Adjustment 2024: 80% went through social spending, education, culture and energy

This is what the economist points out in a study Nadin Argañaraz, head of the Argentine Institute of Fiscal Analysis (IARAF). The report highlights that the expenditure accrued by the APN went from 19.9% ​​of GDP to one equivalent to 15.7%.

The report tries to approximate the magnitude of the adjustment, even taking into account that it has just In 10 days the final results for 2024 will be known, when the Ministry of Economy announce the result of the National Public Sector (SPN) on a cash basis that includes the entire administration of the State.

“From the analysis by purpose of the expense, it emerges that Of the 29 identified, only 3 had an increase in their relative weight between the years 2023 and 2024 and another 4 maintained the relative weight of 2023”, the report states. And indicates that “the remaining 22 purposes registered decreases, the largest being those of Promotion and social assistance, Social security, Education and culture, Energy, fuels and mining, Transportation and Internal relations.”

“Among these “6 purposes contributed 80% of the reduction in the relative weight of General Administration spending in terms of GDP,” stands out at work.

In detail, it is observed that the expenditure on promotion and social assistance contracted the equivalent of 0.78 points of GDP; social security, 0.66; education and culture, 0.58; and energy and combustions, 0.52 points.

Those that increased their participation were Labor, with 0.08 points of GDP; health, 0.05 and finances and interests with 0.01 point increase.

It should be taken into account that these are measurements based on the GDP that fell by 3% last yearand therefore the comparisons are carried out in the context of a smaller economy.

“The national government carried out a significant real reduction in the level of public spending during the year 2024. In this analysis, this reduction is quantified in relation to the economy, that is, what happened with public spending as a percentage of GDP,” the report states.

It should be remembered that the APN involves only the central administration. On the other hand, the complete SPN includes the ANP, decentralized organizations, social security institutions, public universities and state companies.

How much has been spent specifically until November 2024

According to data from the Ministry of Economy, in the cash basis measurement, that is, the expense accrued and paid, in the first 11 months of the year the Government has spent $82.7 billionin what corresponds to current spending. That figure would be real decrease of 11% in the accumulated between January and November.

In the first 11 months the Government accumulates $11.7 trillion in the primary surplus, That is, expenses against income, without taking into account the payment of interest. If this item is included, the accumulated amount is $3.3 billion. As the Minister of Economy himself anticipated, Luis Caputo, in December there was a financial deficit equivalent to 0.3 points of GDP, so that when the final result is known, it is likely that the Government will have maintained the primary balance in favor and will have maintained the financial balance.