The Government achieved a fiscal surplus of $466,631 million in September

He National Public Sector (SPN) recorded in September a primary result of $816,447 million and a financial surplus of $466,631 million, with which he thus completed nine months of favorable resultssomething that, in the annual accumulated, has not happened since 2010.

This was reported by the Ministry of Economy, which indicated that “the financial surplus achieved last month contrasts with the deficit recorded in September 2023, which at current prices was equivalent to almost $1.6 trillion.”

“In the first 9 months of the year, the SPN accumulates a primary surplus of approximately 1.7% of GDP and a financial surplus of almost 0.4% of GDP. Since 2010, a financial surplus has not accumulated in the first 9 months of the year,” the report states.

According to the Treasury Palace, “In the first 9 months of the year, primary spending was reduced 30% in real terms.” “The items that recorded the greatest decreases are Capital Expenditure (79%), Discretionary Current Transfers to Provinces (70%) and Rest of Current Expenditure (52%), which includes other expenditures such as transfers to cover the deficit on the part of public companies. Economic subsidies, meanwhile, were reduced by 34%,” says official information.

It is noted that “the resources allocated to Universal Allowance for Social Protection (AUPS) increased 22% in real terms between January and September, reflecting, together with the Alimentar Card and the First 1,000 Days program, the reinforcement of social programs that reach the most vulnerable population without intermediaries.”

“In the month of August, the Expenditures linked to the AUPS grew 32% in real terms. Finally, transfers to PAMI rose 0.3% in real terms,” ​​clarifies the Treasury Palace.

The official information also indicated that “with this result, the Ministry of Economy continues to reinforce the commitment to the fiscal order, consolidating the financial balance and, in this way, eliminating financing needs which until last year were mainly covered with monetary issue”.

In September the cut was moderated

According to the study of Argentine Institute of Fiscal Analysis (IARAF), last month the Total resources had a negative real interannual variation of 8%, which is due to the fact that tax revenues decreased by 3.8% in real terms. and the non-tax ones the real 44%. On the side of primary spending, a real 25% reduction was recorded.

“He interest expense fell 13.6% in real terms compared to the same month last year. Indeed, the fiscal deficit went from $511,000 million in September 2023 to a surplus of $466,000 million in September 2024,” says the IARAF.

The change would be due in part to the fact that the Government began to issue capitalizable bills to absorb the surplus of pesos of the market. These do not accrue interest, but are added to the debt at the end of the period. In 2023, the Government financed itself by issuing bills and bonds that generated interest.

Another piece of information provided by IARAF is that during the first 9 months of the year, total income fell by 6.3% real year-on-year, while primary spending fell by 29.5% year-on-year real. The Government is thus moving towards meeting the annual objective.

Upon completion of the January-September period “the fiscal adjustment is equivalent to 3 percentage points of GDP”highlights the entity headed by economist Nadin Argañaraz.

Those who have been paying the adjustment

In the accumulated of the first nine months, national public spending on a cash basis decreased by $29.5 billion in constant September pesos compared to 2023. The IARAF points out that 14 of the 16 types of expenses had cuts of $30.1 billion in constant currency, then 2 of the 16 had increases of $0.5 billion.

Of those expenses that fell, it can be seen that retirements and pensions supported 25% of the total reduction, real direct investment 15%, transfers to provinces 16%, energy subsidies 11% and salaries and social programs 8%, among the most important.