income grew 87% and expenses 77%

This dynamic occurs thanks to a real increase in total revenues of +17.6% real yoy, simultaneously with an expansionary fiscal policy (0.8% real yoy; 12.9% real yoy net COVID).

Income

In the reference period, Total income of the SPN amounted to $879,209 million (+87.3% yoy). Tax revenue grew 86.5% yoy, driven by the performance of taxes from Foreign Trade, Social Security and economic activity. Export Duties continued to post a significant increase (+209% yoy). In turn, income associated with Social Security Contributions and Contributions showed an acceleration compared to the previous month for the third consecutive month (+78.7% yoy), as a result of the increase in the average salary, after the various joint agreements.

Income linked to economic activity, such as VAT net of refunds (+$68,114.4 million; +74.8% yoy) and Credits and Debits (+$40,898.9 million; +95.7% yoy) also presented a acceleration in the margin compared to the previous month and exhibited growth above the price level.

Expenses

For its part, SPN expenditures reached an increase of 77.0% yoy, a figure that amounts to 78.9% yoy after excluding extraordinary expenses associated with COVID-19 in 2020 and 2021. This spending expansion is driven by both the capital investment as well as for the different “social inclusion and containment measures” deployed by the National Government throughout the current year.

Current transfers reached $494,639 million (+70.9% yoy; +80.4% yoy net of COVID expenses). Those corresponding to the private sector presented a growth of +$205,286 million (+80.5% yoy; +82.0% yoy net of COVID expenses).

The increases in programs such as Boost Work (+$47,752.3 million), due to the increase in beneficiaries and the Minimum salary, vital and movil; and Employment Actions (+$10,107.1 million) – mainly REPRO II – for assistance to the productive sectors critically affected by the pandemic.

During December, the payment of the bonus of up to $8,000 to retirees and pensioners was registered, which represents an investment of around $35 billion; as well as the increase in +$7,253.9 million in the payment of Family Allowances, which contemplates the granting of the monthly supplement provided by decree No. 719/21.

At the same time, increases in transfers were observed for critical sectors such as Health and Tourism (Medical care for PNC beneficiaries; +$4,576.8 million and pre-travel; +6,282.7 million), as well as for the programs ACCOMPANY (+$3,112.8 million) and PROGRESS (+$2,687.2 million)

In terms of energy subsidies, assistance to CAMMESA (+$52,308.2 million) in the framework of the Electric Power Policy Formulation and Execution program stands out.

The Current transfers to the public sector showed a variation of +26,875.2 million (+40.5% yoy; +75.2% yoy net of COVID spending).

Transfers to the Autonomous City of Buenos Aires and the province of Buenos Aires in respect of the Fiscal Strengthening Fund provided for in Resolution 524/2020 stand out. Likewise, there were increases in transfers to Provincial Governments (+$4,406.7 million) by the Ministry of Health, within the framework of the Prevention and Control of Chronic Diseases program and for the Development of Health Insurance

Social security benefits amounted to $529,695.2 million (+61.9% yoy). This dynamic is explained by the impact of the current mobility formula (Law No. 27,609), which shows higher increases in line with the recovery of revenue and wages in the economy.

In the same way, Remuneration registered a variation of 84.5% yoy as a result of the increases granted in accordance with the current wage parity together with the payment of the extraordinary sum of $20,000, which reached more than 350,000 workers of the National Public Administration. As for spending on goods and services, this registered a rise of +32,705.7 million (+125.2% yoy), largely due to the acquisition of vaccines and actions to mitigate the pandemic (+$13,589.1 million ).

Capital expenditure registered a rise of +$61,390.6 million (+134.2% yoy), doubling its value compared to the same period of the previous year. The growth was driven mainly by Real Direct Investment (+135.6% yoy), in which the investment made by the National Highway Administration for the construction and maintenance of highways, roads and expressways (+$14,551.6 million ) and investment by public companies (+$8,564.1 million).

In addition, there were greater capital transfers to the provinces (+240.3% yoy), among which those made for sanitation and water supply works (+$2,323.0 million), energy works (+2,201, 7 million), housing construction (+$2,161.5 million) and transportation works (+$1,737.7 million).

Balance 2021

In this way, the National Public Sector closes the 2021 financial year with a primary deficit of $1,407,641 million and a financial deficit of $2,091,882 million, after excluding the extraordinary income corresponding to SDRs. This dynamic occurs thanks to a real increase in total revenue (+17.6% real yoy) simultaneously with an expansive fiscal policy (0.8% real yoy; 12.9% real yoy net COVID) “which guarantees economic growth with social inclusion while advancing in the sustainability of public finances,” said Economy.