Within the framework of fiscal surplus obtained in the first months of the year, the government of Javier Milei applied a sharp drop of 30% in Budget execution in the first quarter, as indicated by a study carried out by the Center for Argentine Political Economy (CEPA)which analyzed the dynamics of the budget execution of the National Public Administration in that period.
Among the main conclusions, a sharp drop in real execution was detected compared to the same period in 2023which implies a “significant adjustment of public spending in sensitive areas of the administration”. In addition, it verified a great weight of public debt services within the expense structure, in such a way that this function represented no less than 15% of total expenses.
In fact, the Public Debt Services It is the only budget function that remains stable in real terms compared to the same period in 2023, with a slight drop of 3.7%.
When analyzing spending by public organizations, strong adjustments were detected in the Superintendence of Health Services (-42%), ANMAT (-14%), national hospitals, and even in the National Cancer Institute (-14%) and the National Disability Agency (-13%).
In scientific subject The situation is not better, since there were sharp falls in the Ministry of Innovation, Science and Technology and other sector organizations such as the CONAE, CONICET and CONEAU.
Also in matters of productive development, the Ministry of Agriculture, Livestock and Fisheries, has a cut of 89%, while the Ministry of Industry and Productive Development falls more than 88%. Other programs such as SENASA, INTA and INTI also have declines in their budget execution.
Cuts in Social Security programs
The Social Security organizations they are suffering heavy cuts in the execution of their budget items. In the case of ANSESthe body responsible for Social Security, the cut reaches -26% compared to last year. They were also detected cuts of 71% in the INAES; and of 39% in the Secretariat of Children, Adolescents and Family.
When analyzing the execution with a greater degree of disaggregation, that is, by programmatic items, drops are observed in the main programs, including some critical ones such as those for care for children in situations of social vulnerability (1,000 days Program) with a drop of 47 %. Also The PUAM, Universal Pension for the Elderly, is strongly adjusted with an adjustment of 52%.
Cuts in security, education, health and public works
The cases of the security agencies They also have marked declines in their execution, especially the federal forces. This is the case of the Federal Police (-26%), National Gendarmerie (-25%), Airport Security Police (-21%) and Naval Prefecture (-25%). The same reality occurs for the Armed Forces, with reductions in allocations from the Army (-11%), the Navy (-16%), and the Air Force (-10%).
In educational subject There are sharp drops in the execution of sensitive items such as the National Teacher Incentive Fund (-98% in cash-based execution), the Conectar Igualdad Program (-79%) and the Infrastructure and Equipment program of the Ministry of Education ( -98%).
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In health there are critical programs that are virtually paralyzed due to lack of funds. These are the cases of “Access to Medications, Supplies and Medical Technology” (-44%), “Response to HIV, Sexually Transmitted Infections, Viral Hepatitis, Tuberculosis and Leprosy” (-81%), Health Care in the Territory (- 97%), and the Development of Public Production Laboratories (-100%)
In public workthe scene is one almost total paralysis of budget items, with drops close to 100% in programs such as Support for Infrastructure in Municipalities, Security Works on National Routes, and Development of Hydraulic Infrastructure.
Regarding transfers from the National Treasury to the provinces and municipalities, the adjustments are very markedled by the Fiscal Strengthening Fund of the Province of Buenos Aires (-100%), Financial Assistance to Provinces and Municipalities (-99%), and Technical Assistance to Municipalities (-97%).
Beyond these last cases analyzed, The general situation of the National Public Administration is one of a strong reduction in its budget execution. In some cases it is leading to paralysis of high-impact programs in social and health terms of the population. Even in a strongly recessive scenario, social assistance programs and incentives for productive development are not being implemented either.
Source: Ambito
