According to official sources consulted by Ámbito, it is the first time that an update has been requested shortly before the start of the year. What is the amount?
He Buenos Aires government sent a budget expansion to the Legislature. According to official sources consulted by Ambit, it is the first time that an update has been requested shortly before the start of the year. This expansion will be 4.5 billion of pesos, an increase of 75% compared to the original budget presented in 2023. In October, despite falling inflation expectations, making a new request is not ruled out.
According to the Buenos Aires Government, without the expansion of the budget May salary increases cannot be met. “We will not have sufficient budgetary credits to face new joint agreements beyond the month of May. This detail turns out to be a concrete example of the impact that the macroeconomic context and the inflationary variations have caused the composition of the expenditure of the current budget year,” he said. Gustavo Arengo, Minister of Treasury and Finance of the GCBA to this medium.
This project explains that the macroeconomic projections included in the current budget have been completely affected by the inflationary context registered in recent months.
According to the latest report published by the General Directorate of Statistics and Censuses of the City, The IPCBA accumulated 57.39% in the first quarter of 2024reaching a interannual variation of 285.3%.
These data explain the impact that inflation causes on the expenses that the central administration must face, where The largest percentage of the City’s income goes to salaries.
jorge macri conference
City Budget: where the funds will go
- Personnel spending: An expansion of $1.9 billion was requested. It has its origin in the salary agreements reached and those soon to be defined in the different union organizations that represent city workers.
- Consumer goods: $207,517 million is incorporated into the current budget, mainly for the acquisition of medicines and other supplies for the Health system, dairy products for the Ministry of Education, and uniforms and fuel for the Ministry of Security.
- Non-personal services: incorporation of $1.1 billion in expenses arising from the provision of food services in schools, hospitals, homes, to the Institute of Public Security and City Police.
- Fixed assets: Expansion of expenditures for $457,430 million destined to meet the investment requirements in works and equipment of ministries.
- Transfers for $597 million, tariff compensation for underground transportation service and passenger automobile transportation, transfer for food provision for social programs, subsidy for privately managed education and childhood and adolescent institutions.
- Debt services: $224,174 million are included in amortization and interest, as a result of the increase in the average exchange rate.
As for the rumor about increase in ABL, from the City they clarified that since 2018 this tax is updated by inflation and there was and will not be any modification for now.
Source: Ambito
