This document outlines the methodology used by the Argentine Congressional Budget Office (OPC) for the preparation of the Effective Rate of Assistance by Economic Activity Report. This report, prepared for the first time in 2023 at the request of the Budget and Finance Committee of the Honorable Chamber of Deputies of the Congress of the Nation, will be annually updated by the OPC.
The bill under revision for the financing of National Universities, which has been approved by the Honorable Chamber of Deputies, proposes to update the budget appropriations allocated to cover the operating expenses of these universities at the beginning of the fiscal year 2024 by the annual variation of the Consumer Price Index (CPI) in 2023, and then, bimonthly adjust the resulting amount by the CPI reported by the National Institute of Statistics and Censuses (INDEC), discounting the increases already granted so far this year.
Likewise, it establishes a salary increase for teachers and non-teaching personnel as from 12/01/2023 and until the approval of the bill as a law, considering the raises already granted, and then a monthly update by inflation reported by INDEC.
In July, public debt payable in pesos amounted to ARS182,535.922 billion, and implied an increase of 9.6% with respect to the end of June, while debt payable in foreign currency decreased by USD1.125 billion to reach USD253.920 billion.
BONCERs held by the BCRA were swapped for a new instrument, the LEFI, for ARS20 trillion, which will be used as the main liquidity management instrument.
The first amortization payment and an interest coupon were paid on the bonds issued in the 2020 foreign currency debt restructuring process for a total of USD2.551 billion.
The last amortization payment of the IMF loan of the 2018 stand-by arrangement for the equivalent of USD647 million was made.
Debt services for the August-December term in domestic currency are estimated at ARS32,273.034 billion and in foreign currency at USD8.028 billion.
In the first half of 2024, the stock of public debt payable in pesos amounted to ARS166.5 trillion, which represented an increase of 98.6% with respect to year-end 2023. Net issuances amounted to ARS17 trillion, and valuation adjustments to principal and capitalization of interest increased the stock by ARS66 trillion.
On the other hand, the stock of foreign currency debt decreased by the equivalent of USD9.436 billion in the same period, due to net principal cancellations of USD8.12 billion and principal adjustments of USD1.316 billion.
The report basically summarizes macroeconomic projections for the current year, budget execution through May 2024, estimated revenues and financing strategy for 2025, and government employment management. The description of the scenario and the budgetary policy proposals refer to:
In the first seven months of the year, National Government expenditures fell more than revenues in real terms, resulting in a financial surplus of ARS1.18 trillion. If debt interest is deducted, the primary surplus reached ARS7.18 trillion.
