National government’s primary balance for the month of August showed a deficit of AR$161.7 billion because of the decrease in revenues and the increase in expenditures. Including debt interest payments, the financial deficit reached AR$218.6 billion.
Total revenues shrank by 37.9% YoY in real terms, mainly because in August 2019 profits were transferred from the BCRA for AR$127 billion, something that did not occur in August this year. If this transfer to the Treasury is not considered for comparison, the drop in revenues moderates to 12.4% YoY.
Primary expenditures grew by 24.1% YoY, which is the fifth consecutive month of more than double-digit growth in real terms. Expenditures under COVID-19 totaled approximately AR$116.9 billion, without which primary expenditure would have fallen 2.6% YoY.
Total expenditures (which include debt interest payments) showed a real increase of 25.7% YoY.
Outstanding appropriations increased by 56.2% as of August compared to the initial appropriations. Out of that increase, 62.7% was allocated to social benefits pensions, Emergency Family Income (IFE) and Supplementary Wage (AETP). Law 27,561, passed in August, increased the spending budget by AR$ 1.86 trillion.
As of August 31, total expenditures accrued 57.7% of the current budget appropriation, driven by current expenditures. Transfers to universities (66.0%) lead the level of execution achieved, while at the other extreme is real direct investment (33.6%).