National government primary deficit amounted to AR$43.4 billion, due to the increase in expenditures and the decrease in revenues, both conditioned by the health crisis. Meanwhile, if interest on the debt is included, the financial deficit widens to AR$74.12 billion.
Primary expenditures for the month increased by 19.2% YoY in real terms, mainly due to the measures adopted by the national government within the framework of the COVID-19 health emergency.
The programs implemented to face the health challenge resulted in an expenditure of approximately AR$96 billion, without which primary expenditure would have fallen by 2.8% in real terms compared to July of the previous year.
Total revenues dropped 8.3% YoY in real terms due to the contraction of all their components, except for property income, which included the transfer of profits from the Central Bank of Argentina (BCRA) for AR$100 billion.
Through thirteen amendments, the initial budget for the year increased by AR$864.29 billion, 66.2% of which was allocated to strengthen social benefits.
The cumulative execution of the existing expenditure budget as of July totaled 65.9%, mainly due to current expenditures. All expenditure components recorded high levels of execution, except for debt interest and capital expenditures.