The main economic subsidies to the energy, transportation and water sectors accumulate a total of $4.8 trillion in the last 12 months -in constant September pesos-, which represents a real drop of 21.3% compared to to the same previous period and 31.5% compared to the maximum in June 2022.
The data correspond to a report from the Interdisciplinary Institute of Political Economy of the UBA-Conicet, which specified that, from January to September of this year, subsidies had an accumulated annual growth of 74.2% compared to the same period of the previous year and They showed a real reduction of 17.7% compared to the same period in 2022.
The greatest contraction was observed in water subsidies (Aysa), which fell 34.3% in real terms year-on-year (yy), followed by those destined for energy (-18.7% yy) and, lastly, transportation ( -13.0% ay).
Nominally, resources allocated to Energy – which represent 80% of total subsidies – grow 73.2% annually to reach $892,284 million so far in 2023.
The most significant amount in the energy sector were the transfers accrued from Energía Argentina SA (Enarsa), which in nine months of 2023 increased 151.5% nominal aa and 25.3% real aamostly explained by the purchase of Liquefied Natural Gas ships.
On the other hand, transfers to Cammesa – the managing company of the national electricity system – increased by 40% nominal aa and, therefore, decreased 36.2% aa in real terms.
Besides, Transportation accounted for 20% of transfers and grew 79.8% a year in nominal terms and fell 13% a year in real terms.
Within the same item, the most relevant item is the Trust Fund for the Transportation Infrastructure System (FFSIT), which is intended to finance the coverage of subsidies for passenger transportation and grows 109.2% a year in nominal terms (+ 3.6% real)
Finally, subsidies to the public water service in AMBA through the company AYSA represent 1% of total subsidies and increased 33.1% year-on-year, so they had a real reduction of 32.3% in the period.
In this way, subsidies accumulate $4.8 trillion in the last twelve months in the currency of September 2023, which implied a real drop of 21.3% compared to the same previous period and 31.5% compared to the peak observed. in June 2022.