In April, public spending fell by 11% in real terms compared to the same month in 2022

In April, public spending fell by 11% in real terms compared to the same month in 2022

The economic team led by Minister Sergio Massa has been trying to give signs of fiscal order with a view to negotiations with the International Monetary Fund (IMF) and, within this framework, primary spending accrued in April would have fallen by 11% year-on-year.

These are data from the Expenditure Adjustment Monitor of the Analytica consultancy, which indicates that the disbursements of the National Public Administration (APN) decreased by 3% in real terms compared to March.

“In the year-on-year comparison, the variation was -11%, which implies a reduction of 234,246 million constant pesos. If spending on energy subsidies is excluded, the year-on-year contraction in spending is 8%,” the report says. .

The report indicates that “andIn the period between August 2022 and April 2023, spending increased by 5.3%.” “In interannual terms, the accumulated in the first four months contracted by 8.8%,” says Analytica.

The report noted that “This year the items that concentrate the largest adjustments compared to the previous year are economic subsidies, family and child allowances and public works.”

The study says that “in April real spending on public works decreased by 17% in interannual terms, which implies $24,891 million less at today’s prices.”

On the other hand, it is noted that “if it is compared with the previous month and without a seasonal component, spending had a reduction of 1.9%”.

“Currently, spending on public works is 8.2% above the levels of August 2022 and $4,032 million above the average for the period between August-2022 and March-2023,” the report indicates.

Among the most relevant items that make up public works, the real year-on-year increases in the accrued expense earmarked for the road corridor ($14,939 million) and in transfers to IEASA ($48,586 million) that is in charge of the Néstor Kirchner gas pipeline stand out.

The items where there is evidence of a greater adjustment in the accrued real expense accumulated in the first four months are the works carried out directly by the Central Administration ($11,392 million), in the Hydraulic Trust Fund ($21,933 million), in AYSA ($18,291 million) and in transfers for housing ($154,890 million).

In addition to the budget reduction for public works, a brake on payments is observed compared to 2022, represented by the lower execution of what was assigned for the entire year.

This measure, p.For the total, it is 4 points less, concentrated mainly in the works carried out directly by the Central Administration (-3 points) and important items such as Procrear, which more than compensated for the increases for the Road Corridor and IEASA.

Source: Ambito

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