Nicolas Perez - Oficina de Presupuesto del Congreso

EVOLUTION OF GENDER-RESPONSIVE BUDGET ACTIONS 2019-2022

by Nicolas Perez | Oct 4, 2023 | Gender

Expenditure tagged with the initials PPG (for Gender Responsive Budgeting) by the Executive Branch reached in 2022 the equivalent of 19% of the total expenditure of the National Government and 4.1% of GDP.

The PPG Expenditure expanded by an average of 3.3% in real terms per year between 2019 and 2022, above the evolution of total expenditure (with an average annual growth of 0.3%).
Both the beneficiaries and the financial allocation of existing programs, such as the Alimentar Card and the Potenciar Trabajo program, grew, and others were created, basically to address gender-based violence (Acompañar program).
Other actions, such as those included in the Brisa Law and the Gender Identity Law, were given their own budget.
The Ministry of Social Development went from concentrating 8.0% of total PPG Expenditure in 2019 to 24.6% in 2022.

FISCAL IMPACT OF BILL 0018-PE-2023 “BUY WITHOUT VAT” PROGRAM

by Nicolas Perez | Sep 28, 2023 | Cost Estimates

Bill 018-PE-2023 provides for the creation, as from January 1, 2024, of the “Buy without VAT” Program. This program establishes a refund of up to 21% of the expenses on goods of the Basic Food Basket (with a monthly ceiling equivalent to 21% of the value of the Basic Food Basket of a Type 2 Household) for a universe of around 21 million beneficiaries.

FISCAL IMPACT OF BILL 0018-PE-2023 “BUY WITHOUT VAT” PROGRAM

ANALYSIS OF THE 2022 NATIONAL GOVERNMENT FINANCIAL REPORT

by Nicolas Perez | Sep 26, 2023 | Financial Report

The primary result of the National Government during fiscal year 2022 was negative by ARS2,915.619 billion, equivalent to 3.5% of GDP. Excluding the remission of profits of the Central Bank received in 2021, the primary deficit implied an improvement of 1 percentage point compared to that year.

Total revenues fell 12.7% year-on-year in real terms, and primary expenditures declined 7.4% YoY.

Interest on debt increased by 18.0% YoY, moderating the 5.6% YoY decline in total expenditure.
Due to differences between the mobility adjustment formulas and inflation, family allowances fell 2.4% YoY and general regime pensions fell 2.5% YoY.
Capital expenditures contracted 37.6% YoY, reflecting decreases in all items and recipients.
The financial deficit was 5.4% of GDP, lower than in the previous year.
A total of 96.3% of the budget increases were allocated through a Necessity and Urgency Decree (DNU).
The stock of public debt payable in foreign currency totaled USD264.032 billion, showing an increase of USD10.023 billion during 2022.
Debt in pesos increased by the equivalent of 4.8% of GDP, reaching 28.1% of GDP.
During the year, the deficit of the National Non-Financial Public Sector, which includes state-owned enterprises, trust funds and other national entities, increased to 5.0% of GDP.

ANALYSIS OF THE 2022 NATIONAL GOVERNMENT FINANCIAL REPORT

PUBLIC DEBT OPERATIONS – AUGUST 2023

by Nicolas Perez | Sep 21, 2023 | Public Debt, Public Debt Operations

Government securities for ARS1,730.468 billion were placed in two auctions.
A disbursement of USD7.299 billion was received from the IMF and repayments of USD912 million and interest of USD778 million were paid to that organization.
There were net cancellations of Temporary Advances of the Central Bank for ARS500 billion, and the stock decreased to ARS4.09 trillion.
For September, maturities in domestic and foreign currency are estimated for the equivalent of ARS1,076.209 billion and USD768 million, respectively.
Maturities from September to December amount to ARS5,383.693 billion and USD6.237 billion.

PUBLIC DEBT OPERATIONS – AUGUST 2023

FISCAL IMPACT OF BILL 0016-PE-2023 TO MODIFY INCOME TAX

by Nicolas Perez | Sep 18, 2023 | Cost Estimates

The Bill proposes a modification of the Income Tax for the fourth category as from the 2024 tax period. Specifically, it establishes a schedular tax for such income -with certain exceptions-, to which an annual non-taxable minimum of 180 minimum vital and mobile salaries (SMVM) and a new table of marginal tax rates, also defined according to the value of the SMVM, are applied.

FISCAL IMPACT OF BILL 0016-PE-2023 TO MODIFY INCOME TAX

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – AUGUST 2023

by Nicolas Perez | Sep 14, 2023 | Budget Execution

As a result of a greater real fall in expenditures than in revenues, in the first eight months of the year the financial (11.2%), primary (26%), and economic (9.9%) deficits were reduced in real terms.

Total revenues fell by 2.7% YoY in real terms, a decline which is attenuated if the ARS400 billion that the Central Bank transferred to the Treasury between July and August is considered.
Primary expenditure fell by 6.8% and total expenditure by 4.8% YoY, since the latter includes the payment of the public debt, an item that increased during this period.
Some expenditure items recorded increases in relation to the same period of the previous year: debt interest (16.7% YoY), transportation subsidies (13.9% YoY), transfers to universities (11.1% YoY), and personnel expenses (7.9% YoY).
As for capital expenditures, the transfers to ENARSA, ARS232.768 billion (932.2% real) for energy works, stand out.
Budget amendments were made which enabled higher expenditures in the items requested by the legislators in the parliamentary discussion of the Budget Bill.
As of August, energy subsidies stood out for their level of execution, with 74.0% of the current appropriation.