In the first semester, the accumulated deficit was $1.88 trillion, which implies a level of the order of 1.1% of GDP.
While part of the economic team continues in Washington negotiating with the International Monetary Fund (IMF), among other things, if any additional level of fiscal adjustment will have to be made to what the Government has already been doing, The Ministry of Finance reported that in June the National Public Sector registered a primary deficit of $611,743 millions with which accumulated in the first half of the year a loss of $1.88 trillion, much higher than expected.
According to private estimates, With this, the Argentine government reached in the first half of the year a primary fiscal deficit of the order of 1.1% of the Gross Domestic Product (GDP), already exceeding the goals that had been agreed with the credit agency. In fact, in May the goal had already been exceeded by some $85 million.
The June result was the biggest for a month so far this yearmore than doubling the average
Thus, in addition to having to renegotiate a new reserve accumulation goal, the team led by Sergio Massa would have to negotiate a new execution goal. It is not yet clear if the Fund could agree to review up to 2.4% or 2.5% of GDP, from the 1.9% originally planned, or if the technical staff will impose the criterion of not modifying that objective. In any case, the government would have a margin of 0.8 points of GDP.
As reported by the Palace of Finance, “In June, the National Public Sector registered a primary deficit of $611,742.5 million and a financial deficit of $708,603.4 million. Thus, a primary deficit of $1,880,694 million accumulated during the first six months of the year.
On the one handthe Total Income of the SPN amounted to $2,584,204.1 million, (+115.0% yoy) iDriven by the performance of resources linked to domestic economic activity and foreign trade.
While, primary spending reached $3,195,946.6 million and presented an increase of +109.8% yoy, maintaining a sustained growth in investment associated with educational policy and public investment.
At the same time, capital spending grew +144.5% yoy driven by public investment in transport and housing infrastructure works.
Source: Ambito
