Official sources maintained that Massa, who was accompanied by the Secretary of the Treasury, Raúl Rigo, “He did not refer to anyone in particular,” but wanted to put on the table a dynamic that occurs in different state agencies. The minister has been having a dialogue with officials in charge of the execution of each of the ministries to prepare a list of priorities, taking into account that only what enters the State treasury will be spent.
A similar proposal but with a different addressee had been made by Batakis. In her short visit to the Palacio de Hacienda, weeks ago, the current president of Banco Nación complained to the governors that while all the provinces maintained a fiscal surplus with increasing discretionary transfers, the national State increased its deficit. The former minister went on to detail that a jurisdiction has 13 months of salary payments leveraged in a fixed term.
In his first press conference, Sergio Massa stated that the fiscal imbalance goal of 2.5% of GDP agreed with the International Monetary Fund for this year will be met. For that, he announced a series of measures aimed at reducing public spending: a much more aggressive cut in energy subsidies than the one that had been scheduled, the freezing of the State employee plant and, in harmony, the cessation of the use of advances from the Central Bank to the Treasury.
According to a recent survey by the consulting firm PxQ, after updating the IMF’s projections, the Government managed to meet the fiscal goal set in the Extended Facilities agreement for June 2022. Although said report indicates that from now on it will be difficult to respect the guidelines with the Fund because “historically the second semester is the stage of the year where the deficit grows the most”.
Along these lines, the firm led by Emmanuel Álvarez Agis highlights that red during the last six months of 2016 doubled that of the first semester, something similar happened in 2017 and 2018. The closest comparison, the year 2021, shows a first semester with a deficit of less than 0.5% and a second semester with a red that exceeded 2.5%.
In this case, it seems that inflation could do part of the job of liquidating spending. The Government has been maintaining that it will not spend more than what was budgeted, which was calculated in the last modification with a base inflation of 62%, while the Survey of Market Expectations already estimates 90%.
Source: Ambito
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