which sectors concentrated the biggest cuts

which sectors concentrated the biggest cuts

October 7, 2024 – 10:53

This was indicated by a study by the consulting firm Analytica, which indicated that in September it remained at a rate of cut. Retirees, public works and subsidies, the keys.

Ignacio Petunchi

Through the paralysis of public works and the reduction of subsidies and pensions, In September, the national government maintained the dynamics of public spending reduction and in nine months it reduced spending by 30.1%.

This was indicated by a study by the consulting firm Analytica, which indicated that In September it remained at the cutting pace with a drop in accrued spending of 29.7%.

“Among the accrued items with the greatest adjustments compared to September 2023 are public works (-73.1%), transfers to provinces (-58.1%) and spending on social programs (-47.4%)”, the report stated. The drop in retirements was 20% in the year and 9.3% in September.

Among the transfers to provinces are the National Treasury Contributions (ATN) and in September no transfers were registered under this concept. So far this year the drop is 74.2% year-on-year in real terms.

subsidies3.png

In September there were no transfers to the provinces

In September there were no transfers to the provinces

Social expenses increased but education fell

On the other hand, the report highlighted the 8.6% increase in spending on family allowances and AUH, driven precisely by a 57.8% increase in spending at the AUH.

With regards to educationin September, the secretariat’s spending fell by 56.1% real year-on-year and in the first nine months the drop is 48.6% comparing with the same period last year.

In turn, personnel spending accumulated between January and September fell 37%.

Cut in teacher salaries

One of the most relevant programs in the educational portfolio in 2023 was the National Teacher Incentive Fund (FONID) which represented 14% of the Ministry’s total expenditure last year and 76% of the transfers accrued to educational provinces.

Its purpose was to assist provincial governments to improve teacher salaries. With decree 280/20242 the program was suspended and since June, no accrued expenses have been recorded, Thus, in the first nine months in real terms it was reduced 90.4%.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts