The data, as indicated in a report by the Argentine Association of Budget and Public Administration (ASAP)implies a reduction in total resources of $1.96 trillion compared to the end of 2024. In real terms, the cut is 26.7% compared to 2024.
It is worth remembering that the national government is managed with the Budget 2023, extended in 2024 and again for 2025. In this way, it is up to the decision of the Executive Branch to establish the calculation of the different expenditure items and estimation of income for financing.
ASAP warns in this sense that the Budget project that the Executive Branch had presented, and that finally the ruling party decided not to discuss in Congresscontained a resource projection of $113.6 billion, with it there is a difference that amounts to $25.59 billion with respect to what is established in what is published in the Official Gazette.
ASAP analysis It does not provide details about the reasons why the Government would be imputing such a low reduction in resources to the Budget.. Politically, one could speculate with a discretionary use of money that would come in above what was expected. What is true is that When extending the Budget for 2024, the Government also did so with the items not updated for inflation.
In that case, the extension of the 2023 schedule was due to the fact that President Javier Milei did not accept the one that Alberto Fernández had left. But in 2025, however, the Government had already developed its own in which he had estimated a certain amount of resources for this year. Throughout 2025, the Government will introduce modifications via decree and administrative decisions.
The PAIS Tax subtracts income
ASAP points out that “within current resources, the main difference is due to the decrease in Tax Revenues which, with respect to the total resources in force at the end of 2024, amounts to $5.65 trillion, which represents a drop of 32.4% year-on-year adjusted for inflation.”
“This decrease coincides exactly with the level of PAIS Tax planned in fiscal year 2024, which implies that the rest of the taxes repeat the nominal level of 2024,” says the report.
In other words, the report clarifies that “no estimate was made for the new year” in relation to resources.
On the other hand, it is expected an increase in the collection of Social Security Contributions and Contributions by $3,796,190 million, partially offsetting the projected drop in collection.
Regarding non-tax income, Fewer resources are expected for the year 2025. In turn, capital resources, which represent a very minority portion of income, recorded a decrease of $1,524 million explained by lower funds received through capital transfers.
Source: Ambito
