Nicolas Perez - Oficina de Presupuesto del Congreso

ECONOMIC-FINANCIAL STUDY ON PUBLIC ENTITIES EXCLUDED FROM THE NATIONAL ADMINISTRATION

by Nicolas Perez | May 3, 2023 | Specific Budget Issues

In fiscal year 2022, the national agencies identified as “Other Entities” recorded expenditures equivalent to 1.55% of the Gross Domestic Product (GDP) and resources representing 1.73% of GDP, thus improving the result of the previous year, in which this subsector also recorded higher revenue than expenditures.
As of fiscal year 2020, the subsector was in surplus in the order of 0.2% of GDP given the positive results of the Federal Administration of Public Revenues (AFIP) and the National Institute of Social Services for Retirees and Pensioners (INSSJP).
There was a gradual but systematic decrease in the subsector’s expenditures over the last ten years, from 1.77% of GDP in 2012 to 1.55% in 2022, basically due to the fall in staffing and personnel expenses and transfers to the private sector to provide services to INSSJP beneficiaries.
In the last decade, INSSJP and AFIP accounted for an average of 65% and 27%, respectively, of the subsector’s revenues.
Other Entities together employ almost 38,000 employees, 8% of the total staff of the Executive Branch and the Judicial Branch combined, a figure that decreased in the last decade.
This subsector has its own systems to generate accounting, financial and budgetary information, and the obligation to periodically submit information to the Ministry of Treasury, a duty that in some cases is partially fulfilled.
The large budgetary systems (SIFEP or SIDIF) do not provide information on the recipients of transfers to private parties or on the progress in the physical execution of their budgets.
As of 2002, “Other Entities” were excluded from the scope of the National Budget Law

ECONOMIC-FINANCIAL STUDY ON PUBLIC ENTITIES EXCLUDED FROM THE NATIONAL ADMINISTRATION

OPC STRENGTHENS LINKS WITH PARLIAMENTARY ADVISORS AND LAUNCHES REDESIGNED WEBSITE

by Nicolas Perez | May 2, 2023 | Activities

On Thursday, April 27, the OPC held the first of the three meetings scheduled with advisors of the Budget and Finance Committees of the Chambers of Deputies and the Senate of the Nation to analyze issues on a joint work agenda.

During the meeting, the OPC Interim Director, María Eugenia David du Mutel de Pierrepont, shared with the representatives of both Chambers proposals included in the annual work plan and presented the redesigned web page.

The redesign of the OPC web page aims at facilitating the browsing and analysis of the reports, an input for the legislative debate. The sequence of meetings was planned to strengthen communication with the advisors, to know their expectations and to reinforce the purpose of being an “efficient, responsible and useful body for the legislators”, as María Eugenia Pierrepont emphasized.

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – MARCH 2023

by Nicolas Perez | Apr 18, 2023 | Budget Execution

With a real fall in revenues and a cut in expenditures, during the first quarter of the year the financial deficit of the National Government was 7.4% higher in real terms than that of the first three months of 2022.
Revenues fell 9.5% YoY, basically due to lower revenues from taxes related to foreign trade.
Export duties decreased 69.5% YoY, while the higher economic activity boosted VAT and check tax revenues.
Social Security contributions increased (3.2% YoY), boosted by the higher number of formal jobs.
Total expenditures contracted by 5.9% YoY, an adjustment that reached 8.7% YoY in primary expenditures, mainly driven by lower energy subsidies and capital transfers to housing trust funds.
In a context of lower expenditures, interest payments rose 22.0% YoY.
The primary result was negative by ARS758.991 billion, 3.3% lower than the deficit reached a year earlier. The economic deficit was ARS1,139.553 billion.
As of March 31, 20% of the budget appropriation was accrued, a proportion surpassed by debt interest, transportation subsidies and social programs.
The budget appropriation increased by ARS108.036 billion over the amount budgeted at the beginning of the fiscal year.

PUBLIC DEBT OPERATIONS – MARCH 2023

by Nicolas Perez | Apr 18, 2023 | Public Debt, Public Debt Operations

In March, three securities auctions were held. The swap of debt in pesos maturing in June 2023 had an acceptance rate of 58%.
The two cash-based auctions resulted in the placement of government securities payable in pesos for ARS727.888 billion.
Net IMF financing for the month was USD2.671 billion.
Principal payments of USD163 million were made to Paris Club member countries.
There were net placements of Temporary Advances (TA) for ARS130 billion, the stock increased to ARS2.92 trillion.

ANALYSIS OF NATIONAL TAX REVENUE – MARCH 2023

by Nicolas Perez | Apr 17, 2023 | Tax Revenue

Tax revenues amounted to ARS2,336.942 billion in March 2023, which implied a growth of 88.3% year-on-year (YoY). Adjusted for inflation, it decreased 8.1% YoY.

Among taxes, the increase in real terms in VAT, because of the higher economic activity, and in Wealth Tax, as a result of higher receipts for the purchase of foreign currency and the additional tax rate applied to trips and expenses abroad, stand out. Income Tax decreased due to the refund of taxes levied on foreign currency transactions.

Export Duties decreased as a result of lower volumes recorded in the foreign sales affidavits (DJVE), which evidenced the decoupling of collection with respect to international prices, due to export incentive programs.

On the other hand, Social Security contributions grew with respect to the same month of 2022, favored by the increase in the number of formal jobs.

MARCOS MAKÓN COMPLETED HIS TERM AS HEAD OF THE OPC

by Nicolas Perez | Mar 27, 2023 | Activities

On January 31, the terms of office of the OPC General Director, Marcos Makón, of the Director of Fiscal and Tax Analysis, Carlos Guberman, and of the Director of Sustainability and Public Debt Anlysis, Mariano Ortiz Villafañe, ended, in accordance with the terms established by law.

During the meeting held to close this first stage, Makón expressed his “deep personal satisfaction for having had the opportunity to participate from the beginning in the OPC’s operation” and thanked “the support provided by the Parliamentary Oversight Committee, the legislators of the different benches and the Executive Branch, as well as for the invaluable service vocation and professionalism of the OPC’s staff”.

“As a fervent defender of democracy, I consider that the OPC has contributed, and should continue to contribute, to strengthen the role of the National Congress which, as representative of the people, requires to have objective technical analyses supported by solid, reliable and timely information on fiscal matters, necessary for the processes of review, approval and follow-up of policies in the matter”, he stressed.

Pending the resolution of the competitions to renew the directorates with expired mandate, the Parliamentary Oversight Committee appointed, through Resolution No. 1-CSP/23, the general directorate of the OPC to María Eugenia David du Mutel de Pierrepont, until now in charge of the Directorate of Studies, Analysis and Evaluation.