreign Sector for $1.4 trillion.
Among the expenses the items of the National Social Security Administration increase by $2.3 billion, and $2.2 billion are allocated for Transfers to the Private Sector to finance Current Expenses. On the other hand, the budget Secretary of Energy increases by $463,170.2 millionimpacting Transfers to the Private Sector for Current Expenditures in $459,000 million for CAMMESA.
The ratification of obtaining a primary deficit of 2.5% is part of the agreement with the IMF, which establishes a gradual reduction in the red of public accounts. The deficit in 2023 will be 1.9% and in 2024, 0.9%. The DNU with the new budget should have been presented on April 15, but already at that time the economic team was evaluating that the numbers with the IMF were going to need an adjustment in the projections, and for this reason that point was not fulfilled.
The DNU must now go to the Bilateral Commission of Congress, which must be issued and in 10 days it will have to be dealt with in the plenary of the chambers.
The budget modification, in its Article 8, includes an authorization to issue Treasury Liquidity Letters in pesos at a discount (Lelites) up to a maximum amount in circulation of $100,000 million to face the issues that are made during December 2022, and whose expiration occurs in January 2023. These instruments will be issued for terms of less than or equal to 30 days, and may be subscribed only by the Mutual Funds.
In a statement, the Ministry of Economy indicated that “The change in economic conditions has generated a change in the seasonality of spending throughout the fiscal year.”
Source: Ambito
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