The government closed the August accounts in “balance” as anticipated by the Minister of Economy Luis Caputo in a chat with officials from the Treasury Department broadcast via streaming.
“August is going to be coming back in balance again which is very praiseworthy because it is a month in which higher than normal interest was paid because there was a payment to the IMF and in addition the collection of Income Tax and Personal Property Tax was moved to September,” said Caputo.
In this way, the fiscal result of the The non-financial National Public Sector (NPS) is reported to have returned to surplus after the deficit reported in July.
The official added that “Having been balanced in August is very meritorious and that will go further than covering the reduction of the PAIS Tax in September.”
“In August we will be announcing that we are in balance and lowering tariffs,” the Minister of Economy anticipated.
According to the latest official data available, In August, tax collection registered a sharp drop of 13.7% compared to of the same month in 2023 in real terms if inflation is discounted.
This meant that the tax office could reunir during the last month $11.7 billion. Based on what Caputo said, in August the government took advantage to create a “cushion” of money to be able to face the restitution of the PAIS Tax at the levels of 7.5%, which was how he found it from the previous administration.
Just now in September will begin to receive contributions from the restored Income Tax for the fourth category and Personal Property Tax, in addition to what is generated by the tax moratorium, which in August already left an aggregate of $243,000.
Evolution of expenses in August
According to a study conducted by the Argentine Association of Budget and Public Finance (ASAP) in August, the Total accrued expenses of the National Public Administration (which does not include the entire National Public Sector) contracted by 12.4% year-on-year, which was “the smallest contraction of the year.”
In particular, a significant increase in interest payments of 55.8% year-on-year, while Primary Expenditure reduced its level of decline compared to previous months (23.2%).
ASAP data reveals that At least the expenditures are increasing from the moment the national State authorizes an expense, which does not imply that it is cancelled at the moment.That is, it is the accrual or moment in which the payment obligation is recorded.
The question is whether what was paid last month has increased in the same way or if the cancellation has been “pushed” to a later date. This is the increase in the so-called “floating debt”.
Source: Ambito
