“For the purposes of the policy objectives contained in the economic program consistent with a primary deficit target of 2.5% of GDP, an annual limit was established for the calculation of income from property income linked to the primary issuances of public securities equivalent to 0.3% of GDP”, indicated the Ministry of Economy.
In this regard, the official statement states that “Considering this limit, the primary deficit is $800,681.4 million (1.05% of GDP), meeting the goal for the first semester established in the Extended Facilities Program ($874,382.5 million; 1.14% of GDP)”. Between January and May, the government had accumulated a loss of 463,447 million.
Without the IMF methodology, which includes income from Property Income, the primary red was $321,644.4 million. The payment of interest on the public debt, net of intra-public sector payments, was $74,933.0 million, reaching a financial deficit of $396,577.45 million.
In the same way, Without the IMF methodology, the accumulated primary result for the first semester registered a deficit of $755,975.7 million, that is, 0.99% of GDP, while the financial registered a negative result of $1,244,916.4, given the payment of interest on the public debt, net of those corresponding to payments within the public sector, of $488,940.7 million.
Thus, the Minister of Economy, Silvina Batakis, will have to organize the expenses of the public sector to obtain a primary deficit of $1.1 trillion in the second semestersince the total for 2022 is of the order of $1.9 trillion based on the reformulation of the current budget approved in June, based on the negotiations of the second quarter review with the Fund.
Eugenio Marí, Chief Economist of the Fundación Libertad y Progreso, considered that the Minister of Economy will be compelled to make a spending adjustment. “It will not be the agreement with the IMF but the economic reality,” he explained, because in his opinion “the Central Bank no longer has reserves and the demand for money is falling.” Precisely, the data was released on a day in which the blue dollar broke a new record and stood at $317. For analysts, the agreement with the IMF no longer serves as an anchor to organize economic variables.
In June, the total income of the SPN amounted to $1.2 billion with a rise of 56.8%, which was affected by the collection of the Solidarity and Extraordinary Contribution to help moderate the effects of the pandemic, which in the aforementioned period was $89,733.7 million. Tax revenues reached $771,956.8 million (71.1%), driven mainly by the dynamics of taxes related to economic activity while contributions and contributions to Social Security increased by 84.2% reaching $325,383 ,2 millions.
The expenditure of the National Public Sector amounted to $1.6 trillion with an increase of 64% YoY The government attributed this increase to social security benefits, which amounted to $704,656.4 million (72.7%). Energy subsidies also grew 38% in the same period.
Source: Ambito
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