OPC 5 Budget Execution 5 Analysis of Budget Execution – October 2019 – Accrual Basis

Analysis of Budget Execution – October 2019 – Accrual Basis

November 12, 2019

October’s primary balance was in surplus by AR$23.09 billion, improving previous year’s performance. However, considering the payment of interest on the public debt for AR$39.48 billion, the financial balance was in deficit by AR$16.38 billion.

So far this year, that negative balance amounts to AR$340.55 billion and implies an improvement of 51.6% YoY in real terms compared to the same period of 2018.

To a large extent, this is possible because in the first ten months resources grew at a rate of 57.1% YoY (2.1% YoY real) with respect to 2018, 15.3 percentage points above total expenditures, which grew by 41.9% YoY (-7.8% YoY real).

The item with the highest year-on-year expansion was family allowances, which grew by 26.1% in real terms, mainly due to the increase in the Universal Child Allowance.

National government salaries grew nominally 38.4% YoY, however, they contracted 8.9% YoY in relation to inflation.

In 2019, property income increased its share in total resources, basically due to the resumption of Treasury financing through the transfer of Central Bank profits and the decline in the level of economic activity and the formal labor market as of April 2018, with an impact on tax resources.

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