The head of the Palacio de Hacienda thus intends to clear up doubts on the fiscal and monetary front with the idea of bringing tranquility to the marketswhich during June had questioned the capacity of the State to be able to honor its debts in pesos due to the growing level of disbursements. With this, it hopes to achieve the objectives agreed with the IMF.
Last month, the Government registered current expenditures of $1.2 billion, which represented a fall of 19.1% in real terms compared to the same month last year. Social benefits fell 16% ($675,782 million), pensions 12.5% ($455,825 million), family allowances 14% ($75,817 million); and Universal Child Allowance 31% ($32,838 million).
Economic subsidies decreased last month by a real interannual 42.6% to $177,937 million. Of this, those allocated to energy decreased 46.8% to $136,997 million.
“Although in the accumulated of the month of August the primary expenses present a real increase of 3.7%, andn the last two months they show a reduction of 15.8% that contrasts with the expansive behavior of the first semester (12.5%)”, indicates the report of the technical office of the Legislative Power.
Among the most significant reductions in the last two months are the energy subsidies with a real year-on-year fall of 53.3%direct real investment with a decrease of 31% and capital transfers with 17.6%.
This year, spending grew 21% in January; 11.3% in February; 16.5% in March; 10.5% in April; 8.8% in May and 8.7% in June. Then, at the end of June, with the departure of Martín Guzmán from the Palacio de Hacienda, the trend was reversed.
According to the report, at the end of August, 65.1% of the approved budget appropriations had been executed., which implies a level of 2.1 percentage points lower than last year. Due to the level reached, social expenses stand out with 75.9% and debt interest with 67% and energy subsidies with 65%.
In this sense, in the first eight months, the accrued primary deficit of the Public Administration reached $1.6 trillion, which represented a growth of 32% compared to what occurred a year ago. The financial loss escaped to $2.4 trillion (+19%), and the economic result was negative at $1.7 trillion (+31.9%).
The deficit data of the National Public Sector with the methodology of the International Monetary Fund (IMF), that is, cash basis, will be known this Wednesday 21, according to the calendar of the Ministry of Finance.
According to estimates by the consulting firm LCG “Revenues are expected to moderate real growth from accelerating inflation.” LCG points out that the floating debt, which is the difference between the expense accrued and that paid, grew in August and the accumulated debt in the first 8 months is the highest in the last 8 years (7% of accrued credit). “We expect that primary spending will not grow in real terms, which would result in a primary deficit of $165,000 million in the month (1.1% of the GDP)”, says the private consultant.
Source: Ambito
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