If there is something that can explain the six months of fiscal surplus that it has achieved he Government, It is coming under-executing the budget by 10 points, compared to the average of the last 10 years. Normally, by June, the different governments will have spent half of the available funds. But In 2024, that level reached 40%.
The data correspond to a report prepared by the Argentine Association of Budget and Public Financial Administration (ASAP) To which we must add that Of the total expenditures incurred, the Government has postponed payment of 9%That is to say, it is spending less and is postponing cancellations, although in this last item it is within historical parameters.
The report notes that during the first half of the year, the National Public Administration (APN) accrued a total expenditure of $38.6 million with which he had achieved up to that moment an execution of 68.3% based on the credits in force until June 30, which were $55.12 million.
Between January and June the budget was significantly expanded through the Decree of Necessity and Urgency (DNU) No. 280/2024 in March and, to a lesser extent during May and June, through Administrative Decisions (DA) No. 284/2024 and 470/2024, respectively.
Subsequently, The Government sanctioned DNU No. 594/2024, which authorized a increased spending totaling $38.8 billion, which involved a an increase of 70.5% to $94 billion, which is the current rate and is not expected to be substantially modified until the end of the year..
“This decree significantly expanded the current budget credit for the year 2024, so If the new level of authorizations is considered, the expenditure accrued as of June 30 implies an execution level of 40%. of expanded credit,” says ASAP.
The report adds that if the average percentage of accumulated execution is taken into account until June of the last 10 years (49.4%)“it is observed that after the implementation of the DNU, The level of execution is almost 10 points below this average.”.
“This relationship, combined with a context of inflationary slowdown, suggests that Significant new budgetary increases to the overall budget may not be implemented in the remainder of the year,” says ASAP.
Floating debt
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In it accumulated to the first half of 2024, the floating debt stock of the National Public Administration (APN), defined as the difference between accrued expenses and those actually paid, reached a total of $3.48 billion.
“This debt is equivalent tol 9.3% of the total expenses executed during the first half ($37.6 billion), “In line with what was observed in the same period both during the year 2023 (9.3%) and during the year 2022 (10.0%),” says the study.
Games with The largest accumulation of floating debt corresponds to capital expenditures with 30.7% of the total, reaching a level 10.9 points below that recorded during 2023. Secondly, there are current transfers to the public sector, with 19.4%, those corresponding to the payment of workers’ wages, with 15% and those for goods and services, with 14.9%. Social security benefits have accumulated a debt of 7.4% with respect to their total expenditures.
Source: Ambito
