In September, public expenditure grew below inflation once again, registering eleven consecutive months of year-on-year decline in real terms. In a context of financial deficit, debt interest recorded the highest growth in current expenditure, while capital expenditure showed a slower growth. Energy subsidies will increase this year by AR$80.5 billion compared to the previous year.

  • The cumulative financial balance for the first nine months of the fiscal year showed a deficit of AR$320.4 billion, which implies an improvement of 51.6% YoY in real terms with respect to the same period of the previous year (-AR$429.9 billion).
  • National government revenues recorded a year-on-year increase of 41.0% YoY, while expenditures grew at a rate of 42.2% YoY, below inflation, although reversing four consecutive months of growth below revenues.
  • Revenues were favored by the increase in Export Duties (130.5% YoY), which partially offset the drop in property income (-13.2% YoY) and the slowdown in Value Added Tax collection.
  • Interest on debt was the component with the greatest expansion (80.4% YoY), while at the other extreme, economic subsidies showed a contraction of 13.7% YoY.
  • As of September 30, the initial budget appropriation increased by AR$122.19 billion, AR$43.68 billion by Necessity and Urgency Decrees (35.8%) and AR$78.5 billion by Administrative Decisions (64.2%).
  • The level of execution of total expenditure was 73.9% as of September 30.
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