For the third consecutive year, the Government of the City of Buenos Aires presented a budget bill with financial balance, that is, with zero deficit.
The Buenos Aires government explained that the reasons why the City adopted these guidelines at the national level are the following: “1) comply with the Fiscal Responsibility Law, which establishes quantitative spending rules that the provinces must comply with; 2) the possibility of accessing new debt, since the national government takes into account compliance with these rules to authorize them; and 3) that the macrofiscal guidelines are incorporated into their budgets by the member provinces of the federal Fiscal Responsibility regime, in order to obtain a single criterion for evaluation and coordination between them.”
Therefore, According to what was announced by the national government in the presentation of the budget, by 2024 a variation in the level of activity of 2.7% is expected, a price level of 69.5% and an exchange rate of $607 per dollar by the end of next year.
On the other hand, the Buenos Aires executive allocates, once again, the highest item in the budget for Education, with 20.2% and maintains the level of investment in public works and security.
In 2024, CABA “will continue to prioritize investment in social areas such as Education, Health and Social Promotion, among others, which represent 64% of the total budget”.
“One of the residents’ greatest priorities is the Securityso investment in the area is maintained, with a participation of 15.4%”, Buenos Aires government sources added.
The investment in capital expenditure will reach a participation of 15% of the total budget (in 2007 it barely reached 7%).
Regarding the taxes collected by the City, as in 2022 and 2023, for next year “there is no increase in taxes or creation of new taxes”they highlighted.
2024 Budget in CABA: ABL without modifications
As has happened since 2018, it will continue to be updated monthly by the City’s Consumer Price Index. This calculation will continue to be carried out monthly and progressively, unlike the previous methodology, which applied the increase directly to the first installment and in its entirety.
2024 Budget in CABA: patents without increase in rates and with a cap due to inflation
The tax to be paid during 2024 will be capped at the inflation recorded during the period November 2022-October 2023. In this way, the GCBA seeks to mitigate the impact that the tax may have due to the excessive increase in car valuations in the automotive market.