He primary deficit accrued in June was one trillion 135,313 million pesos, with a nominal year-on-year increase of 58.4%, which due to the effect of accumulated inflation in the last twelve months showed a fall of 26.5% in real terms, according to the report submitted by the Congressional Budget Office (OPC).
For its part, the financial deficit -which includes debt services- last month reached one trillion 263.940 million pesos, with a nominal increase of 63.7% and 24.1% at constant values.
The primary and financial results were the consequence of total income of two trillion 339.918 million pesos and primary expenses of 3 trillion 475.231 million, which due to the payment of interest for $128.627 became financial expenses of 3 trillion 603.858 million pesos.
The OPC report anticipates the one that will be announced by the Ministry of Economy next Thursday, although it presents methodological differences, since that of the bicameral body analyzes the accrued result of the National Public Administration (APN) and the one of Treasury Palace the execution of the Non-Financial Public Sector (SPNF), which includes public companies and trust funds.
Fiscal deficit: how spending was reduced
The improvement in the taxes workout was due to a drop in total spending of 10.2% in real terms (93.7% nominal growth) and 10.7% in primary spending (+92.5% nominal), which was able to neutralize the drop in revenue totals (-0.3% real, +114.9% nominal) for the drought impact in the collection of export duties.
Within total income, current income showed a fall of 1.5% while capital income rose 3,934%, although with smaller amounts.
The economic subsidies amounted to $510,524 million and showed a real retraction of 34%, driven by the 41.1% cut in those allocated to the energy sector.
within the social benefits, which had a real decrease of 12.5%, the main decreases occurred in retirement and pensions (-3.3%), family allowances (-19.2%) and non-contributory pensions (-14.3%), in both transfers to provinces showed a fall of 19.4%.
In the accumulated of the first semester there was a financial deficit of 3 trillion 625.746 million pesos, 14.2% lower in real terms compared to that obtained in the first six months of 2022.
The primary deficit reached 2 trillion 283.445 million pesos in the same period, 26.2% lower than that registered in the same period of the previous year.
Source: Ambito
