OPC 5 Budget Execution 5 Analysis of National Government Budget Execution – March 2020

Analysis of National Government Budget Execution – March 2020

April 15, 2020

National government accounts recorded a primary deficit of AR$84.02 billion and a financial deficit of AR$135.71 billion in March, both figures being worse than those of the same month of the previous year due to the combined effect of a drop in revenues and a rise in expenditures.

In an adverse economic context of declining production, consumption and employment, tax resources fell by 14.7% YoY in real terms and Social Security resources by 4.2% YoY

Expenditure growth was basically driven by the financial assistance to social plan beneficiaries, transfers to provinces and hospitals, in the pandemic context.

In the first quarter of the year, 26.1% of the current budget was accrued, which was increased by AR$64.55 billion. Of this increase, 51.9% was allocated to social benefits (AR$38.16 billion) through different palliatives for the health emergency.

Some social benefits, such as Food Policies, Supplement to Social Security Benefits and Employment Support, also gained relevance with execution levels above 45%.

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