With the imminence of the electoral scenario and after the devaluation applied to reach the fiscal goals requested by the IMFthe national government arrived in October with a package of measures that allowed raising the income of SMEs, employees, independent workers, retired and beneficiaries of family’s asignations. The initiatives, promoted by the minister and candidate Sergio Massa and articulated by the official leadership would imply an injection of $2.5 billion in the national economyan amount close to 1.3% of GDP.
While planning to tend to a monetary stabilization and a reduction in inflationary spiralthe national government took measures that point to the possibility of consumption Yet the production: that the income of businessmen and merchants does not decrease, in correlation with the purchasing capacity of formal and informal workers. With the perspective that it does not result in an increase in fiscal deficitthe actions of the ruling party made it possible to sustain the income while awaiting two important dates on the calendar: the next review of the IMF in November and a start to 2024 with greater prosperity in energy and agro-industrial exports.
Government Economic Plan: what measures were taken
The 13 main measures promoted by the current National government are:
- VAT refund: The refund of 21% VAT with a monthly limit of $18,800 will reach at least 12 million workers, including salaried workers and monotributistas.
- IFE 6 for informal workers: The program popularized during the pandemic was expanded to a sum of $94,000 to be paid in two months, which will benefit about 3 million Argentines.
- Elimination of a category of Income Tax: The new floor, which became law last week after the approval of the Senate, establishes that only those workers who earn more than $1,770,000 per month will pay Profits, so 800,000 employees will benefit.
- Increase in monthly reinforcement for retirees: A universe of 7.8 million retirees will receive a monthly boost of $37,000.
- Bonus for unemployed: Some 67,500 unemployed people will be beneficiaries of a $20,000 boost in unemployment benefits.
- Tax relief for self-employed workers: among merchants, professionals and service providers, more than 700,000 independent workers will enjoy an extension in the payment of contributions, VAT and profits.
- Preview 5: The measure that aims to promote the national tourism sector was chosen by 500,000 people, who will receive a refund of 50% of their expenses within the framework of the program, with a limit of $100,000.
- Fixed sum for workers in the private sector and the national public sector: Almost 6 million registered workers with incomes of less than $400,000 per month will receive a fixed non-remunerative sum of $60,000 in two installments.
- PAMI Food Program: 3 million people will receive a monthly bonus of $15,000 between September and November.
- Reinforcement for private home workers: It is estimated that 424 thousand domestic workers are registered and will be beneficiaries of a payment of $25,000 in two installments.
- Deferral in the payment of the monotax: 1.4 million monotributistas will benefit from the deferral of the tax component for six months.
- Reinforcement on the Alimentar Card: The 30% increase in the amount of the card, together with a reinforcement equivalent to the number of children, will reach 2.4 million Argentines.
- Reinforcement in Empowering Work: 1.3 million workers in the program will receive an increase in their salaries of $20,000 in two installments.