During August, the National Public Sector (SPN) recorded a primary deficit of $36,964.4 million -0.02% of GDP-. He financial deficit was $384,504.5 millionproduct of the payment of interest on the public debt net of intra-public sector payments, which reached $347,540.1 million, as reported this Friday by the Ministry of Economy.
“The fiscal situation remains orderly, the higher expenses are compensated with income such as those derived from the PAIS tax on imports and there is no issuance but financing through the placement of public debt”pointed to Ambit a senior source from the Ministry of Economy, thus refuting criticism from the opposition regarding the management of public accounts.
Drought effect
Official information shows the impact of the drought on public accounts, which meant a decrease in sales abroad and the consequent drop in the collection of taxes on foreign trade. For the January-August period, the collection associated with export duties received by the National State presented an approximate decrease of more than $1,000,000 million (0.6% of GDP). regarding the projections contained in the 2023 Budget Law. If this decrease had not occurred, the primary deficit of the National Public Sector accumulated between January and August would present an improvement of 0.6% of GDP.
In this restrictive scenario, the Ministry of Economy “In August, it prioritized allocations for educational policy, Social Security and public investment programs with emphasis on transportation and energy infrastructure.” In this way, it is noted, the moderation in the execution of the rest of the budgeted expenses managed to offset the negative impact on the primary result caused by the drought.
In this sense, The real interannual variation of primary spending between January and August accumulates an interannual fall of -8.5%.
During August, the total income of the SPN reached $3,018,391.4 million (+136.1% yoy), affected by the collection associated with export duties. Regarding tax collection, it showed a growth of +149.5% yoy if the aforementioned taxes are excluded. If the same are considered, this variation would reach +140.7% yoy
Thus, he The performance of resources linked to domestic economic activity, social security and imports partially offset the effect of the drought on total income.
Among the taxes linked to internal economic activity The collection corresponding to VAT net of refunds stands out (+$388,411.0 million; +166.4% ia) and the tax on Debits and Credits (+$158,095.0 million; +138.2% ia).
For their part, export duties registered an increase of (+27.2% yoy) and accumulated a variation of -4.0% yoy in the year, partially compensated by the export increase programs (Decree 378/2023). Import duties grew +137.0% yoy (+$66,517.6 million).
In this regard, official information highlights “the commitment on the part of the Ministry of Economy to compensate for the aforementioned drop in income, promoting the expansion of the PAIS tax (Decree 377/2023), whose collection increased six times compared to the month of August 2022”.
Income corresponding to Social Security Contributions and Contributions increased by +$485,717.8 million (+134.9% yoy) as a result of the increase in the average salary of the private and public sectors.
Public spending
Primary expenditures of the National Public Sector reached $3,055,355.8 million in the month of August (+105.3% yoy).
Social security benefits amounted to $1,037,055.1 million (+113.2% yoy). This dynamic is explained by the impact of the current mobility formula (Law No. 27,609), which shows increases as revenue and salaries grow.
This concept does not include the reinforcement of social security income (investment of more than $100,000 million) in retirements and pensions. If the reinforcements granted are included, the year-on-year growth in benefits amounts to +134.3% yoy. On the other hand, The expenditure associated with remunerations reached $396,351.9 million (+131.8% yoy) product of the increases granted within the framework of the salary agreements.
Current transfers reached $1,156,718.4 million (+120.9% yoy). Those corresponding to the private sector showed a growth of +$508,785.4 million (+124.5% yoy). Among them, the aforementioned income reinforcement granted to retirees and pensioners stands out. At the same time, economic subsidies grew by +$165,802.3 million (+73.4% yoy). Within this last concept, In the January-August period, those destined for energy accumulate a real interannual variation of -20.7%, while those associated with transportation reach a real interannual variation of -16.8%.
For its part, current transfers to the public sector made in August reached $234,029.5 million (+$122,252.3 million; +109.4% yoy), among which the transfers made by the Ministry of Education to the provinces stand out. within the framework of FONID (+$17,274.9 million; +171.0% yoy), as well as those corresponding to the Ministry of Health (+$2,703.9 million).
Capital expenditure reached $265,756.1 million during the period (+49.0% yoy), moderated by the high comparison base of real direct energy investment due to the beginning of work for the construction of the Néstor Kirchner gas pipeline in August of 2022.
Meanwhile, the investment in transportation made by the National Highway Directorate increased by +$10,427.9 million, promoting the construction of highways and highways.
For their part, Capital Transfers registered a growth of +141.3% yoy (+$74,889.9 million), among which the increase in transfers made by the PROCREAR Trust Funds, for Social Housing, of Socio-Urban and Water Integration.
Source: Ambito
