OPC 5 Budget Execution 5 ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – MARCH 2021

ANALYSIS OF NATIONAL GOVERNMENT BUDGET EXECUTION – MARCH 2021

April 16, 2021

Primary, economic, and financial deficits were reduced in the first quarter of the year compared to those recorded in the same period of 2020 because of a real improvement in revenue.

Excluding the profit transfers from the Central Bank to the Treasury last year, total revenues for the first three months grew 9.3% YoY above inflation, despite the fall in Social Security and property income.

  • Tax revenue totaled AR$987.15 billion, which implied an increase of 29.2% YoY, due to the positive variations in the collection of main taxes compared to the previous year.
  • Resources from Social Security totaled AR$448.93 billion, which implied a drop of 8.4% YoY, due both to lower taxable income and to the drop in the number of contributors.
  • Primary expenditures increased by 3.2% YoY, but with a very uneven performance depending on the items. Economic subsidies and capital expenditures grew by more than 100% YoY, while pensions and salaries contracted.
  • Capital expenditures grew 126.9% YoY and were mainly allocated to the development of social housing (AR$15.55 billion) and Agua y Saneamiento Argentino S.A. (AR$15.35 billion).
  • During the first quarter of 2021, expenditures related to the COVID-19 pandemic accrued approximately AR$58.03 billion, 3.6% of primary expenditures.
  • The initial approved budget increased by AR$47.9 billion, with the largest increase in COVID-19 vaccine logistics and distribution services.
  • Financial assistance for the construction of modular hospitals totaled AR$4.67 billion.
  • As of March 31, total expenditures totaled AR$1.71 trillion, equivalent to 20.3% of the current budget appropriation.
  • According to AFIP (Federal Administration of Public Revenues), collection of Solidarity Contribution, which is considered a non-tax revenue, totaled AR$6.06 billion in the first quarter.
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