With less symbolism and more pragmatism, The Government will put the magnifying glass on the discretionary transfers that are made to the provinces. In one of the meetings held at Quinta de Olivos, the Minister of Economy warned President Alberto Fernández that while the national state has a deficit, all jurisdictions had a surplus in 2021 and will have it again this year.
“We cannot continue to transfer funds to pay current expenses while there are provinces that have a fixed-term leverage that would allow them to meet the costs of public administration for a year,” official sources remarked on this issue. Along these lines, they explained that “when Alberto Fernández’s administration began there were five districts with red in their accounts, today there are none left.”
In his inaugural lecture, Batakis stressed the need to chart a path to fiscal Balance, In the same speech, he said that “the State does not have to spend more than it collects, but neither should it save.” From a distance, it could be read as a signal to those provincial and municipal administrations that today have fresh funds in public banks and continue to ask the national government for money.
This week the round of meetings with governors and mayors intensified. On Wednesday Batakis received community leaders from Buenos Aires at the Palacio de Hacienda and yesterday the chief of staff, Juan Manzur, organized a new round with governors Omar Perotti, from Santa Fé, Gildo Insfrán from Formosa, and Sergio Zillioto, from La Pampa. Despite the bitter pill that the reality bath implies, the officials highlighted the “articulating” role of the minister.
late on Wednesday, The Government announced that “the accumulated primary result for the first semester registers a deficit of $755,975.7 million, this is 0.99% of GDP.” Along these lines, the official statement maintains that in said period the goal set with the International Monetary Fund was met. However, in the Executive they recognize that a series of accounting movements were used to reach that figure, so the spending margin for the second half of the year is limited.
With this scenario, the Ministry of Economy seeks to accelerate the creation of the single account to manage the Nation’s expenses. Batakis announced it days ago but the decree of necessity and urgency that Alberto Fernández has to sign has not yet been published. This tool is considered a fundamental axis by the new secretary of the Treasury, Martín Di Bella, whom his former management colleagues in the province of Buenos Aires consider a “prosecutor.”
Meanwhile, the volatility continues. The country is going through the fourth consecutive week of a run on the exchange rate. The Government hoped to take a series of more forceful measures than those announced so far after the bilateral meeting scheduled for July 26 with the president of the United States who contracted Covid yesterday. So far, it is unknown if the meeting will be postponed. In any case, as the song by the Brazilian singer-songwriter Cazuza says, time does not stop. New definitions are awaited.
Source: Ambito
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