Total revenue of the National Public Administration (APN) rIn August they registered the biggest drop of the year, showing a real decrease of 21.3%, According to a report by the Argentine Association of Budget and Public Finance (ASAP).
“In August, the total revenues of the National Public Administration (APN) adjusted for inflation decreased by 21.3% compared to the same month of the previous year. This drop was more pronounced than in previous months”ASAP noted in a report.
In fact, total income, which includes tax collection, social security and others that have to do with interest and rents received by the State, were the lowest of the year last month.
ASAP data indicate that in January there was a 0.3% decline, in February there was an improvement of 5.9%, in March there was a 12.9% decline and in April there was a contraction of 2.9%.In May, there was a 9.6% increase due to the extraordinary collection of corporate income tax and in June they fell again, 18.2%, while in July they contracted 5%.
In this regard, in relation to August, the entity points out that “although Tax Revenues showed a significant decline (12.2%), which contrasts with the 4.1% growth accumulated at the end of July, The sharp drop in Property Income (88.6%) stands out.”
The report indicates that this concept “went from representing andl 13% of total revenue in August 2023, to just 2% in the same month in 2024, mainly due to the BCRA profits received last year that were not repeated in 2024.”
“Furthermore, the trend in Social Security Contributions continued, with a variation of -7.2%, which implies a decrease compared to the sharp fall of the first six months of the year, showing a relative improvement in wages compared to previous months,” says the study.
The chainsaw was the smallest in 2024
In August, Total accrued expenses of the APN contracted by 12.4% In year-on-year terms, according to ASAP, “the smallest contraction of the year”.
In particular, a significant increase is observed Interest payments increased by 55.8% year-on-year, while Primary Expenditure reduced its level of decline compared to previous months by (23.2%) “Accompanying this dynamic, the categories of Remunerations and Transfers to the Public Sector showed smaller declines than the previous month,” the study indicates.
Primary surplus
The report indicates that in August, the execution of the Budget resulted in a primary surplus of $455.16 billion, which, when interest is incorporated, results in a negative financial result of $1.92 billion.
Source: Ambito
